Aug 2 2011
RTI International Metals, Inc., (NYSE: RTI), released results today for the second quarter of 2011.
Second Quarter 2011 Results
• Net sales for the second quarter were $123.2 million
• Second quarter operating income was $6.1 million
• Earnings per diluted share were $0.07
• Titanium mill product shipments for the quarter totaled 3.3 million pounds at an average realized price of $20.30 per pound
• Agreement for $9.9 million reached with Tronox LLC
During the second quarter, RTI reported net income of $2.1 million, or $0.07 per diluted share, on net sales of $123.2 million and operating income of $6.1 million. During the second quarter of 2010, RTI reported net income of $10.2 million, or $0.34 per diluted share, on net sales of $106.7 million and operating income of $2.1 million. Results for the second quarter of 2010 included a tax benefit of $8.1 million.
For the six months ended June 30, 2011, RTI reported net sales of $244.1 million, compared with net sales of $214.5 million for the same period a year ago. The Company also reported operating income of $15.5 million and net income of $4.5 million, or $0.15 per diluted share, compared with operating income of $13.8 million and net income of $21.6 million, or $0.72 per diluted share, for the same period a year ago.
Titanium Group
For the second quarter of 2011, the Titanium Group posted operating income of $9.2 million on sales of $74.6 million, including intersegment sales of $38.2 million. During the same period in 2010, this Group reported operating income of $1.8 million on sales of $53.8 million, including intersegment sales of $23.3 million. The second quarter increases in sales and operating income versus the same period a year ago were driven primarily by higher mill volumes and higher-margin product mix.
During the first six months of 2011, the Titanium Group posted operating income of $17.9 million on sales of $143.9 million, including intersegment sales of $72.0 million. During the first six months of 2010, operating income was $16.8 million on sales of $116.5 million, including intersegment sales of $47.1 million. The six months results for 2010 included the receipt of a $15.4 million customer payment during the first quarter.
Mill product shipments for the second quarter were 3.3 million pounds at an average realized price of $20.30 per pound, compared to mill product shipments of 2.5 million pounds in the second quarter of 2010 at an average realized price of $19.33 per pound.
Mill product shipments for the first six months of 2011 were 6.5 million pounds at an average realized price of $20.15 per pound compared to mill product shipments of 4.7 million pounds in 2010 at an average realized price of $19.34 per pound.
Fabrication Group
During the second quarter of 2011, the Fabrication Group had an operating loss of $5.2 million on net sales of $32.2 million. For the same period in 2010, this Group had an operating loss of $0.8 million on net sales of $37.3 million. The results for the period reflect the continued relatively low level of seat track shipments to Boeing, as well as energy market project delays. In addition, the results for 2010 included higher-margin sales of engineered components delivered to support the containment of the oil spill in the Gulf of Mexico.
For the first six months of 2011, the Fabrication Group reported net sales of $70.3 million with an operating loss of $6.5 million compared with net sales of $65.9 million resulting in an operating loss of $6.1 million for the same period in the prior year.
Distribution Group
For the second quarter of 2011, the Distribution Group posted operating income of $2.1 million on net sales of $54.6 million. During the same period in 2010, this Group earned operating income of $1.1 million on net sales of $38.8 million. The increase in sales and operating income was driven by higher sales to Airbus, increased aerospace-related spot sales and increased specialty alloy sales.
Year-to-date, the Distribution Group reported net sales of $101.9 million resulting in operating income of $4.1 million, compared with net sales of $79.2 million and operating income of $3.0 million for the same period in the prior year.
CEO Comment
Dawne S. Hickton, Vice Chair, President, and CEO stated, "We continue to see strengthening in our core titanium mill products business. In fact, I now expect mill product shipments for the year to exceed 13 million pounds and approach 14 million pounds. Coming off our meetings at the Paris Air Show, we are being presented with many new opportunities for both titanium fabricated and mill products. These opportunities are not only coming from our traditional customers, but also from engine manufacturers. After a slow start, we are also beginning to see increases in our energy business. As a result, our business prospects for 2011 continue to improve and therefore I would expect that our consolidated sales for the year will exceed $500 million.
"I am also pleased to report that we recently reached agreement with Tronox LLC to settle our ongoing dispute. Pursuant to the terms of the agreement, RTI will pay Tronox $9.9 million in connection with our take-or-pay obligation. As a result, approximately $1.1 million of prior accruals were reversed."
Source:
RTI International Metals, Inc.