Allegheny Technologies Incorporated (NYSE: ATI) shares rose Tuesday after reporting upbeat Q2 results.
The Pittsburgh-based Allegheny reported second-quarter sales of $1.01 billion and net income attributable to ATI of $72.8 million, or $0.52 per share, a $0.10 per share sequential improvement compared to the first quarter 2018 and a $0.20 per share increase compared to adjusted first quarter 2018 results of $0.32 per share, which excludes the Q1 stainless sheet joint venture gain.
Compared to the prior year quarter, ATI sales were 15% higher and earnings per share of $0.52 was more than five times the Q2 2017 results of $0.09 per share.
CEO Rich Harshman said "Results in our High Performance Materials and Components (HPMC) segment improved at a faster pace than expected.
"Continued strong sales of next-generation jet engine products, which at $146 million for the second quarter 2018 were up 39% year-over-year, drove HPMC segment operating profit margin to 16.5% of sales. These results demonstrate the power of our next-generation product mix, as these materials, parts, and components represented 49% of total second quarter HPMC jet engine product sales."
As of June 30, cash on hand was $122 million and available additional liquidity under the asset-based lending (ABL) credit facility was approximately $355 million, with no borrowings under the revolving credit portion of the ABL. During Q2 2018, ATI generated $82 million of cash from operating activities despite a $65 million increase in managed working capital, which represented 37.5% of sales in the second quarter
Shares vaulted $2.74, or 10.2%, to $29.54
