LOS ANGELES RTI
International Metals Inc. saw its earnings rise sharply in the
fourth quarter, with lower scrap input costs, accelerated
shipments to the energy market and the addition of the
companys largest-ever acquisition offsetting lower
The Pittsburgh-based titanium
producer, fabricator and distributor expects some "softness" in
the first half of 2013, but it anticipates a pickup later in
the year, vice chairwoman, president and chief executive
officer Dawne S. Hickton said.
RTIs fourth-quarter net
income jumped to more than $7.1 million from just $15,000 in
the same period a year earlier on a 38.4-percent increase in
sales to nearly $196.41 million. Full-year net income more than
tripled to $23.52 million from $6.55 million in 2011 on sales
that increased 39.4 percent to $738.61 million.
RTIs titanium mill product
shipments in the fourth quarter declined to 3.7 million pounds
from 4 million pounds a year earlier, but full-year shipments
rose to 16.5 million pounds from 14.7 million pounds in 2011.
Realized titanium prices averaged $19.13 per pound in the
fourth quarter, down marginally from $19.11 in the same period
a year earlier, and average prices for the full year slipped 2
percent to $19.14 per pound from $19.54 in 2011.
RTIs backlog totaled $554
million at the end of 2012, a 16-percent year-on-year
In addition to lower scrap input
costs, RTI benefited from shipments of
componentsinitially due to be shipped in this years
first quarterfor subsea drilling applications, primarily
in the Gulf of Mexico. RTI said that its sales of these
components tripled year on year in 2012.
Higher fourth-quarter earnings
also reflected the addition of Remmele Engineering Inc., New
Brighton, Minn., for which RTI paid $182 million (
amm.com, Feb. 15, 2012). Remmele is now RTI
Remmele Engineering and RTI Remmele Medical, the latter a
manufacturer of medical devices.
Shipments of track ship sets for
the Boeing 787 Dreamliner are expected to grow to at least 75
this year from 44 in 2012, Hickton said.