FOR IMMEDIATE RELEASE JANUARY 25, 2000
CONTACT:
Richard E. Leone
Manager Investor Relations
330.544.7622
RTI INTERNATIONAL ANNOUNCES 1999 RESULTS
Niles, Ohio RTI International Metals, Inc. (NYSE: RTI) released results today for the fourth quarter and year of 1999.
Net income for the year was $2.2 million, or $0.11 per share, on sales of $243.3 million. Comparable results for 1998 were a net income of $68.1 million, $3.31 per share, on sales of $337.5 million. Adjustments to deferred tax assets added $16.1 million or $0.78 per share to 1998 's record results.
Net income for the fourth quarter of 1999 was $0.8 million, or $0.04 per share on sales of $65.3 million. Comparable numbers from the fourth quarter of 1998 were $6.9 million, $0.34 and $71 million, respectively.
RMI Titanium Company ("RMI"), a wholly owned subsidiary of RTI, had higher than expected fourth quarter 1999 mill product shipments totaling 2.5 million pounds at an average price of $15.78 per pound.
Timothy G. Rupert, President and CEO, noted, "RTI's earnings in 1999 were significantly impacted by a sudden downturn in our commercial aerospace markets owing to announced lower aircraft build rates and excess titanium inventories. A strike at RMI that continued through the first four months of the year also reduced mill product shipments. To a lesser extent, weak oil and gas prices through mid-year hurt sales to energy markets. Despite these conditions, we were able to remain profitable, integrate the acquisitions made in 1998, and fund $26 million in capital spending that will further diversify our sources of revenue and reduce cost. Our actions during the last up cycle in titanium made RTI a stronger Company. I think our performance this year compared to prior downturns in our industry demonstrates that strengthening."
Regarding 2000, Rupert added, "We expect demand from commercial aerospace markets to remain weak this year. Hopefully, we will start to see reductions in the inventories of aerospace suppliers later this year. Oil and gas prices have recovered which should bring about increased exploration activity in the second half. Barring the unforeseen, we expect our results to improve in 2000."
This news release contains forward-looking statements that involve risks and uncertainties. These include but are not limited to the cyclical nature of the commercial aerospace industry as well as the impact of industry-wide inventory imbalances in aerospace materials. These risks also include the cyclical natures of the chemical processing and energy industries, uncertain defense spending, potential difficulties associated with new market development, and the competitive market for specialty metals. Other risks and uncertainties have previously been included in the Company's filings with the Securities and Exchange Commission, copies of which are available from the SEC or from RTI Investor Relations.
RTI International Metals, Inc., headquartered in Niles, Ohio, through its various subsidiaries, manufactures and distributes titanium and specialty metal mill products, and extruded shapes, as well as engineered systems for energy-related markets and environmental engineering services. The Company's products are used for aerospace, industrial and consumer applications.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Wednesday, January 26, 2000, at 11:30 a.m., Eastern Standard Time, to discuss this press release. Timothy G. Rupert, President and CEO, John H. Odle, Executive Vice President, and Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate in the call, please dial (800) 450-0785 a few minutes prior to the start time and specify the RTI International Metals, Inc. conference call. Replay of the call will be available until midnight, Eastern Standard Time, on Wednesday, February 2, 2000, by dialing (800) 475-6701, Access Code 498470.
RTI INTERNATIONAL METALS, INC CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Dollars in thousands)
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QUARTER ENDED DECEMBER 31, |
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YEAR ENDED DECEMBER 31, |
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1999 |
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1998 |
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1999 |
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1998 |
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|
|
|
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Sales |
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$ 65,290 |
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$ 70,868 |
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$ 243,309 |
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$ 337,476 |
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Cost of sales |
|
56,294 |
|
54,046 |
|
209,703 |
|
245,710 |
| __________ | __________ | __________ | __________ | |||||
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Gross profit |
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8,996 |
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16,822 |
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33,606 |
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91,766 |
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Selling, general and administrative expenses |
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|
|
|
|
|
|
|
|
|
6,714 |
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7,938 |
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24,794 |
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19,884 |
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Research, technical and product development expenses |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
898 |
|
966 |
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4,043 |
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3,886 |
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| __________ | __________ | __________ | __________ | |||||
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Operating income |
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1,384 |
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7,918 |
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4,769 |
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67,996 |
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|
|
|
|
|
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Other income - net |
|
507 |
|
542 |
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1,319 |
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2,773 |
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Interest expense |
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(697) |
|
(611) |
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(2,561) |
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(668) |
| __________ | __________ | __________ | __________ | |||||
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Income before income taxes |
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|
|
|
|
|
|
|
|
|
1,194 |
|
7,849 |
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3,527 |
|
70,101 |
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Provision (credit) for income taxes |
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|
|
|
|
|
|
|
|
|
434 |
|
872 |
|
1,304 |
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1,958 |
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| __________ | __________ | __________ | __________ | |||||
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Net income |
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$ 760 |
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$ 6,977 |
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$ 2,223 |
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$ 68,143 |
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Net income per common share |
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Basic |
$ 0.04 |
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$ 0.34 |
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$ 0.11 |
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$ 3.31 |
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Diluted |
$ 0.04 |
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$ 0.33 |
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$ 0.11 |
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$ 3.29 |
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Weighted Average Shares Outstanding (in thousands) |
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Basic |
20,818 |
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20,719 |
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20,771 |
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20,561 |
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|
|
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|
|
|
|
|
|
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Diluted |
20,873 |
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20,813 |
|
20,865 |
|
20,685 |
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