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RTI Metals Posts Net Loss of $2.8 Million
NILES, Ohio -- RTI International Metals Inc. posted a net loss of $2.8 million, or 13 cents per share, for 2004, officials reported yesterday. Sales for the year totaled $214.6 million. Results for the 2003 were net income of $4.7 million, or 23 cents per share, on sales of $195 million. Both 2004 and 2003 included payments under a supply agreement that required minimum purchases by The Boeing Co., resulting in other income of approximately $9 million and $8 million, respectively. The fourth quarter of 2004 resulted in a loss of $3.9 million, or 18 cents per share, on sales of $60.9 million. Comparatively, net income was $1.9 million, or 9 cents per share, on sales of $45.7 million for the fourth quarter of 2004. Mill product shipments for 2004 totaled 6.6 million pounds as compared to 5.9 million in 2003. Last year, company management operated the principal mill product facility during a year-long labor dispute that was settled in December. Average realized prices for 2004 were $13.99 versus $15.95 in 2003, primarily reflecting the price deterioration that occurred during the commercial aerospace downturn, when these orders were booked. Orders booked last year for production in 2005 carry significantly higher prices, officials said. Lower realized prices, partially offset by cost improvements, resulted in an $11.7 million operating loss for the Titanium Group in 2004. Sales were $154.3 million, including inter-company sales of $101.2 million. The Fabrication & Distribution Group had an operating loss in 2004 of $1.4 million. Domestic distribution units were the strongest contributors within the Group. Sales for the year were $161 million."RTI's 2004 results reflect a mix of factors, some of which were anticipated and managed well, such as low order volumes from commercial aerospace at deteriorated prices and the work stoppage at the Niles plant, while others were largely outside of the company's control, like the high initial cost of Sarbanes-Oxley 404 compliance," commented Timothy G. Rupert, president and chief executive officer. "Market conditions improved during the year, both in terms of volume and pricing. RTI's order backlog more than doubled in the second half. Recently announced contracts with Airbus and BAE, as well as a new relationship with Bombardier through the acquisition of Claro Precision in the fourth quarter, will all contribute to a much better year in 2005." RTI International Metals is one of the world's largest producers of titanium. Through its various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world. Visit RTI International Metals Inc.: www.rtiintl.com "