Allegheny Tech Realigns Business Segments

(RTTNews) - Allegheny Technologies Inc. (ATI) has realigned its business segments in an efforts to accelerate sustainable long-term profitable growth.

The company said it will report in two business segments: a streamlined High Performance Materials & Components (HPMC) segment and the new Advanced Alloys & Solutions (AA&S) segment, starting with first quarter 2020 financial results.

As a result of business realignment, the company expects total annualized operational and commercial synergies of approximately $7 million by year-end 2021 and $15 million by year-end 2022.

In addition, the company announced cost reduction efforts, with a voluntary retirement incentive program for eligible salaried employees. In addition to the $4.5 million restructuring charge taken in the fourth quarter 2019, the company expects to record a charge of approximately $8 million in the first quarter 2020 for this voluntary retirement program. Once fully implemented, the combined cost reduction programs will generate annualized benefits of $14 million.

High Performance Materials & Components includes the Specialty Materials and Forged Products business units and will continue to be led by Executive Vice President John Sims.

Advanced Alloys & Solutions combines ATI's Specialty Alloys & Components and Flat Rolled Products businesses, as well as its aerospace-grade titanium plate products, into a single entity focused on delivering high-value flat products primarily to the energy, aerospace, and defense end-markets. The segment is being led by Executive Vice President Kim Fields.