With the exception of a tungsten production business, which ATI is going to sell, the company's shares for the reporting period fell in price from 30 cents to 27 cents per security. Also, according to the ATI reports, sales, minus tungsten production, amounted to about $ 970 million in the third quarter.
Manufacturers of jet engines for aircraft have a tendency to reduce material reserves in the last quarter, thereby undermining the demand for metal components. This was stated by the chairman and general director of Rich Herschman. Global economic uncertainty influenced a decrease in the demand for flat rental produced by ATI, while the production of products became unprofitable due to increased prices for raw materials in the stainless steel market.
ATI also stated that after the end of strategic analysis, the company's management decided to put up for sale its business related to the production of cast iron.
In September, to buy from Allegheny the tungsten production unit has already expressed a desire to Kennametal. Presumably, the amount of this transaction will be $ 650 million, and it will be completed in the fourth quarter. The company plans to provide a detailed report on its income in the third quarter by October 23.
