UPDATE 2-Allegheny Techs’ profit drops, stock rises

* Q4 profit 36 cents/share v Wall St view 23 cents

* Sees global markets improving in 2010

* Shares rise in premarket trading
(Adds CEO comments, stock higher)

NEW YORK, Jan 27 (BestGrowthStock) – Metals processor Allegheny
Technologies Inc (ATI.N: ) said on Wednesday fourth-quarter
profit fell, but it beat Wall Street estimates, sending its
stock up 5 percent.

“We began to see signs of stabilization and cyclical
recovery in many of our markets,” Chairman, President and Chief
Executive Officer Patrick Hassey said of the quarter.

He attributed the improved results, which were better than
the third quarter, to better volume, pricing and mix for
certain products, lower raw materials costs and improvements to
the company’s cost structure.

He noted that shipments of nickel-based and specialty
alloys increased 21 percent over the third quarter and
shipments of exotic alloys rose 34 percent. Also, Allegheny’s
Engineered Products segment returned to profitability in the
fourth quarter.

“Looking ahead, we expect to see gradual and steady
improvement in most of our global markets in 2010,” Hassey

He said the company planned to improve its cost structure
through a 2010 target of at least $100 million of new gross
cost reductions.

Net earnings were $37.8 million, or 36 cents per share,
compared with $110.9 million, or $1.15 per share in the same
quarter of 2008, the Pittsburgh-based company said.

Revenue fell to $815.7 million from $1.11 billion, a year
earlier, but was 17 percent higher than the third quarter.

Analysts were expecting 23 cents per share and revenue of
$764.57 million, according to Thomson Reuters I/B/E/S.

In trading before the New York Stock Exchange opened,
Allegheny stock was up 5 percent at $44.80.

Stock Market Investing

(Reporting by Steve James; Editing by Derek Caney and Maureen

UPDATE 2-Allegheny Techs’ profit drops, stock rises