Fourth Quarter and Full Year 2020 Earnings
January 28, 2021
© 2021 ATI. All rights reserved.
Forward Looking Statements
This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk factors are described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2019.
© 2021 ATI. All rights reserved. | 2 |
Key Takeaways - Fourth Quarter and Full Year 2020
Performance & Outlook | Balance Sheet | Strategic Progress | |
Earnings and free cash flow1 above | Operating from a position of strength; Deploy | Exiting standard stainless products, Redeploying | |
expectations; Stabilized aerospace demand | capital for long-term growth | capital to high-return opportunities | |
• | Consistently achieving targets | • Liquidity remains very healthy | • Announced exit from low-margin standard |
• Q4 earnings & 2020 FCF above guidance | • Total cash and available liquidity >$950M | stainless sheet products in 2021 | |
• Managing decisively on what we can control | • $646M cash on hand | • Intensifies focus on aero & defense markets | |
• Q4: 28% decremental margins2 | • Significantly lower working capital % sales | • Improves AA&S segment margins | |
• Q4: $149M working capital release | • ~1,000 basis point improvement vs. Q3'20 | • Streamlined footprint and lower asset base | |
• | Financial performance stabilizing | • Lower 2021 pension cash contributions and | improves ROIC over time |
• Q1'21 EPS target in-line with Q3/Q4'20 | annual expense YOY | • Two facilities closed in Q4'20 |
- Recovery signs on the horizon in 2H'21
© 2021 ATI. All rights reserved.
1 | See appendix for reconciliation of non-GAAP financial measures | 3 |
2 | Excludes restructuring charges |
Leadership Priorities
PRESERVE CASH &
MAINTAIN LIQUIDITY
SUPPORT CUSTOMERS THROUGH CONTINUED STRONG EXECUTION
OPTIMIZE COST STRUCTURE
TO MATCH NEW DEMAND
EXPECTATIONS
KEEP
EMPLOYEES
SAFE
BE "RECOVERY READY,"
LEVERAGING SHARE
GAINS FOR GROWTH
Maintain a Solid Foundation to Ensure Long-Term Profitability and Growth
© 2021 ATI. All rights reserved. | 4 |
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Allegheny Technologies Incorporated published this content on 28 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2021 14:33:04 UTC.