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STRONG EARNINGS GAINS REPORTED BY ALLEGHENY LUDLUM

 PITTSBURGH, July 26 /PRNewswire/ -- Allegheny Ludlum Corporation (NYSE: ALS) today reported a 61 percent increase in net income for the 1993 second quarter, resulting in an equally strong earnings gain for the six-month period over 1992.
 For the quarter ending July 4, 1993, Allegheny Ludlum had net income of $18,601,000, or $.28 per share of common stock, on sales of $279,547,000. In the 1992 second quarter, net income was $11,529,000, or $.18 per share, on sales of $260,665,000. Earnings per share reflect the 2-for-1 stock split distributed July 1, 1993.
 "The stronger earnings were based on continued tight management of costs, improved volume and operating efficiencies, along with better selling prices for most stainless steel products beginning in May. The quarter was marked by higher shipment levels of precision stainless strip and other products, especially emission control stainless steel for the automotive industry," Robert P. Bozzone, president and chief executive officer, said.
 "Incoming orders in tons were up 16 percent in the 1993 first half over last year's period. Customer inventories remain generally lean at our service center and end use manufacturers, confirming that domestic consumption of stainless steel is continuing at record levels," Bozzone said. He added that while most overseas economies are still in recession, "Allegheny Ludlum's exports are running well and headed toward the second best year ever." Also, Bozzone noted that raw materials, a major cost factor in specialty steels, are in plentiful supply at attractive prices. "Looking forward, we feel that our raw materials costs will remain favorable," he said.
 As previously announced, the company will take operating outages in the third quarter to modify and upgrade certain melting and hot rolling equipment to reduce costs and improve quality. These projects are not expected to affect customer deliveries as the company has purchased semi-finished materials and increased inventories to cover anticipated requirements. However, these actions will temporarily increase operating costs.
 Earnings for the second quarter were reduced by $.02 per share from lower valuation of an investment in a limited partnership fund. Gains from that investment increased first quarter earnings by $.05 per share resulting in a net valuation benefit of $.03 per share for the first half of 1993.
 In further remarks, Bozzone noted the continuing problem of specialty steel imports, now accounting for 23 percent of domestic consumption of stainless steel sheet and strip and 20 percent of the market for electrical steel products. "Despite these high import levels, Allegheny Ludlum's outstanding product quality and service have enabled us to expand our markets and participation in the growing American demand for stainless steel. Nevertheless, as a matter of sound U.S. public policy, time is overdue for our government to reach effective agreements with other nations to eliminate foreign government subsidies and `dumping,' fundamental factors behind specialty steel imports," Bozzone said.
 Allegheny Ludlum is a leading producer of a wide range of specialty materials including stainless steels, electrical steels and high technology alloys. The company's common stock trades on the New York Stock Exchange (symbol: ALS).
 ALLEGHENY LUDLUM CORPORATION
 Statement of Income (Unaudited)
 (000's except per share amounts and tons shipped)
 Period Fiscal Quarter Fiscal Six Months
 Ended 7/4/93 6/28/92(A) 7/4/93 6/28/92(A)
 Net sales $279,547 $260,665 $569,489 $525,062
 Cost and expenses:
 Cost of products
 sold 216,168 213,505 449,535 430,916
 Research, development
 & technology 10,152 9,059 21,312 18,344
 Commercial and
 administrative 11,550 10,354 23,545 20,658
 Depreciation and
 amortization 7,301 6,822 14,673 13,712
 245,171 239,740 509,065 483,630
 Income from
 operations 34,376 20,925 60,424 41,432
 Other income (expense):
 Interest expense (2,140) (2,270) (4,270) (3,529)
 Unrealized (loss) gain
 from limited
 partnership (2,479) -- 3,071 --
 Other - net 1,186 775 2,015 643
 (3,433) (1,495) 816 (2,886)
 Income before income taxes
 and cumulative effect of
 accounting change 30,943 19,430 61,240 38,546
 Income taxes 12,342 7,901 24,367 15,674
 Income before cumulative
 effect of accounting
 change 18,601 11,529 36,873 22,872
 Cumulative effect on
 prior years of accounting
 change -- -- -- (125,231)
 Net income (loss) 18,601 11,529 36,873 (102,359)
 Per common share:(B)
 Income before cumulative
 effect of accounting
 change $.28 $.18 $.56 $.35
 Cumulative effect on
 prior years of
 accounting change -- -- -- $(1.90)
 Net income (loss) $.28 $.18 $.56 $(1.55)
 Dividends declared per
 common share $.12 $.11 $.23 $.22
 Weighted average common
 shares 65,874,150 65,840,860 65,851,610 65,830,370
 Tons shipped 132,860 120,130 270,133 240,846
 (A) Reclassified to conform to 1993 presentation.
 (B) Restated for 2-for-1 common stock split effective July 1, 1993.
 Summarized Balance Sheet Data (Unaudited)
 July 4, 1993 Jan. 3, 1993
 Net working capital $310,462 $299,356
 Properties - net 365,243 362,136
 Other assets 58,085 49,539
 733,790 711,031
 Long-term debt 135,801 138,070
 Other long-term obligations 317,719 316,017
 Shareholders' equity 280,270 256,944
 /delval/
 -0- 7/26/93
 /CONTACT: Bert Delano of Allegheny Ludlum, 412-394-2813/
 (ALS)


CO: Allegheny Ludlum Corporation ST: Pennsylvania IN: MNG SU: ERN

KC-DM -- PG002 -- 5539 07/26/93 09:03 EDT
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Date:Jul 26, 1993
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