Allegheny Technologies, Inc. Q4 2007 Earnings Call Transcript

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2008-01-23 15:37:03.0

Tags: Allegheny Technologies Inc.

Question-and-Answer Session

Thank you. [Operator Instructions]. And your first question comes from the line of Chris Olin from Cleveland Research. Please proceed.

Chris Olin - Cleveland Research

Good afternoon.

Unidentified Company Representative

Hi Chris.

Chris Olin - Cleveland Research

I want to get some clarity on the titanium market here. I guess I am going to focus on the supply side. What is your total exposure to the CP titanium market? I guess I'm wondering how much exposure these operations will have once you start to see the Asian capacity boom, and I'm wondering if that's having any kind of impact on your business in terms of too much supply coming on the marketplace?

L. Patrick Hassey - Chairman, President and Chief Executive Officer

Good question. Let me just tell you what's happening. As I mentioned in my previous comments, our assets and our capacities are fungible. So we have may be an announcement to make that will be very interesting to people on this call. We are the largest supplier of CP quality sheet in the world. Our Flat-Rolled Products division is the largest supplier of CP quality sheet in the world. We shipped last year, as I mentioned, 10.4 million pounds out of this unit and we expect that business to be further strengthened this year in new markets called plate frame heat exchanger and tubing that goes into power generators and exchangers that go into the nuclear chemical processing business and other markets. So when we look at that market today, we're seeing a growing presence of ATI in those markets. The demand is very high. And it's interesting to me that if there is so much capacity coming online, why we didn't have a problem booking LTAs for two or three years out in these markets.

Chris Olin - Cleveland Research

Okay, thanks.

Operator

Your next question comes from the line of John Hill with Citi.

John Hill - Smith Barney Citigroup

Great. Thanks for the presentation everyone. I was just wondering if we could walk through the new LTAs that were signed in the quarter. We seemed to mention a fair number of those on the call, was everything from high performance metals to exotics et cetera in some new geographies. So could you just give us some illustrative examples of new deals that were signed up in the quarter?

L. Patrick Hassey - Chairman, President and Chief Executive Officer

 

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