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Titanium Metals Corp. (TIE) filed Quarterly Report for the period ended 2011-09-30.
Titanium Metals Corp. has a market cap of $2.92 billion; its shares were traded at around $16.4 with a P/E ratio of 29.9 and P/S ratio of 3.4. The dividend yield of Titanium Metals Corp. stocks is 1.8%.
This is the annual revenues and earnings per share of TIE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of TIE.
Highlight of Business Operations:
Net sales. Our net sales were $262.5 million for the third quarter of 2011 compared to net sales of $210.3 million for the third quarter of 2010. The 25% increase in net sales was primarily the result of an 18% increase in melted product volumes and a 30% increase in mill product volumes. Sales volumes during the third quarter of 2011 continue to reflect increasing demand for titanium products in the commercial aerospace sector, as manufacturing activity and inventory levels within the supply chain continue to improve, as well as improved demand for certain industrial products. The decrease in average selling prices for mill products is primarily due to relative changes in product mix, with increased sales of industrial products in 2011 which are generally project-oriented and sell at lower prices than more complex aerospace grade products with higher alloy content. Mill product shipments to the industrial market sector were 26% of total mill product sales volume in the third quarter of 2011 compared to 12% during the 2010 period.Net sales. Our net sales were $786.6 million for the first nine months of 2011 compared to net sales of $639.9 million for the first nine months of 2010. The 23% increase in net sales was primarily the result of a 29% increase in melted product volumes and a 26% increase in mill product volumes. Sales volumes during the first nine months of 2011 continue to reflect increasing demand for titanium products in the commercial aerospace sector, as manufacturing activity and inventory levels within the supply chain continue to improve, as well as improved demand for certain industrial products. The decrease in average selling prices for mill products is primarily due to relative changes in product mix, with increased sales of industrial products in 2011 which are generally project-oriented and sell at lower prices than more complex aerospace grade products with higher alloy content. Mill product shipments to the industrial market sector were 23% of total mill product sales volume in the first nine months of 2011 compared to 13% during the 2010 period.
Gross margin. For the first nine months of 2011, our gross margin was $166.2 million compared to $128.2 million for the first nine months of 2010, reflecting higher sales volume and the related favorable impact on per-unit manufacturing cost of increased utilization of our manufacturing capacity. Increased production rates throughout our major manufacturing operations during the first nine months of 2011 resulted in $0.6 million of unabsorbed fixed overhead costs for the first nine months of 2011 as compared to $7.8 million in the same period of 2010.
We have substantial operations located in the United Kingdom, France and Italy. Our sales originating in Europe were approximately 37% for the nine months ended September 30, 2010 and 39% for the same period of 2011, a portion of which were denominated in foreign currency, principally the British pound sterling or the euro. Certain raw material costs, principally purchases of titanium sponge and alloys for our European operations, are denominated in U.S. dollars, while labor and other production costs are primarily denominated in local currencies. The functional currencies of our European subsidiaries are those of their respective countries. Our European operations may incur borrowings denominated in U.S. dollars or in their respective functional currencies. Our export sales from the U.S. are denominated in U.S. dollars and are not subject to currency exchange rate fluctuations. We do not use currency contracts to hedge our currency exposures.
Operating activities. Cash flow from operations is a primary source of our liquidity. Changes in pricing, production volume and customer demand, among other things, could significantly affect our liquidity. Trends in cash flows from operating activities, excluding changes in assets and liabilities, have generally been similar to the trends in operating income. Changes in assets and liabilities result primarily from the timing of production, sales and purchases. Changes in assets and liabilities tend to even out over time. However, period to period relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities. Our cash from operating activities decreased $120.4 million, from $106.2 million provided during the first nine months of 2010 to $14.2 million used in the first nine months of 2011 primarily due to the net effects of the following factors:
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