Allegheny Inks Long-term Agreement With GE Aviation
Zacks Investment Research | Dec 11, 2019 09:10PM ET
Allegheny Technologies Incorporated (NYSE:ATI) recently announced that it has landed an agreement with GE Aviation — a unit of General Electric (NYSE:GE) — to supply iso-thermal and hot-die forgings. Notably, iso-thermal and hot-die forgings are used to make commercial jet engines.
These multi-year agreements are expected to start in January 2021. Allegheny expects sales over the lifetime of these agreements to total roughly $2.5 billion, averaging more than $300 million a year.
Per management, these agreements reflect GE Aviation’s reliance on Allegheny to supply its production lines with the highest quality materials and components on time.
Moreover, Allegheny’s unique process capabilities and expertise in deep materials science enables it to partner with its customers to develop and manufacture the components as well as materials that enable the more fuel-efficient jet engines of today.
Shares of Allegheny have declined 7.7% in the past year against the Original post
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