Titanium group has substantial profits

Large sales and earnings increases are expected for 2007.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WEATHERSFIELD -- The boom times are continuing for RTI International Metals, the parent company of RMI Titanium Co.
The Weathersfield-based company said Thursday that it earned record amounts for the fourth quarter and all of 2006.
"The future continues to look promising," said Timothy Rupert, company president and chief executive, "Demand for titanium is strong from all consuming markets, particularly commercial aerospace."
RTI said it earned 26.8 million, or 1.18 a share, on sales of 143.8 million in the fourth quarter. Earnings in the same period of 2005 were 11.3 million, or 50 cents a share, on sales of 99.9 million.
For all of 2006, the company earned 75.7 million, or 3.34 a share, on sales of 505.4 million. In 2005, it earned 38.9 million, or 1.75 a share, on sales of 346.9 million.
Rupert said worldwide demand for titanium is expected to increase significantly in coming years, perhaps doubling by 2015.
He said he expects RTI's sales to increase by 20 percent to 25 percent this year and operating profit to increase by 35 percent to 40 percent.
Profits
Last year, the company's titanium group, which includes its Weathersfield mill, had operating profits of 78.5 million, compared with operating profits of 40.8 million in 2005.
RTI's fabrication and distribution group, which processes titanium, posted operating profits of 36.8 million, compared with 15.3 million in 2005.
Rupert said growth in production from its titanium group will be limited until its expansion projects are completed later this year. Mill product prices should rise, however, he said.
The fabrication and distribution group should see increases in volume and prices, he said.
RTI employs about 400 hourly and salaried workers at the Weathersfield mill and about 100 at its corporate offices.
The earnings were released after the stock markets closed. RTI's stock lost 91 cents, or 1 percent, Thursday to close at 86.65. It has traded at between 39.08 and 88.09 in the past 52 weeks.
shilling@vindy.com