Allegheny Technologies (ATI) expects demand for specialty metals to increase in the second half of this year, to pre-pandemic levels.
The specialty metal manufacturer expects the demand for its aviation-related business, especially jet engines, to rise by H2 2021, though the slump will continue through the first two quarters of the year due to the resurgence of COVID-19 cases across the world that has resulted in restricted air travel.
This year, the firm plans to focus on improving its operations, transform its specialty rolled alloys business, and strengthening its cash flow and balance sheet, it said in a statement on Jan 28.
ATI’s consolidated sales in 2020 dropped to $2.9bn from $4.1bn in 2019 and fell to $68.3bn in Q4 2020 from $1bn in the previous year’s quarter, but increased from $598mn in Q3 2020.
Sales of its High Performance Materials & Components (HMPC) business fell to $222.3mn in the fourth quarter of 2020 from $497 in Q4 2019 and rose from $221.3mn in Q3 2020. Its sales of Advanced Alloys and Solutions (AA&S) declined to $436mn in Q4 2020 from $521.6mn during the same period in 2019 but increased from $376.7mn in Q3 2020.
The company’s consolidated adjusted EBITDA in 2020 fell to $196.3mn from $439.4mn in 2019. Its adjusted EBITDA declined to $23mn in Q4 2020 from $119.3mn in Q4 2019 and increased from $16.6mn in Q3 2020.