RTI International Metals, Inc. (NYSE: RTI), released results today for the fourth quarter and year ended December 31, 2011. The 23% year-over-year increase in revenue to $529.7 million and the 37% increase in the year-end backlog to $476.0 million reflect an overall return to growth in all of RTI’s markets, including the aerospace, defense, energy and medical markets.
Highlights of RTI’s fourth quarter and full-year results for 2011 follow:
For the fourth quarter of 2011:
For the FY 2011:
- Net sales rose over 23% to $141.9 million compared to $114.7 million in 2010.
- Operating income nearly doubled to $4.6 million, which includes the impact of $1.6 million of transaction related expenses, compared to $2.5 million for the prior year.
- Net income was breakeven in comparison to a net loss of $1.4 million, or ($0.05) per diluted share, for the same period in the prior year.
- Titanium mill product shipments during the quarter were 4.0 million pounds at an average realized price of $19.11 per pound. This compares to fourth quarter 2010 titanium mill product shipments of 3.1 million pounds at an average realized price of $18.67 per pound.
Transformational Highlights in 2011
- Net sales rose 23% to $529.7 million compared to $431.8 million in 2010.
- Operating income for the year nearly doubled to $27.8 million, compared to $14.1 million for the prior year.
- Net income was $6.6 million for 2011, or $0.22 per diluted share, versus net income of $3.4 million, or $0.11 per diluted share, for the prior year.
- Titanium mill product shipments for the year were 14.7 million pounds at an average realized price of $19.54 per pound. This compares to 10.5 million pounds at an average realized price of $18.81 per pound in 2010.
- The Company ended 2011 with cash and other highly liquid investments of $333.8 million and $230.0 million of convertible debt due in 2015.
- Backlog increased 37% year-over-year from $347.0 million at the end of 2010 to $476.0 million at the end of 2011.
Over the course of the last year, RTI made steady progress towards achieving its strategic transformation. The Company’s Martinsville plant became operational, delivering its first forged product during the fourth quarter, and is now in a position to provide additional capacity to meet the titanium production increases expected for 2012. In addition, the Company completed its acquisition of RTI Advanced Forming, which positions RTI to expand its hot forming business to commercial applications and push titanium components further downstream. Finally, RTI announced the proposed acquisition of Remmele Engineering, which has now received regulatory approval under the Hart-Scott-Rodino Act and is expected to close before the end of this quarter. The acquisition of Remmele Engineering will enable RTI to speed up the transformation of the Company’s downstream collaborative engineering and precision machining strategy in the aerospace and defense sectors, as well as provide significant growth opportunities in the medical devices market.