LOS ANGELES Led by the impact of recent acquisitions that offset a $2.4-million hit from a transformer fire, RTI International Metals Inc.s earnings more than doubled in the third quarter despite flat titanium shipments and prices.
The Pittsburgh-based producer, fabricator and distributor posted net income of nearly $5.63 million for the three months ended Sept. 30 vs. $2.07 million in the same period last year on sales that jumped 31.6 percent to $189.08 million from $143.67 million. For the first nine months of the year, net income soared to $16.41 million from $6.54 million a year earlier on sales that increased 39.8 to $542.2 million from $387.73 million.
RTI shipped 4.2 million pounds of mill products at an average realized price of $19.01 per pound during the third quarter vs. shipments of 4.3 million pounds at an average price of $18.99 a year earlier.
The $2.4-million impact of an electrical transformer fire and temporary shutdown at the companys RTI Alloys plant in Canton, Ohio, during the quarter was reflected in the results of RTIs titanium group, which posted operating earnings of just $2 million vs. $4.9 million in the third quarter of last year as sales fell 2.2 percent to $85.8 million from $87.7 million.
The fabrication group generated operating earnings of $6.1 million in the third quarter in contrast to a $1.5-million operating loss a year earlier on sales that more than doubled to $87.9 million from $40.2 million. RTI said the improvement reflected not only the results of its newly acquired RTI Remmele and RTI Advanced Forming operations, but also a "strong contribution" from energy market projects.
Dawne S. Hickton, vice chairwoman, president and chief executive officer, said the fabrication group's results showed the benefits of RTI's strategy "to move further downstream" to include more titanium engineering, machining and fabrication capabilities.