Allegheny Technologies (ATI) saw its loss narrow to $0.70 million, or $0.01 a share for the quarter ended Sep. 30, 2014. In the previous year period, the company reported a loss of $33.80 million, or $0.32 a share.

Revenue during the quarter grew 10 percent to $1,069.60 million from $972.40 million in the previous year period. Gross margin for the quarter expanded 361 basis points over the previous year period to 9.07 percent. Total expenses were 97.35 percent of quarterly revenues, down from 98.20 percent for the same period last year. This has led to an improvement of 85 basis points in operating margin to 2.65 percent.

Operating income for the quarter was $28.30 million, compared with an operating loss of $17.50 million in the previous year period.

"We continued to build the foundation for profitable growth in the third quarter 2014 and we are beginning to see the benefits of ATI's transformation, capital investments, acquisitions, and technology innovations," said Rich Harshman, Chairman, President and Chief Executive Officer.
Cash Flow

Allegheny Technologies has spent $38.20 million cash to meet operating activities during the nine month period as against cash inflow of $227.40 million in the last year period.

The company has spent $248.10 million cash to meet investing activities during the nine month period as against cash outgo of $394.70 million in the last year period. It has incurred net capital expenditure of $157.50 million on net basis during the nine month period, down 60.18 percent or $238 million from year ago period.

The company has spent $476.30 million cash to carry out financing activities during the nine month period as against cash inflow of $398.40 million in the last year period. It has borrowed net of $414.70 million through debt.

Cash and cash equivalents stood at $264.20 million as on Sep. 30, 2014, down 50.68 percent or $271.50 million from $535.70 million on Sep. 30, 2013.

Working Capital

Allegheny Technologies has recorded an increase in the working capital over the last year. It stood at $1,575.40 million as at Sep. 30, 2014, up 3.31 percent or $50.50 million from $1,524.90 million on Sep. 30, 2013. Current ratio was at 2.88 as on Sep. 30, 2014, up from 2.30 on Sep. 30, 2013.

Cash conversion cycle (CCC) has decreased to 78 days for the quarter from 158 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 67 days for the quarter compared with 143 days for the previous year period. At the same time, days payable outstanding went up to 44 days for the quarter from 42 for the same period last year.

Debt Level

Allegheny Technologies has recorded a decline in total debt over the last one year. It stood at $1,526.60 million as on Sep. 30, 2014, down 22.20 percent or $435.50 million from $1,962.10 million on Sep. 30, 2013.

Total debt was 23.47 percent of total assets as on Sep. 30, 2014, compared with 29.73 percent on Sep. 30, 2013. Debt to equity ratio was at 0.77 as on Sep. 30, 2013. Interest coverage ratio improved to 1.12 for the quarter from 0.96 for the same period last year.