FOR IMMEDIATE RELEASE JANUARY 21, 2002
Contact:
Richard E. Leone
Manager - Investor Relations
330-544-7622
RTI ANNOUNCES 2001 ANNUAL RESULTS
Niles, Ohio – RTI International Metals, Inc., (NYSE: RTI) released results today for the fourth quarter and year of 2001.
The Company reported net income for the year of $12.1 million, or $0.58 per share, on sales of $285.9 million. Results for the same period in 2000 were a net income of $6.7 million, or $0.32 per share, on sales of $249.4 million.
Net income for the fourth quarter of 2001 was $5.3 million, or $0.26 per share, on sales of $68.7 million. The same period in 2000 resulted in a net loss of $87,000, or essentially breakeven on a per share basis, on revenues of $53.8 million.
During the fourth quarter, the Company received a stock distribution in connection with the demutualization of one of its insurance carriers in which it was a participant. The shares have since been sold and the proceeds will be contributed to the Company’s pension plans. The income from the receipt of the stock, $3.2 million after tax, or $0.15 per share, is included in the Company’s results for the fourth quarter and year.
Titanium mill product shipments in the fourth quarter totaled 2.8 million pounds, a 15% reduction from the third quarter. Higher average realized prices of $13.08 per pound, due to a better mix of products and continuing cost containment efforts, allowed the Titanium Group to earn operating income of $2.7 million on sales of $33.8 million. However, the effects of the September terrorist attacks on commercial aerospace, the Group’s largest market, began to be felt in the fourth quarter. Customers in these markets are placing fewer new orders and delaying deliveries of existing backlog. This trend will continue into 2002, further reducing titanium shipments and Titanium Group earnings.
Led by a strong fourth quarter performance by RTI Energy Systems, the Fabrication & Distribution Group earned $1.1 million from operations on sales of $34.9 million. Several of the businesses in this Group also experienced reduced sales during the quarter due to weakening aerospace markets and will likely see lower earnings in 2002. However, other units, less reliant on commercial aerospace, are expected to improve earnings this year. In total, profits for the Fabrication & Distribution Group are expected to be up in 2002.
This news release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market, regulatory factors, and the continuing impact of the events of September 11. 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 Tuesday, January 22, 2002, 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 888-276-0010 in the United States, or 651-224-7558 Internationally, 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, January 25, 2002, by dialing 800-475-6701 (U.S.), or 320-365-3844 (International), and Access Code 622388.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands)
QUARTER ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------------------- ----------------------
2001 2000 2001 2000
Sales $ 68,746 $ 53,806 $ 285,900 $ 249,382
Cost of sales 57,001 46,176 242,476 213,432
---------- ---------- ---------- ---------
Gross profit 11,745 7,630 43,424 35,950
Selling, general
and administrative
expenses 7,608 7,333 31,971 27,935
Research, technical
and product
development
expenses 318 255 1,672 1,274
---------- ---------- ---------- ---------
Operating income 3,819 42 9,781 6,741
Other income (loss)
- net 5,034 (272) 11,000 6,540
Interest expense 172 117 669 1,872
---------- ---------- ---------- ---------
Income before income
taxes and cumulative
effect of change in
accounting principle 8,681 (347) 20,112 11,409
Provision for income
taxes 3,386 (260) 7,843 4,678
---------- ---------- ---------- ---------
Income before
cumulative effect
in accounting
principle 5,295 (87) 12,269 6,731
Cumulative effect
of change in
accounting
principle - - (191) -
---------- ---------- ---------- ---------
Net income $ 5,295 $ (87) $ 12,078 $ 6,731
========== ========== ========== =========
Net income per
common share:
Basic $ 0.26 $ (0.00) $ 0.58 $ 0.32
========== ========== ========== =========
Diluted $ 0.25 $ (0.00) $ 0.57 $ 0.32
========== ========== ========== =========
Weighted average
shares used to
compute earnings
per share
(in thousands):
Basic 20,728 20,853 20,848 20,849
Diluted 20,815 20,922 21,033 21,025