Allegheny Technologies Inc. (NYSE:ATI) Q4 2014 Earnings Conference Call - Final Transcript
Jan 20, 2015 • 08:30 am ET
Good day, ladies and gentlemen. And welcome to the Fourth Quarter 2014 Allegheny Technologies earnings conference call. My name is Matthew and I'll be your Operator for today.
And now I would now like to turn the call over to Mr. Dan Greenfield, Vice President of Investor Relations. Please proceed.
Thank you, Matthew, and good morning and welcome to the Allegheny Technologies earnings conference call for the Fourth Quarter 2014. This conference call is being broadcast on our website at www.atimetals.com.
Members of the media have been invited to listen to this call. Participating in the call today are Rich Harshman, Chairman, President and Chief Executive Officer; and Pat DeCourcy, Senior Vice President of Finance and Chief Financial Officer.
All references to net income and earnings in this conference call mean net income and earnings from continuing operations attributable to ATI. If you have connected to this call via the Internet, you should see slides on your screen. For those who have dialed in, slides are available on our website again at www.atimetals.com.
After some initial comments we will ask for questions. During the question-and-answer session, please limit yourself to two questions to be considerate of others on the line. As always we will make every attempt to reach everyone in the question-and-answer queue within the allotted conference call time.
Please note that all forward-looking statements this morning are subject to various assumptions and caveats as noted in the earnings release and on this slide. Actual results may differ materially.
Here is Rich Harshman.
Richard J. Harshman
Thank you, Dan, and good morning to everybody on today's call. We made excellent progress during the fourth quarter and achieved several strategic milestones that better positioned ATI to transition to a period of sustained profitable growth.
The product commissioning of our Hot-Rolling and Processing Facility or HRPF, was completed on schedule during the fourth quarter. Our Rowley, Utah titanium sponge facility was certified as a PQ titanium sponge supplier by a leading jet engine OEM.
As previously announced, we completed three major strategic long-term agreements, or LTAs, that secure significant content for our mill products, forgings and titanium investment castings on next-generation and legacy single-isle jet engines. Also as previously announced, we were awarded orders that totaled approximately $145 million for our nickel-based alloy plate in our Flat-rolled products business that will be used in the large oil and gas pipeline for a gas field in Asia.
We will discuss these important accomplishments in a little greater detail later in the call. Net income in the fourth quarter was $19.9 million, or $0.18 per share. Segment operating profit was $67 million, or 6.4% of sales. The fourth quarter was impacted by $17.7 million of startup and qualification costs related to the HRPF and our Rowley, Utah titanium sponge facility. We also recorded a net $13.2 million LIFO inventory valuation benefit in the quarter.
Fourth-quarter 2014 results include the previously announced $25.5 million of pretax curtailment and settlement gains from post retirement benefit changes. We