Allegheny Technologies Inc., a U.S. specialty-metals producer, said it will report adjusted third-quarter earnings of about 26 cents a share, less than analysts projected, because of an “unexpected” rise in nickel prices.
The average estimate of 10 analysts surveyed by Bloomberg was for per-share profit of 29 cents. Earnings, excluding a pretax inventory charge of 21 cents a share and a 4-cent tax charge, will be 1 cent a share, the Pittsburgh-based company said today in a statement. Net income a year earlier was 1 cent a share.
The inventory charge of $33 million “is primarily the result of the recent significant and unexpected increase in the cost of nickel,” the company said in the statement.
Allegheny uses nickel in alloys made to withstand high temperatures and high stress for industries such as aerospace, electrical energy and automotive. Nickel for delivery in three months averaged 21 percent higher in the third quarter compared with a year earlier on the London Metal Exchange.
Allegheny fell 66 cents, or 1.4 percent, to $47.91 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have risen 7 percent this year.