WEATHERSFIELD RTI reports profits of $3.5M for quarter
One official said RTI may see losses in the second half because of a still-sluggish aerospace market.
WEATHERSFIELD -- RTI International Metals reported second-quarter profits of $3.5 million, or 17 cents per share, on sales of $72.9 million, a dramatic improvement over 2001 earnings of $600,000, or 3 cents per share for the same period.
Timothy G. Rupert, company president and chief executive, said cost-cutting efforts at the company's Weathersfield-based RMI Titanium paid off for the titanium division in a healthy $4.5 million in operating income on sales of $34.3 million for the quarter.
Rupert warned, however, that the titanium division may see losses in the third and fourth quarters because of the continuing downturn in the commercial aerospace industry. Traditionally, about 40 percent of RMI's business has come from the commercial aerospace market.
The company reduced its costs in the second quarter by stepping up production at RMI in the spring, building up inventory so that it could idle the facility for four weeks this month. About 410 employees were laid off.
Its fabrication and distribution group earned $1.2 million on sales of $38.5 million, largely because of a strong performance by its Houston-based RTI Energy Systems, which provides equipment for the gas and oil well drilling industry.
Overall, RTI's earnings for the first six months of this year are about triple its earnings for the same period in 2001. The company earned $11.5 million in the first half on sales of $138.6 million, compared with earnings of $4.5 million on sales of $141.1 million in the first half last year.
RTI stock closed at $10.91 per share Monday on the New York Stock Exchange. The share price has ranged from $5.60 to $14.50 over the past 52 weeks.