What is in this article?:
- Allegheny Tech Places Foundry on the Block
- 3Q Costs, Shipments, Income
- Two other metalcasting operations remain
- Organizational changes design for efficiency, profitability
- “Global economic uncertainties” impact earnings
Specialty metal manufacturer Allegheny Technologies Inc. is restructuring its Engineered Products division, an effort that will see it sell an Indiana ferrous foundry. That decision, and others, resulted from ATI’s recent strategic review of its assets. The company also is reporting lower 3Q income, which it attributed to weaker demand from the aerospace sector.
The foundry, ATI Casting Service in Laporte, IN, produces gray and ductile iron castings from 500 to 200,000 lb., for manufacturers of wind turbines, industrial gas turbines, railroad structures, and machine tools.
Pittsburgh-based ATI did not indicate any potential buyers for the foundry. It will retain two other metalcasting operations in its portfolio: ATI Pacific Cast Technologies, Portland, OR, which produces nonferrous investment castings for aircraft OEMs; and ATI Wah Chang, Albany, OR, which manufactures corrosion-resistant rammed graphite castings for chemical processing, oil-and-gas, aerospace, nuclear, and power-generation industries.
ATI said it has been restructuring the Engineered Products businesses for over a year. That process led to the recent decision to sell its tungsten materials business to Kennametal Inc. The process also drove a recent realignment of theATI Portland Forge operation into the ATI Ladish business structure, “to improve operating and manufacturing efficiencies.”
Also, ATI said it “integrated” its titanium and specialty alloy flat-products finishing operations into the ATI Allegheny Ludlum specialty plate business.
In addition, as a result of its review, ATI closed its fabricated components business. The sale of the foundry and other adjustments following the strategic review will result in a $9-million pretax charge for the third quarter, the company said.
"These strategic actions are designed to position ATI for improved financial performance in 2014 and beyond, simplify capital allocation decisions, and enhance our focus on ATI's strategic businesses," stated chairman, president, and CEO Rich Harshman.