Allegheny Technologies Inc. has a market cap of $4.95 billion; its shares were traded at around $50.39 with a P/E ratio of 77.7 and P/S ratio of 1.6. The dividend yield of Allegheny Technologies Inc. stocks is 1.5%.ATI is in the portfolios of RS Investment Management, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Chris Davis of Davis Selected Advisers.
Highlight of Business Operations: Net income attributable to ATI for the first quarter 2010 was $18.2 million, or $0.18 per share. Results included a non-recurring tax charge of $5.3 million related to the recently-enacted Patient Protection and Affordable Care Act. Excluding this non-recurring charge, net income attributable to ATI was $23.5 million, or $0.24 per share. In the first quarter 2009, we reported net income attributable to ATI of $5.9 million, or $0.06 per share.
Sales for the 2010 first quarter increased 23% to $80.5 million, compared to $65.5 million in the 2009 first quarter. Demand for our tungsten and tungsten carbide products, forged products, and cast products improved. Segment operating profit for the first quarter 2010 was $1.8 million compared to a loss of $6.1 million in the first quarter 2009. The improvement in operating profit was primarily due to significantly increased demand and the improvement in operating costs resulting from better operating rates compared to the 2009 first quarter. There was no change in our LIFO inventory valuation reserve in the first quarter 2010. The first quarter 2009 results included a LIFO inventory valuation reserve benefit of $1.3 million primarily due to lower raw material costs. Results for the 2010 first quarter also benefited from $4.7 million of gross cost reductions.
Retirement benefit expense, which includes pension expense and other postretirement expense, decreased to $22.5 million in the first quarter 2010, compared to $37.3 million in the first quarter 2009. This decrease was primarily due to higher than expected returns on pension plan assets in 2009 and the benefits resulting from our voluntary pension contributions made over the last several years. For the first quarter 2010, retirement benefit expense of $15.8 million was included in cost of sales and $6.7 million was included in selling and administrative expenses. For the first quarter 2009, the amount of retirement benefit expense included in cost of sales was $27.7 million, and the amount included in selling and administrative expenses was $9.6 million.
First quarter 2010 provision for income taxes was $13.2 million, or 40% of income before tax. The first quarter 2010 included a non-recurring tax charge of $5.3 million associated with the impact of the recently-enacted Patient Protection and Affordable Care Act. As previously announced, under this new legislation the tax advantage of the subsidy to encourage companies to provide retiree prescription drug coverage has been eliminated. Although the elimination of this tax advantage under the new legislation does not take effect until 2013, the Company is required by U.S. generally accepted accounting principles to recognize the full accounting impact in the 2010 first quarter, the period in which the Act became law. Since future anticipated retiree health care liabilities and related tax subsidies are already reflected in ATIs financial statements, the change in law resulted in a reduction of the value of the Companys deferred tax asset related to the subsidy. This 2010 first quarter tax charge was partially offset by discrete net tax benefits of $3.7 million associated with adjustment of taxes paid in prior years, the settlement of uncertain income tax positions, and other changes. As a result of the settlements of uncertain income tax positions, the liability for unrecognized income tax benefits was reduced by $15.9 million, including $4.2 million related to interest and penalties, and deferred taxes increased $11.7 million. First quarter 2009 included an income tax benefit of $5.0 million. The 2009 first quarter benefited from a lower income tax provision due primarily to $5.1 million of discrete adjustments associated with prior years taxes.
For the three months ended March 31, 2010, cash used in operating activities was $72.0 million as an investment of $130.2 million in managed working capital, primarily due to improving business activity and higher raw material costs, offset increased profitability. Cash used in investing activities was $50.6 million in the 2010 first quarter and consisted primarily of capital expenditures. Cash used in financing activities was $22.7 million in the 2010 first quarter comprised primarily of dividend payments of $17.7 million and debt retirements of $6.2 million. At March 31, 2010, cash and cash equivalents on hand totaled $563.5 million, a decrease of $145.3 million from year end 2009.
As part of managing the liquidity of our business, we focus on controlling managed working capital, which is defined as gross accounts receivable and gross inventories, less accounts payable. In measuring performance in controlling this managed working capital, we exclude the effects of LIFO inventory valuation reserves, excess and obsolete inventory reserves, and reserves for uncollectible accounts receivable which, due to their nature, are managed separately. At March 31, 2010, managed working capital was 32.9% of annualized sales, compared to 34.5% of annualized sales at December 31, 2009. During the first three months of 2010 managed working capital increased by $130.2 million, to $1.2 billion. The increase in managed working capital from December 31, 2009 was due to increased accounts receivable of $78.8 million, and increased inventory of $141.7 million, partially offset by increased accounts payable of $90.3 million. While accounts receivable balances increased during first quarter 2010, days sales outstanding, which measures actual collection timing for accounts receivable, decreased compared to year end 2009. Gross inventory turns, which excludes the effect of LIFO inventory valuation reserves, were comparable to year end 2009 as increased raw material costs offset higher business activity.
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