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RTI International Metals Inc. Reports Operating Results (10-Q)

November 06, 2012 | About:
10qk

10qk

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RTI International Metals Inc. (RTI) filed Quarterly Report for the period ended 2012-09-30.

Rti International Metals, Inc. has a market cap of $703.7 million; its shares were traded at around $24.27 with a P/E ratio of 49.4 and P/S ratio of 1.3.

Highlight of Business Operations:

The decrease in the Titanium Groups net sales was primarily the result of a decrease in average realized selling prices to $16.73 per pound from $17.32 per pound, primarily due to a change in product mix. This decrease was partially offset by an increase in prime mill product shipments to trade customers to 2.26 million pounds for the three months ended September 30, 2012 from 2.22 million pounds for the three months ended September 30, 2011. These changes resulted in a $0.8 million decrease to net sales. The decrease in average realized selling prices was primarily due to a lower priced sales mix during the current quarter, as forged products generally carry lower overall sales prices compared to flat products. Additionally, lower ferro titanium demand from our specialty steel customers reduced net sales $1.4 million.

The increase in the Fabrication Groups net sales was primarily attributable to our two recent acquisitions, Remmele in February 2012 and RTI Advanced Forming in November 2011, which increased net sales $40.1 million. Additionally, strong demand from our energy market customers resulted in a $14.5 million increase in net sales. These increases were partially offset by decreased demand from our defense and commercial aerospace customers, which reduced net sales $3.4 million and $3.5 million, respectively.

The increase in the Titanium Groups net sales was primarily the result of an 8.3% increase in prime mill product shipments to trade customers to 6.00 million pounds for the nine months ended September 30, 2012 from 5.54 million pounds for the nine months ended September 30, 2011, partially offset by a decrease in average realized selling prices to $17.25 per pound from $17.56 per pound, resulting in a $6.3 million increase to net sales. The strengthening volume was driven by higher aircraft build rates by both Boeing and Airbus. Partially offsetting this increase were reduced net sales of $3.3 million due to lower ferro titanium demand from our specialty steel customers.

The increase in the Fabrication Groups net sales was primarily attributable to our two recent acquisitions, Remmele in February 2012 and RTI Advanced Forming in November 2011, which increased net sales $103.5 million. Additionally, strong demand from our energy market and commercial aerospace customers resulted in a $27.9 million and $5.3 million increase in net sales, respectively. These increases were partially offset by $13.2 million due to decreased demand from our defense market customers.

Excluding the $3.0 million benefit from the duty drawback accrual reversal in the current year and the $1.1 million benefit from the settlement of the Tronox supply contract dispute in 2011, the Titanium Groups gross profit decreased $3.5 million. This decrease was primarily due to higher sales of prime mill products at lower average realized selling prices, partially offset by a 1.2% increase in average cost per pound, which rose to $14.21 for the nine months ended September 30, 2012 from $14.04 for the nine months ended September 30, 2011, principally due to higher raw material costs. The Titanium Groups gross profit was also negatively impacted $0.8 million due to decreased production due to an electrical transformer fire at our Canton, Ohio facility. Furthermore, the Titanium Group was unfavorably impacted $1.5 million due to lower margins on sales of ferro titanium to its specialty steel customers.

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