8-KEarnings & Results

ATI INC 8-K Report, Financial Results (Feb 6, 2006)

Filed February 6, 2006For Securities:ATI

Summary

Allegheny Technologies Incorporated (ATI) filed an 8-K on February 6, 2006, to disclose the settlement of previously reported litigation with Kaiser Aerospace & Electronics Corporation. This settlement resulted in an additional after-tax special charge of $1.6 million, or $0.01 per share, impacting the company's fourth quarter and full-year 2005 financial results. Despite this additional charge, ATI reported strong financial performance for the full year 2005. Net income for the fourth quarter of 2005 was $118.8 million ($1.17 per share), and for the full year 2005, net income reached $359.8 million ($3.57 per share). Excluding the net special gain (which includes this litigation settlement), the company's net income for Q4 2005 was $97.9 million ($0.96 per share), and $338.9 million ($3.36 per share) for the full year 2005. Investors should note that while the litigation settlement had a minor financial impact, the overall results for 2005 demonstrate the company's operational strength.

Key Highlights

  • 1Settlement of litigation with Kaiser Aerospace & Electronics Corporation.
  • 2An additional after-tax special charge of $1.6 million ($0.01 per share) was recognized due to the settlement.
  • 3Fourth quarter 2005 net income reported at $118.8 million ($1.17 per share).
  • 4Full year 2005 net income reported at $359.8 million ($3.57 per share).
  • 5Excluding special items, full year 2005 net income was $338.9 million ($3.36 per share).
  • 6The filing confirms the company's financial performance for Q4 and FY 2005.
  • 7The legal settlement had a minimal impact on overall 2005 earnings.

Frequently Asked Questions

This 8-K filing was made to report the settlement of previously disclosed litigation between Allegheny Technologies Incorporated (ATI) and Kaiser Aerospace & Electronics Corporation.

The settlement resulted in an additional after-tax special charge of $1.6 million, which is equivalent to $0.01 per share, impacting both the fourth quarter and the full year 2005 financial results.

For the fourth quarter of 2005, net income was $118.8 million ($1.17 per share). For the full year 2005, net income was $359.8 million ($3.57 per share). Excluding special items, net income was $97.9 million ($0.96 per share) for the fourth quarter and $338.9 million ($3.36 per share) for the full year 2005.

While the settlement did result in a special charge, the impact was relatively minor ($0.01 per share). The company's overall net income for 2005 remained strong, suggesting the operational performance was robust and not significantly hindered by this legal matter.