(ATI) reported net income for the third quarter 2012 of US$35.3 million, or US$0.32 per share, on sales of US$1.22 billion.
This compares to the third quarter 2011, when ATI reported net income of US$62.3 million, or US$0.56 per share, on sales of US$1.35 billion.
For the nine months ended September 30, 2012, net income was US$147.9 mil-lion, or US$1.32 per share, on sales of US$3.93 billion. For the nine months ended September 30, 2011, net income was US$182.6 mil-lion, or US$1.68 per share, on sales of US$3.93 billion.
ATI’s key global markets, including aerospace and defense, oil and gas/chemi-cal process industry, electri-
cal energy, and medical, rep-resented 68% of ATI sales for the first nine months of 2012.
“Continuing uncertainty regarding global economic conditions impacted our third quarter 2012 results,” said Rich Harshman, chairman, president and CEO. “We are seeing conservative inven-tory management throughout the supply chains of most of our major end markets. These actions appear to be driven by resolution of the U.S. ‘fiscal cliff’, and uncertain economic trends in China, Europe, and Japan.”
Still, Harshman believes that as these uncertain-ties get resolved, demand will improve for ATI’s GDP-sensitive products, and strong secular growth trends will resume in its key global markets. “We are not wait-
ing for resolution of these macroeconomic issues,” Harshman added. “We con-tinue to improve our cost structure and execute our strategies to enhance our competitive position by com-pleting our strategic capital investments, introducing and qualifying innovative new products, improving our position with existing cus-tomers, and growing our par-ticipation at new customers.”
At present, ATI’s financial position remains solid, with cash on hand of US$281 mil-lion at the end of the third quarter 2012, Harshman noted. Cash provided by operations was US$186 mil-lion in the third quarter 2012, and ATI reduced its expected 2012 capital expenditures to US$410 million from US$485 million plan.
“Our focus on improving our cost structure continued as gross cost reductions before the effects of inflation totaled US$87 million during the first nine months 2012, which is on track to exceed our full-year objective of at least US$100 million in gross cost reductions,” Harshman explained. “We remain focused on long-term value creation for our stockholders, through the business cycles, while delivering superior value for our customers.”
AMG Advanced
Metallurgical Group N.V.
(AMG) reported revenue of US$296.9 million in the third quarter of 2012, a 17% decrease from the same period in 2011.
The Advanced Materials division generated revenue of US$189.2 million and
According to Bodycote, car, light and heavy truck sales exhibited modest growth in North America
but remained soft in continental Europe.
MPR0113_financials 12 28-01-13 16:49:34
metal-powder.net January/February 2013 MPR 13
EBITDA of US$12.1 million in the third quarter 2012, while the Engineering Systems division generated revenue of US$71.1 million and EBITDA of US$5.3 million in the third quarter 2012.
“In this environment of slow economic activity, we have reorganized our man-agement structure with a clear focus on improving efficiencies, reducing operat-ing costs and working capital levels and selective capital expenditures,” said Dr Heinz Schimmelbusch, chairman of AMG’s management board and CEO. “These actions have begun to produce results.”
In the third quarter AMG generated US$30 million of operating cash flow and reduced SG&A by 9% com-pared to the second quarter 2012, Dr Schimmelbusch reports.
Bodycote revenues climbed 2.9% from 1 July to 15 November 2012.
Sales in aerospace, defence and energy were ahead by 14.4%, with organic growth at 10.4% and acquisitions adding 5.5%. Bodycote’s revenues from the commercial aero-space sector showed further growth, driven by increases in OEM production. The defence sector remained stable, and sales into oil and gas customers continued to improve.
Automotive and “general industrial” revenues, how-ever, were lower by 5.2% but at constant exchange rates were ahead 1.8%, with organic sales lower by 2.9%. Car, light and heavy truck sales exhibited mod-est growth in North America but remained soft in conti-nental Europe. The general industrial revenues showed small improvements in all territories.
Carpenter Technology
Corporation said that its net sales, excluding surcharge, would be US$431 million for its second fiscal quarter ended 31 December, 2012, 30% higher than the second quarter of fiscal year 2012.
Carpenter Technology’s Q2 sales of US$431 million compares to US$441 million reported in the first fiscal quarter of 2013.
Carpenter added that there is still strong demand for its Premium and Ultra-Premium products sold into the aero-space and energy markets, but weaker demand in lower value product lines.
The earnings increase versus Q2 2012 was driven primarily by the acquisition of Latrobe, which is deliver-ing higher-than-expected synergies and improved overall pricing/mix actions, Carpenter noted. Meanwhile, the reduction in earnings ver-sus Q1 2013 is due to weaker Performance Engineered Products (PEP) segment per-formance, softer demand for lower value mill products, and the impact of production balancing within Specialty Alloys Operations (SAO).
“We continue to see strong end-market demand for our Premium and Ultra-Premium products where we remain capacity constrained, and are delivering above target near-term Latrobe synergies,” said William A Wulfsohn, president and CEO. “We also see uncertainty in demand for lower value mill products and are performing below plan in the PEP business seg-ment. Therefore, we currently expect full year operating income improvement of 20 to 30% versus our last fiscal year. We are confident in the strategic actions we are tak-ing, and remain on track to deliver our mid-decade earn-ings target.”
China Shen Zhou Mining &
Resources Inc reported third quarter net sales increased 5.2% year-over-year to approximately US$7.5 mil-lion. During the third quarter of 2012, China Shen Zhou’s sales volume of fluorite powder reached approxi-mately 15,800 metric tons, an increase of approximately 7,000 metric tons from the same period of 2011. Copper concentrate powder sales volume increased to 139 metal tons from 13 metal tons in the same period of 2011.
Gross profit was US$273,000 compared with $2.9 million in the third quarter of 2011. Decrease in gross profit was mainly due to lower selling price of fluorite powder. The fluorite powder sales price decreased 39% year-over-year to approximately $235 permetric ton in the third quarter of 2012.
In its nine month report, net revenues for the first nine months ended September 30, 2012, were approximately US$16.5 million compared with US$18.1 million during the same period in 2011. The decrease was due to the decline in sales price for fluorite powder. The fluorite powder sales price for the nine months ended September 30, 2012, was approximately US$248 per metric ton, a US$91 per metric ton or 27% decrease compared with the same period of 2011.
Gross profit for the first nine months ended September 30, 2012, was approximately US$2.3 mil-lion compared with US$7.9 million in the same period of 2011. Gross profit from the fluorite segment was approximately US$2,416,000 and US$7,483,000 for the first nine months ended September 30, 2012, and
2011, respectively. The decrease in gross profit for the fluorite segment was mainly due to the decline in sales price of fluorite powder. Gross profit mar-gin was approximately 14% for the nine months ended September 30, 2012.
Miba reported a rise in consolidated sales by 7.5% to €461.9 million between 1 February and 31 October 2012, compared to the same period in 2011. EBIT (earn-ings before interest and taxes) increased 7.9% to €54.2 million.
“Miba continued to per-form quite well in the first three quarters despite facing an increasingly tough market environment,” said Peter Mitterbauer, CEO of the Miba Group.
The automotive industry, which accounts for approxi-mately one-third of Miba’s total sales, continued to develop at a steady overall pace.
In the first nine months of the business year, Miba invested almost €40.0 mil-lion (€34.4 million in 2011). Roughly half of the invest-ments were directed to Miba’s locations abroad. “By making strategic investments in growth markets, we are also reinforcing our locations in Austria,” Mitterbauer said. “Each euro that we invest internationally is, in fact, also a benefit to us here in Austria.”
The third quarter, however, saw considerable decline, according to the company. “For the fourth quarter, we are anticipating further attenuation in all busi-ness divisions, which quite likely will last until well into the next business year,” Mitterbauer stated. For the 2012-2013 business year as a whole, Miba still expects to be able to keep up with the same level as the previous year.
