ATI (ATI) Q4 2002 earnings summary

Executive summary

• Specialty materials portfolio spans high-value and commodity products; high-value products represented 69% of 2002 sales and commodity products 31%.

• 2002 revenue was $1.91 billion, compared with $2.13 billion in 2001 and $2.46 billion in 2000.

Financial highlights

• Revenue declined from $2.13 billion in 2001 to $1.91 billion in 2002; the 2000 total was $2.46 billion.

• Research and development totaled $14.7 million in 2002, versus $13.3 million in 2001 and $15.6 million in 2000; 2002 included $12.0 million company-funded and $2.7 million customer-funded.

Outlook and guidance

• 2003 capital expenditure plan is approximately $70 million, mainly for operational necessities and completion of programs started in 2002.

• Of $412.1 million in confirmed orders at Dec. 31, 2002, approximately 88% was expected to be fulfilled during 2003.

• Flat-Rolled Products expected to fulfill 100% of its $76.3 million year-end backlog in 2003; High Performance Metals expected to fulfill 84% of its $300.0 million backlog.