Allegheny Technologies Forecasts 2Q EPS Below Analysts
09 Julio 2009 - 8:43AM
Noticias Dow Jones
Allegheny Technologies Inc. (ATI) expects to post second-quarter
earnings far below Wall Street's expectations as it also disclosed
a $350-million contribution made to its U.S. pension plan last
month.
The funding was aided by last month's sale of $402.5 million in
five-year convertible notes. The contribution is expected to reduce
the specialty-metals maker's pension expenses 22% this year.
Meanwhile, Allegheny projected second-quarter earnings of 3
cents a share, excluding a 17-cent charge from the contribution's
impact on prior-year tax provisions and debt-extinguishment costs.
Analysts polled by Thomson Reuters recently projected a 13-cent
profit.
Allegheny's first-quarter earnings plunged 96% amid a drop in
demand and contracts that prevented the company from fully
benefiting from slumping raw materials prices.
Shares recently were down 1.2% at $31.75 in premarket
trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com