- Allegheny Technologies (ATI -3.8%) reports Q3 sales increase 17% to $1.02B, with High Performance Materials & Components sales +14.2% to $585M and Flat Rolled Products revenues increase 22% to $435M
- Gross margin expands ~360bps to 15.7%; operating margin improves from 6.3% to 10.3%.
- For HPMC segment, the company reaffirms FY18 segment operating profit margin improvement of ~300 bps Y/Y.
- Amid price declines in several key raw materials, resulting in short-term mismatch between input costs and surcharge index pricing mechanism, ATI expects weaker Q4 FRP segment results; however, anticipates operating margin improvement of 150 to 300bps Y/Y.
- Expects to generate at least $150M of free cash flow for FY18, as well as anticipates to end 2018 with zero borrowings under ABL revolving credit facility.
- Previously: Allegheny Technologies misses by $0.02, beats on revenue (Oct. 23)
- Now read: Allegheny Technologies Incorporated 2018 Q3 - Results - Earnings Call Slides
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