Allegheny (ATI) Gets $45M Contract For Oil Pipeline Project
Zacks Investment Research | Mar 31, 2019 11:33PM ET
Allegheny Technologies Incorporated (NYSE:ATI) recently announced that it has been chosen to supply nickel-based flat rolled products (“FRP”) for a large oil pipeline project in South America. The company’s differentiated products are expected to facilitate increased energy production in the region.
The company expects the supply contract to add roughly $45 million revenues in its FRP segment, with shipments expected to start in the second quarter of 2019 and complete by the end of 2019. Notably, the FRP unit’s revenues rose 13% year over year to $441.8 million in fourth-quarter 2018.
The company offers a highly competitive solution through differentiated continuous coil instead of discrete plate for this application. The Hot-Rolling and Processing Facility (“HRPF”) provides unparalleled reduction power and gauge control. It also enables the output of materials with proven corrosion resistance in the demanding subsea oil production environment.
Allegheny is a global producer of technically advanced specialty materials and complex components.
The company’s largest serving markets include aerospace & defense, mainly jet engines. It also has a strong presence in the electrical energy, oil & gas, automotive, medical and other industrial markets. It is a market leader in manufacturing differentiated specialty alloys and forgings. The company is also a pioneer in the production of powders used in next-generation jet engine forgings and 3D-printed aerospace products.
Shares of Allegheny have gained 9.4% in the past year compared with the Zacks Investment Research
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