《Allegheny Technologies Inc. (ATI) 2015年年度報告「NYSE」.pdf》由會員分享，可在線閱讀，更多相關《Allegheny Technologies Inc. (ATI) 2015年年度報告「NYSE」.pdf（122頁珍藏版）》請在三個皮匠報告上搜索。
1、2O 15MANUFACTURING&TECHNOLOGYLEADERSHIP ABOUT THE COVER:We feature a jet engine on the cover of this years annual report.At 21 percent of sales,jet engines are ATIs largest end market application.We believe the COMMERCIAL AEROSPACE MARKET,which includes our products for both jet engines and airframe
2、s,is in a long-term growth cycle that could be unprecedented.We expect improving shipments of jet engine forgings,castings,and mill products to the commercial aerospace market supported by long-term agreements with key supply chain customers that extend through this decade.FINANCIAL REVIEW 1MESSAGE
3、FROM THE CHAIRMAN,PRESIDENT AND CEO 2ATI PRODUCTS AND MARKETS 8SEGMENT INFORMATION 9GLOSSARY OF TERMS 10CORPORATE SELF-GOVERNANCE 12MANAGEMENT TEAM 13BOARD OF DIRECTORS 14ANNUAL REPORT ON FORM 10-K F1INVESTOR INFORMATION 152O 15MANUFACTURING&TECHNOLOGYLEADERSHIP FINANCIAL REVIEW|ATI|2O15 1 2011 2012
4、 2013 2014 2015SalesHigh Performance Materials&Components$2,081$2,314$1,945$2,007$1,986 Flat Rolled Products$2,731$2,353$2,099$2,216$1,734 Total ATI Sales$4,812$4,667$4,044$4,223$3,720Segment Operating Profit(Loss)*High Performance Materials&Components$368$316$160$235$157As Percentage of Segment Sal
5、es 17.7%13.6%8.2%11.7%7.9%Flat Rolled Products$136$19$(148)$(47)$(242)As Percentage of Segment Sales 5.0%0.8%-7.0%-2.1%-14.0%Total ATI Segment Operating Profit(Loss)$504$335$12$188$(85)As Percentage of Segment Sales 10.5%7.2%0.3%4.4%-2.3%Continuing Operations Attributable to ATI:Net Income(Loss)$203
6、$151$(99)$(2)$(378)Per Common Share$1.87$1.36$(0.93)$(0.02)$(3.53)Cash Provided by Operating Activities$297$428$368$56$131 Capital Investments and Asset Aquisitions$1,176$382$613$319$145 Total Assets$6,031$6,235$6,885$6,572$5,752 Net Debt as a%of Total Capitalization 31.3%32.2%24.1%32.6%39.4%2O15 FI
7、NANCIAL OVERVIEW*2011-2014 periods reflect ATIs revised method of determining business segment operating results.These changes are more fully described in ATIs annual report on Form 10-K in Managements Discussion and Analysis and in the financial statementfootnotes at Note 16.,Business Segments.In m
8、illions,except per share amounts2 ATI ANNUAL REPORT 2013 MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CHIEF EXECUTIVE OFFICER 2 MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O152015 WAS AN INCREDIBLY DIFFICULT YEAR Slow growth in both domestic and global economies and the resulting rapid fall of price
9、s for most commodities adversely impacted our business.Average monthly LME nickel prices declined 45 percent from December 2014 through December 2015.The base price for the most common commodity stainless sheet product decreased 25 percent to an historic low that was reached in December 2015.ATI sal
10、es to the Oil&Gas/Chemical&Hydrocarbon Processing Industry market,our second largest market,were down 28 percent compared to 2014 due to significant reduction in the price of both crude oil and natural gas.Stainless steel and most commodities remain in global oversupply.ATI sales in 2015 were$3.7 bi
11、llion.Regrettably,net loss attributable to ATI was$378 million,or$(3.53)per share.Results included$348 million of pre-tax charges for goodwill and long-lived asset impairments in our Flat Rolled Products segment,inventory reserves reflecting impacts of declining raw materials values,and costs of sev
12、erance and facility idling actions.We maintained a solid liquidity position with approximately$150 million in cash on hand at the end of 2015 and implemented a$400 million asset-based domestic lending(ABL)facility,which was undrawn at year-end 2015.The ABL facility contains no leverage or interest c
13、overage ratios and is collateralized by the accounts receivable and inventory of ATIs domestic operations.For the fourth quarter 2015,we reduced our quarterly cash dividend to$0.08 per share from$0.18 per share in order to conserve cash.Cash generation from operations will be a key focus throughout
14、2016.Capital expenditures in 2015 were$145 million.We expect capital expenditures in 2016 of approximately$240 million as we make the final payments for our Hot-Rolling and Processing Facility(HRPF),complete the expansion of our nickel-based alloy powder facility and our titanium investment casting
15、facility,and expand our STAL joint venture.Looking forward,we believe annual capital expenditures will be in the range of$75 million to$100 million beginning in 2017 through the end of the decade.Our safety focus continued across all of ATIs operations.Our 2015 OSHA Total Recordable Incident Rate wa
16、s 1.88 and our Lost Time Case Rate was 0.29 per 200,000 hours worked,which we believe to be competitive with world-class performance in heavy manufacturing industries.We continued our strategy of focusing on key global markets that have attractive long-term growth expectations and require products t
17、hat have significant technical barriers to entry.We have taken and will continue to take actions to maintain solid liquidity,improve our competitive position,and return ATI to sustainable profitability.MULTI-YEAR STRATEGIC CAPITAL PROJECTS COMPLETEDIn 2015,we completed multi-year strategic capital p
18、rojects that are intended to strengthen and enhance ATIs leadership in the production of advanced specialty materials and components.We expect these investments to now begin to provide a return on our invested capital after extended construction and qualification phases.The Hot-Rolling and Processin
19、g Facility,or HRPF,is in operation.The HRPF is a critical part of our strategy to transform our flat-rolled products business.We achieved PQ qualification for our products used in jet engine rotating parts made with titanium sponge from our Rowley,UT facility.MESSAGE FROM THE CHAIRMAN,PRESIDENT AND
20、CEOMANUFACTURING&TECHNOLOGYLEADERSHIP MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O15 3MARKET/CUSTOMER FOCUS,TECHNOLOGY LEADERSHIP,AND UNSURPASSED MANUFACTURING CAPABILITIESI believe ATI is unmatched in the specialty materials industry when it comes to technology and new product development.We
21、have an excellent record when it comes to quality and delivery performance.And we are unsurpassed when it comes to manufacturing capabilities.ATI is a technology leader in the alloy systems and products that we produce.Technology leadership is an important part of our value proposition to strategic
22、customers.We have invented and introduced new alloys and products that provide the enabling technology to meet the increasingly more difficult demands of global markets including the aerospace,oil&gas,and medical markets.The production of these new alloys and products to meet the demanding customer
23、requirements and specifications often requires our unsurpassed manufacturing capabilities.Today,our ability to manufacture industry-leading mill products,near-net shapes,parts,and components from our range of alloy systems,positions ATI with a unique supply chain that can provide value to our custom
24、ers and create value for our shareholders.Our manufacturing capabilities are unmatched.They are modern and unique in the world.None are better and,in many cases,I can say that we are the best.Nearly all of these investments have been in the United States.We believe in U.S.manufacturing and we unders
25、tand that the ability to manufacture the specialty materials products that ATI produces is a critical and core competency of the United States.Our strategy is to be the best at creating value for strategic customers and achieve compound annual growth through business cycles in diversified global mar
26、kets.This strategy better positions ATI for long-term profitable growth and enhances opportunities to create value for our stockholders across business cycles.We must improve the bottom line and efficiently use our capital.So,we must earn a premium to our weighted average cost of capital.Currently,A
27、TIs weighted average cost of capital is about 10 percent.Our target after-tax return on capital employed is a minimum of 15 percent through a business cycle.Because our end markets are cyclical,we may not earn 15 percent every year-some years it should be more,some years it may be lessbut through a
28、cycle,trough to peak,our goal is a minimum of 15 percent after-tax return on capital employed.Given the nature of the end markets that we serve,we believe the business cycle is approximately five to six years.Rich Harshman,Chairman,President and CEO(millions)Capital Expenditures$0$100$200$300$400$50
29、0$600 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016PATI Rowley HRPF Depreciation4 MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O15ATI SALES TO AEROSPACE AND DEFENSE MARKET EXPECTED TO BE GREATER THAN 50 PERCENT OF TOTAL SALESWe believe the aerospace market cycle for which we h
30、ave been preparing for the last decade is in a long-term secular growth phase that could be unprecedented.Aerospace backlogs are at a record level and build rates are increasing.At the time I wrote this letter,there were nearly 22,000 large commercial jet engines in the OEM backlog.Next-generation a
31、ircraft,such as the Boeing 787,Airbus A350 XWB,Boeing 737MAX,and Airbus A320neo,are in production.The Boeing 777X airframe and GE 9X engine are in the design phase.These next-generation airframes and the engines that power them use significantly more of ATIs products.We have been awarded a number of
32、 major long-term agreements(LTAs)by our strategic customers,including the Boeing Company,Rolls-Royce,GE Aviation,Snecma(Safran),and others.The Boeing 787 build rate stands at 10 planes per month with a rate break to 12 per month planned for 2016.Airbus delivered 14 A350 XWB models in 2015 and is exp
33、ected to deliver approximately 70 in 2016.Airbus has delivered its first A320neo aircraft,and has announced plans to ramp up the A320 family to 50 per month in 2017 from 42 per month currently.Boeings 737MAX first flight occurred in late January.Boeing has announced plans to ramp up the 737 family t
34、o 47 per month in 2017 from 42 per month currently.The accelerated production schedule for these new airplanes provides significant growth for ATIs differentiated next-generation mill products,forgings,and titanium investment castings.Our sales of these products lead the delivery schedule by approxi
35、mately six to twelve months.As a result of the contracts we have been awarded and the expected record production rate ramps,we expect ATIs sales to the aerospace and defense market will represent greater than 50 percent of total ATI sales beginning in 2016.WE OPERATE IN TWO BUSINESS SEGMENTS:HIGH PE
36、RFORMANCE MATERIALS&COMPONENTS(HPM&C)AND FLAT ROLLED PRODUCTS(FRP)High Performance Materials&Components segmentAerospace Ramp-Up is Upon UsApproximately 70 percent of this segments sales come from the aerospace and defense market.For commercial aerospace,our sales for jet engines were nearly twice o
37、ur sales for airframes in 2015.We expect ATI sales to grow faster than the aerospace market because of new alloys that we have developed and significant growth in jet engine forgings and castings that are new to ATI.For legacy engines,our products include such well-known alloys as ATI 718 nickel-bas
38、ed alloy and ATI 6-4 titanium alloy.For next-generation engines,our differentiated products include proprietary and unique alloys,and products that few others can makesuch as ATI 718Plus alloy,Rene 65 alloy,ATI 720 alloy large billets,PAM-melted titanium alloys,powder metals,and titanium aluminidesa
39、s well as hot-die forgings,isothermal forgings,and large titanium investment castings.We see a significant mix shift improvement in our backlog and schedules.During the last decade,we built the differentiated and unique manufacturing capabilities and developed the technologies that enable production
40、 of these next-generation products.For example:ATI is currently the only qualified Plasma Arc Melt(PAM)producer of titanium alloys used for jet engine rotating parts.PAM is often the preferred process for titanium alloys used in jet engine rotating parts as well as complex titanium alloys.ATI has th
41、e most powerful open-die press forge in our industry,which enables industry-leading fine-grain structure in complex nickel-based superalloy billet.ATI is one of only two independent and integrated qualified producers of nickel-based superalloy powders and isothermal forged parts.(Legacy&Next Generat
42、ion)Commercial Aircraft Build Rates2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020FNEXT GENERATION:Differentiated Products Enabled by Technology&CapabilitiesLEGACY:Enhancing Competitive Base MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O15 5To better serve our strategic customers,in 2015 we co
43、mpleted a process to refocus the HPM&C segments businesses into a more aligned and integrated business.This alignment and integration is designed to create a more agile,streamlined,cohesive,and efficient business.Our improved supply chain effectiveness and standardized continuous improvement process
44、es are designed to help ATI improve efficiencies,reduce costs,and accelerate our growth.And,we can better leverage and align our engineering talent and technical capabilities to create value for our customers and our shareholders.Beginning in 2016,we expect improving shipments of jet engine forgings
45、,castings,nickel-based alloy,and titanium-based alloy mill products,plus an improving mix of next-generation mill products and forgings.Mill product shipments for future use in forgings and components lead the cycle.We expect to see growth early because we won a significant number of forgings and ca
46、stings that are new to ATI for legacy engines.A leading indicator for growth in the aerospace market is new product introduction(NPI).In 2015,we worked through our NPI forging and casting backlog of over 300 parts.The majority of these parts are key components on the next-generation jet engines that
47、 are expected to have significant growth over the next five years.These new parts are expected to generate incremental sales in excess of$1 billion beginning in 2016 and extending to 2020,mostly to our strategic commercial aerospace customers.Our HPM&C segment is positioned for a multi-year period o
48、f sustained profitable growth supported by LTAs that run through the end of this decade and into the next.Flat Rolled Products segment Challenging Markets Require Tough DecisionsOur Flat Rolled Products (FRP)segment has operated at significant losses for more than three years.Over the last eight yea
49、rs,we invested over$1.5 billion in capital expenditures with the intent that this business would be profitable and generate returns for the benefit of our stockholders,customers,and employees.A critical part of our capital investment program is the$1.2 billion HRPF,which is essential to our strategy
50、 to transform our flat-rolled products business.It is designed to significantly expand our product offering capabilities,shorten manufacturing cycle times,and reduce inventory requirements.The HRPF provides us with the capability to be a world leader in high-value,or non-commodity,flat-rolled produc
51、ts.The commodity super bubble deflation along with a strong dollar led to declining raw material prices throughout 2015.The price of nickel,a major input for ATI,fell to a decades-low level.The base-price for commodity stainless sheet fell to an historic low in December 2015.Imagine,for the price of
52、 a tall cup of Starbucks coffee,one can buy two pounds of stainless steel.Domestic and global growth remains on a slow track,and the world has excess stainless steel production capacity.It could take years of growth to return to better supply/demand balance.After extensive strategic review and analy
53、sis,we took actions to reduce our exposure to commodity flat-rolled products.These actions are designed to rightsize our FRP business and return it to profitability as quickly as possible.The restart of the idled commodity operations will depend on future business conditions and ATIs ability to earn
54、 an acceptable return on invested capital on products produced at these operations.As a result of these rightsizing actions,we significantly reduced our exposure to the electrical energy distribution market by idling our GOES operations;we reduced our exposure to the automotive market as many exhaus
55、t products are made from commodity stainless steel;and we expect to reduce our presence in the food equipment&appliance and construction&mining markets due to reduced exposure to commodity stainless steel.From mid-2015 and continuing into the first quarter 2016,most of our FRP segment operations fac
56、ed the most difficult labor contract negotiations in the history of the Company.We had about 2,200 union-represented employees in FRP.From the beginning,ATI negotiated in good faith with the USW in an effort to reach new competitive and fair collective bargaining agreements.ATIs sole objective was t
57、o help the business covered by the collective bargaining agreements improve its competitive position with our domestic and global competitors.Of particular importance,we sought to address the growing healthcare cost problem carefully and responsibly.We proposed quality healthcare with low deductible
58、s and co-insurance so employees could help share the cost of their insurance and make decisions that are best for their familys healthcare as well as their costs and our costs.Our proposal offered better coverage than most employees in the United States.From the start of the negotiations and through
59、out,ATI made considerable moves at the bargaining table.The USW made virtually no moves.The USWs refusal to meaningfully bargain put us in a position of locking out our USW-represented employees on August 15,2015.This was the last thing we wanted to do.But the USW and their national agenda gave us n
60、o choice.In fact,it was not until December 30,2015,coincidentally a few days after a tentative agreement was announced with a large carbon OUR VISION:Building the Worlds Best Specialty Materials&Components Company Focus on products with significant technical barriers to entry Focus on global markets
61、 that have long-term growth expectations and require ATIs technical and manufacturing leadership This focus creates superior growth in shareholder value over the long term and enhances opportunities for our strategic customers and employees.6 MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O15steel
62、 producer,with whom we do not compete,that the USW permitted meaningful discussions to restart.Most of our USW-represented employees suffered significant economic loss for seven months.This could have and should have been avoided.During the week of March 13 the union-represented employees of our fla
63、t-rolled products business returned to work under new 4-year collective bargaining agreements that were ratified on March 1,2016.We were able to achieve significant changes in the new agreements,such as increased cost sharing for healthcare and reduced future retirement liability for new hires as we
64、ll as greater flexibility within our operations.We are in the process of creating a smaller,more agile,streamlined,cohesive,and efficient FRP business,with annual revenue of approximately$1.2 billion and about 1,500 union-represented employees.The business will focus on products with significant tec
65、hnical barriers to entry.This is consistent with our strategy to focus on global markets that have long-term growth expectations and require ATIs technical and manufacturing leadership.We see a favorable future for our non-commodity flat-rolled products that serve the global automotive,oil&gas/chemi
66、cal&hydrocarbon processing,electrical energy generation,aerospace,and electronics markets.Due to challenging market conditions and global overcapacity in our commodity products,we had to make tough decisions.We expect these decisions to benefit ATI and the employees of our flat-rolled products busin
67、ess over the long term because we plan to have a profitable,viable business.As we continue to reposition this business,we expect the FRP segment to be modestly profitable by the second half of 2016.FOCUSED ON OUR VISION AND STRATEGYWe remain focused on returning ATI to the path of sustainable,profit
68、able growth,and we continue our journey to create an aligned and integrated ATI.Our vision is Building the Worlds Best Specialty Materials&Components Company.Easy to state,challenging to achieve.This vision is and must be the focus of every ATI employee.We focus on products with significant technica
69、l barriers to entry,and on global markets that have long-term growth expectations and require ATIs technical and manufacturing leadership.This focus creates superior growth in shareholder value over the long term and enhances opportunities for our strategic customers and employees.Our vision recogni
70、zes that the job of building,or being,the best is never completed.Our customers continue to demand and expect greater value at a lower price.Our competitors continue to get better.New competitors emerge.Existing technologies evolve and new technologies emerge.In order to be successful in this enviro
71、nment,we must embrace change.We must be the best at listening to our customers.We must anticipate change and use it to our advantagenot react to it but think ahead,connect all the dots that exist in running a business that is focused on demanding,competitive global markets.We achieve this is by bein
72、g relentless,by being innovative,and by embracing change.Status quo loses.Relentless Innovation wins.Our commitment is Creating Long-Term Value Thru Relentless Innovation.In other words,Relentless Innovation drives our strategies that are designed to generate sustainable long-term growth through the
73、 business cycles of our end markets.As we are successful in achieving this,we create long-term value for ATIs stockholders.MESSAGE FROM THE CHAIRMAN,PRESIDENT AND CEO|ATI|2O15 7As we begin 2016,while challenging conditions remain,drivers of our secular growth markets remain intact.The production acc
74、eleration of next-generation aircraft and jet engines is upon us;we have been preparing for this next-generation ramp for over a decade.Our extraordinary capital expenditure cycle is nearly behind us.The LTAs that we have been awarded by many of our strategic aerospace customers are expected to prov
75、ide significant profitable growth opportunities for ATI and value for our customers.We will remain focused on actions to enhance ATIs competitive position,improve the cost structure of our business,and position our businesses for success.For 2016,we sought the input from our shareholders and complet
76、ely redesigned our executive compensation program.We have a more transparent program that continues to emphasize pay for performance.For example,approximately 80 percent of compensation opportunities for the CEO and named executive officers are variable and at risk and about 65 percent is equity bas
77、ed.Cash and equity incentive plans are based on the attainment of business plan performance metrics that support our profitable growth initiatives,with 90 percent of annual incentive based on financial achievements.ATIS SHARED CORE VALUESWhile we believe that change is constant,one thing will not ch
78、ange.As we move our company forwardBuilding the Worlds Best Specialty Materials&Components Companyour journey is guided by a shared commitment to ATIs Core Values.Our Core Values and the ATI Corporate Guidelines for Business Conduct and Ethics embody our commitment to comply with the law and to refl
79、ect the highest level of integrity and ethics in everything we do.Integrity as the Cornerstone of our business.To that end,we must be honest and forthright in everything we do.We expect everyone to be treated with dignity and respect,and we embrace the values of innovation,cooperation,accountability
80、,and teamwork.ATI is committed to more than just adherence to laws and regulations.Our commitment is to reflect the highest level of integrity and ethics in our dealings with each other,our customers,our suppliers,our stockholders,the public,and the government agencies with whom we engage.Safety,Hea
81、lth,and Sustainability are the prerequisites to all operations,and our goal is to finish each day incident-and injury-free.Product Quality and Excellence is demonstrated in everything we do.Diversity,Creativity,Learning,and Freedom of people to reach their individual potential is ATIs culture.I want
82、 to personally thank our stockholders,our customers,our employees,our suppliers,and the communities in which we operate our businesses for their continued support of ATI.I also express my appreciation to our Board of Directors for their advice,counsel,commitment,and continued support of our efforts
83、to create long-term sustainable value for our customers and stockholders.Richard J.HarshmanChairman,President and Chief Executive OfficerTo achieve our vision and commitment,we are focused on 5 STRATEGIC PRINCIPLES:FoundationGrowthReadinessRELENTLESS INNOVATIONGrowthSTRATEGIC PRINCIPLE 1 Be the best
84、 at CREATING VALUE for strategic customersSTRATEGIC PRINCIPLE 2 Deliver compound-annual PROFITABLE GROWTH in diversified global marketsReadinessSTRATEGIC PRINCIPLE 3 Leverage our TECHNICAL AND MANUFACTURING LEADERSHIP and capabilities STRATEGIC PRINCIPLE 4 CONTINUOUSLY IMPROVE all aspects of our bus
85、iness with focus on safety,quality,cost,and sustainabilityFoundationSTRATEGIC PRINCIPLE 5 Attract,develop,challenge,and create opportunities for TALENTED AND DIVERSE PEOPLE who share a commitment to our values8 ATI PRODUCTS&MARKETS|ATI|2O15ATI PRODUCTS&MARKETSHigh-Value Products1 Nickel-Based Alloys
86、&Specialty Alloys 28%1 Titanium&Titanium Alloys 17%1 Precision Forgings,Castings&Components 14%1 Precision&Engineered Strip 13%1 Zirconium&Related Alloys 7%1 Grain-Oriented Electrical Steel 4%Total High-Value Products 83%Standard Products1 Stainless Steel Sheet 8%1 Specialty Stainless Sheet 6%1 Stai
87、nless Steel Plate and Other 3%Total Standard Products 17%TOTAL 100%(Percentage of ATIs 2015 Sales)Key Markets1 Aerospace and Defense 41%1 Oil&Gas/Chemical&Hydrocarbon Processing Industry 14%1 Electrical Energy 10%1 Automotive 8%1 Medical 6%Total Key Markets 79%Other Markets1 Construction&Mining 6%1
88、Food Equipment&Appliances 6%1 Transportation 4%1 Electronics/Communication/Computers 3%1 Conversion Services and Other 2%Total Other Markets 21%TOTAL 100%AEROSPACE AND DEFENSEOIL&GAS/C&HPIELECTRICAL ENERGYAUTOMOTIVEMEDICALNICKEL-BASED ALLOYS&SPECIALTY ALLOYSTITANIUM&TITANIUM ALLOYSPRECISION FORGINGS
89、,CASTINGS&COMPONENTSPRECISION&ENGINEERED STRIPZIRCONIUM&RELATED ALLOYSDiversified Products and ServicesSales(in millions)$3,720Diversified Global MarketsSales(in millions)$3,720 SEGMENT INFORMATION|ATI|2O15 9SEGMENT INFORMATIONHigh-Value Products1 Nickel-Based Alloys&Specialty Alloys 31%1 Titanium&T
90、itanium Alloys 30%1 Precision Forgings,Castings&Components 26%1 Zirconium&Related Alloys 13%HPM&C HIGH-VALUE PRODUCTS TOTAL 100%High-Value Products1 Precision&Engineered Strip 29%1 Nickel-Based Alloys&Specialty Alloys 25%1 Grain-Oriented Electrical Steel 8%1 Titanium&Titanium Alloys 3%FRP High-Value
91、 Products Total 65%Standard Products1 Stainless Steel Sheet 18%1 Specialty Stainless Sheet 13%1 Stainless Steel Plate 4%FRP PRODUCTS TOTAL 100%(Percentage of ATIs 2015 Sales)NICKEL-BASED ALLOYS&SPECIALTY ALLOYSTITANIUM&TITANIUM ALLOYSPRECISION FORGINGS,CASTINGS&COMPONENTSZIRCONIUM&RELATED ALLOYSOIL&
92、GAS/C&HPIELECTRICAL ENERGYFOOD EQUIPMENT&APPLIANCESCONSTRUCTION&MININGAUTOMOTIVEAEROSPACE AND DEFENSEMEDICALAEROSPACE JET ENGINESAEROSPACE AIRFRAMESGOVERNMENT AEROSPACEDEFENSEMajor Markets1 Aerospace Jet Engines 36%1 Aerospace Airframes 19%1 Government Aerospace 8%1 Defense 6%1 Medical 10%1 Electric
93、al Energy 7%1 Oil&Gas/Chemical&Hyrdocarbon Processing Industry 5%1 Construction&Mining and Other 9%HPM&C MARKETS TOTAL 100%Major Markets1 Oil&Gas/Chemical&Hydrocarbon Processing Industry 25%1 Automotive 17%1 Electrical Energy 13%1 Food Equipment&Appliances 12%1 Construction&Mining 10%1 Aerospace and
94、 Defense 9%1 Electronics/Communication/Computers 7%1 Transportation and Other 7%FRP MARKETS TOTAL 100%High Performance Materials&ComponentsSales(in millions)$1,986Flat Rolled ProductsSales(in millions)$1,734PRECISION&ENGINEERED STRIPNICKEL-BASED ALLOYS&SPECIALTY ALLOYSGRAIN-ORIENTED ELECTRICAL STEEL
95、TITANIUM&TITANIUM ALLOYS10 GLOSSARY OF TERMS|ATI|2O15AnnealingThe process of heating and cooling metal in such a way as to soften it,and to produce desired changes in other properties or microstructure.Argon-Oxygen Decarburization(AOD)A molten metal refining process in an AOD vessel,primarily used i
96、n producing stainless steels and other high alloyed metals,that inject specific ratios of oxygen and inert gas(such as argon)into the molten metal to reduce the carbon content of the molten metal(i.e.decarburize)before further refining and composition adjustments.BarA long product that is 1/4 inch(6
97、.35 mm)or more in diameter,having round,square,octagonal or hexagonal cross-sections.BilletA long product with a diameter range of 8 to 14 inches(203 to 356 mm).Can either be sold in billet form or processed further to make other long products.Cold RollingA process of forming a metal product at room
98、 temperature(i.e.cold working)through one or more pairs of rollers to further reduce the thickness to final size and shape and to develop near-final metallurgical properties,such as strength,toughness,grain size,and surface finish to produce Flat-Rolled Products and Long Products.ComponentsFinished
99、or near-finished specialty materials parts made to customer requirements,including castings,forgings,fabricated and machined parts.Electric Arc Furnace(EAF)An open air melting furnace in which scrap and ferroalloys are melted by an electric arc.Refining is accomplished by slags and various gases.The
100、 process is often used in conjunction with subsequent refining processes.Electron Beam Furnace(EB)A melting furnace that uses high-energy electron beams in a vacuum environment to melt metals,especially useful for titanium,zirconium,and related alloys.Electroslag Remelt(ESR)A consumable electrode re
101、melting process in which an AC current is passed from an electrode through a molten slag pool.Molten metal droplets fall through the slag and solidify in a water-cooled copper crucible.This process is utilized to improve both the cleanliness and structure of alloys.Flat-Rolled ProductsA product form
102、 classification that includes plate,sheet,strip,and Precision Rolled Strip products.FlowformingAn advanced cold forming process to manufacture dimensionally precise,seamless,hollow tubular components.ForgingA product formed by compressive forces to plastically deform metal into a shape.ATI produces
103、forgings as mill products and components such as titanium alloy,nickel-based alloy and superalloy,and specialty alloy billet.ATI also produces carbon and alloy custom compression die hot forgings for applications in the transportation,construction and mining,and oil&gas markets.Forging PressA press,
104、usually vertical,used to operate dies to deform metal plastically.May be mechanically or hydraulically operated and either closed die for shaped,part forgings or open die for cogging.GFM Precision Rotary Forge and Radial ForgeA forging process where rapid simultaneous action of forging hammers subje
105、cts the work piece to a high rate of deformation under uniform compressive stressing.The control and reproducibility of the GFM process is designed to provide optimum metallurgical consistency.Grain-Oriented Electrical Steel(GOES)Iron-based alloys containing silicon(typically 3.5%)as the major alloy
106、ing addition.These steels are used generally in applications such as power distribution and power generation transformers where electrical conductivity and magnetic properties are important.HafniumA chemical element usually obtained as a by-product of zirconium production with outstanding corrosion
107、resistance and good mechanical properties.It is added to specialty alloys for use in jet engine parts and as control rod material in nuclear reactors.High-Performance MaterialsA classification that includes ATIs nickel-based and cobalt-based alloys and superalloys,titanium and titanium alloys,specia
108、lty alloys,and zirconium and related alloys,primarily in the form of long products.These products typically exhibit any of the properties of high temperature resistance,high strength,and high temperature oxidation resistance.High-Value Flat-Rolled ProductsA classification that includes ATIs Flat Rol
109、led Products segments titanium and titanium alloys,nickel-based alloys and superalloys,specialty alloys,engineered strip and Precision Rolled Strip products.These products typically are characterized by direct technical and service relationships with customers.Hot Die ForgingA forging process in whi
110、ch dies are heated close to the forging temperature of the alloy being forged.Used for difficult-to-forge alloys.Hot Isostatic Pressing(HIP)A process of pressing/consolidating powder metals under the simultaneous application of temperature and pressure(equally applied in all directions)to yield high
111、ly dense parts made of specialty metal powders,such as titanium,nickel,and stainless steel alloys.Hot-Rolling A process of forming metal (such as slabs or billets)at elevated temperature(i.e.hot working)through one or more pair of rollers to reduce thickness and innate development of metallurgical p
112、roperties to produce flat-rolled products and long products.GLOSSARY OF TERMS GLOSSARY OF TERMS|ATI|2O15 11ATIHot-Rolling&Processing Facility(HRPF)The worlds most powerful and most flexible hot-rolling facility.Fully automated and environment friendly,ATIs HRPF offers unique alloy versatility to pro
113、duce hot band products of up to 78.62 inches,or 2 meters wide.Slabs or ingots begin at any one of the multiple reheating furnaces then move through the most powerful reversing mill in the specialty materials industry and continue through a 7-stand,4-high finishing mill.The process is automated from
114、the time the slabs or ingots are loaded onto the front end of the mill until hot-band coils exit the mill.IngotA product form resulting when molten metal is cast into molds,which can be round,square,or rectangular.Can either be sold in ingot form or processed further to make higher value mill produc
115、ts.Investment CastingA casting method designed to produce a part and achieve high dimensional accuracy of metal castings using a pattern which is melted out to leave a mold without joints.Isothermal ForgingA hot forging process where the alloy being forged and the dies are heated to the same tempera
116、ture and maintained at a constant and uniform temperature during the forging process.Process allows for nearer-net-shape forging which reduces machining.Long ProductsA product form classification that includes ingot,billet,bar,od,wire,seamless tubing,and custom-rolled shapes.Nickel-Based Superalloys
117、Alloys having nickel as the primary constituent,developed for very high temperature service where relatively high mechanical stresses are encountered and where high surface stability is frequently required.NiobiumAn alloy valued for its strength at extremely high temperatures and its ability to supe
118、rconduct,or pass electricity with minimal resistance,at very low temperatures.Plasma Arc Melting(PAM)FurnaceA melting furnace that is a superior cold-hearth melting process for making alloyed premium titanium products for jet engine rotating parts,medical applications,and other critical applications
119、.PlateA flat-rolled product that is 3/16 inch(4.76 mm)thick,or greater,and over 10 inches (254 mm)wide.Powder MetallurgyThe production of specialty metals products by processes including the steps of atomizing,screening,blending,and pressing to consolidate metal powders.Precision Rolled Strip Produc
120、tsFlat-rolled products including stainless,nickel alloys,titanium and titanium alloys,and carbon steel under 0.015 inch (0.38 mm)thick and up to 48 inches(1,219 mm)wide,as well as certain strip products with special tempers and thicknesses.Raw MaterialsUsed in the production of ATIs specialty metals
121、 and include recycled scrap metal,nickel,titanium sponge,zirconium sponge,ferrochromium,ferrosilicon,molybdenum and its alloys,manganese and its alloys,cobalt,niobium,and other alloying materials.RodA long product that is from 0.118 inch(3 mm)to 3/4 inch(19 mm)in diameter.SheetA flat-rolled product
122、that is 24 inches(610 mm)and over in width and less than 3/16 inch(4.76 mm)thick.StainlessA broad classification of iron-based alloys containing at least 10%chromium,known for excellent corrosion and heat resistance.Austenitic(Chrome-Nickel)grades contain 16%to 30%chromium and 4%to 20%nickel for enh
123、anced surface quality and formability and increased corrosion and wear resistance.Ferritic(Chrome)grades are non-nickel-bearing and contain 11%to 27%chromium for greater inherent strength and corrosion resistance than carbon steel.Standard Flat-Rolled ProductsA classification that includes ATIs Flat
124、 Rolled Products segments stainless hot and cold-rolled sheet,strip,and plate products.StripA flat-rolled product 3/8 inch (9.5 mm)to under 24 inches (610 mm)wide and less than 3/16 inch(4.76 mm)thick.See also Precision Rolled Strip Products.Super StainlessStainless alloys with significant additions
125、 of chromium,nickel,molybdenum or copper.Super stainless is used where there are requirements for extra corrosion protection,strength or heat resistance.SuperalloyAn alloy,usually based on nickel,cobalt or iron,developed for high temperature service where relatively severe mechanical stress is encou
126、ntered and where high surface stability is frequently required.TitaniumTitanium and its alloys have very high strength-to-weight ratios.At normal temperatures,they have high resistance to corrosion.Titanium SpongeTitanium sponge is a critical raw material used to produce titanium mill products.ATI p
127、roduces titanium sponge using the Kroll Process,which reduces titanium tetrachloride with magnesium.The titanium sponge with or without the addition of titanium scrap is melted into ingots or slabs.Vacuum Arc Remelt(VAR)A consumable remelting process in which a high current DC arc is maintained unde
128、r vacuum between an alloy electrode and a molten metal pool contained in a water-cooled copper crucible.Sequential melting produces an ingot with good internal structure,good surface finish,and excellent chemical homogeneity.Vacuum Induction Melt(VIM)A melting process that uses an induction furnace
129、inside a vacuum chamber to melt and cast nickel-based alloys,superalloys,and specialty alloys.The process is normally used for grades which require a high alloy content,precise chemistry control and low impurity levels.WireA long product that is from 0.030 inch(0.76 mm)to 1/4 inch(6.35 mm)in diamete
130、r,in round,square,octagonal or hexagonal cross-sections.ZirconiumA chemical element valued for its strength,high corrosion resistance,and low thermal neutron absorption.12 CORPORATE SELF-GOVERNANCE|ATI|2O15We at ATI are committed to a strong self-governance program.We have long believed that honesty
131、 and integrity are vitally important to the success of our Company.The Companys Corporate Governance Guidelines,along with the charters of the Board committees,provide the framework for the corporate governance of ATI.These Guidelines reflect the Boards commitment to monitor the effectiveness of dec
132、ision making at the Board and management levels,with a view toward achieving ATIs strategic objectives.This information and more about our corporate governance is available on our website,ATI.Our Corporate Guidelines for Business Conduct and Ethics apply to all directors,officers,employees,agents,an
133、d consultants and set forth clear standards to guide the conduct of our daily affairs.Our commitment is to reflect the highest standards of ethical performance in our dealings with our Board of Directors,stockholders,fellow employees,customers,suppliers,creditors,government agencies and authorities,
134、and the public.Our compliance program incorporates training programs that address a myriad of subjects,including antitrust,ethics,environmental compliance,anti-bribery,export compliance,and securities law compliance,as well as training in various human resources issues,including workplace respect an
135、d safety.In order to monitor the effectiveness of our compliance efforts,we perform audits throughout the organization to confirm adherence to Company policies and procedures and financial controls.We understand that confidence in our Company is in large measure dependent upon the reliability and tr
136、ansparency of our financial statements,including maintaining effective internal control over financial reporting.Accordingly,the commitment to integrity in financial reporting set forth in our Financial Code of Ethics recognizes our responsibility for providing timely information that fairly reflect
137、s our financial position and results of operations.We encourage employees to communicate concerns before they become problems.The ATI Ethics HelpLine,which provides confidential,secure,and anonymous reporting capability is available to all employees 24 hours a day.In addition,our Chief Compliance Of
138、ficer and the ethics officers at our operating companies provide confidential resources for employees to surface their concerns without fear of reprisal.Building and maintaining trust,respect,and communication among our employees are essential to the effectiveness of our self-governance program.Rich
139、ard J.Harshman,Chairman,President and Chief Executive OfficerPatrick J.DeCourcy,Senior Vice President,Finance and Chief Financial OfficerElliot S.Davis,Senior Vice President,General Counsel,Chief Compliance Officer and Corporate SecretaryOUR COMMITMENT TO INTEGRITYRichard J.HarshmanChairman,Presiden
140、t and Chief Executive Officer Elliot S.DavisSenior Vice President,General Counsel,Chief Compliance Officer and Corporate Secretary Patrick J.DeCourcySenior Vice President,Finance and Chief Financial OfficerKevin B.KramerSenior Vice President,Chief Commercial and Marketing OfficerElizabeth C.Powers S
141、enior Vice President,Chief Human Resources OfficerJohn D.SimsExecutive Vice President,ATI High Performance Materials&Components Segment Robert S.WetherbeeExecutive Vice President,ATI Flat Rolled Products GroupATI EXECUTIVE COUNCIL MANAGEMENT TEAM|ATI|2O15 13Dan L.GreenfieldVice President,Investor Re
142、lations and Corporate CommunicationsRose Marie ManleyVice President,TreasurerLauren S.McAndrewsVice President,Labor Relations and Assistant General CounselMary Beth MooreVice President,Human ResourcesKarl D.SchwartzVice President,Controller and Chief Accounting OfficerATI CORPORATE MANAGEMENTRichard
143、 J.HarshmanKevin B.KramerElizabeth C.PowersJohn D.SimsRobert S.WetherbeePatrick J.DeCourcyElliot S.DavisDan L.GreenfieldLauren S.McAndrewsMary Beth MooreKarl D.SchwartzRose Marie Manley14 BOARD OF DIRECTORS|ATI|2O15Richard J.HarshmanDiane C.CreelCarolyn CorviDavid J.MorehouseJohn R.PipskiJames E.Roh
144、rLouis J.ThomasJohn D.TurnerJ.Brett HarveyBarbara S.JeremiahJames C.DiggsBOARD OF DIRECTORSRichard J.HarshmanChairman,President and Chief Executive Officer of Allegheny Technologies IncorporatedDiane C.Creel*Retired Chairman,Chief Executive Officer and President of Ecovation,Inc.,a waste stream tech
145、nology company using patented technologies 3|4Carolyn CorviRetired Vice President,General Manager of Airplane Programs of The Boeing Company,a diversified aerospace company 2|4|5James C.DiggsRetired Senior Vice President and General Counsel of PPG Industries,Inc.,a producer of coatings,glass and che
146、micals 1|2|3J.Brett HarveyChairman of CONSOL Energy,Inc.,a leading diversified energy company in the United States 3|4Barbara S.JeremiahRetired Executive Vice President and Chairmans Counsel of Alcoa,Inc.,a leading aluminum producer 2|5David J.MorehouseChief Executive Officer and President of Pittsb
147、urgh Penguins LLC,which owns and operates the Pittsburgh Penguins National Hockey League team 1|5John R.PipskiRetired tax partner of Ernst&Young LLP,a public accounting firm 1|2James E.RohrRetired Chairman and Chief Executive Officer of The PNC Financial Services Group,Inc.,a diversified financial s
148、ervices organization 4Louis J.ThomasRetired Director,District 4,United Steelworkers 1|5John D.TurnerRetired Chairman and Chief Executive Officer of Copperweld Corporation,a manufacturer of tubular and bimetallic wire products 2|3|5*Lead Independent DirectorSTANDING COMMITTEES:1 Audit Committee2 Fina
149、nce Committee3 Nominating and Governance Committee4 Personnel and Compensation Committee5 Technology CommitteeF-1UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)Annual report pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934For the fiscal ye
150、ar ended December 31,2015 ORTransition report pursuant to Section 13 or 15(d)of the Securities Exchange Act of 1934For the transition period from to Commission file number 1-12001ALLEGHENY TECHNOLOGIES INCORPORATED(Exact name of registrant as specified in its charter)Delaware 25-1792394(State or oth
151、er jurisdiction ofincorporation or organization)(I.R.S.EmployerIdentification Number)1000 Six PPG Place,Pittsburgh,Pennsylvania 15222-5479(Address of principal executive offices)(Zip Code)Registrants telephone number,including area code:(412)394-2800Securities registered pursuant to Section 12(b)of
152、the Act:Title of each class Name of each exchange on which registeredCommon Stock,$0.10 Par Value New York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark whether the Registrant is well known seasoned issuer,as defined in Rule 405 of the Securities
153、Act.Yes No Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during
154、the preceding 12 months,and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website,if any,every Interactive Data File required to be submitted and posted pursuant to Rul
155、e 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit and post such files).Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,an
156、d will not be contained,to the best of Registrants knowledge,in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-
157、accelerated filer,or a smaller reporting company.See definitions of“large accelerated filer,”“accelerated filer”and“smaller reporting company”in Rule 12b-2 of the Exchange Act.(Check one):Large accelerated filer Accelerated filer Non-accelerated filer (Do not check if a smaller reporting company)Sma
158、ller reporting company Indicate by check mark whether the Registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No On February 12,2016,the Registrant had outstanding 108,912,564 shares of its Common Stock.The aggregate market value of the Registrants voting stock held by no
159、n-affiliates at June 30,2015 was approximately$3.3 billion,based on the closing price per share of Common Stock on June 30,2015 of$30.20 as reported on the New York Stock Exchange.Shares of Common Stock known by the Registrant to be beneficially owned by directors and officers of the Registrant subj
160、ect to the reporting and other requirements of Section 16 of the Securities Exchange Act of 1934,as amended(the“Exchange Act”),are not included in the computation.The Registrant,however,has made no determination that such persons are“affiliates”within the meaning of Rule 12b-2 under the Exchange Act
161、.Documents Incorporated By ReferenceSelected portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 6,2016 are incorporated by reference into Part III of this Report.7812_Fin.pdf 1F-2INDEX PageNumberPART IItem 1.BusinessItem 1A.Risk FactorsItem 1B.Unresolved Staff C
162、ommentsItem 2.PropertiesItem 3.Legal ProceedingsItem 4.Mine Safety DisclosuresPART IIItem 5.Market for the Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity SecuritiesItem 6.Selected Financial DataItem 7.Managements Discussion and Analysis of Financial Condition an
163、d Results of OperationsItem 7A.Quantitative and Qualitative Disclosures About Market RiskItem 8.Financial Statements and Supplementary DataItem 9.Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9A.Controls and ProceduresItem 9B.Other InformationPART IIIItem 1
164、0.Directors and Executive Officers of the RegistrantItem 11.Executive CompensationItem 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersItem 13.Certain Relationships and Related Transactions,and Director IndependenceItem 14.Principal Accountant Fees an
165、d ServicesPART IVItem 15.Exhibits,Financial Statements and Financial Statement SchedulesSIGNATURESF-3F-11F-15F-15F-16F-16F-16F-18F-21F-45F-47F-96F-96F-97F-98F-98F-98F-99F-99F-997812_FinC3.pdf March 8,2016 pg 2F-3PART IItem 1.BusinessThe CompanyAllegheny Technologies Incorporated is a Delaware corpor
166、ation with its principal executive offices located at 1000 Six PPG Place,Pittsburgh,Pennsylvania 15222-5479,telephone number(412)394-2800,Internet website address http:/.References to“Allegheny Technologies,”“ATI,”the“Company,”the“Registrant,”“we,”“our”and“us”and similar terms mean Allegheny Technol
167、ogies Incorporated and its subsidiaries,unless the context otherwise requires.Our BusinessWe are one of the largest and most diversified specialty materials and components producers in the world.Our high-value products include titanium and titanium alloys,nickel-based alloys and specialty steels,pre
168、cision forgings,castings and machined components,zirconium and related alloys,precision and engineered stainless steel strip,and grain-oriented electrical steel.Our standard products include specialty stainless sheet,stainless steel sheet,and stainless steel plate.Our specialty materials are produce
169、d in a wide range of alloys and product forms and are selected for use in applications that demand materials having exceptional hardness,toughness,strength,resistance to heat,corrosion or abrasion,or a combination of these characteristics.ATI is a fully integrated supplier from raw material(for tita
170、nium sponge)and melt(for other specialty alloy systems)through highly engineered finished components.ATIs strategic vision is to be an aligned and integrated specialty materials and components company.Our strategies target the products and global growth markets that require and value ATIs technical
171、and manufacturing capability leadership.These differentiated products serve key global markets including aerospace and defense,oil&gas/chemical&hydrocarbon processing industry,electrical energy,medical and automotive,and sales to these key global markets represented 79%of total 2015 sales.We have un
172、dertaken a multi-phase program over several years to enhance and expand our capabilities to produce premium specialty materials aimed at these strategic,global markets.We are near the end of this multi-year cycle of capital expenditures on major strategic investments.Since 2004,we have transformed A
173、TI by investing$4.7 billion in capital expenditures and acquisitions.This program has included acquisitions to forward integrate into producing forgings,castings and components,construction and qualification of facilities to backward integrate into producing our own titanium sponge to ensure a stabl
174、e source of supply,and expanding manufacturing capabilities for producing specialty materials and components that enable ATI to continue to innovate and develop new products to maintain our technological advantage in these differentiated markets.These investments have included expansions of our prem
175、ium titanium alloy melt and remelt capability;nickel-based alloy and superalloy melt and remelt capability;titanium and specialty alloy plate production capability;and premium titanium and nickel-based superalloy forging capability.Also,we purchased assets that added advanced nickel-based alloy and
176、titanium alloy powders to our product portfolio.In 2014,we acquired precision flowform process technologies to produce thin-walled components in net or near-net shapes across multiple alloy systems,and we acquired capabilities for precision machining parts and components to expand our ability to pro
177、duct finished specialty materials parts and components and reinforce our important aerospace supply chain role.We made significant progress in 2015 in qualifying and fully integrating several long-term strategic capital projects,including what we believe to be the worlds most advanced and powerful H
178、ot-Rolling and Processing Facility(HRPF)in the specialty materials flat-rolled products industry.The HRPF was fully integrated into our manufacturing operations in 2015,and is a critical part of our strategy to transform our flat-rolled products business into a more competitive and consistently prof
179、itable business.The HRPF is designed to:Significantly expand our product offering capabilities,shorten manufacturing cycle times,reduce inventory requirements,and improve the cost structure of our flat-rolled products business.Provide unsurpassed manufacturing capability and versatility in the produ
180、ction of a wide range of flat-rolled specialty metals,including ATIs diversified product mix of nickel-based and specialty alloys,titanium and titanium alloys,zirconium alloys,Precision Rolled Strip products,and stainless sheet and coiled plate products.Process high-strength carbon steel alloys.We e
181、xpect to partner with,or provide conversion services for,producers of these carbon steel products.Additionally,the premium-quality(PQ)qualification process for our products used in jet engine rotating parts made with titanium sponge produced by our Rowley,UT facility was completed in the second quar
182、ter 2015.This marked the completion 7812_Fin.pdf 3F-4of a journey from the 2009 commencement of operations that fully qualifies Rowley as a PQ titanium sponge producer for all applications.These strategic capital projects have been multi-year accomplishments that are expected to begin providing a re
183、turn on our invested capital after extensive construction and qualification phases.We believe these investments strengthen and enhance ATIs leadership position in the production of advanced specialty materials.Strategic end use markets for our products include:Aerospace and Defense.We are a world le
184、ader in the production of premium titanium alloys,nickel-based and cobalt-based alloys and superalloys,and vacuum-melted specialty alloys used in the manufacture of components for both commercial and military jet engines,as well as replacement parts for those engines.We also produce titanium alloys,
185、vacuum-melted specialty alloys,and high-strength stainless alloys for use in commercial and military airframes,airframe components and missiles.Titanium and titanium alloys are critical metals in aerospace and defense applications.They possess an extraordinary combination of properties,including sup
186、erior strength-to-weight ratio,elevated temperature resistance,low coefficient of thermal expansion,and extreme corrosion resistance.These metals are used to produce jet engine components such as blades,vanes,discs,and casings,and airframe components such as structural members,landing gear,hydraulic
187、 systems,and fasteners.The latest and next-generation airframes and jet engines use increasing amounts of titanium and titanium alloys in component parts in order to minimize weight and maximize fuel efficiency.Our nickel-based alloys and superalloys and specialty alloys are also widely used in aero
188、space and defense applications.Nickel-based alloys and superalloys remain extremely strong at high temperatures and resist degradation under extreme conditions.Typical aerospace applications for nickel-based alloys and superalloys and advanced powder alloys include jet engine shafts,discs,blades,van
189、es,rings and casings.The next generation and future-generation jet engines use new generations of nickel-based superalloys and advanced powder alloys in large part due to increased fuel efficiency requirements that require hotter-burning engines.Our specialty alloys include vacuum-melted maraging st
190、eels used in the manufacture of aircraft landing gear and structural components,as well as jet engine components.Our titanium alloy,nickel-based alloy,and specialty alloy precision forgings are used for hot-section components for jet engines,structural components for aircraft,helicopters,launch vehi
191、cles,and other demanding applications.We are a world leader in isothermal and hot-die forging technologies for advanced aerospace components.We produce highly sophisticated components that have differing mechanical properties in different parts of the same piece for greater resistance to fatigue and
192、 temperature effects.ATI provides a full range of post-forging inspection,machining and finishing services with the certified quality needed to meet demanding application requirements.ATI has the technology,equipment and know-how to cast titanium parts in some of the largest sizes and most complex s
193、hapes currently being manufactured for aerospace applications.ATIs advanced manufacturing capabilities offer OEMs the freedom to design components with intricate geometries,cored passageways,cast-in features and sculpted surfaces.ATIs powder metal technology delivers extreme alloy compositions and r
194、efined microstructures that offer increased performance and longer useful lives in high-temperature aerospace environments.Powder metal technology boosts the efficiency of jet engines.Powder delivers the most uniform grain structure achievable,in near-net shapes,to cut reject rates and costs in high
195、ly machined components.We continuously seek to develop innovative new alloys to better serve the needs of this end use market.For example,ATIs 718Plus nickel-based superalloy,Rene 65 near-powder superalloy,and our powder alloys have won significant share in the current and next-generation jet engine
196、s.Oil and Gas and Chemical and Hydrocarbon Processing Industry.The environments in which oil and gas can be found in commercial quantities have become more challenging,involving deep offshore wells,high pressure and high temperature conditions in sour wells and unconventional sources,such as shale o
197、il and gas,and oil sands.Challenging offshore environments are in deepwater remote locations that are further off the continental shelf,including arctic and tropical locations,often one mile or more below the waters surface,and up to two miles below the ocean floor.The requirements for equipment tha
198、t can operate for up to 30 years in these environments are the specialty materials that we produce.Both of our business segments produce specialty materials that are critical to the oil and gas industry and the chemical and hydrocarbon processing industry.Our specialty materials,including titanium a
199、nd titanium alloys,nickel-based alloys,zirconium alloys,stainless and duplex alloys and other specialty alloys have the strength,wear corrosion-resistant properties necessary for difficult environments.7812_Fin.pdf 4F-5Our Datalloy2 and DatalloyHP specialty stainless is used for non-magnetic drill c
200、ollars that enable the most advanced directional and horizontal drilling techniques to be guided to the exact position desired for the reservoir.We have developed a family of duplex alloys,including ATI 2003 and ATI 2102 lean duplex alloys,for use in subsea and deepwater oil and gas applications.Sev
201、eral of our strip,plate and cast products are NORSOK qualified.The NORSOK standards are developed by the Norwegian petroleum industry and are intended to identify materials used in oil and gas applications that are safe and cost-effective.Electrical Energy.Our specialty materials are widely used in
202、the global electrical power generation and distribution industry.We believe energy needs and environmental policies and the electrification of developing countries will continue to drive demand for our specialty materials and products for use in this industry.For electrical power generation,our spec
203、ialty materials,including corrosion-resistant alloys(CRAs),are used in coal,nuclear,and natural gas applications.In coal-fired plants,our CRAs are used for pipe,tube,and heat exchanger applications in water systems in addition to pollution control scrubbers.Our CRAs are also used in water systems,fu
204、el cladding components,and process equipment for nuclear power plants.For nuclear power plants,we are an industry pioneer in producing reactor-grade zirconium and hafnium alloys used in nuclear fuel cladding and structural components.We have developed NushieldTM products,a new line of borated stainl
205、ess alloys that begin with our advanced powder metals and are used for spent nuclear fuel applications.We are a technology leader for large diameter nickel-based superalloys used in natural gas land-based turbines for power generation.For renewable energy generation,our alloys are used for solar,fue
206、l cell and geothermal applications.The electrical power distribution market is served by our grain-oriented electrical steel(GOES)products,which are used in distribution and power transformer applications,where low loss magnetic properties are important.Significant global excess capacity and challen
207、ging market conditions,including the increasingly stringent transformer efficiency standards and a market shift to high permeability GOES products,resulted in the announced idling of GOES production in December 2015,which is expected to be completed by April 2016.ATIs future participation in the ele
208、ctrical power distribution market will be dependent on market conditions and our ability to earn an acceptable return on invested capital for these products.Medical.ATIs advanced specialty materials are used in medical device products that save and enhance the quality of lives.Our zirconium-niobium,
209、titanium-and cobalt-based alloys are used for knees,hips and other prosthetic devices.These replacement devices offer the potential of lasting much longer than previous implant options.Our biocompatible nickel-titanium shape memory alloy is used for stents to support collapsed or clogged blood vesse
210、ls.Reduced in diameter for insertion,these stents expand to the original tube-like shape due to the metals superelasticity.Our ultra fine diameter(0.002 inch/0.051 mm)titanium wire is used for screens to prevent blood clots from entering critical areas of the body.In addition,our titanium bar and wi
211、re are used to make surgical screws for bone repairs.Manufacturers of magnetic resonance imaging(MRI)devices rely on our niobium superconducting wire to help produce electromagnetic fields that allow physicians to safely scan the bodys soft tissue.Automotive.For automobiles,nickel-based alloys,stain
212、less steel and other ATI specialty materials are the choice for powertrain and structural parts,exhaust system and emission control parts,gaskets,air bag inflator housings,windshield wipers and blades,fuel systems,fasteners,hose clamps,gaskets and other components.Stainless steel is also used on ext
213、erior trim for its bright appearance and for internal components for its corrosion resistance.ATIs advanced nickel-based alloys and specialty alloys in flat-rolled products are used primarily in engine and exhaust applications in the automotive market.Global demand is expected to grow for our high-v
214、alue precision and engineered strip for automotive applications such as gaskets,hose clamps,and turbo chargers.As automotive engine operating temperatures get hotter as a result of turbochargers,we bring our expertise in aerospace alloys to the automotive market and alloy mix continues to trend favo
215、rably.Our HRPF provides the capability to produce these high-value alloys in wider and longer coils.We also provide a variety of heat-resistant and corrosion-resistant automotive exhaust alloys.Again,in this application we focus on those exhaust applications that are closer to the engine where exhau
216、st temperatures are highest and corrosion resistance is most severe.7812_Fin.pdf 5F-6Business SegmentsWe operate in the following two business segments,which accounted for the following percentages of total revenues of$3.72 billion,$4.22 billion,and$4.04 billion for the years ended December 31,2015,
217、2014,and 2013,respectively.201520142013High Performance Materials&Components53%48%48%Flat Rolled Products47%52%52%Information with respect to our business segments is presented below and in Note 16 of the notes to the consolidated financial statements.High Performance Materials&Components SegmentOur
218、 High Performance Materials&Components segment produces,converts and distributes a wide range of high performance materials,including titanium and titanium-based alloys,nickel-and cobalt-based alloys and superalloys,zirconium and related alloys including hafnium and niobium,advanced powder alloys an
219、d other specialty materials,in long product forms such as ingot,billet,bar,rod,wire,shapes and rectangles,and seamless tubes,plus precision forgings and castings,components and machined parts.These products are designed for the high performance requirements of such major end markets as aerospace and
220、 defense(engines and airframes),oil&gas/chemical&hydrocarbon processing industry,electrical energy,and medical.We are integrated from raw materials(titanium sponge)to melt,remelt,finish processing,forging,investment casting,and machining in our titanium and titanium alloys,and zirconium and hafnium
221、alloy products.Most of the products in this segment are sold directly to end-use customers,and a significant portion of our High Performance Materials&Components segment products are sold under multi-year agreements.Approximately 70%of High Performance Materials&Components segment revenue is derived
222、 from the aerospace and defense market.Demand for our products is driven primarily by the commercial aerospace cycle.Large aircraft and aircraft engines are manufactured by a small number of companies,such as The Boeing Company,Airbus S.A.S.(an Airbus Group company),Bombardier Aerospace(a division o
223、f Bombardier Inc.),and Embraer(Empresa Brasileira de Aeronutica S.A.)for airframes,and GE Aviation(a division of General Electric Company),Rolls-Royce plc,Pratt&Whitney(a division of United Technologies Corporation),Snecma(SAFRAN Group),and various joint ventures that manufacture jet engines.These c
224、ompanies and their suppliers form a substantial part of our customer base in this business segment.The loss of one or more of our customers in the aerospace and defense market could have a material adverse effect on ATIs results of operations and financial condition.Principal competitors in the High
225、 Performance Materials&Components segment include Berkshire Hathaway Inc.,for nickel-based alloys and superalloys and specialty steel alloys,titanium and titanium-based alloys,precision forgings and investment castings through its recent acquisition of Precision Castparts Corporation and subsidiarie
226、s;Alcoa Inc.,for titanium and titanium-based alloys and precision forgings through its recent acquisitions of RTI International Metals,Inc.and Firth Rixson;Carpenter Technology Corporation for nickel-based alloys and superalloys and specialty steel alloys;VSMPO-AVISMA for titanium and titanium-based
227、 alloys;and Aubert&Duval for precision forgings.Flat Rolled Products SegmentOur Flat Rolled Products segment produces,converts and distributes stainless steel,nickel-based alloys,specialty alloys,and titanium and titanium-based alloys,in a variety of product forms including plate,sheet,engineered st
228、rip,and Precision Rolled Strip products,as well as grain-oriented electrical steel.The major end markets for our flat-rolled products are oil&gas/chemical&hydrocarbon processing industry,electrical energy,automotive,food processing equipment and appliances,construction and mining,electronics,communi
229、cation equipment and computers,and aerospace and defense.The operations in this segment are ATI Flat Rolled Products and the Chinese joint venture company known as Shanghai STAL Precision Stainless Steel Company Limited(STAL),in which we hold a 60%interest.Segment results also include our 50%interes
230、t in the industrial titanium joint venture known as Uniti LLC.Stainless steel,nickel-based alloys and titanium sheet products are used in a wide variety of industrial and consumer applications.In 2015,approximately 55%by volume of our stainless sheet products were sold to independent service centers
231、,which have slitting,cutting or other processing facilities,with the remainder sold directly to end-use customers.Engineered strip and very thin Precision Rolled Strip products,which are under 0.015 inches thick,are used by customers to fabricate a variety of products primarily in the automotive,con
232、struction,and electronics markets.In 2015,approximately 95%by volume of our engineered strip and Precision Rolled Strip products were sold directly to end-use customers or through our own distribution network,with the remainder sold to independent service centers.7812_Fin.pdf 6F-7Stainless steel,nic
233、kel-based alloy and titanium plate products are primarily used in industrial markets.In 2015,approximately 40%by volume of our plate products were sold to independent service centers,with the remainder sold directly to end-use customers.Grain-oriented electrical steel(GOES)is used in power transform
234、ers where electrical conductivity and magnetic properties are important.Nearly all of our grain-oriented electrical steel products are sold directly to end-use customers.Competition in the Flat Rolled Products segment includes domestic stainless steel competitors AK Steel Corporation,North American
235、Stainless,and Outokumpu Stainless USA,LLC,as well as imports from numerous Chinese producers,Ta Chen International Corporation of Taiwan,and Aperam,based in Europe.Competitors for nickel-based alloys and superalloys and specialty steel alloys include Haynes International and VDM Metals GmbH.Competit
236、ors for GOES include AK Steel Corporation and imports from China,Russia,Japan,Korea,and various European Union countries.Significant global overcapacity for stainless steel and GOES flat-rolled products has intensified the price competition in this segment over the last several years.Some of our for
237、eign competitors are either directly or indirectly subsidized by governments.In 1999,the United States imposed anti-dumping and countervailing duties on dumped and subsidized imports of stainless steel sheet and strip in coils and stainless steel plate in coils from companies in ten foreign countrie
238、s.The anti-dumping and countervailing duty orders were reviewed in 2011 by the U.S.Department of Commerce and the U.S.International Trade Commission to determine whether the orders should remain in place for another five years.The agencies decided that eight such orders against five countries will c
239、ontinue in effect.Additionally,on February 12,2016,ATI and the three domestic stainless steel competitors filed antidumping and countervailing duty petitions concurrently with the U.S.Department of Commerce and the U.S International Trade Commission,charging that unfairly traded imports of stainless
240、 steel sheet and strip from the Peoples Republic of China are causing material injury to the domestic stainless steel industry.We continue to monitor imports from foreign producers for appropriate action.In December 2015,we announced rightsizing actions to better align our ATI Flat Rolled Products o
241、perations to the challenging market conditions for our commodity products.Such actions included the idling of the standard stainless melt shop and sheet finishing operations at the Midland,PA facility,which was completed in January 2016,and the idling of the GOES operations in Western PA,including t
242、he Bagdad,PA facility,which is expected to be completed by April 2016.The future restart of the Midland and GOES operations,respectively,will depend on future business conditions and our ability to earn an acceptable return on invested capital on products manufactured at these operations.Raw Materia
243、ls and SuppliesSubstantially all raw materials and supplies required in the manufacture of our products are available from more than one supplier and the sources and availability of raw materials essential to our businesses are currently adequate.The principal raw materials we use in the production
244、of our specialty materials are scrap(including iron-,nickel-,chromium-,titanium-,and molybdenum-bearing scrap),nickel,titanium sponge,zirconium sand and sponge,ferrochromium,ferrosilicon,molybdenum and molybdenum alloys,manganese and manganese alloys,cobalt,niobium,vanadium and other alloying materi
245、als.Purchase prices of certain principal raw materials have been volatile.As a result,our operating results may be subject to significant fluctuation.We use raw materials surcharge and index mechanisms to offset the impact of changes in raw material costs;however,competitive factors in the marketpla
246、ce may limit our ability to institute such mechanisms,and there can be a delay between the change in the price of raw materials and the impact of such mechanisms.For example,in 2015 we used approximately 95 million pounds of nickel;therefore a hypothetical change of a$1.00 per pound increase in nick
247、el prices would result in increased costs of approximately$95 million.We also used approximately 800 million pounds of ferrous scrap in the production of our flat-rolled products;a hypothetical change of a$0.01 per pound increase would result in increased costs of approximately$8 million.While we ha
248、ve increased our manufacturing capacity to produce titanium sponge,the major raw material for our titanium products,a portion of our needs,together with certain other raw materials,such as nickel,cobalt,and ferrochromium,are available to us and our specialty materials industry competitors primarily
249、from foreign sources.Some of these foreign sources are located in countries that may be subject to unstable political and economic conditions,which could disrupt supplies or affect the price of these materials.We purchase our nickel requirements principally from producers in Australia,Canada,Norway,
250、Russia,and the Dominican Republic.Zirconium raw materials are primarily purchased from the United States and China.Cobalt is purchased primarily from producers in Canada.More than 80%of the worlds reserves of ferrochromium are located in South Africa,Zimbabwe,Albania,and Kazakhstan.Niobium is purcha
251、sed primarily from producers in Brazil.We also purchase titanium sponge from sources in Russia,Kazakhstan,and Japan.7812_Fin.pdf 7F-8Export Sales and Foreign OperationsDirect international sales represented approximately 42%of our total annual sales in 2015,38%of our total sales in 2014,and 39%of ou
252、r total sales in 2013.These figures include direct export sales by our U.S.-based operations to customers in foreign countries,which accounted for approximately 33%of our total sales in 2015,28%of our total sales in 2014,and 29%of our total sales in 2013.Our overseas sales,marketing and distribution
253、 efforts are aided by our international marketing and distribution offices,ATI Europe,ATI Europe Distribution,and ATI Asia,or by independent representatives at various locations throughout the world.We believe that at least 50%of ATIs 2015 sales were driven by global markets when we consider exports
254、 of our customers.Direct sales by geographic area in 2015,and as a percentage of total sales,were as follows:(In millions)United States$2,142.658%Europe809.221%Asia503.914%Canada154.54%South America,Middle East and other109.43%Total sales$3,719.6100%Our High Performance Materials&Components segment
255、has manufacturing capabilities for melting,remelting,forging and finishing nickel-based alloys and specialty alloys in the United Kingdom,and manufacturing capabilities for precision forging and machining in Poland,primarily serving the construction,transportation and aerospace markets.Within our Fl
256、at Rolled Products segment,our STAL joint venture in the Peoples Republic of China produces Precision Rolled Strip products,which enables us to offer these products more effectively to markets in China and other Asian countries.Our Uniti LLC joint venture allows us to offer titanium products to indu
257、strial markets more effectively worldwide.Backlog,Seasonality and CyclicalityOur backlog of confirmed orders was approximately$1.5 billion at December 31,2015 and$1.7 billion at December 31,2014.We expect that approximately 85%of confirmed orders on hand at December 31,2015 will be filled during the
258、 year ending December 31,2016.Backlog of confirmed orders of our High Performance Materials&Components segment was approximately$1.3 billion at December 31,2015 and$1.4 billion at December 31,2014.We expect that approximately 85%of the confirmed orders on hand at December 31,2015 for this segment wi
259、ll be filled during the year ending December 31,2016.Backlog of confirmed orders of our Flat Rolled Products segment was approximately$0.2 billion at December 31,2015 and$0.3 billion at December 31,2014.We expect that all of the confirmed orders on hand at December 31,2015 for this segment will be f
260、illed during the year ending December 31,2016.Generally,our sales and operations are not seasonal.However,demand for our products is cyclical over longer periods because specialty materials customers operate in cyclical industries and are subject to changes in general economic conditions and other f
261、actors both external and internal to those industries.Research,Development and Technical ServicesWe believe that our research and development capabilities give ATI an advantage in developing new products and manufacturing processes that contribute to the profitable growth potential of our businesses
262、 on a long-term basis.We conduct research and development at our various operating locations both for our own account and,on a limited basis,for customers on a contract basis.Research and development expenditures for the years ended December 31,2015,2014,and 2013 included the following:(In millions)
263、201520142013Company-Funded:High Performance Materials&Components$10.0$12.9$11.7Flat Rolled Products4.04.34.3Corporate0.20.20.1$14.2$17.4$16.1Customer-Funded:High Performance Materials&Components$1.5$2.7$2.7Total Research and Development$15.7$20.1$18.87812_Fin.pdf 8F-9Our research,development and tec
264、hnical service activities are closely interrelated and are directed toward cost reduction and process improvement,process control,quality assurance and control,system development,the development of new manufacturing methods,the improvement of existing manufacturing methods,the improvement of existin
265、g products,and the development of new products.We own hundreds of United States patents,many of which are also filed under the patent laws of other nations.Although these patents,as well as our numerous trademarks,technical information,license agreements,and other intellectual property,have been and
266、 are expected to be of value,we believe that the loss of any single such item or technically related group of such items would not materially affect the conduct of our business.Environmental,Health and Safety MattersWe are subject to various domestic and international environmental laws and regulati
267、ons that govern the discharge of pollutants,and disposal of wastes,and which may require that we investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations.We could incur substantial cleanup costs,fines,civil or criminal sanctio
268、ns,third party property damage or personal injury claims as a result of violations or liabilities under these laws or non-compliance with environmental permits required at our facilities.We are currently involved in the investigation and remediation of a number of our current and former sites as wel
269、l as third party sites.We consider environmental compliance to be an integral part of our operations.We have a comprehensive environmental management and reporting program that focuses on compliance with applicable federal,state,regional and local environmental laws and regulations.Each operating co
270、mpany has an environmental management system that includes mechanisms for regularly evaluating environmental compliance and managing changes in business operations while assessing environmental impact.Our Corporate Guidelines for Business Conduct and Ethics address compliance with environmental laws
271、 as well as employment and workplace safety laws,and also describe our commitment to equal opportunity and fair treatment of employees.We continued to focus on safety across ATIs operations during 2015.As a result of our continuing focus on and commitment to safety,in 2015 our OSHA Total Recordable
272、Incident Rate was 1.88 and our Lost Time Case Rate was 0.29,which improved versus 2014 and which we believe to be competitive with world-class performance for our industry.EmployeesWe have approximately 9,200 full-time employees,of which approximately 15%are located outside the United States.Approxi
273、mately 50%of our workforce is covered by various collective bargaining agreements,predominantly with the United Steel,Paper and Forestry,Rubber,Manufacturing,Energy,Allied&Industrial Service Workers International Union,AFL-CIO,CLC(“USW”).The collective bargaining agreements between ATI and the USW a
274、t many of our Flat Rolled Products segment facilities,and at two High Performance Materials&Components segment facilities located in Albany,OR and Lockport,NY,expired on June 30,2015.Due to the lack of progress in ongoing contract negotiations,we issued a lockout notice involving more than 2,000 wor
275、kers at various facilities which took effect August 15,2015.We have and will continue to operate the affected facilities and continue serving customer needs with our salaried and non-union employees and temporary professional staffing until the contract negotiations are resolved.On February 22,2016,
276、we reached a tentative agreement with the bargaining committee of the USW on a new labor contract,which would end the lockout.The contract is subject to ratification by USW members.Available InformationOur Internet website address is http:/.Our annual reports on Form 10-K,quarterly reports on Form 1
277、0-Q,current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a)or 15(d)of the Securities Exchange Act of 1934,as well as proxy and information statements and other information that we file,are available free of charge through our Internet website as soon
278、as reasonably practicable after we electronically file such material with,or furnish such material to,the United States Securities and Exchange Commission(“SEC”).Our Internet website and the content contained therein or connected thereto are not intended to be incorporated into this Annual Report on
279、 Form 10-K.You may read and copy materials we file with the SEC at the SECs Public Reference Room at 100 F Street,NE,Washington,DC 20549.You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.The SEC maintains an Internet website at http:/www.se
280、c.gov,which contains reports,proxy and information statements and other information that we file electronically with the SEC.7812_Fin.pdf 9F-10Executive Management,Including Executive Officers under Federal Securities LawsThe following are members of the Companys executive management,including execu
281、tive officers under the federal securities laws,as of February 15,2016:NameAgeTitleRichard J.Harshman59Chairman,President and Chief Executive OfficerPatrick J.DeCourcy53Senior Vice President,Finance and Chief Financial OfficerHunter R.Dalton61Executive Vice President,Strategic Growth InitiativesJohn
282、 D.Sims56Executive Vice President,High Performance Materials and Components SegmentRobert S.Wetherbee56Executive Vice President,ATI Flat Rolled Products GroupElliot S.Davis54Senior Vice President,General Counsel,Chief Compliance Officer and Corporate SecretaryKevin B.Kramer56Senior Vice President,Ch
283、ief Commercial and Marketing OfficerElizabeth C.Powers56Senior Vice President,Chief Human Resources OfficerKarl D.Schwartz52Vice President,Controller and Chief Accounting OfficerAll individuals in the above table are subject to the reporting and other requirements of Section 16 of the Securities Exc
284、hange Act of 1934,as amended.Set forth below are descriptions of the business backgrounds for the past five years of the Companys executive officers and management.Richard J.Harshman became Chairman,President and Chief Executive Officer in May 2011.Mr.Harshman was President and Chief Operating Offic
285、er from 2010 to May 2011.Prior to that,he served as Executive Vice President,Finance and Chief Financial Officer from 2003 to 2010.Patrick J.DeCourcy,has served as Senior Vice President,Finance and Chief Financial Officer since December 2013.He was Interim Chief Financial Officer from July 2013 to D
286、ecember 2013.From 2011 to July 2013,Mr.DeCourcy provided assistance to ATI executive management with business integration and strategic investments and was Senior Director,Strategic Projects and Business Integration,from March 2012 to July 2013.From 2000 to 2010,he served as Vice President,Finance a
287、nd Administration of ATI Specialty Materials.Hunter R.Dalton has served as Executive Vice President,Strategic Growth Initiatives since August 2015.He was Executive Vice President,ATI High Performance Specialty Materials Group from May 2011 to August 2015,and was President,ATI Specialty Materials fro
288、m 2008 to August 2015.Previously,he served as Group President,ATI Long Products from 2008 to May 2011.From 2003 to 2008,Mr.Dalton served as Senior Vice President of Sales and Marketing for ATI Specialty Materials.John D.Sims has served as Executive Vice President,High Performance Materials and Compo
289、nents Segment since August 2015.He was Executive Vice President,ATI High Performance Components Group from September 2013 to August 2015 and President,ATI Forged Products from September 2013 to April 2014.Previously,he was Executive Vice President,Primary Titanium Operations,and Engineered Alloys an
290、d Products beginning in February 2013.Prior to that,Mr.Sims served as Executive Vice President,Primary Metals and Exotic Alloys from May 2011 to February 2013 and President,Specialty Alloys&Components from 2008 to February 2013.Previously,he was Group President,ATI Primary Metals and Exotic Alloys f
291、rom February 2011 to May 2011.Robert S.Wetherbee began serving as Executive Vice President,ATI Flat Rolled Products group in January 2015.He served as President,ATI Flat Rolled Products beginning April 1,2014.Prior to that,Mr.Wetherbee was President and Chief Executive Officer of Minerals Technologi
292、es,Inc.from March 2013 until February 2014.Mr.Wetherbee was President of ATIs tungsten materials business from 2010 through 2012.Previously,he was Vice President of Market Strategy of Alcoa Inc.from 2006 through 2009.Elliot S.Davis became Senior Vice President,General Counsel,Chief Compliance Office
293、r and Corporate Secretary in May 2011.Previously,Mr.Davis was Vice President and General Counsel from 2010 to May 2011.Mr.Davis served as Assistant General Counsel from 2008,when he joined the Company,to 2010.Prior to that,Mr.Davis was a partner of the law firm K&L Gates LLP,where he practiced for n
294、early 20 years in its corporate,mergers and acquisitions and securities group.Kevin B.Kramer was named Senior Vice President,Chief Commercial and Marketing Officer when he joined the Company in February 2014.Prior to joining ATI,Mr.Kramer was President-Stoneridge Wiring Division and Vice President o
295、f Stoneridge,Inc.,from May 2012 through January 2014.Previously,Mr.Kramer worked for Alcoa,Inc.from 2004 until 2012,where he had served as President-Growth Initiatives and President-Wheel and Transportation Products.7812_Fin.pdf 10F-11Elizabeth C.Powers joined ATI in November 2014 as Senior Vice Pre
296、sident,Chief Human Resources Officer.Ms.Powers served as Vice President,Human Resources and Chief Administrative Officer for Dresser-Rand Group,Inc.from 2010 until 2012 and from 2005 to 2009.She was named Vice President,Human Resources of Dresser-Rand Group in 2004.From 2012 until she joined ATI,Ms.
297、Powers worked in academia.In 2009 and 2010,Ms.Powers worked in the public policy and non-profit sectors.Karl D.Schwartz is Vice President,Controller and Chief Accounting Officer and has served in that role since January 2016.Previously,he was Controller and Chief Accounting Officer from May 2011 to
298、January 2016,and Controller and Principal Accounting Officer from 2010 to May 2011.Prior to that,Mr.Schwartz was Assistant Controller beginning in 2002,when he joined the Company.Item 1A.Risk FactorsThere are inherent risks and uncertainties associated with our business that could adversely affect o
299、ur operating performance and financial condition.Set forth below are descriptions of those risks and uncertainties that we currently believe to be material,but the risks and uncertainties described are not the only risks and uncertainties that could affect our business.See the discussion under“Forwa
300、rd-Looking Statements”in Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations,in this Annual Report on Form 10-K.Cyclical Demand for Products.The cyclical nature of the industries in which our customers operate causes demand for our products to be cyclical,crea
301、ting potential uncertainty regarding future profitability.Various changes in general economic conditions may affect the industries in which our customers operate.These changes could include decreases in the rate of consumption or use of our customers products due to economic downturns.Other factors
302、that may cause fluctuation in our customers positions are changes in market demand,lower overall pricing due to domestic and international overcapacity,currency fluctuations,lower priced imports and increases in use or decreases in prices of substitute materials.As a result of these factors,our prof
303、itability has been and may in the future be subject to significant fluctuation.Worldwide economic conditions deteriorated significantly in the recent past and could remain weak in the future.These conditions have had,and may continue to have,an adverse effect on demand for our customers products and
304、,in turn,on demand for our products.If these conditions persist or worsen,our results of operations and financial condition could be materially adversely affected.Volatility of Raw Material Costs.Most of our inventory is valued utilizing the LIFO costing methodology.Inventory of our non-U.S.operatio
305、ns is valued using average cost or FIFO methods.Under the LIFO inventory valuation method,changes in the cost of raw materials and production activities are recognized in cost of sales in the current period even though these material and other costs may have been incurred at significantly different
306、values due to the length of time of our production cycle.In a period of rising prices,cost of sales expense recognized under LIFO is generally higher than the cash costs incurred to acquire the inventory sold.Conversely,in a period of declining raw material prices,cost of sales recognized under LIFO
307、 is generally lower than cash costs incurred to acquire the inventory sold.Generally,over time based on overall inflationary trends in raw materials,labor and overhead costs,the use of the LIFO inventory valuation method will result in a LIFO inventory valuation reserve,as the higher current period
308、costs are included in cost of sales and the balance sheet carrying value of inventory is reduced.The prices for many of the raw materials we use have been extremely volatile during the past several years.Since we value most of our inventory utilizing the LIFO inventory costing methodology,a fall in
309、raw material costs results in a benefit to operating results by reducing cost of sales and increasing the inventory carrying value,while conversely,a rise in raw material costs has a negative effect on our operating results by increasing cost of sales while lowering the carrying value of inventory.F
310、or example,for the year ended December 31,2015,the effect of falling raw material costs on our LIFO inventory valuation method resulted in cost of sales that were$131.6 million lower than what would have been recognized under the FIFO costing methodology to value our inventory.Due primarily to persi
311、stent raw material deflation over the last several years,we are in an unusual situation of having a LIFO inventory balance that exceeds replacement cost.In cases where inventory at FIFO cost is lower than the LIFO carrying value,a write-down of the inventory to market may be required,subject to a lo
312、wer of cost or market evaluation.In applying the lower of cost or market principle,market means current replacement cost,subject to a ceiling(market value shall not exceed net realizable value)and a floor(market shall not be less than net realizable value reduced by an allowance for a normal profit
313、margin).We evaluate product lines on a quarterly basis to identify inventory values that exceed estimated net realizable value.The calculation of a resulting reserve,if any,is recognized as an expense in the period that the need for the reserve is identified.Due to the long lead times required to ma
314、nufacture many of our products,volatility in raw material prices exposes us to cash costs that may not be fully recovered through surcharge and index pricing mechanisms.7812_Fin.pdf 11F-12Product Pricing.From time-to-time,reduced demand,intense competition and excess manufacturing capacity have resu
315、lted in reduced prices,excluding raw material surcharges,for many of our products.These factors have had and may have an adverse impact on our revenues,operating results and financial condition.Although inflationary trends in recent years have been moderate,during most of the same period certain cri
316、tical raw material costs,such as nickel,titanium sponge,chromium,and molybdenum and scrap containing iron,nickel,titanium,chromium,and molybdenum have been volatile.While we have been able to mitigate some of the adverse impact of volatile raw material costs through raw material surcharges or indice
317、s to customers,rapid changes in raw material costs may adversely affect our results of operations.We change prices on certain of our products from time-to-time.The ability to implement price increases is dependent on market conditions,economic factors,raw material costs and availability,competitive
318、factors,operating costs and other factors,some of which are beyond our control.The benefits of any price increases may be delayed due to long manufacturing lead times and the terms of existing contracts.Risks Associated with Commercial Aerospace.A significant portion of the sales of our High Perform
319、ance Materials&Components segment represents products sold to customers in the commercial aerospace industry.The commercial aerospace industry has historically been cyclical due to factors both external and internal to the airline industry.These factors include general economic conditions,airline pr
320、ofitability,consumer demand for air travel,varying fuel and labor costs,execution of projected build rates,price competition,and international and domestic political conditions such as military conflict and the threat of terrorism.The length and degree of cyclical fluctuation are influenced by these
321、 factors and therefore are difficult to predict with certainty.Demand for our products in this segment is subject to these cyclical trends.A downturn in the commercial aerospace industry has had,and may in the future have,an adverse effect on the prices at which we are able to sell these and other p
322、roducts,and our results of operations,business and financial condition could be materially adversely affected.Risks Associated with Strategic Capital Projects.From time-to-time,we undertake strategic capital projects in order to enhance,expand and/or upgrade our facilities and operational capabiliti
323、es.For instance,over the last several years we have undertaken major expansions of our titanium and premium-melt nickel-based alloy,superalloy and specialty alloy production capabilities,and finished product commissioning of a new advanced specialty materials hot-rolling and processing facility.Our
324、ability to achieve the anticipated increased revenues or otherwise realize acceptable returns on these investments or other strategic capital projects that we may undertake is subject to a number of risks,many of which are beyond our control,including a variety of market,operational,permitting,and l
325、abor-related factors.In addition,the cost to implement any given strategic capital project ultimately may prove to be greater than originally anticipated.If we are not able to achieve the anticipated results from the implementation of any of our strategic capital projects,or if we incur unanticipate
326、d implementation costs or delays,our results of operations and financial position may be materially adversely affected.Dependence on Critical Raw Materials Subject to Price and Availability Fluctuations.We rely to a substantial extent on third parties to supply certain raw materials that are critica
327、l to the manufacture of our products.Purchase prices and availability of these critical raw materials are subject to volatility.At any given time we may be unable to obtain an adequate supply of these critical raw materials on a timely basis,on price and other terms acceptable,or at all.If suppliers
328、 increase the price of critical raw materials,we may not have alternative sources of supply.In addition,to the extent that we have quoted prices to customers and accepted customer orders for products prior to purchasing necessary raw materials,or have existing contracts,we may be unable to raise the
329、 price of products to cover all or part of the increased cost of the raw materials.The manufacture of some of our products is a complex process and requires long lead times.As a result,we may experience delays or shortages in the supply of raw materials.If unable to obtain adequate and timely delive
330、ries of required raw materials,we may be unable to timely manufacture sufficient quantities of products.This could cause us to lose sales,incur additional costs,delay new product introductions,or suffer harm to our reputation.We acquire certain important raw materials that we use to produce specialt
331、y materials,including nickel,zirconium,niobium,chromium,cobalt,and titanium sponge,from foreign sources.Some of these sources operate in countries that may be subject to unstable political and economic conditions.These conditions may disrupt supplies or affect the prices of these materials.Availabil
332、ity of Energy Resources.We rely upon third parties for our supply of energy resources consumed in the manufacture of our products.The prices for and availability of electricity,natural gas,oil and other energy resources are subject to volatile market conditions.These market conditions often are affe
333、cted by political and economic factors beyond our control.Disruptions in the supply of energy resources could temporarily impair the ability to manufacture products for customers.Further,increases in energy costs,or changes in costs relative to energy costs paid by competitors,has and may continue to 7812_Fin.pdf 12F-13adversely affect our profitability.To the extent that these uncertainties cause
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共50套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
