RTI reports 50% drop in sales

By Don Shilling

The titanium company reported an $8.7 million third-quarter loss.

RTI International Metals reported a 50 percent drop in third-quarter sales and said it doesn’t expect titanium demand to pick up any time soon.

Dawne Hickton, company vice chairman, president and chief executive, said Tuesday that production delays of Boeing’s new 787 Dreamliner commercial jet “continue to stress our company.” RTI is providing parts for the plane.

She said she doesn’t expect titanium demand to improve until the end of 2010 at the earliest.

In addition to weak demand, the company also is faced with lower prices for its products.

RTI said that sales last quarter were $100.2 million, compared with $150.6 million in the third quarter of 2008.

It lost $8.7 million, or 35 cents a share, last quarter, compared with earnings of $11.3 million, or 49 cents a share, in the same quarter of last year.

Last quarter’s figures included accounting charges of $9.6 million for a tax expense and finance charges related to repaying $242.8 million in company debt.

RTI has moved its headquarters to suburban Pittsburgh but has retained administrative offices and a titanium mill in Weathersfield Township. It has 1,750 employees at plants worldwide.

Todd Weddell, a union official at the local mill, said the overall financial report was disappointing but he was happy that the titanium group, which includes mills in Weathersfield and Canton, made money in the third quarter.

All 350 hourly workers at the local mill are on the job this week, said Weddell, president of Local 2155 of the United Steelworkers of America. At some points during this down cycle, up to 30 workers are laid off for a week or two, he said.

The titanium group had operating income of $1 million last quarter on sales of $54.4 million, which was down from operating income of $11.9 million on sales of $85.3 million in the third quarter of last year.

The company’s fabrication group posted an operating loss of $500,000 last quarter on sales of $27.3 million, compared with operating income of $1 million on sales of $35.7 million in the same quarter last year.

The company’s distribution group had operating income of $1.4 million last quarter on sales of $44.1 million, compared with operating income of $4.9 million on sales of $65.5 million in the third quarter of 2008.

shilling@vindy.com