FOR IMMEDIATE RELEASE APRIL 23, 2001
Contact:
Richard E. Leone
Manager - Investor Relations
330 544 7622
RTI INTERNATIONAL ANNOUNCES FIRST QUARTER RESULTS
Niles, Ohio – RTI International Metals, Inc., (NYSE: RTI) released results today for the first quarter 2001.
RTI reported first quarter net income of $3.9 million, or $0.19 per share, on sales of $66.2 million. The results for the comparable 2000 period were a net income of $1.6 million, or $0.08 per share, on sales of $70.5 million.
Included in the first quarter results was an expected $0.18 per share in liquidated damages from the Boeing Company related to a shortfall during 2000 in guaranteed order levels under a long-term contract.
First quarter results, excluding the Boeing payment, reflect a slight improvement over the fourth quarter of 2000. Mill product shipments of 2.4 million pounds represent an increase of 22% over the previous quarter, owing largely to increased billet shipments. Realized prices for mill products averaged $14.97 per pound, a 5% improvement, despite the addition of lower value product. However, due to the unfavorable mix, the Titanium Group had a $0.3 million operating loss on sales of $30.1 million.
Operating results improved in all units of the Fabrication and Distribution Group, where sales increased 42% compared to the fourth quarter. The Group earned operating income of $1.1 million on sales of $36.1 million.
Timothy G. Rupert, President & CEO, said, "We achieved our goal of returning to profitability, as the effects of increased demand began to show at the end of the quarter. Our order backlog, which grew 27% in the fourth quarter, increased another 28% in this most recent period. Demand and pricing in the aerospace arena are improving, as is deepwater oil and gas activity in the Gulf of Mexico. Our distribution businesses, which don’t sell from an order backlog, are experiencing higher than expected sales and profitability. Everything points to a much better second quarter and balance of the year. "
This news release contains forward-looking statements that involve risks and uncertainties. These include but are not limited to the cyclical nature of the commercial aerospace industry, chemical processing, oil and gas industries, uncertain defense spending, and the competitive market for specialty metals. Other risks and uncertainties have previously been included in the Company’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or from RTI Investor Relations.
RTI International Metals, 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, military, and consumer applications.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Tuesday, April 24, 2001, at 1:30 p.m., Eastern Time, to discuss this press release. Timothy G. Rupert, President and CEO, John H. Odle, Executive Vice President, and Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate in the call, please dial toll free 800-553-0349 a few minutes prior to the start time and specify the RTI International Metals, Conference Call. Replay of the call will be available until midnight, Eastern Time, on Friday, April 27, 2001, by dialing 800-475-6701, Access Code 583131.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(Dollars in thousands except per share data)
QUARTER ENDED
MARCH 31
--------------------------------
2001 2000
Sales $ 66,239 $ 70,508
Cost of sales 56,728 59,748
-------------- --------------
Gross profit 9,511 10,760
Selling, general, and
administrative expenses 8,349 7,144
Research, technical, and
product development expenses 362 393
-------------- --------------
Operating income 800 3,223
Other income - net 6,049 149
Interest expense 210 773
-------------- --------------
Income before income taxes
and cumulative effect of
change in accounting principle 6,639 2,599
Provision for income taxes 2,581 1,014
-------------- --------------
Income before cumulative
effect of change in
accounting principle $ 4,058 $ 1,585
Cumulative effect of change
in accounting principle (191) --
-------------- --------------
Net income $ 3,867 $ 1,585
============== ==============
Earnings per share:
Income before cumulative
effect of change in
accounting principle:
Basic $ 0.19 $ 0.08
============== ==============
Diluted $ 0.19 $ 0.08
============== ==============
Net income after the effect
of change in accounting
principle:
Basic $ 0.19 $ --
============== ==============
Diluted $ 0.18 $ --
============== ==============
Weighted Average Shares Outstanding
(in thousands)
Basic 20,891 20,836
Diluted 21,184 20,898