RTI INTERNATIONAL ANNOUNCES 1998 RESULTS

Net income for the year was $68.1 million, $3.31 per share, on sales of $337.5 million. The results for the comparable 1997 period were a net income of $60.1 million, $2.94 per share, on sales of $318.5 million. Both 1998 and 1997 results were favorably impacted by adjustments to the Company’s deferred tax assets.

Net income for the fourth quarter of 1998 was $6.9 million, or $0.34 per share, on sales of $70.9 million, including a special charge of $0.5 million related to a strike by the United Steelworkers Union at the Niles, Ohio plant and the permanent shutdown of two melting furnaces. Comparable numbers from the fourth quarter of 1997 were $14.5 million, $0.71, and $83.4 million, respectively.

RMI Titanium Company ("RMI"), a wholly-owned subsidiary of RTI, had fourth quarter 1998 mill product shipments totaling 2.7 million pounds at an average price of $17.00 per pound. Shipment levels during the quarter were 60% of normal due to the Niles strike that began October 1, 1998. However, emphasis on RMI’s higher value-added flat products increased realized prices by approximately $2 per pound over the previous quarter.

Robert M. Hernandez, Chairman, commenting on the results, said, "The strike at RMI has been disruptive and reduced earnings in the fourth quarter, although not as much as expected. While we were unable to meet the total requirements of our customers for some products, softening demand from commercial aerospace has, unfortunately, reduced the need for other products. These market conditions make the Union’s double-digit demands all the harder to meet and more productive work rules sought by RMI all the more important to obtain. Efforts to reach a new agreement have to this point been unsuccessful. Operations are being conducted by salaried personnel working in 12-hour shifts in an effort to meet our customers’ needs. Their efforts have enabled the Company to report record earnings for 1998 despite the work stoppage."  

Looking forward to 1999, Mr. Hernandez added, "We expect the softening trend will continue for both demand and pricing in commercial aerospace markets this year. Aircraft manufacturers and their suppliers find themselves with supplies greater than is needed for projected build rates. Consequently, purchases will continue to be cut back and pricing pressure on some products will increase. However, we believe that the actions taken by our Company in 1998, such as shifting the mix of contracts toward military aerospace where increased spending is forecasted and the diversifying acquisitions made in fabrication and distribution, will help ease the pressure from the commercial aerospace correction. Until settled, the strike at RMI will negatively impact earnings, although we have reduced our estimate of its cost to $1-$2.5 million per month."

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties including, but not limited to, risks associated with the ongoing assimilation of recent acquisitions into RTI, the cyclicality of the markets for specialty metals products, and fluctuations in world economies. Additional information concerning factors that could cause actual results to differ materially from those expected is contained in the Company’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or upon request from the Company.

RTI International Metals, Inc., headquartered in Niles, Ohio, through its various subsidiaries, manufactures and distributes titanium and specialty metal mill products, extruded shapes, and engineered systems for energy-related markets. The Company’s products are used for aerospace, industrial and consumer applications.