RTI International Metals Reports Strong Third Quarter Results
Posted on October 31, 2012 at 06:00 AM EDT
RTI International Metals, Inc., (NYSE: RTI), reported today strong third quarter 2012 financial results showing substantial year-over-year increases in net sales, operating income and earnings per share compared with the same period in 2011.
The company said its financial performance reflects continued strength in the aerospace, medical device and energy markets, as well as continued improving performance in its Fabrication Group.
Highlights of RTI’s results for the third quarter of 2012, ended September 30, follow:
Third Quarter and Nine Month Highlights
For the nine months ended September 30, 2012, RTI reported net sales of $542.2 million, compared with net sales of $387.7 million for the same period a year ago. Operating income for the first nine months of 2012 was $37.8 million with net income of $16.4 million, or $0.54 per diluted share, compared with operating income of $23.2 million and net income of $6.5 million, or $0.22 per diluted share, for the same period a year ago.
During the first nine months of 2012, the Titanium Group posted operating income of $15.9 million on sales of $261.4 million, including intersegment sales of $141.3 million. During the first nine months of 2011, operating income was $22.9 million on sales of $231.7 million, including intersegment sales of $114.7 million. In addition to the impact from the fire at the Canton plant and higher raw material costs in 2012 versus 2011, the nine month period was also impacted by costs associated with the commencement of operations at the Group’s Martinsville, Virginia, facility.
Mill product shipments for the third quarter were 4.2 million pounds at an average realized price of $19.01 per pound, compared to mill product shipments of 4.3 million pounds in the third quarter of 2011 at an average realized price of $18.99 per pound.
Mill product shipments for the first nine months of 2012 were 12.8 million pounds at an average realized price of $19.14 per pound compared to mill product shipments of 10.7 million pounds in 2011 at an average realized price of $19.69 per pound.
For the first nine months of 2012, the Fabrication Group reported net sales of $234.0 million and operating income of $8.4 million, compared with net sales of $110.5 million and an operating loss of $8.0 million for the same period in 2011.
Year-to-date, the Distribution Group reported net sales of $188.2 million resulting in operating income of $13.4 million, compared with net sales of $160.3 million and operating income of $8.4 million for the same period in the prior year.
“We are particularly encouraged with the performance of our Fabrication Group, where we are seeing the benefits of our strategy to move further downstream by expanding the breadth and scale of advanced titanium engineering, precision machining and fabrication capabilities. In addition, our end market diversification efforts have also paid off as we recognized growth during the quarter across the commercial aerospace, medical device and energy markets.
“The addition of our forging and hot grinding facility in Martinsville, Virginia, which came online for commercial operations earlier this month, gives us additional capacity to meet the anticipated ramp in commercial aerospace and continue RTI’s growth. We also recently completed our annual titanium sponge price negotiation and believe that our raw material prices for 2013 will be largely flat in comparison with 2012.”
Conference Call Information
Forward Looking Statement
RTI International Company Description
Richard E. Leone, 330-544-7622
Director – Investor Relations
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