Hickton replaces Rupert as CEO

RTI will continue to push into component making for its customers.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Tim Rupert is getting out on top.
He stepped aside Friday as president and chief executive of RTI International Metals, after reporting that the company reached record profits last year. Earlier this week, the company's stock price cracked 100 a share for the first time.
He turned over leadership of the Weathersfield-based company to Dawne Hickton during RTI's annual meeting at the Hyatt Regency at the Pittsburgh International Airport.
Rupert, 60, said he will maintain residences in Poland and Scottsdale, Ariz., and remain on the boards of local organizations.
He will stay with RTI as an adviser until the end of July.
Hickton called the share price "a great number" but added that the key is focusing on continuing to improve the company.
The key to this will be continuing to diversify, she said.
She and Rupert said RTI's recent success stems from a decision in 1998 to transform the company from a producer of titanium to a supplier of specialty metal solutions. At that time, the company changed its corporate name from RMI Titanium, which now is only used at its Niles titanium plant.
The company has been focusing on growing its fabrication and distribution group, which processes titanium.
What's planned
Hickton, 49, a longtime company executive, became chief executive and vice chairman of the board Friday.
She said she will continue to lead the company on the same path.
She pointed out that RTI last year signed contracts to provide components to two suppliers for Boeing's new 787 Dreamliner.
Hickton said RTI will move more toward creating components for its customers.
This work is being done in plants outside of the area, but the company's titanium mills in Weathersfield and Canton will benefit because more fabrication work will mean increased production of titanium, she said.
In general, demand for titanium is expected to continue to be strong, she said.
Demand slacked off after the Sept. 11, 2001, terrorists attacks caused a downturn in airline travel.
But the aerospace industry has rebounded, and orders for new airplanes are flooding in.
Titanium is used in airplane construction because of its strength and light weight.
Hickton said titanium demand is expected to be strong at least through 2011, although it could continue even longer.
She added that RTI stands to benefit from a new military aircraft program that is expected to be approved by the federal government. RTI has been the sole supplier of titanium to Lockheed Martin for the development phase of the Joint Strike Fighter program.
Hickton noted that it's not she alone who is leading the company. RTI has a team of executives that has been promoted to replace Rupert and John Odle, executive vice president, who is retiring in September.
One of the new leaders is Michael Wellham, who is president and chief operating officer.
He had been senior vice president of the fabrication and distribution group.
One questioner
Bill Neff of Boardman, a material applications technician at RMI, was the only person to question the executives during the audience response part of the meeting.
He said Rupert's compensation is too high when considered as a percentage of the company's revenues and earnings.
Rupert earned 2.9 million last year, including 1 million in stock awards and 600,000 in increased values for accumulated pension benefits.
Robert Hernandez, the board chairman, said the board sets compensation based on what its competition is doing. The board needs to compensate senior executives so they aren't attracted by a higher offer, he said.
Neff also asked about RTI's falling to the third-largest supplier of titanium, when it used to fight for No. 1.
Odle said officials aren't as concerned about size as they are with the quality of materials, management and diversification.
"In that, we're No. 1," he said.
shilling@vindy.com