Allegheny Technologies Announces First Quarter 2013 Results

  Allegheny Technologies Announces First Quarter 2013 Results

First Quarter 2013 Results

  *Sales increased 7% compared to Q4 2012, to $1.18 billion
  *Net income attributable to ATI was $10.0 million, or $0.09 per share
  *Segment operating profit was $78.3 million, or 6.6% of sales
  *Gross cost reductions were $39.3 million
  *Cash on hand was $138.0 million
  *Net debt to total capitalization was 35.0%

Business Wire

PITTSBURGH -- April 24, 2013

Allegheny Technologies Incorporated (NYSE: ATI) reported net income for the
first quarter 2013 of $10.0 million, or $0.09 per share, on sales of $1.18
billion. For the first quarter 2012, ATI reported net income of $56.2 million,
or $0.50 per share, on sales of $1.35 billion.

“We saw continued sluggish demand from many of our major end markets during
the first quarter,” said Rich Harshman, Chairman, President and Chief
Executive Officer. “While demand from aerospace OEMs in support of new builds
improved, compared to the fourth quarter 2012, demand from the jet engine
aftermarket remained low. The markets for flat-rolled stainless sheet and
plate and grain-oriented electrical steel remained challenging due to
lackluster demand, low base-selling prices, and high levels of imports. Demand
for forgings from the construction and mining equipment markets was depressed
as OEMs adjusted production and reduced inventories to match current global
demand.”

  *ATI’s sales to the key global markets of aerospace and defense, oil and
    gas/chemical process industry, electrical energy, and medical represented
    68% of ATI first quarter 2013 sales:

       *Sales to the aerospace and defense market represented 34% of ATI
         sales.
       *Sales to the oil and gas/chemical process industry represented 18% of
         ATI sales.
       *Sales to the electrical energy market represented 11% of ATI sales.
       *Sales to the medical market represented 5% of ATI sales.

  *Direct international sales represented 38.2% of ATI first quarter 2013
    sales.

High-value products sales were nearly 78% of ATI first quarter 2013 sales and
increased about 5% compared to the fourth quarter 2012. Sales of nickel-based
alloys and specialty alloys increased 12% compared to the fourth quarter 2012
and represented 24% of first quarter 2013 ATI sales. Sales of our titanium
products, including Uniti joint venture conversion, increased nearly 22%
compared to the fourth quarter 2012 and represented 16% of first quarter 2013
ATI sales. Titanium shipments improved to 10.3 million pounds, an increase of
over 15% compared to the fourth quarter 2012. Sales of precision forgings and
castings represented over 12% of first quarter 2013 sales and were at the same
level as the fourth quarter 2012. Sales of Precision Rolled Strip® products
and engineered strip products increased by more than 7% compared to the fourth
quarter 2012 and represented over 11% of first quarter 2013 ATI sales,
benefitting from solid demand from the automotive market. Demand was weak for
zirconium and related alloys and grain-oriented electrical steel from the
nuclear energy and chemical process industry, and electrical power generation
markets, respectively. As a result, first quarter 2013 sales of these products
declined by 23% compared to the fourth quarter 2012.

“Segment operating profit was approximately $78 million, or 6.6% of sales,”
Harshman continued. “Higher inventory costs resulting from higher unit
conversion costs due to lower operating rates in the fourth quarter 2012,
combined with the impact of higher raw material costs for products with longer
manufacturing cycle times not aligned with falling raw material
indices/surcharges, reduced operating profit, especially in the High
Performance Metals segment. Operating profit in the High Performance Metals
segment was 14.5% of sales and, in addition to the issues noted above, was
impacted by low demand from the jet engine aftermarket, weak demand for
zirconium alloys, reduced demand for forgings from the construction and mining
equipment market, and pricing pressures on transaction, or spot, business.
Flat-Rolled Products segment operating profit was $2.4 million, or 0.4% of
sales, reflecting a weaker high-value product mix as well as record-low
base-selling prices for standard stainless sheet. Operating profit in our
Engineered Products segment was essentially break-even, as lower operating
rates affected profit margins.

“Cost reduction remains a strategic focus and we have targeted a minimum of
$100 million in new gross cost reductions for 2013. Our operations achieved
almost $40 million in gross cost reductions during the first quarter 2013.
These cost reductions will benefit ATI operations over the rest of 2013. In
addition, managed working capital was reduced to 37.8% of annualized sales at
the end of March 2013 from 41.1% at year-end 2012.

“Construction at our Flat-Rolled Products segment Hot-Rolling and Processing
Facility (HRPF) is progressing on schedule and on budget. As previously
stated, the HRPF is expected to be production-ready by the end of 2013, with
commissioning occurring through the first half 2014. We believe this
approximately $1.2 billion strategic investment transforms our flat-rolled
products business. It is designed to significantly expand our product offering
capabilities, shorten manufacturing cycle times, reduce inventory
requirements, and improve the cost structure of our flat-rolled products
business. Including investments associated with this project, we currently
expect 2013 capital expenditures to be approximately $550 million.”

“Our balance sheet remains solid with cash on hand of $138 million and net
debt to total capitalization of 35% at the end of the first quarter 2013.
There were no borrowings outstanding under ATI’s $400 million unsecured
domestic borrowing facility.”

Strategy and Outlook

“As we stated in January, we expected the first quarter and possibly the first
half of 2013 to be challenging due to slow and inconsistent economic growth as
a result of ongoing global macroeconomic and fiscal policy issues,” Harshman
continued. “We certainly saw this in the first quarter. While we see some
signs of improvement as we enter the second quarter and it appears the fourth
quarter 2012 may have been the trough in demand, we expect challenging
conditions to continue to impact many of our end markets throughout the second
quarter. We believe our customers will continue to remain cautious as
near-term global economic uncertainties remain, lead times remain short, and
raw materials prices, especially for nickel and titanium scrap, remain under
pressure. We remain cautiously optimistic that business conditions will
gradually improve as we move through 2013. We expect some improvement in
demand from our key global markets and moderate recovery in domestic economic
growth from the expected improvement in the housing construction market.

“While the short-term is challenging, we continue to focus on taking actions
to improve ATI’s financial performance while we continue to strengthen our
position for long-term profitable growth. We are accelerating cost reduction
actions, aggressively identifying and acting on market opportunities that
provide important short-term business volume opportunities, and implementing
actions to reduce managed working capital.

“Looking beyond the short-term challenges, we believe ATI remains
well-positioned for profitable growth over the long-term as a result of our
unmatched diversification in specialty metals products, technology leadership,
and unsurpassed manufacturing capabilities. We continue to believe that market
conditions remain favorable for long-term secular growth from our key markets
of aerospace, oil & gas/chemical process industry, electrical energy, and
medical.”

                                 
                                     Three Months Ended
                                     March 31
                                 2013       2012
                                     In Millions
Sales                                $ 1,179.4  $ 1,352.5
                                                 
Net income attributable to ATI       $ 10.0      $ 56.2
                                                 
                                     Per Diluted Share
Net income attributable to ATI       $ 0.09      $ 0.50
                                                   

First Quarter 2013 Financial Results

  *Sales for the first quarter 2013 decreased 12.8% to $1.18 billion compared
    to the first quarter 2012 as revenues were impacted by lower base prices
    for many of our products, falling raw material indices/surcharges, and
    decreased demand from the oil and gas, jet engine aftermarket, electrical
    energy, and construction and mining markets. Compared to the first quarter
    2012, sales decreased 11% in the High Performance Metals segment, 12% in
    the Flat-Rolled Products segment, and 24% in the Engineered Products
    segment. Compared to the fourth quarter 2012, sales increased 3% in the
    High Performance Metals segment, 13% in the Flat-Rolled Products segment
    and 1% in the Engineered Products segment. Direct international sales in
    the first quarter 2013 were 38.2% of total sales.
  *First quarter 2013 segment operating profit was $78.3 million, or 6.6% of
    sales, compared to $163.2 million, or 12.1% of sales, for the first
    quarter 2012. The decrease in operating profit was primarily due to lower
    shipments associated with many of our high-value products, lower base
    prices for many products, and the impact of higher raw material costs for
    products with longer manufacturing cycle times not aligned with lower raw
    material indices/surcharges.
  *Net income attributable to ATI for the first quarter 2013 was $10.0
    million, or $0.09 per diluted share, compared to $56.2 million, or $0.50
    per diluted share, in the first quarter 2012, and $10.5 million, or $0.10
    per diluted share, in the fourth quarter 2012. Results for the first
    quarter 2013 included a $2.0 million discrete tax benefit, primarily
    relating to 2013 Federal tax law changes.
  *Cash on hand at the end of the first quarter 2013 was $138.0 million.
    During the first quarter 2013, we invested $86.9 million in capital
    expenditures, primarily related to the Flat-Rolled Products segment’s
    HRPF. Improved business activity compared to the fourth quarter 2012
    resulted in an $84.4 million increase in managed working capital
    associated with growth in accounts receivable.
  *Gross cost reductions, before the effects of inflation, totaled $39.3
    million Company-wide in the first quarter 2013.

High Performance Metals Segment

Market Conditions

  *Demand improved in the first quarter 2013 for most of our products
    compared to the fourth quarter 2012. Mill product shipments in the first
    quarter 2013 of titanium and titanium alloys increased 25%, nickel-based
    and specialty alloys increased 7%, but shipments of zirconium and related
    alloys decreased 34%. Sales of precision forgings and castings increased
    6% compared to the fourth quarter 2012. Sales in the first quarter 2013 to
    the aerospace market, the segment’s largest end market, increased 10%
    compared to the fourth quarter 2012. Shorter lead times and available
    capacity has resulted in lower base prices for certain transactional
    business. Demand from the nuclear energy market and chemical process
    industry was weak, which negatively affected sales of zirconium and
    related alloys. Direct international sales represented nearly 46% of total
    segment sales for the first quarter 2013.

First quarter 2013 compared to first quarter 2012

  *Sales decreased to $518.4 million, or by 11%, compared to the first
    quarter 2012 primarily as a result of lower mill product shipments of
    nickel-based and specialty alloys and zirconium and related alloys, and a
    decrease in sales of precision forged and cast components due to lower
    demand from the jet engine, construction and mining, nuclear energy, and
    oil and gas markets. In addition, lower raw material indices and lower
    base-selling prices negatively affected revenues.
  *Segment operating profit decreased to $75.3 million, or 14.5% of sales,
    compared to $104.1 million, or 17.9% of sales, for the first quarter 2012.
    The decrease in operating profit primarily resulted from lower shipment
    volumes, the impact of higher raw material costs for products with longer
    manufacturing cycle times not aligned with falling raw material indices,
    and lower base-selling prices for some products.
  *Results benefited from $26.5 million of gross cost reductions in the first
    quarter 2013.

Flat-Rolled Products Segment

Market Conditions

  *Demand improved compared to the fourth quarter 2012 from the oil and
    gas/chemical process industry, aerospace, automotive, food equipment and
    appliances markets. Compared to the fourth quarter 2012, shipments
    increased 12% for standard stainless products and 5% for high-value
    products, which includes titanium, nickel-based alloys, Precision Rolled
    Strip® products, and grain-oriented electrical steel. Direct international
    sales represented 34% of total segment sales for the first quarter 2013.
    Shipments of our high-value flat-rolled products were 113 million pounds,
    compared to 120.5 million pounds in the first quarter 2012 and 107.6
    million pounds in the fourth quarter 2012, respectively. First quarter
    2013 Flat-Rolled Products segment titanium shipments, including Uniti
    joint venture conversion, were 3.1 million pounds, a 3% decrease compared
    to the fourth quarter 2012. Shipments of our standard products were 173.8
    million pounds in the first quarter 2013, compared to 157.3 million pounds
    in the first quarter 2012 and 155.6 million pounds in the fourth quarter
    2012, respectively.

First quarter 2013 compared to first quarter 2012

  *Sales decreased 12% compared to the first quarter 2012 to $558.1 million,
    primarily due to lower base-selling prices, lower raw material surcharges,
    and a product mix that had a higher percentage of standard stainless
    products and a lower percentage of high-value products. Shipments of
    standard stainless products (sheet and plate) increased 10% while
    shipments of high-value products declined 6%. Average transaction prices
    for all products, which include surcharges, declined 15%. Average base
    selling prices remain at historically low levels for standard stainless
    products.
  *Segment operating profit was $2.4 million, or 0.4% of sales, compared to
    $46.8 million, or 7.4% of sales, for the first quarter 2012, reflecting a
    sales mix of more standard stainless products, as well as lower selling
    prices for most products.
  *Results benefited from $10.0 million in gross cost reductions in the first
    quarter 2013.

Engineered Products Segment

Market Conditions

  *Compared to the fourth quarter 2012, demand was slightly improved from the
    construction and mining, cutting tools, transportation, aerospace, and
    automotive markets, but was lower from the oil and gas market.

First quarter 2013 compared to first quarter 2012

  *Sales decreased 24% to $102.9 million, compared to the first quarter 2012,
    primarily as a result of lower overall demand for tungsten-based products
    and carbon alloy steel forgings.
  *Segment operating profit was $0.6 million for the first quarter 2013
    compared to $12.3 million in the first quarter 2012. Segment operating
    profit for the first quarter 2013 was negatively impacted by higher raw
    material inventory costs for tungsten-based products and lower business
    activity across most operating units in this segment.
  *Results benefited from $2.8 million of gross cost reductions in the first
    quarter 2013.

Other Expenses

  *Corporate expenses for the first quarter 2013 were $12.4 million, compared
    to $21.7 million in the first quarter 2012. The decrease in corporate
    expenses was primarily the result of reduced annual and long-term
    performance-based incentive compensation expenses.
  *Interest expense, net of interest income, was $14.4 million in the first
    quarter 2013, compared to $19.9 million in the first quarter 2012. The
    decrease in interest expense was primarily due to increased capitalized
    interest on major strategic projects.
  *Capitalized interest on major strategic capital projects reduced interest
    expense by $9.6 million for the first quarter 2013 compared to a reduction
    of $4.5 million for the first quarter 2012, and primarily related to the
    HRPF project.
  *Other expenses, which include expenses related to closed operations, for
    the first quarter 2013 were $3.7 million, compared to $6.9 million in the
    year-ago period. The decrease was primarily related to lower environmental
    and legal expenses associated with closed operations.

Retirement Benefit Expense

  *Retirement benefit expense, which includes pension expense and other
    postretirement expense, increased to $32.5 million in the first quarter
    2013, compared to $30.6 million in the first quarter 2012. This increase
    was primarily due to the utilization of a lower discount rate to value
    retirement benefit obligations.
  *For the first quarter 2013, retirement benefit expense of $25.3 million
    was included in cost of sales and $7.2 million was included in selling and
    administrative expenses. For the first quarter 2012, the amount of
    retirement benefit expense included in cost of sales was $22.0 million and
    the amount included in selling and administrative expenses was $8.6
    million.

Income Taxes

  *The first quarter 2013 provision for income taxes was $3.7 million, or
    24.2% of income before tax, compared to the 2012 provision for income
    taxes of $25.8 million, or 30.7% of income before tax. The first quarter
    2013 included discrete tax benefits of $2.0 million, primarily related to
    2013 Federal tax law changes. Excluding these items, the effective tax
    rate was 37.6%. The first quarter 2012 included discrete tax benefits of
    $3.7 million primarily related to state income taxes.

Cash Flow, Working Capital and Debt

  *Cash on hand was $138.0 million at March 31, 2013, a decrease of $166.6
    million from year-end 2012.
  *Cash flow used in operations for the first quarter 2013 was $57.4 million,
    resulting from an investment of $84.4 million in managed working capital.
  *The growth in managed working capital resulted from a $69.0 million
    increase in accounts receivable associated with increased business
    activity and a $19.1 million decrease in accounts payable, partially
    offset by a $3.7 million decrease in inventory.
  *At March 31, 2013, managed working capital was 37.8% of annualized sales,
    compared to 41.1% of annualized sales at year-end 2012. We define managed
    working capital as accounts receivable plus gross inventories less
    accounts payable.
  *Cash used in investing activities was $86.2 million in the first quarter
    2013 and consisted primarily of capital expenditures associated with the
    Flat-Rolled Products segment’s HRPF.
  *Cash used in financing activities was $23.0 million in the first quarter
    2013, and included dividend payments of $19.2 million.
  *Net debt as a percentage of total capitalization was 35.0% at the end of
    the first quarter 2013 compared to 32.2% at the end of 2012. Total debt to
    total capital was 37.3% at March 31, 2013, compared to 37.4% at the end of
    2012.
  *There were no borrowings outstanding under ATI’s $400 million unsecured
    domestic borrowing facility, although a portion of the letters of credit
    capacity was utilized.

Allegheny Technologies will conduct a conference call with investors and
analysts on April 24, 2013, at 8:30 a.m. ET to discuss the financial results.
The conference call will be broadcast live on www.ATImetals.com. To access the
broadcast, click on “Conference Call”. Replay of the conference call will be
available on the Allegheny Technologies website.

This news release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Certain statements in
this news release relate to future events and expectations and, as such,
constitute forward-looking statements. Forward-looking statements include
those containing such words as “anticipates,” “believes,” “estimates,”
“expects,” “would,” “should,” “will,” “will likely result,” “forecast,”
“outlook,” “projects,” and similar expressions. Forward-looking statements are
based on management’s current expectations and include known and unknown
risks, uncertainties and other factors, many of which we are unable to predict
or control, that may cause our actual results, performance or achievements to
materially differ from those expressed or implied in the forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include: (a) material
adverse changes in economic or industry conditions generally, including global
supply and demand conditions and prices for our specialty metals; (b) material
adverse changes in the markets we serve, including the aerospace and defense,
oil and gas/chemical process industry, electrical energy, medical, automotive,
construction and mining, and other markets; (c) our inability to achieve the
level of cost savings, productivity improvements, synergies, growth or other
benefits anticipated by management, from strategic investments and the
integration of acquired businesses, whether due to significant increases in
energy, raw materials or employee benefits costs, project cost overruns or
unanticipated costs and expenses, or other factors; (d)volatility of prices
and availability of supply of the raw materials that are critical to the
manufacture of our products; (e) declines in the value of our defined benefit
pension plan assets or unfavorable changes in laws or regulations that govern
pension plan funding; (f)significant legal proceedings or investigations
adverse to us; and (g) other risk factors summarized in our Annual Report on
Form 10-K for the year ended December 31, 2012, and in other reports filed
with the Securities and Exchange Commission. We assume no duty to update our
forward-looking statements.

Building the World’s Best Specialty Metals Company®

Allegheny Technologies Incorporated is one of the largest and most diversified
specialty metals producers in the world with revenues of approximately $4.9
billion for the last twelve months. ATI has approximately 11,100 full-time
employees world-wide who use innovative technologies to offer global markets a
wide range of specialty metals solutions. Our major markets are aerospace and
defense, oil and gas/chemical process industry, electrical energy, medical,
automotive, food equipment and appliance, machine and cutting tools, and
construction and mining. Our products include titanium and titanium alloys,
nickel-based alloys and superalloys, grain-oriented electrical steel,
stainless and specialty steels, zirconium, hafnium, and niobium, tungsten
materials, forgings, castings and fabrication and machining capabilities. The
ATI website is www.ATImetals.com.


Allegheny Technologies Incorporated and Subsidiaries
Consolidated Statements of Income
(Unaudited, dollars in millions, except per share amounts)
                                                                
                                                                   
                                                     Three Months Ended
                                                     March 31
                                                     2013          2012
                                                                   
Sales                                                $ 1,179.4     $ 1,352.5
Costs and expenses:
          Cost of sales                                1,065.1       1,145.5
          Selling and administrative expenses         85.7        103.4   
Income before interest, other income and income        28.6          103.6
taxes
Interest expense, net                                  (14.4   )     (19.9   )
Other income, net                                     1.1         0.4     
Income before income tax provision                     15.3          84.1
Income tax provision                                  3.7         25.8    
                                                                   
Net income                                             11.6          58.3
         
Less:     Net income attributable to                  1.6         2.1     
          noncontrolling interests
                                                                   
Net income attributable to ATI                       $ 10.0       $ 56.2    
                                                                   
Basic net income attributable to ATI per common      $ 0.09       $ 0.53    
share
                                                                   
Diluted net income attributable to ATI per common    $ 0.09       $ 0.50    
share
                                                                   
Weighted average common shares outstanding --          106.6         105.9
basic (millions)
                                                                   
Weighted average common shares outstanding --          107.1         116.4
diluted (millions)
                                                                   
Actual common shares outstanding -- end of period      108.0         107.1
(millions)
                                                                   

Allegheny Technologies Incorporated and Subsidiaries
Sales and Operating Profit by Business Segment
(Unaudited - Dollars in millions)
                                               
                                    Three Months Ended
                                    March 31
                                    2013          2012
Sales:
High Performance Metals             $ 518.4       $ 581.3
Flat-Rolled Products                  558.1         636.0
Engineered Products                  102.9       135.2   
                                                  
Total External Sales                $ 1,179.4    $ 1,352.5 
                                                  
Operating Profit:
                                                  
High Performance Metals             $ 75.3        $ 104.1
% of Sales                            14.5    %     17.9    %
                                                  
Flat-Rolled Products                  2.4           46.8
% of Sales                            0.4     %     7.4     %
                                                  
Engineered Products                   0.6           12.3
% of Sales                           0.6     %    9.1     %
                                                  
Operating Profit                      78.3          163.2
% of Sales                            6.6     %     12.1    %
                                                  
Corporate expenses                    (12.4   )     (21.7   )
                                                  
Interest expense, net                 (14.4   )     (19.9   )

Closed company and other expenses     (3.7    )     (6.9    )
                                                  
Retirement benefit expense           (32.5   )    (30.6   )
                                                  
Income before income taxes          $ 15.3       $ 84.1    
                                                            

Allegheny Technologies Incorporated and Subsidiaries
Consolidated Balance Sheets
(Current period unaudited--Dollars in millions)
                                                               
                                                      March 31,   December 31,
                                                      2013        2012
ASSETS
                                                                  
Current Assets:
Cash and cash equivalents                             $ 138.0     $   304.6
Accounts receivable, net of allowances for doubtful
accounts of $5.3 and $5.5 at March 31, 2013 and         681.5         613.3
December 31, 2012, respectively
Inventories, net                                        1,537.5       1,536.6
Prepaid expenses and other current assets              89.4         56.1
Total Current Assets                                    2,446.4       2,510.6
                                                                  
Property, plant and equipment, net                      2,597.2       2,559.9
Cost in excess of net assets acquired                   736.3         740.1
Deferred income taxes                                   31.3          71.5
Other assets                                           363.1        365.7
                                                                  
Total Assets                                          $ 6,174.3   $   6,247.8
                                                                  
LIABILITIES AND EQUITY
                                                                  
Current Liabilities:
Accounts payable                                      $ 479.4     $   499.9
Accrued liabilities                                     280.0         330.5
Deferred income taxes                                   36.6          24.0
Short term debt and current portion of long-term debt  17.1         17.1
Total Current Liabilities                               813.1         871.5
                                                                  
Long-term debt                                          1,462.0       1,463.0
Accrued postretirement benefits                         487.8         495.2
Pension liabilities                                     713.7         721.1
Other long-term liabilities                            101.0        109.9
Total Liabilities                                      3,577.6      3,660.7
                                                                  
Total ATI stockholders' equity                          2,487.1       2,479.6
Noncontrolling interests                               109.6        107.5
Total Equity                                           2,596.7      2,587.1
                                                                  
Total Liabilities and Equity                          $ 6,174.3   $   6,247.8
                                                                  

Allegheny Technologies Incorporated and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited - Dollars in millions)

                                                  Three Months Ended
                                                     March 31
                                                     2013        2012
                                                                  
Operating Activities:
                                                                  
   Net income                                        $ 11.6       $ 58.3
                                                                  
   Depreciation and amortization                       48.5         48.0
   Change in managed working capital                   (84.4  )     (155.0 )
   Change in retirement benefits                       16.6         11.5
   Accrued liabilities and other                      (49.7  )    19.0   
Cash used in operating activities                     (57.4  )    (18.2  )
Investing Activities:
   Purchases of property, plant and equipment          (86.9  )     (69.9  )
   Asset disposals and other                          0.7        0.9    
Cash used in investing activities                     (86.2  )    (69.0  )
Financing Activities:
   Payments on long-term debt and capital leases       (0.1   )     -
   Net repayments under credit facilities              -            (1.4   )
   Dividends paid                                      (19.2  )     (19.1  )
   Taxes on share-based compensation                   (4.1   )     (22.8  )
   Exercises of stock options and other               0.4        0.2    
Cash used in financing activities                     (23.0  )    (43.1  )
Decrease in cash and cash equivalents                  (166.6 )     (130.3 )
Cash and cash equivalents at beginning of period      304.6      380.6  
Cash and cash equivalents at end of period           $ 138.0     $ 250.3  
                                                                           

Allegheny Technologies Incorporated and Subsidiaries
Computation of Basic and Diluted Earnings Per Share
(Unaudited, dollars in millions, except per share amounts)
                                                                   
                                                            Three Months Ended
                                                            March 31
                                                            2013       2012
Numerator for Basic net income per common share -
    Net income attributable to ATI                          $  10.0    $ 56.2
Effect of dilutive securities:
    4.25% Convertible Notes due 2014                          -        2.3
Numerator for Dilutive net income per common share -
    Net income attributable to ATI after assumed            $  10.0    $ 58.5
    conversions
                                                                       
Denominator for Basic net income per common share -
    Weighted average shares outstanding                        106.6     105.9
Effect of dilutive securities:
    Share-based compensation                                   0.5       0.9
    4.25% Convertible Notes due 2014                          -        9.6
Denominator for Diluted net income per common share -
    Adjusted weighted average assuming conversions            107.1    116.4
                                                                       
Basic net income attributable to ATI per common share       $  0.09    $ 0.53
                                                                       
Diluted net income attributable to ATI per common share     $  0.09    $ 0.50
                                                                         

Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information
Managed Working Capital
(Unaudited - Dollars in millions)
                                                               
                                                   March 31,     December 31,
                                                   2013          2012
                                                                 
Accounts receivable                                $ 681.5       $  613.3
Inventory                                            1,537.5        1,536.6
Accounts payable                                    (479.4  )     (499.9  )
Subtotal                                             1,739.6        1,650.0
                                                                 
Allowance for doubtful accounts                      5.3            5.5
LIFO reserve                                         76.4           76.9
Corporate and other                                 63.9         68.4    
Managed working capital                            $ 1,885.2    $  1,800.8 
                                                                 
Annualized prior 2 months sales                    $ 4,988.3    $  4,380.0 
                                                                 
Managed working capital as a % of annualized sales   37.8    %      41.1    %
                                                                 
March 31, 2013 change in managed working capital   $ 84.4
                                                                 

As part of managing the liquidity in our business, we focus on controlling
managed working capital, which is defined as gross accounts receivable and
gross inventories, less accounts payable. In measuring performance in
controlling this managed working capital, we exclude the effects of LIFO
inventory valuation reserves, excess and obsolete inventory reserves, and
reserves for uncollectible accounts receivable which, due to their nature, are
managed separately.


Allegheny Technologies Incorporated and Subsidiaries
Other Financial Information
Debt to Capital
(Unaudited - Dollars in millions)
                                             
                                  March 31,     December 31,
                                  2013          2012
                                                
Total debt                        $ 1,479.1     $  1,480.1
Less: Cash                         (138.0  )     (304.6  )
Net debt                          $ 1,341.1     $  1,175.5
                                                
Net debt                          $ 1,341.1     $  1,175.5
Total ATI stockholders' equity     2,487.1      2,479.6 
Net ATI capital                   $ 3,828.2     $  3,655.1
                                                
Net debt to ATI capital            35.0    %     32.2    %
                                                
Total debt                        $ 1,479.1     $  1,480.1
Total ATI stockholders' equity     2,487.1      2,479.6 
Total ATI capital                 $ 3,966.2     $  3,959.7
                                                
Total debt to total ATI capital    37.3    %     37.4    %

In managing the overall capital structure of the Company, some of the measures
that we focus on are net debt to net capitalization, which is the percentage
of debt, net of cash that may be available to reduce borrowings, to the total
invested and borrowed capital of ATI (excluding noncontrolling interest), and
total debt to total ATI capitalization, which excludes cash balances.

Contact:

Allegheny Technologies Incorporated
Dan L. Greenfield, 412-394-3004
 
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