Wemaintained our world-class safety performance and achieved gross cost reductionsof nearly $35 million in the first quarter Our
Wemaintained our world-class safety performance and achieved gross cost reductionsof nearly $35 million in the first quarter Our 2009 cost reduction target is aminimum of $150 million. “ATI continued to invest in unsurpassed manufacturing capabilities. Our Rowley,UT premium-grade titanium sponge facility and our Bakers, NC titanium andsuperalloy forging facility are both on target to begin production in the thirdquarter 2009. These strategic investments enhance our capabilities to serve ourcore long-term growth markets including aerospace and defense, chemical processindustry, oil and gas, electrical energy, and medical. The melt shopconsolidation at our Brackenridge, PA specialty melt shop is progressing. Weexpect cost savings from this project to begin in late 2010. Engineering,permitting, and site preparation continues on our Brackenridge, PA hot rollingand processing center.
We now expect 2009 self-funded capital investments to bein the range of $425 million to $450 million. “As we look forward to the second quarter we remain cautious. While we see somesigns of stabilization in certain markets due to low inventory in the supplychain, demand for many products remains at a very low level, the pricingenvironment is challenging, and visibility is limited. The aerospace supplychain likely needs to further adjust to recently announced commercial aircraftproduction plans and reduced aftermarket demand.
We will continue to adjust ourproduction schedules and cost structures to market conditions and navigatethrough this difficult and uncertain period. We expect the second quarter 2009segment operating profit to be negatively impacted by approximately $20 millionfrom out-of-phase surcharges and indices. “Considering all the above, we expect ATI`s second quarter 2009 earnings to bemodestly better than the first quarter 2009. In addition, we expect to end thesecond quarter 2009 with a significant amount of cash on hand while continuingto self fund our capital investments. “We remain confident in the long-term growth potential of our core aerospace andinfrastructure markets that have been driving ATI`s performance. We intend touse the current difficult market conditions to continue to positivelydifferentiate ATI as a uniquely positioned, diversified, technology-drivenglobal specialty metals company with unsurpassed manufacturing capabilities.
Ourstrategic direction and vision remain intact.”Three Months EndedMarch 3120092008In MillionsSales$ 831.6$ 1,343.4 Net income attributable to ATI common stockholders*$ 5.9$ 142.0Per Diluted ShareNet income attributable to ATI common stockholders*$ 0.06 $ 1.40 * Net income and net income per share amounts presented above are attributableto Allegheny Technologies Incorporated common stockholders. As required, in thefirst quarter 2009 the Company adopted Statement of Financial AccountingStandards No. 160, “Noncontrolling Interests in Consolidated FinancialStatements, an amendment of ARB No 51″. Under the provisions of this statement,the income statement presentation has been revised to separately presentconsolidated net income, which now includes the amounts attributable to theCompany plus noncontrolling interests (minority interests), and net incomeattributable solely to the Company. First Quarter 2009 Financial Results* Sales were $831.6 million, 38% lower than the first quarter 2008 as a resultof lower selling prices and shipments. Direct international sales represented29.4% of total sales, compared to 27.6% for the 2008 comparable period. Comparedto the first quarter 2008, sales decreased 19% in the High Performance Metalssegment, 49% in the Flat-Rolled Products segment, and 43% in the EngineeredProducts segment.
