Metals giant Allegheny Technologies (ATI) has reported full year 2015 sales of US$3.7 billion, compared to US$4.22 billion in 2014.
Q4 sales were US$739 million with high performance materials and components sales up to US$457 million compared to US$475 million in the third quarter 2015. The high performance materials and components segment operating profit was US$21 million, or 4.6% of sales.
‘2015 was an incredibly difficult year, and the fourth quarter was the most challenging of the year,’ said Rich Harshman, chairman, president and CEO. ‘Early indicators in 2015 of increasing weakness in the oil and gas market and the effects of low-priced commodity stainless sheet imports on flat rolled products’ markets were only the beginning. While aerospace market demand for products from the high performance materials and components segment remained good, an extended drop in demand from the oil and gas market, and continued weakness in the global construction and mining equipment market, adversely affected profitability across both business segments. Despite these headwinds, we continued our strategic focus on high-value, differentiated products, which were 83% of ATI’s 2015 sales.’
- Sales to the aerospace and defense markets were US$1.51 billion and represented 41% of ATI sales: 21% jet engine, 13% airframe, 7% defense. ATI’s sales to the commercial aerospace market increased 8% in 2015 compared to 2014.
- Sales to the oil and gas/chemical and hydrocarbon processing industry market were US$538 million and represented 14% of ATI sales: 9% oil and gas, 5% chemical and hydrocarbon processing industry. ATI’s sales to these markets decreased 28% in 2015 compared to 2014.
- Sales to the electrical energy market were US$368 million and represented 10% of ATI sales. ATI’s sales to this market decreased 14% in 2015 compared to 2014.
- Sales to the automotive market were US$294 million and represented 8% of ATI sales.
- Sales to the medical market were US$221 million and represented 6% of ATI sales.
- Direct international sales were US$1.6 billion and represented 42% of ATI’s 2015 sales.
‘Sales decreased for titanium and titanium alloys due to the timing of orders in the aerospace airframe market, which were more heavily weighted to earlier periods of 2015,’ said Harshman. ‘ATI’s results in 2016 will reflect two differently situated businesses. Our high performance materials and components segment is positioned to begin a multi-year period of sustained profitable growth, supported by long-term agreements that provide significant growth for ATI on legacy and next-generation airplanes and the jet engines that power them.’
This story uses material from ATI, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.