This compares to the third quarter 2011, when ATI reported net income of US$62.3 million, or US$0.56 per share, on sales of US$1.35 billion.
For the nine months ended September 30, 2012, net income was US$147.9 million, or US$1.32 per share, on sales of US$3.93 billion. For the nine months ended September 30, 2011, net income was US$182.6 million, or US$1.68 per share, on sales of US$3.93 billion.
ATI’s sales to the key global markets of aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical represented 68% of ATI sales for the first nine months of 2012.
“Continuing uncertainty regarding global economic conditions impacted our third quarter 2012 results,” said Rich Harshman, chairman, president and CEO. “We are seeing conservative inventory management throughout the supply chains of most of our major end markets. These actions appear to be driven by resolution of the U.S. ‘fiscal cliff’, and uncertain economic trends in China, Europe, and Japan."
Still, Harshman believes that as these uncertainties begin to be resolved, demand will improve for ATI's GDP-sensitive products and strong secular growth trends will resume in its key global markets. "We are not waiting for resolution of these macroeconomic issues," Harshman added. "We continue to improve our cost structure and execute our strategies to enhance our competitive position by completing our strategic capital investments, introducing and qualifying innovative new products, improving our position with existing customers, and growing our participation at new customers."
At presents, ATI's financial position remains solid, with cash on hand of US$281 million at the end of the third quarter 2012, Harshman noted. Cash provided by operations was US$186 million in the third quarter 2012, and ATI reduced its expected 2012 capital expenditures to US$410 million from US$485 million plan.
"Our focus on improving our cost structure continued as gross cost reductions before the effects of inflation totaled US$87 million during the first nine months 2012, which is on track to exceed our full-year objective of at least US$100 million in gross cost reductions," Harshman explained. “We remain focused on long-term value creation for our stockholders, through the business cycles, while delivering superior value for our customers."
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