Allegheny Technologies to take $5 million health care charge in 1st quarter
By APMonday, March 29, 2010
Allegheny Tech to take $5M health care charge
PITTSBURGH — Metals processor Allegheny Technologies Inc. said Monday that it plans to take a $5 million non-cash charge in the first quarter related to the health care overhaul legislation.
Under the new law, companies will have to start paying taxes on a government subsidy they receive for providing drug benefits to retirees.
Allegheny said while this tax benefit won’t be eliminated until 2013, it is required by accounting rules to book the expected charge, which will amount to 5 cents per share, in the first quarter.
Several other companies, including AK Steel Corp., AT&T Inc., Caterpillar Inc., Deere & Co. and Valero Energy have announced similar charges.
Shares of Allegheny rose $2.51, or 4.7 percent, to close at $55.73. The stock earlier set a new year high of $56, eclipsing a prior peak of $55.24.
