Allegheny Technologies Inc. (ATI) announced a restructuring of its Engineered Products segment as a result of the pending sale of its tungsten materials business to Kennametal and the integration of the previously stand-alone specialty steel forgings business into ATI Ladish’s forgings operations. To improve operating efficiencies and reduce costs, ATI has integrated its precision titanium and specialty-alloy flat-rolled finishing business into ATI Allegheny Ludlum’s specialty plate business. Also, ATI has completed a strategic review of its iron castings business and its fabricated components business, two small operations that were part of ATI’s Engineered Products segment. As a result of this review, ATI has closed the fabricated components business and intends to divest its iron casting business.
Effective with the reporting of the third-quarter 2013 results, ATI will report the results of its tungsten materials business as discontinued operations; the specialty steel forgings business will be included in ATI’s High Performance Metals segment; and the precision titanium and specialty-alloy flat-rolled finishing business will be included in ATI’s Flat-Rolled Products segment.
In other news, ATI continues to focus on taking actions to keep the company strongly positioned to deliver on strong profitable growth opportunities over the next three to five years. These actions include positioning its titanium sponge facility in Rowley, Utah, to begin the premium-grade qualification program and completing construction of its Flat-Rolled Products segment hot-rolling and processing facility (HRPF) to initiate and complete the cold- and hot-commissioning process in 2014.