RTI Reports Net Income of $5.5M
PITTSBURGH -- RTI International Metals Inc. Tuesday reported first-quarter net income from continuing operations of $5.5 million, or 18 cents per diluted share, on net sales of $187.5 million and operating income of $12.2 million.
This compares with net income a year ago from continuing operations of $5.1 million, or 17 cents per diluted share, on net sales of $154.6 million and operating income of $12.1 million.
Titanium mill product shipments during the quarter were 4.3 million pounds, unchanged from the first quarter a year ago. The backlog at March 31 remains near record-high levels, increasing to $569 million from $554 million in the fourth quarter of 2012.
First quarter results include a complete quarter contribution from the acquisition of Remmele Engineering Inc., which closed Feb. 13, 2012. The first quarter also includes sooner than expected receipts of $4.3 million of import duty cost recoveries under the company’s duty drawback program as well as $3.3 million of pretax charges related to the implementation of a voluntary early retirement program and restructuring actions associated with a small noncore business.
During April, the company completed its public offering of $402.5 million of Convertible Senior Notes that pay 1.625% and come due in 2019. RTI used $133.4 million of the proceeds from this offering to repurchase, through privately negotiated transactions, $115.6 million aggregate principal amount of its outstanding $230 million 3.000% convertible senior notes due in 2015, including accrued interest. In conjunction with the repurchase transactions, RTI expects to record a pretax, nonoperating charge of approximately $14 million in the second quarter. Interest expense on the $516.9 million principal in convertible notes outstanding will be some $22 million during the last nine months of the year, including $7.5 million or so of cash interest expense.
“RTI’s first quarter financial results reflect earlier-than-planned collection of duty drawback, continued operational improvements and a favorable mill product mix,” said Dawne S. Hickton, vice chairman, president, and CEO, in a prepared stateent. “Our anticipated full-year operating performance continues to be driven by the same items that existed at the end of 2012, specifically, we expect our mill product shipments to Airbus and the Joint Strike Fighter to remain as previously forecast, and expect the Boeing 787 pi-box seat track program will continue to ramp to a 10 ship sets per month run rate towards year end.
“… We also undertook several significant initiatives including our $402.5 million financing and the anticipated disposition of two small, nontitanium distribution businesses. Based on these first-quarter results and continued market support for our products in both our titanium and engineered products and services segments, RTI is reaffirming our expectation that full year 2013 operating income will be in the $65 million to $75 million range.”
RTI International Metals Inc. specializes in advanced titanium and has locations in the United States, Canada, Europe, and Asia.
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