RTI loses $1.5M in first quarter

By Don Shilling

RTI’s CEO remains optimistic about the company’s long-term future.

RTI International Metals lost $1.5 million in the first quarter, but an official said she expects the company to be profitable by year’s end.

The titanium maker and fabricator blamed its loss on weakness in the commercial aerospace market, declines in energy and industrial markets and operational issues within the company.

RTI is based near Pittsburgh but has a titanium mill and administrative offices in Weathersfield Township that employ more than 400. It employs about 1,600 at 18 locations around the world.

RTI’s quarterly loss came on sales of $106.1 million. In the first quarter of 2008, the company earned $22.2 million on sales of $150.6 million.

The results were released Tuesday before markets opened. The company’s stock lost $2.07, or 14 percent, to close at $12.73. It has traded at between $7.91 and $48.48 in the past year.

Dawne Hickton, RTI vice chairman and chief executive, indicated that better results are in store for later in the year, even though both titanium prices and volumes will be down from recent years. She said she expects the company to be profitable by the end of the year but it could be close to breaking even.

She said she remains optimistic for the long term because of supply contracts RTI has and designs for new aircraft that call for increased use of titanium.

In the near term, the company is dealing with downturns in several of its business lines. Hickton added that first-quarter results also were hurt by cost overruns and shipment delays in its fabrication group.

She said improvements have been made, including personnel changes.

The fabrication group posted an operating loss of $7.2 million in the first quarter, compared with an operating loss of $2.9 million in the same quarter last year.

The titanium group, which includes the local mill, posted operating earnings of $4.2 million in the first quarter, compared with operating earnings of $28.4 million in the same quarter of 2008.

The distribution group had operating earnings of $2.2 million in the first quarter, compared with $7.8 million a year earlier.

shilling@vindy.com