FOR IMMEDIATE RELEASE JULY 15, 2002
Contact:
Richard E. Leone
Manager - Investor Relations
330-544-7622
RTI INTERNATIONAL METALS ANNOUNCES SECOND QUARTER RESULTS
NILES, Ohio--July 15, 2002--RTI International Metals, Inc., (NYSE:RTI) released results today for the second quarter of 2002.
The Company reported net income of $3.5 million, or $0.17 per share, on sales of $72.9 million. Results for the second quarter of 2001 were a net income of $0.6 million, or $0.03 per share, on sales of $74.9 million.
Titanium mill product shipments in the second quarter totaled 2.8 million pounds at an average realized price of $14.94 per pound. The Titanium Group earned operating income of $4.5 million on sales of $34.4 million. The Group benefited again, as in the first quarter, from effective cost reduction efforts and the optimization of operating levels by producing some 2002 orders early.
The Fabrication & Distribution Group earned $1.2 million from operations on sales of $38.5 million, principally due to a strong performance by RTI Energy Systems, Inc.
Timothy G. Rupert, President & CEO, said, "The Titanium Group had another good quarter as they continued to pull orders forward in order to optimize current operating rates and allow for a four-week shutdown of the Niles, Ohio, plant in July. While this will reduce their earnings in the second half, it results in the same quantity of product being produced for a lower cost as compared to operating at a reduced, less efficient rate for the entire year. Nonetheless, due to the expected continuation of the downturn in commercial aerospace, the Titanium Group may record losses in the third and fourth quarters.
"The Fabrication & Distribution Group is expected to be profitable in the second half, but whether their earnings will be sufficient to assure a consolidated profit for RTI each quarter is too close to call."
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, and regulatory factors, the impact of the events of September 11, and the continuing War on Terrorism. 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, defense, industrial, and consumer applications.
NOTE: RTI International Metals, Inc.
has scheduled a conference call for Tuesday, July 16, 2002, at 11:00 a.m., Eastern
Time, to discuss this press release. Timothy G. Rupert, President and CEO, and
Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate
in the call, please dial toll free 800-450-0821 in the United States, or 612-332-0923
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, July 19, 2002, by dialing 800-475-6701 (U.S.), or 320-365-3844
(International), and Access Code 643549.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
--------------------- ---------------------
2002 2001 2002 2001
Sales $ 72,943 $ 74,868 $ 138,621 $ 141,107
Cost of sales 58,453 64,680 110,335 121,408
--------- --------- --------- ---------
Gross profit 14,490 10,188 28,286 19,699
Selling, general
and administrative
expenses 8,470 8,340 17,530 16,689
Research,
technical and
product
development
expenses 349 538 709 900
--------- --------- --------- ---------
Operating income 5,671 1,310 10,047 2,110
Other income - net 149 (169) 9,085 5,881
Interest expense 141 113 288 323
--------- --------- --------- ---------
Income before
income taxes and
cumulative effect
of change in
accounting
principle 5,679 1,028 18,844 7,668
Provision for
income taxes 2,215 399 7,349 2,981
--------- --------- --------- ---------
Income before
cumulative effect
in accounting
principle 3,464 629 11,495 4,687
Cumulative effect
of change in
accounting
principle -- -- -- (191)
--------- --------- --------- ---------
Net income $ 3,464 (1) 629 $11,495(1) 4,496
========= ========= ========= =========
Net income
per common
share:
Basic $ 0.17 (1) $ 0.03 $ 0.55(1) $ 0.22
========= ========= ========= =========
Diluted $ 0.17 (1) $ 0.03 $ 0.55(1) $ 0.21
========= ========= ========= =========
Weighted Average
Shares Outstanding
(in thousands):
Basic 20,781 20,896 20,774 20,893
Diluted 20,975 21,143 20,905 21,164
RTI INTERNATIONAL METALS, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
JUNE 30, DECEMBER 31,
2002 2001
---------- -------------
(Unaudited)
ASSETS:
Current assets
Cash and cash equivalents $ 22,943 $ 8,036
Accounts receivable 45,875 50,572
Inventories 167,329 158,561
Current deferred income tax assets 8,096 7,418
Other current assets 5,059 13,136
-------- --------
Total current assets 249,302 237,723
Property, plant and equipment, net 94,122 98,375
Goodwill (1) 34,134 34,133
Other noncurrent assets 17,443 17,520
-------- --------
Total assets $395,001 $387,751
======== ========
LIABILITIES and STOCKHOLDERS' EQUITY:
Current liabilities
Accounts payable $ 14,368 $ 17,799
Accrued liabilities 25,273 18,667
-------- --------
Total current liabilities 39,641 36,466
Long-term debt -- --
Accrued pension cost 11,551 17,787
Accrued postretirement benefit cost 19,940 19,940
Deferred income taxes 1,296 1,296
Other noncurrent liabilities 5,078 5,287
-------- --------
Total liabilities 77,506 80,776
Total shareholders' equity 317,495 306,975
-------- --------
Total liabilities and shareholders' equity $395,001 $387,751
======== ========
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Dollars in thousands)
SIX MONTHS ENDED
JUNE 30
---------------------
2002 2001
Cash provided by
operating activities
(including depreciation and amortization
of $6,269 and $6,450, respectively) (1) $ 17,659 $ 13,357
Cash used in
investing activities (2,609) (5,976)
Cash used in
financing activities (143) (8,797)
-------- --------
Increase/(decrease)
in cash and cash equivalents 14,907 (1,416)
Cash and cash
equivalents at beginning of period 8,036 6,374
-------- --------
Cash and cash equivalents
at end of period $ 22,943 $ 4,958
======== ========
(1) The Company adopted FAS 142, "Goodwill and Other Intangible Assets," on January 1, 2002, which had the effect of increasing net income approximately 1 cent per share in each of the quarters of 2002 compared to the comparable period in 2001. There was no effect on cash flow.