Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
RTI International Metals Reports $2.2 Million Net Loss
NILES, Ohio -- RTI International Metals Inc. posted a net loss of $2.2 million, or 10 cents per share, for the third quarter of 2004, officials announced late yesterday. Sales for the quarter totaled $53.9 million. Today marks the one-year anniversary of the lockout of some 230 employees at RTI's subsidiary, RMI Titanium, as a result of an ongoing contract dispute. Yesterday, the National Labor Relations Board decided that the company's denial of a demand by United Steelworkers of America is legal and dismissed the charge (read story).Third quarter results included the recognition of $2.4 million in expense related to the implementation of Section 404 of the new Sarbanes-Oxley requirements. Comparatively, results for the third quarter of 2003 were a loss of $2.5 million, or 12 cents per share, on sales of $50.2 million. The Titanium Group shipped 1.6 million pounds of mill products at an average realized price of $13.51 per pound during the quarter, officials said. Operating results improved by $2.6 million over the third quarter of 2003 as cost reductions more than offset lower prices. Third quarter sales of $37.6 million, including intercompany sales of $25.1 million, generated a $1 million operating loss. During the same period a year ago, the group had an operating loss of $3.6 million on sales of $38.8 million, including $24.9 million of intercompany sales. Third quarter performance included a $1.4 million operating loss at the company's plant here, where non-represented personnel have been operating the facility since October, 2003 when former hourly employees declined a new contract offer. The Niles plant results represent a significant improvement over the third quarter of 2003, when the facility lost $3.4 million, and the second quarter this year, when it lost $3 million. The plant's current quarter shipments exceeded shipments in both of those prior periods, officials said.The Fabrication & Distribution Group had an operating loss of $1.5 million on sales of $50.7 million during the third quarter. In addition to conditions in many of the markets to which it sells, the Group's financial performance in the quarter was impacted by the additional expense related to the Sarbanes-Oxley implementation. For the same period in 2003, the Group had an operating loss of $600,000 on sales of $36.2 million. "While RTI's third quarter results reflect the production of low-priced orders taken at the bottom of the commercial aerospace downturn, market conditions are improving," commented Timothy G. Rupert, president and chief executive officer. "Demand for titanium is improving, as is our order backlog. The initial cost of implementing Sarbanes-Oxley should be substantially reduced in the fourth quarter. As we go through 2005, we expect that increased capacity utilization and further cost reduction will result in a return to profitability in the Titanium Group. Activity should increase in the Fabrication & Distribution Group as well. We are excited about the acquisition of Claro Precision Inc., which was completed earlier this month. Claro's ability to perform precision machining and produce subassemblies will enhance our fabricating capability, open new markets and improve profitability." RTI International Metals is one of the world's largest producers of titanium.Visit RTI International Metals, Inc.:www.rtiintl.com"