The Allegheny Technologies Inc. (ATI) Board of Directors approved a $500-million share repurchase program and a nearly 40% increase in ATI’s quarterly dividend to $0.18 per share. The company also plans to make a $100-million voluntary contribution to its U.S. defined benefit pension plan in the fourth quarter 2007.
“These actions by our Board demonstrate our focus on continuing to provide value to our stockholders,” said L. Patrick Hassey, Chairman, President and CEO. “For the first time in the company’s history, we have more cash than debt, and we expect strong cash flow to continue. Our strong financial performance and cash position allow us to return value to our stockholders while continuing to self-fund ATI’s proactive growth strategy.
“We believe that ATI is one of the best investments available today. The company is very-well positioned to achieve strong earnings growth from the global markets that have been driving our profitable growth over the last several years.”
Repurchases of company stock will likely be made on the open market or in unsolicited or privately negotiated transactions, with funding likely to come from internal cash flow and cash on hand. Several factors will influence the number of shares to be purchased and the timing of the purchases, including the level of cash balances, general business conditions, and other investment opportunities.
The Board also increased the quarterly dividend on ATI common stock to $0.18 per share beginning with the fourth quarter 2007 dividend; the previous quarterly dividend rate was $0.13 per share. This marks the third consecutive year that ATI has significantly increased its dividend.
The $100-million voluntary contribution to ATI’s U.S. defined benefit pension plan improves ATI’s balance sheet and continues the company’s focus on maintaining the plan’s healthy funding position.
Allegheny Technologies is one of the largest and most diversified specialty metals producers in the world with revenues of $5.6 billion during the most recent four quarters ending September 30, 2007. ATI has approximately 9500 full-time employees world-wide, and its major markets are aerospace and defense, chemical process industry, oil and gas, electrical energy, medical, automotive, food equipment and appliance, machine and cutting tools, and construction and mining. Products include titanium and titanium alloys, nickel-based alloys and superalloys, stainless and specialty alloys, grain-oriented silicon electrical products, zirconium, hafnium, niobium, tungsten materials, and forgings and castings.