With the global increase in air travel, Allegheny Technologies (ATI) expects demand for its jet engine products to increase in the second quarter of the year.
The specialty metal alloy producer projects a significant improvement in the margin of its High-Performance Material & Component (HPMC) segment because of its aggressive cost-cutting strategies last year and improved demand moving into the second half of this year.
ATI’s total sales dropped to $692.5mn in the first quarter of the year from $955.5mn in the same quarter last year, but it was up from $658.3mn in the previous quarter.
Under this, the sales of HPMC products saw a decline to $240.9mn in the first three months of 2021 compared to $420.3mn in the same months in 2020 while it was up from $222.3mn in Q4 2020. The company’s sales of the Advanced Alloys & Solutions segment saw a drop to $451.6mn in Q1 2021 compared to $535.2mn in Q1 2020, and it increased from $436mn in Q4 2020.
The Pittsburgh company’s net income in Q1 2021 saw a $2.4mn loss compared to $23.6mn profit in the same quarter last year and saw an increase in net income compared to $1.1bn net loss in the previous quarter ending December 2020.
ATI’s total adjusted EBITDA dropped to $62.6mn in the first quarter of 2021 compared to $99.1mn in the same quarter in 2020 while it rose from $23mn in the previous quarter.