RTI International Reports $198.5M in Revenues for Q1
PITTSBURGH – First-quarter revenues were up 14% over the same period last year at RTI International Metals, the company reported this morning. Revenues for the first three months of the year totaled $198.5 million, compared with $174.5 million for the same period in 2014, RTI announced in a news release this morning.
Operating income during the quarter was $12.2 million compared with $1.6 million during the first quarter of last year. Excluding $4.7 million of expenses related to the company’s pending merger with Alcoa, first quarter 2015 operating income was $16.9 million. The merger was announced March 9.
“RTI is off to a good start in 2015,” said Dawne Hickton, vice chairwoman, president and chief executive officer. “Excluding the impact of merger-related expenses, our first quarter results reflect strong year-over-year growth in revenues and operating income, as well as profitability performance that was better than we expected.” RTI also is looking forward to completing the merger with Alcoa, she said.
Net income attributable to continuing operations was $4.5 million, or $0.15 per diluted share. This compares to first quarter 2014 net loss attributable to continuing operations of -$3.8 million, or -$0.13 per diluted share.
First quarter 2015 total titanium mill product shipments were 4.3 million pounds compared to 3.8 million pounds for the same period last year. The Titanium Segment reported operating income of $9.7 million on net sales of $83.5 million, compared to 2014 first quarter operating income of $5.9 million on net sales of $77.0 million.
The company attributed the increased sales and operating income to higher service center shipment volumes to commercial aerospace customers. A higher-margin product mix related to mill product trade shipments in the current year first quarter also contributed to the increased operating income. Last year’s first quarter results were negatively impacted by weather-related operational disruptions.
The Engineered Products and Services Segment reported operating income of $7.2 million on net sales of $115.0 million. This compares to an operating loss of -$4.3 million on net sales of $97.6 million reported for the same period last year.
RTI credited the growth in sales to increased commercial aerospace market volumes, as well as higher medical device market sales. Operating income improved by $11.5 million due to the combination of the higher sales, improved operational productivity, higher facility utilization levels, and favorable foreign currency translation impacts. Last year’s first quarter results were negatively impacted by higher new program development costs, commercial aircraft build-rate adjustments, weather-related operational disruptions, and severance costs.
“Our revenue growth was driven by solid increases in commercial aerospace and medical device market volumes, and was complimented by continued steady performance in our other markets,” Hickton said. “Excluding merger-related expenses, operating income and operating margins both improved significantly year-over-year due to the combination of higher sales and production volumes, improved operational productivity, and favorable foreign currency translation impacts.”
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