Plus   Neg

Allegheny Tech Realigns Business Segments

Allegheny Technologies Inc. (ATI) has realigned its business segments in an efforts to accelerate sustainable long-term profitable growth.

The company said it will report in two business segments: a streamlined High Performance Materials & Components (HPMC) segment and the new Advanced Alloys & Solutions (AA&S) segment, starting with first quarter 2020 financial results.

As a result of business realignment, the company expects total annualized operational and commercial synergies of approximately $7 million by year-end 2021 and $15 million by year-end 2022.

In addition, the company announced cost reduction efforts, with a voluntary retirement incentive program for eligible salaried employees. In addition to the $4.5 million restructuring charge taken in the fourth quarter 2019, the company expects to record a charge of approximately $8 million in the first quarter 2020 for this voluntary retirement program. Once fully implemented, the combined cost reduction programs will generate annualized benefits of $14 million.

High Performance Materials & Components includes the Specialty Materials and Forged Products business units and will continue to be led by Executive Vice President John Sims.

Advanced Alloys & Solutions combines ATI's Specialty Alloys & Components and Flat Rolled Products businesses, as well as its aerospace-grade titanium plate products, into a single entity focused on delivering high-value flat products primarily to the energy, aerospace, and defense end-markets. The segment is being led by Executive Vice President Kim Fields.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Shares of Zoom Video Communications (ZM) gained 4% on extended session Tuesday after the video conferencing software company reported a first-quarter results that trumped Wall Street estimates and issued a outlook for the second and full year 2021 that is expected to beat current expectations. First-quarter... The National Retail Federation Chief Economist Jack Kleinhenz said it was too early to say how quickly or smoothly the U.S. economy would stage a recovery following the "sizable disruptions" due to the coronavirus pandemic. However, he noted that the reopening of businesses and the resumption of economic activity is a significant step forward. Following the recall of type 2 diabetes medication Metformin Hydrochloride Extended-Release (ER) by Apotex last week, the U.S. Food and Drug Administration or FDA has recommended more pharmaceutical companies, who are manufacturers of the drug formulation, to recall their products.
Follow RTT