For the full year 2010, net income was US$70.7 million, or US$0.72 per share, on sales of US$4.05 billion.
“ We view 2010 as the transition year to the resumption of strong secular growth in our key global markets beginning in 2011," said L. Patrick Hassey, chairman and CEO.
Shipments for most products recovered from the low levels in 2009. The company’s total titanium shipments, including Uniti joint venture conversion products, increased 12% to nearly 38 million pounds, while shipments of titanium and titanium alloys increased 8% in the high performance metals segment and increased 22% in the flat-rolled products segment. In the high performance metals segment, shipments of nickel-based alloys and specialty alloys increased 14%, while shipments of exotic alloys decreased 14%. In the flat-rolled products segment, shipments of high-value products increased 24% and shipments of standard products increased 35%.
"During 2010, our key global markets, namely aerospace and defense, oil and gas/chemical process industry, electrical energy, and medical, represented over 67% of ATI sales. Direct international sales were nearly 32% of sales," Hassey said.
"We generated cash from operating profits in 2010 and have built the working capital necessary to meet increasing demand while modernizing our facilities to significantly improve production efficiencies and capabilities. In addition, our cost structure improved with over US$135 million in gross cost reductions. We continued to maintain a strong balance sheet with cash-on-hand of US$432 million at the end of the year."
The company expects sales to grow 15-20% in 2011.
"As we begin 2011, our key global markets are showing signs of strong growth. Our outlook for the commercial aerospace market remains bullish,” said Hassey.
"We expect the global oil and gas/chemical process industry to remain strong due to increased demand from offshore oil and gas projects, large sour gas pipelines, desalination projects, and increasing orders for chemical processing projects from several areas of the world.
"In the electrical energy market, we expect demand for our grain-oriented electrical steel for power distribution to remain essentially flat. We also expect demand from the nuclear electrical energy market to remain flat in 2011, although growth opportunities exist for new nuclear plants under construction over the next several years.
"The medical market reached a record of nearly 6% of 2010 sales. We expect strong demand to continue in 2011."
