THE BUSINESSWEEK 50 RANKINGS + 25

26

Allegheny Technologies

Before an ailing Allegheny enticed CEO Patrick Hassey out of retirement in 2003, he had most recently run the aerospace business for aluminum giant Alcoa. So it’s no mistake that, as the aerospace sector took off, Hassey made sure Allegheny seized the opportunity. Its titanium and nickel alloys are crucial materials for jet engines, and now the titanium is also being used by Boeing in its 787 Dreamliner plane. Allegheny’s other specialty metals, including stainless steel and zirconium, serve such end markets as oil and gas, nuclear power, and medical technology. Sales jumped 30% in 2005 and 40% in 2006. Hassey expects an aerospace “supercycle” to keep fueling growth, with demand propped up by new-plane orders in emerging markets and domestic fleet upgrades. He puts his money where his mouth is: Spending to expand titanium production capacity for the three years through 2007 is expected to total $830 million.

Overall Grade

A

Market Data

ATI

Market Value
(2/28/2007)

$10.4 Billion

Profitability*

28.3%

A-

Sales Growth Rate**

35.9%

A

12-Month Sales

$4.9 Billion

12-Month Net Income

$0.6 Billion

Total Return Past 12 Months

103.8%

Past 36 Months

730.6%

Economic SectorMaterials
IndustrySteel
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

L. Patrick Hassey

L. Patrick Hassey, 61

CEO since 2003


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Data as of 2/28/07 provided by Standard & Poor's Compustat