FOR IMMEDIATE RELEASE MAY 10, 2005
RTI INTERNATIONAL METALS ANNOUNCES FIRST QUARTER RESULTS
Niles, Ohio – RTI International Metals, Inc., (NYSE: RTI) released results today for for the first quarter of 2005.
The Company reported net income for the first quarter of $8.4 million, or $0.38 per share, on sales of $73.5 million. Results for the first quarter of 2004 were a net income of $2.8 million, or $0.13 per share, on sales of $50.5 million. The first quarter of 2004 included the receipt of a $9.1 million payment under an expired take-or-pay supply contract that added $6.0 million, or $0.28 per share, to net income.
“RTI’s strong first quarter performance was the result of the expanding demand from our commercial aerospace markets that began in the second half of 2004. Our order backlog grew another 13%, to $269 million. Selling prices for titanium products rose generally during the quarter as did raw material costs, as the availability of scrap and sponge in spot markets remains tight. Based on current market forecasts and our existing order book, we expect these conditions to continue for the next couple of years,” said Timothy G. Rupert, President and CEO.
The Company’s Titanium Group posted a first quarter operating profit of $9.5 million on sales of $66.4 million, including intercompany sales of $41.4 million. During the first quarter of 2004, the Group had an operating loss of $4.2 million on sales of $37.7 million, including $24.6 million of intercompany sales.
Mill product shipments for the first
quarter of 2005 were 2.3 million pounds at an average realized price of $14.30
per pound, as compared to 1.5 million pounds and $15.03 per pound in the first
quarter of 2004. The lower realized price in 2005 is the result of the relative
mix of products shipped during the quarter, as selling prices for like products
are clearly higher than they were in 2004. Mill capacity utilization increased
during the quarter to approximately 60%, resulting in a significant improvement
in operating cost performance.
The Titanium Group’s results also benefited from a strong quarter at its RTI
Alloys unit which produces titanium alloys for the steel industry, where demand
has been strong. These alloys are used as an additive in the production of certain
grades of steel.
The Company’s Fabrication & Distribution Group, also benefiting from improved
market conditions, generated an operating profit of $3.5 million on sales of
$48.5 million during the first quarter. The Group’s distribution units turned
in particularly good performances. The Group had an operating loss of $1.1 million
on sales of $37.4 million during the first quarter of 2004.
The statements in this release relating
to matters that are not historical facts are forward-looking statements that
may involve risks and uncertainties. These include, but are not limited to,
the current impact of global events on the commercial aerospace industry, military
spending, global economic conditions, the competitive nature of the markets
for specialty metals, the assimilation of Claro Precision, Inc. into RTI, the
design and effectiveness of the Company’s internal control over financial reporting,
and other risks and uncertainties included in the Company’s filings with the
Securities and Exchange Commission. Actual results can differ materially from
those forecasted or expected.
RTI International Metals®, headquartered in Niles, Ohio, is one of the world’s largest producers of titanium. Through its various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world. To learn more about RTI International Metals, Inc., visit our website at www.rtiintl.com.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Monday, May 16, 2005, at 11:00 a.m., Eastern Time, to discuss this press release. To participate in the call, please dial toll free (USA/Canada) 800-938-0653 or (International) 973-935-2408 a few minutes prior to the start time and specify the RTI International Metals Conference Call. Replay of the call will be available until 11:59 p.m., Eastern Time, on Friday, May 20, 2005, by dialing (USA/Canada) 877-519-4471 or (International) 973-341-3080 and Digital Pin Code 6054710.
| RTI INTERNATIONAL METALS, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) | ||||||||
| (Dollars in thousands) | ||||||||
| QUARTER ENDED | ||||||||
| MARCH 31, | ||||||||
| 2005 | 2004 | |||||||
| Sales | $ 73,487 | $ 50,530 | ||||||
| Cost of sales | 48,951 | 47,186 | ||||||
| Gross profit | 24,536 | 3,344 | ||||||
| Selling, general and | ||||||||
| administrative expenses | 11,162 | 8,338 | ||||||
| Research, technical and | ||||||||
| product development expenses | 366 | 287 | ||||||
| Operating income (loss) | 13,008 | (5,281) | ||||||
| Other income - net | 138 | 9,318 | ||||||
| Interest income (expense) | 158 | (1) | ||||||
| Income before income taxes | 13,304 | 4,036 | ||||||
| Provision for income taxes | 4,905 | 1,392 | ||||||
| Net income from continuing operations | 8,399 | 2,644 | ||||||
| Net income from discontinued operations | - | 131 | ||||||
| Net income | $ 8,399 | $ 2,775 | ||||||
| Basic earnings per common share: | ||||||||
| Continuing operations | $ 0.38 | $ 0.12 | ||||||
| Discontinued operations | - | 0.01 | ||||||
| Net income | $ 0.38 | $ 0.13 | ||||||
| Diluted earnings per common share: | ||||||||
| Continuing operations | $ 0.37 | $ 0.12 | ||||||
| Discontinued operations | - | 0.01 | ||||||
| Net income | $ 0.37 | $ 0.13 | ||||||
| Weighted average shares | ||||||||
| outstanding (in thousands): | ||||||||
| Basic | 21,990 | 21,106 | ||||||
| Diluted | 22,456 | 21,453 | ||||||
| CONSOLIDATED BALANCE SHEET | ||||||||
| (Dollars in thousands) | ||||||||
| MARCH 31, | DEC. 31, | |||||||
| 2005 | 2004 | |||||||
| (Unaudited) | ||||||||
| ASSETS: | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ 63,013 | $ 62,701 | ||||||
| Accounts receivable | 50,503 | 44,490 | ||||||
| Inventories | 160,331 | 133,512 | ||||||
| Current deferred income tax assets | 1,145 | 1,145 | ||||||
| Income tax receivable | - | 3,321 | ||||||
| Other current assets | 4,407 | 3,597 | ||||||
| Total current assets | 279,399 | 248,766 | ||||||
| Property, plant and equipment, net | 81,467 | 82,593 | ||||||
| Goodwill | 47,373 | 46,618 | ||||||
| Other intangible assets | 16,536 | 16,040 | ||||||
| Other noncurrent assets | 9,387 | 9,476 | ||||||
| Total assets | $ 434,162 | $ 403,493 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY: | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ 26,642 | $ 14,253 | ||||||
| Accrued liabilities | 17,822 | 16,069 | ||||||
| Total current liabilities | 44,464 | 30,322 | ||||||
| Accrued pension cost | 21,952 | 21,090 | ||||||
| Accrued postretirement benefit cost | 20,971 | 20,811 | ||||||
| Other noncurrent liabilities | 7,010 | 7,312 | ||||||
| Total liabilities | 94,397 | 79,535 | ||||||
| Total shareholders' equity | 339,765 | 323,958 | ||||||
| Total liabilities and shareholders' equity | $ 434,162 | $ 403,493 | ||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) | ||||||||
| (Dollars in thousands) | ||||||||
| THREE MONTHS ENDED | ||||||||
| MARCH 31, | ||||||||
| 2005 | 2004 | |||||||
| Cash provided by (used in) operating activities | ||||||||
| (including depreciation and amortization | ||||||||
| of $3,133 and $2,925 respectively) | $ (3,685) | $ 2,907 | ||||||
| Cash used in investing activities | (2,074) | (1,852) | ||||||
| Cash provided by financing activities | 6,068 | 2,100 | ||||||
| Effect of exchange rate changes on cash | 3 | 109 | ||||||
| Increase in cash and cash equivalents | 312 | 3,264 | ||||||
| Cash and cash equivalents at beginning of period | 62,701 | 67,970 | ||||||
| Cash and cash equivalents at end of period | $ 63,013 | $ 71,234 | ||||||
| # # # | ||||||||
Contact:
Richard E. Leone
Manager - Investor Relations
rleone@rtiintl.com
330-544-7622