WEATHERSFIELD RTI faces 2nd-quarter profit loss

Second-quarter profits were more than two-thirds smaller than a year ago.
THE VINDICATOR, YOUNGSTOWN, OHIO
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WEATHERSFIELD -- RTI International Metals finished the second quarter with a $1 million profit -- down more than two-thirds from its earnings a year ago -- as it copes with an ongoing slump in the commercial aerospace market.
Timothy Rupert, president and chief executive, said the company's only hope for improved earnings in the second half would have to come from new defense spending on titanium and further growth in its deep water oil drilling market.
He said the downturn in commercial aerospace, which generally supplies about 30 percent of the company's sales, is expected to continue.
RTI, the Weathersfield-based parent of RMI Titanium, reported it earned 5 cents per share on sales of $49.1 million -- well below its second quarter, 2002 profit of $3.5 million, or 17 cents per share, on sales of $72.9 million.
It reported profits of $5.3 million in the first six months, or 26 cents per share, compared to $11.5 million, or 55 cents per share in the first half of 2002.
Titanium division
The company's titanium operations, which are based locally at RMI, earned $1.3 million in operating income in the second quarter on sales of $40.8 million, with $27 million of that total in "intercompany" sales to other RTI operations.
It made more than three times that in the same period a year ago, with profits of $4.3 million on sales of $56.7 million, including $32.9 million in intercompany sales.
RTI's fabrication and distribution group, based in Houston, lost $700,000 in the second quarter on sales of $38.4 million. The group, which processes and distributes titanium and other specialty metals, earned $1.4 million on sales of $49.1 million a year ago.
RTI shipped 1.4 million pounds in the quarter ending June 30 at an average price of $16.60 per pound.
Rupert said the results were consistent with the company's expectations, given the present condition of the aerospace market and the economy, and temporary shutdowns of RTI's plants to cut costs are likely in the second half.
vinarsky@vindy.com