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Sector Snap: Titanium Makers Fall On Airline Ills

The Associated Press

NEW YORK (AP) — Shares of titanium producers slumped Monday after the head of the world's largest airline association warned that the industry will lose $9 billion this year.

Speaking at the annual meeting Monday of the International Air Transport Association, the group's chief executive Giovanni Bisignani warned that "rising oil prices anticipating recovery are a great risk. Greedy speculation must not hold the global economy hostage. Failure to act by governments would be irresponsible."

IATA represents hundreds of airlines around the world.

As Bisignani was speaking in Kuala Lumpur, Malaysia, trading in shares of China Eastern Airlines and smaller rival Shanghai Airlines were suspended. China Eastern has gotten hundreds of millions of dollars in government aid as it struggles through the economic slowdown.

Meanwhile, airline orders for Boeing passenger and cargo jets slid last month, to 20 from 67, hurt by weaker air travel and tight credit. The lower orders reflect a slump in current demand.

Lower orders mean less demand for titanium products supplied by such companies as Titanium Metals Corp., Allegheny Technologies and Carpenter Technology Corp. Aerospace companies like Boeing are the top customers for makers of titanium, which is used in jet engines and airframe components.

In midday trading shares of Titanium Metals fell 31 cents, or 2.8 percent, to $10.61, Allegheny Technologies declined $1.08, or 2.6 percent, to $39.83, and Carpenter Technology lost $1.01, or 4.1 percent, to $23.45.