DALLAS - ATI Inc. (NYSE: ATI), a producer of high-performance materials with annual revenue of $4.36 billion and a robust financial health score rated "GOOD" by InvestingPro, reported mixed outcomes in recent labor agreement ratifications with the United Steelworkers (USW). While the company successfully secured a new agreement with employees at its Albany, Oregon facility, it failed to ratify a successor labor agreement for its Specialty Rolled Products employees in Western Pennsylvania and Lockport, New York.
The unsuccessful vote in Pennsylvania and New York has led ATI and the USW to extend the expired agreement through April 30, 2025, as they continue to negotiate. The company, which maintains a healthy current ratio of 2.44 indicating strong liquidity, expressed its commitment to reaching an agreement that promotes stability and allows continued operations and employee rewards.
Conversely, the successful ratification at the 34th Avenue facility in Albany, Oregon, has resulted in a competitive wage and benefit package for Specialty Alloys and Components employees. This new agreement is set to cover the term from March 1, 2025, to February 28, 2031.
ATI, known for its presence in the aerospace and defense markets, as well as in electronics, medical, and specialty energy sectors, emphasizes its focus on solving complex challenges through materials science. The company prides itself on partnering with customers to deliver materials that meet high-performance demands across various environments.
The information provided in this article is based on a press release statement from ATI. As negotiations proceed in Pennsylvania and New York, the company’s stakeholders will be closely monitoring the developments, particularly given the stock’s recent 9.2% decline over the past week. For deeper insights into ATI’s financial health and future prospects, including 8 additional ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports covering what really matters for smarter investment decisions.
In other recent news, Allegheny Technologies Incorporated reported fourth-quarter earnings that exceeded analyst expectations, driven by strong demand in the aerospace and defense sectors. The company posted adjusted earnings of $0.79 per share, surpassing the consensus estimate of $0.61, and reported a 10% year-over-year revenue increase to $1.17 billion. CFRA analyst Matthew Miller raised his 12-month price target for Allegheny Technologies from $68.00 to $75.00, maintaining a Buy rating, following the company’s robust financial performance. Benchmark also adjusted its price target for the company, increasing it from $80 to $81, and reaffirmed a Buy rating, citing benefits from a tight nickel alloy market and record MRO backlogs.
Allegheny Technologies’ aerospace and defense segment, which made up 65% of its fourth-quarter sales, experienced significant growth, particularly in commercial jet engine and airframe sales. The company has expanded its titanium melt capacity by 80% over the past two years, capitalizing on a shift away from Russian suppliers. Looking ahead, Allegheny Technologies provided optimistic guidance for 2025, projecting full-year adjusted earnings of $2.80 to $3.00 per share, exceeding the current analyst consensus of $2.27.
The company anticipates continued benefit from record MRO backlogs and growth opportunities in titanium capacity and exotic materials markets. Analysts highlight Allegheny Technologies’ strong balance sheet and robust liquidity as key factors positioning the company to capitalize on the normalization of the aerospace and defense supply chain. The company also expects further margin expansion, with improvements in operational efficiency contributing to its positive outlook.
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