- 07 марта 2016, 23:00
- Zacks Investment Research
Allegheny Technologies Inc. ATI declared that union-represented employees of its flat-rolled products business and other locations will get back to work in the week starting Mar 13, 2016. This comes after a new four-year agreement with the United Steelworkers secured member approval.
Per the agreement, all charges and complaints pending with the National Labor Relations Board have been pulled back, and the employees will be informed about their schedule for work. Moreover, according to Bob Wetherbee, Executive Vice President, ATI Flat Rolled Products Group, the new labor agreement is a key step toward the growth of the Flat Rolled Products business. Also, owing to safety training and job specific refresher training of employees, the company anticipates resuming operations and achieving production targets during the first few weeks of the second quarter of 2016.
Allegheny posted a loss in fourth-quarter 2015, hurt by hefty charges and sustained weakness in its Flat Rolled Products segment. Adjusted loss was wider than the Zacks Consensus Estimate. Sales tumbled year over year and missed expectations. The results were affected by continued weakness in the oil & gas market, and the impact of low-priced commodity stainless sheet imports on the flat rolled products market.
Allegheny continues to see certain challenges in its core Flat Rolled Products segment. Revenues at this segment tumbled roughly 50% year over year in the fourth quarter, hurt by weak market conditions, lower sales for all major products as well as reduced selling prices for standard stainless and high-value products.
However, the company expects its ongoing rightsizing and restructuring actions to impact the Flat Rolled Products segment in first-half 2016.
Allegheny currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the basic materials sector include Usinas Siderurgicas de Minas Gerais S.A. USNZY, Fortuna Silver Mines Inc. FSM and Harmony Gold Mining Company Limited HMY, all carrying a Zacks Rank #2 (Buy).
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