PITTSBURGH--(BUSINESS WIRE)--Dec. 1, 2016--
Allegheny Technologies Incorporated (NYSE:ATI) announced today that its
Board of Directors has decided to suspend its quarterly dividend
“We expect ATI’s financial performance to improve significantly in 2017
as a result of strong profitable growth in our High Performance
Materials & Components segment, a return to modest profitability in our
Flat Rolled Products segment, and the aggressive cost reduction actions
we have taken since late last year,” said Rich Harshman, Chairman,
President and CEO.
“As earnings improve in 2017 and beyond, the resulting annual free cash
flow, after necessary capital expenditures, will be used primarily to
reduce debt, improve the funded position of the Company’s defined
benefit pension plan, and improve liquidity. We are focused on creating
long-term shareholder value by returning ATI to sustainable
profitability, strengthening our balance sheet, and restoring and
maintaining financial flexibility and strong liquidity.
“In support of these objectives, ATI’s Board of Directors has decided to
suspend the quarterly dividend beginning in the fourth quarter 2016.
Suspending the quarterly dividend, which saves nearly $35 million
annually, provides additional liquidity and financial flexibility as we
enter 2017 and the latter stage of ATI’s transformation.
“As previously reported, in 2017 we plan to make a $135 million
contribution to our U.S. defined benefit pension plan and repay our $100
million term loan due in 2017. In addition, we expect capital
expenditures to be approximately $120 million in 2017, and to be
approximately $100 million annually for several years beyond 2017.”
Creating Value Thru Relentless Innovation™
Allegheny Technologies Incorporated is one of the largest and most
diversified specialty materials and components producers in the world
with revenues of approximately $3.1 billion for the twelve month period
ending September 30, 2016. ATI employees use innovative technologies to
offer global markets a wide range of specialty materials solutions. Our
major markets are aerospace and defense, oil & gas/chemical and
hydrocarbon process industry, electrical energy, medical, automotive,
food equipment and appliance, and construction and mining. The ATI
website is www.ATImetals.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161201006306/en/
Source: Allegheny Technologies Incorporated
Allegheny Technologies Incorporated
Dan Greenfield, 412-394-3004