LOS ANGELES RTI
International Metals Inc. saw flat profits in the first
quarter, but the company expects improvement as the commercial
aerospace sector ramps up in the second half.
The Pittsburgh-based titanium
producer, fabricator and distributor posted first-quarter net
income of $5.66 million vs. $5.63 million in the same period
last year on sales that jumped 21.3 percent to $187.47 million
from $154.57 million.
First-quarter titanium mill
product shipments were flat year on year at 4.3 million pounds,
and RTIs average realized price on mill products held
fairly steady at $19.35 per pound vs. $19.41 a year
Vice chairwoman, president and
chief executive officer Dawne S. Hickton said the
companys first-quarter results reflected the "somewhat
subdued" commercial aerospace market, but RTI expects this
sector to ramp in the second half of the year.
"Powerful trends that have
produced record order backlogs for new commercial aircraft
remain intact," Hickton said. "In our titanium segment, we
continue to see strong ordering to support our Airbus (SAS)
mill product contract, and in our engineered products and
services group the Boeing 787 program is continuing to ramp as
we expected toward a 10-ship-set run rate by the end of the
Hickton said that the federal
budget sequestration had not turned out to be the "nightmare"
that some had expected, and the defense market had been,
"interestingly enough, relatively stable." The company does not
expect the sequester to have "any significant impact" on its
business this year, she said.
Meanwhile, RTI has seen "de
minimus" business in the titanium spot market, Hickton
RTIs titanium segment generated first-quarter
operating earnings of $11 million on sales of $115.1 million
vs. operating earnings of $11.8 million on sales of $111.3
million a year earlier. Operating earnings by its engineered
products and services segment totaled $12.2 million on sales of
$104.5 million vs. operating earnings of $12.1 million on sales
of $85.9 million a year ago.