FOR IMMEDIATE RELEASE JANUARY 23, 2001
Contact:
Richard E. Leone
Manager - Investor Relations
330-544-7622
RTI ANNOUNCES 2000 ANNUAL RESULTS
Niles, Ohio – RTI International Metals, Inc., (NYSE: RTI) released results today for the fourth quarter and year of 2000.
Net income for the year was $6.7 million, or $0.32 per share, on sales of $249 million. Comparable results for 1999 were a net income of $2.2 million, or $0.11 per share, on sales of $243 million.
The Company reported a fourth quarter loss of $87,000, or essentially breakeven on a per share basis, on sales of $53.8 million. The results for the same period in 1999 were a net income of $0.8 million, or $0.04 per share, on sales of $65.3 million.
Fourth quarter results primarily reflect the continuing weakness in demand for RTI’s mill products from commercial aerospace markets and an unplanned outage of its rolling mill in Niles, Ohio. Titanium Group sales for the period were $28.4 million, 23% lower than the third quarter of 2000. Sales for the Fabrication and Distribution Group were $25.4 million, slightly higher than the prior quarter. Fourth quarter 2000 mill product shipments totaled 1.9 million pounds at an average realized price of $14.26 per pound, as compared with 2.3 million pounds and $15.90 per pound, respectively, in the third quarter of 2000. The reduction in realized prices was largely due to lower shipments of flat products.
Timothy G. Rupert, President and CEO, said, "Despite the fourth quarter loss, RTI again turned in an annual profit in a weak titanium market in 2000. Through our focus on adding value and controlling costs, we have made money in each of the past two years on our lowest shipping volumes since 1983, when we lost $10 million. This same approach will serve us well as demand for our products increases.
"There are signs that such an increase has begun. Lead times for titanium mill products are lengthening and selling prices for certain products are firming. Our order backlog at year end was up to $132 million, a 27% increase over the third quarter. Two-thirds of that gain came in our energy businesses. If this trend continues as expected, 2001 will show clear improvement over last year.
"However, due to the length of titanium production cycles, it takes time for new business to show up in financial results. The first quarter will be another challenging one. Competition will remain stiff and prices on orders in production still reflect the downturn in which they were placed. Our goal for the first quarter will be, as it has been, to maintain profitability, over and above an expected liquidated damage settlement from Boeing. The settlement is in connection with Boeing’s failure to purchase required minimums under a long term contract for mill products. The amount is expected to be approximately $6 million pretax or $0.18 per share after taxes."
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, 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 has scheduled a conference call for Wednesday, January 24, 2001, at 9:30 a.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 800-553-0327 a few minutes prior to the start time and specify the RTI International Metals, Inc. Conference Call. Replay of the call will be available until midnight, Eastern Time, on Friday, January 26, 2001, by dialing 800-475-6701, Access Code 565917.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands)
QUARTER ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------- ---------------------
2000 1999 2000 1999
Sales $ 53,806 $ 65,290 $ 249,382 $ 243,309
Cost of sales 46,176 56,294 213,432 209,703
--------- --------- ---------- ----------
Gross profit 7,630 8,996 35,950 33,606
Selling, general and
administrative expenses 7,333 6,714 27,935 24,794
Research, technical and
product development expenses 255 898 1,274 4,043
--------- --------- ---------- ----------
Operating income 42 1,384 6,741 4,769
Other income (loss) - net (272) 507 6,540 1,319
Interest expense (117) (697) (1,872) (2,561)
--------- --------- ---------- ----------
Income (loss) before
income taxes (347) 1,194 11,409 3,527
Provision (credit) for
income taxes (260) 434 4,678 1,304
--------- --------- ---------- ----------
Net income (loss) $ (87) $ 760 $ 6,731 $ 2,223
--------- --------- ---------- ----------
--------- --------- ---------- ----------
Net income per
common share:
Basic $ (0.00) $ 0.04 $ 0.32 $ 0.11
--------- --------- ---------- ----------
--------- --------- ---------- ----------
Diluted $ (0.00) $ 0.04 $ 0.32 $ 0.11
--------- --------- ---------- ----------
--------- --------- ---------- ----------
Weighted Average Shares
Outstanding (in thousands)
Basic 20,853 20,818 20,849 20,771
Diluted 20,922 20,873 21,025 20,865