ATI Inc.

Good morning and welcome to the Allegheny Technologies Incorporated third quarter 2019 results conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. You ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Scott Minder, Vice President, Treasurer, and Investor Relations. Please go ahead, sir.

Thank you, Nicole. Good morning, and welcome to the Allegheny Technologies Third Quarter 2019 Conference Call. This call is being broadcast on our website at atimetals.com. Participating in the call today are Bob Weatherby, President and Chief Executive Officer of John Sims, Executive Vice President, High Performance Materials and Components segment. Kim Fields, Executive Vice President, Flat World Products. Pat DeCourcy, Senior Vice President and Chief Financial Officer. And Kevin Kramer, Senior Vice President, Chief Commercial and Marketing Officer. If you've connected to this call via the internet, you should see slides on your screen. For those of you who dialed in, slides are available on our website. After our prepared remarks, we will open the line for questions. During the Q&A session, please limit yourself to two questions to allow time for others. We will try to reach everyone who would like to ask a question. Please note that all forward-looking statements are subject to various assumptions and caveats, as noted in the earnings release and shown on this slide. Now, I will turn the call over to Bob. Thanks, Scott.

Good morning, and thanks for joining us. We generated solid third quarter operating results that were in line with our near-term expectations for both segments. These results reflect continued strong customer-facing execution and ongoing demand growth in our TEM markets. From a total ATI perspective, revenue expanded in both business segments on a year-over-year basis when adjusted for the divestiture of the titanium investment castings and industrial forging businesses. Segment operating profit declined modestly year over year, primarily due to the FRP segment's comparison to a stronger prior year period, which offset the HPMC segment's improvement. Net income and earnings per share increased significantly versus third quarter 2018 due to previously announced non-core asset sales that closed in the third quarter. When these items are excluded, both earnings measures declined slightly versus the prior year, but in line with previously communicated expectations. John, Kim, and Pat will cover the financial results in more detail later in the call. We'll turn to page four, and similar to our last earnings call, I want to highlight recent progress on several strategic imperatives. First, we continue to execute on the broad-based production ramp for single and double aisle aircraft and engines. We work closely with our customers, leveraging our material science capabilities and unique process technologies to supply the critical materials and components required to produce the world's most advanced jet engines and other highly technical products. As a result, ATI's share of the commercial airframe and jet engine submarkets continue to increase, with further accretive growth opportunities for our existing cast rot and powder materials as well as for our advanced forgings on the near-term horizon. With regards to the 737 MAX situation, we continue to enjoy a strong order book and backlog for our advanced materials and components destined for use on the MAX and other Boeing programs. We remain optimistic for a MAX return to service in the near-term and subsequent production rate growth in 2020 and 2021. We're in near constant communication with our customers, and as we said before, We produce to specific customer orders, not to reported OEM build rates. The 737 MAX is an important program for API, but it's also important to remember that it's one of many airframe and engine programs, including OEM and spare parts that we supply to a very healthy global market. Second, we continue to make progress with our flat roll product segment towards sustainable profitability, regardless of trade policy or raw material prices. Our focus on high value flat products is driving improved, more stable financial results while we work with our partners to increase asset utilization at our hot rolling and processing facility near Pittsburgh. Third, we continue to make great strides on improving our balance sheet with the conclusion of several events discussed on our second quarter earnings call. As you'll hear from Pat, we received significant cash proceeds from recent business divestitures and asset sales and we concluded our third pension annuitization exercise in Q3. Coupled with strong operating cash generation, we ended the quarter with over $500 million of cash. We intend to deploy cash over the next several quarters to further meet our strategic growth and balance sheet objectives. Next, to ensure adequate long-term liquidity, we extended our asset-based lending facility through September 2024 upsizing it by $100 million to reflect our growth since initiating the facility in 2015. And lastly, we recently announced the expansion and six-and-a-half-year extension of our long-term agreement with BWX Technologies to supply materials for the manufacture of naval components. This contract demonstrates our deep commitment to the global defense industry, is a great example of our substantial competitive moat, and illustrates how we're helping to protect sailors, soldiers, and aircrew around the world. Congratulations to the ATI Special Allies and Components team for capturing this accretive growth opportunity. We continue to work diligently to grow our aerospace and defense market shares and expect to meaningfully extend several significant long-term contracts in the coming months. The ATI leadership team is committed to achieving our strategic imperatives, and we're making tangible progress in all areas. We continue to look for ways to go faster and further to generate increased shareholder value from our current business portfolio. We're being aggressive and taking a broad view as we pursue opportunities to improve performance. And I'll turn the call over to John Sims to discuss the HPMC segment results in more detail, and I'll return at the end of the call to wrap up and take your questions. John?