Allegheny Technologies Inc. (ATI) announced Tuesday that it has realigned its business segments.
The realignment is designed to accelerate long-term profitable growth and enhance its position as a leading specialty materials manufacturer. It is expected to result in approximately $7 million in total annualized operational and commercial synergies by the end of 2021 and $15 million by the end of 2022.
ATI will report in two business segments starting with the first quarter of this year’s financial results: a streamlined High Performance Materials & Components segment and a new Advanced Alloys & Solutions segment.
The former Flat Rolled Products business has also been divided into two businesses: Specialty Rolled Products and Standard Stainless Sheet Products.
“We are committed to generating increased shareholder value from our business portfolio and continually evaluate our structure to ensure that we deliver the optimal combination of growth and profitability,” ATI President and CEO Robert S. Wetherbee said. “The actions announced today increase our ability to further penetrate strategic end-markets as well as improve our overall cost-competitiveness, particularly for standard stainless sheet products.”
ATI expects to record a charge of approximately $8 million in the first quarter of 2020 for its voluntary retirement program.
The company’s cost-reduction programs are forecasted to save $14 million.