Allegheny Technologies Incorporated (ATI) anticipates its nickel prices will be in the range of $6.00-6.50/lb in 2020 and that the coronavirus will minimally impact its business.
The company also expects production on the 737 MAX to resume in Q2-2020, but even beyond that, aerospace and defense will remain key drivers for the company’s growth, ATI indicated in its fourth quarter and full year 2019 earnings report.
ATI’s sales increased by 2pc in 2019 to $4.12bn over the prior year, and excluding divestitures, it grew 4pc. During Q4 2019, sales totaled $1.02bn, which is 2pc below Q4-2018, but up 3pc excluding divestitures.
In 2019, nickel and specialty alloys and precision and engineering strip each comprised 32pc of the company’s full-year sales revenues followed by standard value stainless at 30pc, and titanium at 6pc. Revenue from titanium sales grew 21pc over 2018 and nickel and specialty alloys revenue grew 12pc, however, standard value stainless revenue decreased by 9pc and precision and engineering strip declined by 4pc.
The company’s revenue in 2019 totaled $4.12bn, up by 2pc over 2018 when it earned $4.04bn. In Q4 2019, ATI’s revenue totaled $1.02bn, up by 2pc over the previous year’s fourth quarter revenue of $1.03bn. Net income in 2019 was $258mn, up y 16pc over the $222mn of net income in 2018. Q4-2019 net income totaled $56mn, a 37pc increase over Q4-2018 net income of $41mn.