Allegheny Technologies shares drop on 3Q, outlook

NEW YORK -- Shares of metal producer Allegheny Technologies Inc. fell Wednesday after it reported third-quarter net income tumbled 43 percent and warned its fourth-quarter earnings will fall below the most recent quarter's results.

The Pittsburgh company, which sells metals to companies in the aerospace, defense, energy and other industries, earned $35.3 million, or 32 cents per share, compared with $62.3 million, or 56 cents per share, a year earlier.

Revenue fell 10 percent to $1.22 billion.

The results fell short of Wall Street's expectations. Analysts polled by FactSet expected a profit of 38 cents per share on revenue of $1.31 billion.

"Continuing uncertainty regarding global economic conditions impacted our third quarter 2012 results," said CEO Rich Harshman. "We are seeing conservative inventory management throughout the supply chains of most of our major end markets. These actions appear to be driven by concerns about the U.S. election and resolution of the U.S. `fiscal cliff', and uncertain economic trends in China, Europe, and Japan."

The company now forecasts fourth-quarter results will fall under the third quarter. Analysts were expecting net income to grow.

For the full year Allegheny expects sales of $5 billion to $5.1 billion. That's also under a current Wall Street forecast of $5.18 billion.

The stock lost $3.73, or 11.8 percent, to $27.86 in afternoon trading, after coming close to a year-low earlier in the session. Shares have traded between $27.61 and $53 in the past 52 weeks.