FOR IMMEDIATE RELEASE APRIL 6, 2000
CONTACT:
Richard E. Leone
Manager Investor Relations
330.544.7622
RTI & BOEING SETTLE CONTRACT CLAIM
NILES, Ohio--(BUSINESS WIRE)--April
6, 2000--RTI International Metals, Inc. ( NYSE:RTI) announced today that it has
settled its 1999 contractual claim for liquidated damages from the Boeing Commercial
Airplane Group.
Under the terms of a long-term contract between the companies, Boeing was
required to order a minimum of 3.25 million pounds of titanium during 1999.
Actual shipments were less than one million pounds. RTI filed a claim with
Boeing for approximately $7 million. Following negotiations between the
companies, the matter was settled for approximately $6 million.
The settlement will add approximately $0.18 per share to RTI's net income in
the 2nd quarter of 2000.
"RTI and Boeing entered into this agreement to better manage the effects of
aerospace cycles on their businesses. Boeing received a long-term titanium
supply at fixed prices and RTI received a committed level of business. The
sudden downturn in Boeing's aircraft production as well as a work stoppage at
RTI tested this agreement in its first year. We are pleased that it withstood
the test and that both parties remain committed to achieving its original
intent. The downturn in aerospace is likely to continue in 2000. So, we are
currently looking for ways for Boeing to increase its utilization of RTI'S full
range of capabilities: manufacturing, fabrication and distribution," said
Timothy G. Rupert, President and CEO.
RTI International Metals, Inc., headquartered in Niles, Ohio, through its
various subsidiaries, manufactures and distributes titanium and specialty
metal mill products, and extruded shapes, as well as engineered systems for
energy- related markets and environmental engineering services. The
Company's products are used for aerospace, industrial and consumer
applications.
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