“RTI is working carefully and diligently with all parties concerned to ensure we implement the appropriate revenue recognition accounting methods for our energy market projects completely and accurately. Even though our energy market projects currently only generate less than ten percent of consolidated net sales, this detailed review involves approximately 20 past and current contracts. As such, we will invest the necessary time to make sure we get the review right,” Dawne Hickton, Vice Chair, CEO and President of RTI International Metals, said. “It is important to note – as we discussed recently in our quarterly conference call – that this accounting issue is isolated to the timing of revenue recognition among historical reporting periods. We are confident that this will have no impact on total contract revenues or income related to these affected projects.“Most importantly, our underlying business prospects remain unchanged. In that regard, I am confident in reaffirming guidance for full year 2013 sales approaching and possibly exceeding $775 million, total mill product shipments approaching 16.5 million pounds, and full year operating income likely reaching the higher end of a range between $65 million and $75 million,” Ms. Hickton concluded, noting that the achievement of the upper end of the operating income full year guidance range is subject to the completion of the review of the timing of the energy market revenues. Subject to the completion of the ongoing review, RTI currently intends to report final financial results for the three- and six- months ended June 30, 2013, and comparative periods, including revenues and cost of sales associated with these energy market projects on an as-corrected basis, by applying the percentage-of-completion revenue recognition accounting method to these certain energy market projects from the date of each project’s inception, rather than recording the cumulative effect of the correction solely in the quarter ended June 30, 2013. On this basis, RTI’s current estimate for total preliminary net sales for the three- and six-month periods ended June 30, 2013 is approximately $201 million and approximately $391 million, respectively, and preliminary operating income for the three- and six-month periods ended June 30, 2013 is approximately $20.3 million and $32.7 million, respectively.
Forward Looking StatementAll statements in this release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. These risks and uncertainties include, but are not limited to, the completion of the review of our revenue recognition accounting policy related to certain energy market contracts as well as other contracts that may require a different accounting method, the materiality of the effect of any correction resulting from such review on prior periods, global economic and political uncertainties, the concentration of our revenue within the commercial aerospace and defense industries, actual build-rates, production schedules and titanium content per aircraft for commercial and military aerospace programs, the successful completion and integration of completed acquisitions, military spending generally and in particular, demand from the Joint Strike Fighter program, the impact from Boeing 787 production delays, the competitive nature of the markets for specialty metals, the ability of RTI to obtain adequate raw materials, the successful completion of RTI’s capital expansion projects, and other risks and uncertainties described and included in RTI’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012, and the exhibits attached thereto. Actual results can differ materially from those forecasted or expected. The information contained in this release is qualified by and should be read in conjunction with the statements and notes filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, as may be amended from time to time. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. RTI undertakes no obligation to update or revise any forward-looking statements.
RTI International Company DescriptionRTI International Metals, Inc., headquartered in Pittsburgh, specializes in advanced titanium, meeting the requirements of the world's most technologically sophisticated applications in aerospace, defense, propulsion, medical device, energy, industrial, and chemical markets. For over 60 years, RTI has been taking titanium further through advanced manufacturing, engineering, machining, and forming processes. RTI delivers titanium mill products, extruded shapes, form-ready parts, and highly engineered components through our downstream-integrated supply chain. RTI has locations in the United States, Canada, Europe, and Asia.
|RTI International Metals, Inc.|
|Director – Investor Relations|