- Allegheny Technologies (ATI -3.5%) reported Q2 revenue growth of 7% Y/Y to $1.08B, with High Performance Materials & Components sales of $642M (+9% Y/Y) and Flat Rolled Products sales of $438M (+5% Y/Y).
- Q2 Gross margin declined by 85 bps to 16.5%; and operating margin declined by 174 bps to 10.6%.
- Segment operating margins: High Performance Materials & Components 15.4% down by 110 bps; and Flat Rolled Products 3.6% down by 270 bps.
- Cash provided by operation for the quarter was $26M.
- Sales of non-core assets generated over $60M in cash. Company says additional non-core asset sales will generate ~$189M in cash proceeds in Q3, including $127M for the sale of our titanium casting operations and $62M for the sale of oil and gas rights in New Mexico.
- 3Q19 Guidance: High Performance Materials & Components expected revenue increase by a low-to-mid single digit percentage; and operating margin improvement of ~150 bps YoY. Flat Rolled Products expected sales growth in high value products and modest operating profit decline.
- FY19 Guidance: High Performance Materials & Components revenue growth expected ~5% to 7%; and operating margin in line with prior year. Flat Rolled Products revenue growth partially offset by lower commodity product volumes.
- Previously: Allegheny Technologies EPS beats by $0.06, beats on revenue (July 23)
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