FOR IMMEDIATE RELEASE JULY 23, 2001
Contact:
Richard E. Leone
Manager - Investor Relations
330 544 7622
RTI INTERNATIONAL METALS ANNOUNCES SECOND QUARTER RESULTS
Niles, Ohio - RTI International Metals, Inc. (NYSE: RTI) released results today for the second quarter 2001.
The Company reported second quarter net income of $0.6 million, or $0.03 per share, on sales of $74.9 million. The results for the comparable 2000 period were a net income of $1.2 million, or $0.05 per share, on sales of $63.3 million, excluding the effect of the settlement of a claim related to a long-term contract with Boeing Commercial Aircraft that amounted to $0.18 per share.
RTI’s Fabrication and Distribution Group earned operating income of $1.3 million on sales of $36.4 million, while the Titanium Group earned $0.1 million on sales of $38.5 million. Second quarter 2001 mill product deliveries increased 25% over the previous quarter to 3.0 million pounds at an average realized price of $13.73. Most of the increase came from forged products.
Timothy G. Rupert, President and CEO, noted, "RTI’s operating results improved again this quarter, despite higher than expected startup expenses at our new extrusion facility in Houston that reduced earnings approximately $0.04 per share. Commencement of operations was delayed due to flooding during Tropical Storm Allison. Things are now back on track and startup is expected this quarter.
"Our markets continue to show good demand from commercial aerospace and we are seeing expansion on the military side as well, with new releases from the F-22 program into next year. Overall, we expect that RTI’s earnings will continue to grow throughout the balance of the year," he added.
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, July 24, 2001, at 11:00 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 866-535-8525 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, July 27, 2001, by dialing 800-475-6701, Access Code 594629.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands except per share data)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------------------- -------------------
2001 2000 2001 2000
Sales $ 74,868 $ 63,345 $ 141,107 $ 133,853
Cost of sales 64,680 54,419 121,408 114,167
--------- --------- --------- ---------
Gross profit 10,188 8,926 19,699 19,686
Selling, general and
administrative expenses 8,340 6,791 16,689 13,935
Research, technical and
product development
expenses 538 356 900 749
--------- --------- --------- ---------
Operating income 1,310 1,779 2,110 5,002
Other income - net (169) 6,504 5,881 6,653
Interest expense 113 (363) 323 1,136
--------- --------- --------- ---------
Income before income taxes
and cumulative effect of
change in accounting
principle 1,028 7,920 7,668 10,519
Provision for income taxes 399 3,085 2,981 4,099
--------- --------- --------- ---------
Income before cumulative
effect of change in
accounting principle 629 4,835 4,687 6,420
Cumulative effect of change
in accounting principle - - (191) -
--------- --------- --------- ---------
Net income $ 629 $ 4,835 $ 4,496 $ 6,420
========= ========= ========= =========
Net income per common share:
Basic $ 0.03 $ 0.23 $ 0.22 $ 0.31
========= ========= ========= =========
Diluted $ 0.03 $ 0.23 $ 0.21 $ 0.31
========= ========= ========= =========
Weighted Average Shares
Outstanding (in thousands)
Basic 20,896 20,853 20,893 20,845
Diluted 21,072 21,028 21,164 20,957