Allegheny Technologies (NYSE: ATI) reported Q3 EPS of ($0.29), $0.10 better than the analyst estimate of ($0.39). Revenue for the quarter came in at $833 million versus the consensus estimate of $949.49 million.

Strategy and Outlook

“Our operating results reflect the very difficult, yet different, economic realities of our two business segments,” said Rich Harshman, Chairman, President and CEO. “At this point we see no significant improvement in our major end markets until 2016.

“We remain confident that our High Performance Materials and Components segment operating performance will significantly improve in 2016. Our production schedules from our aerospace customers show demand improvement for our next-generation nickel-based alloys and titanium-based alloys, and our precision forgings, castings, and components.

“Intense global competition across the end markets we serve combined with rapidly changing customer needs and expectations have a profound impact on our industry. During the third quarter, we announced that we are consolidating and integrating multiple business units within our High Performance Materials and Components (HPMC) segment under a single Executive Vice President, which we believe will result in a more streamlined, cohesive, and efficient business. As part of this initiative, last week, we implemented a reduction in salaried workforce in both the HPMC segment and at ATI’s headquarters. We expect approximately $23 million in reduced costs from these workforce reductions beginning in January 2016. Fourth quarter 2015 results are expected to include approximately $6 million in severance charges as a result of these workforce reductions.

“In our Flat Rolled Products segment, repair of the Hot-Rolling and Processing Facility’s Rotary Crop Shear was successfully completed on schedule at the end of September 2015. Our flat rolled products facilities are mostly operating at pre-work stoppage levels and asset utilization continues to improve. We have not restarted our Midland, PA commodity stainless melt shop due to weak demand and low prices for these products. We remain committed to reaching a fair and more competitive labor agreement with the USW. Our goal is to have the cost structure and enhanced product mix that enables ATI Flat Rolled Products to be a profitable and more competitive business.”

For earnings history and earnings-related data on Allegheny Technologies (ATI) click here.