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RTI International Metals, Inc. Message Board

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  • cpa38 cpa38 Nov 2, 2005 1:06 AM Flag

    The Excuses Do not Add Up

    Have to agree.

    1. Why are rising scrap costs not passed through to end customers? Is RTI saddled with fixed priced contracts on the sales side, while facing rising prices on the raw materials front?

    2. The CFO's a pathetic moron. Weak assed excuses offered up for the piss poor timing of the earnings release. Inability to quantify the impact of the BA strike. Little detail offered up in explanations for shortfall to expectations. Picking fights with analysts on the call. The guy needs his sorry ass kicked out the door.

    And that's only for starters. The call was a huge disappointment. Huge.

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    • Here's another dumb assed comment from the CFO on the call that made no sense. When asked what 2006 looked like he indicated that it was sold out. There's no room to do more business. Then, when asked what he'd do if a major customer came to RTI wanting to do more business, he goes the opposite direction. The moronic CFO then says they have plenty of capacity to do more work. They just need more raw materials. Huh? Which is it. Sold out? Or plenty of capacity?

      How is it that morons come to run our public companies?

      • 1 Reply to cpa38
      • LARRY RINGLER Tribune Chronicle

        WEATHERSFIELD - Facing a barrage of questions from analysts Tuesday, RTI International Metals Inc.'s chief executive explained how the process the company uses to get final product to customers affected third quarter sales.

        Timothy A. Rupert also gave an upbeat outlook for 2006 and beyond as titanium now in various stages of fabrication begins to reach key customers, such as aircraft makers Boeing and Airbus, as well as military services.
        His explanations in an analysts' conference call late Tuesday morning, however, failed to completely halt the Wall Street selloff that began with Monday's 11.7 percent plunge.

        RTI, one of the world's leading makers of titanium products used in commercial and military jets, offshore oil drilling rigs and medical transplant devices, saw its share price fall another 3.4 percent, or $1.13, Tuesday to finish at $32.39. The stock hit a 52-week high Oct. 4 at $40.80.

        The selloff came despite profit of $8.7 million on sales of $81.2 million in the three months ending Sept. 30 compared to a loss of $2.2 million on sales of $51 million a year ago when the company was nearing the end of a 13-month work stoppage. Per-share profit was 38 cents versus a 10-cent loss.

        But analysts peppered Rupert with questions about weaker sequential numbers from the second quarter 2005 to the third quarter, notably a $5 million decline in fabrication and distribution group sales from the second quarter to $50.2 million in the latest quarter.

        In a conference call that lasted 1 hour and 35 minutes, Rupert took pains to separate RTI from competing titanium companies in the way it fills orders.

        The reason, he said, is one-half to two-thirds of all titanium plate, billet and other shapes made at the RMI Titanium Co. mill in Weathersfield is sold to RTI's fabrication and distribution group for further processing such as welding and cutting before going to the outside customer.

        "We're not the peer group. It does take longer for our sales to go from melted ingot to aircraft part or component in an offshore oil platform,'' he said.

        Executive Vice President John Odle said a titanium billet could take nine months after it's shipped from RMI to be extruded at the company's Houston plant, then shipped to the United Kingdom to be packaged to go into a howitzer for the military.

        "We can't recognize those full sales until it's done in the U.K.,'' he said, adding the company is seeking to move such inventory faster through the system.

        Revenue for fabrication and distribution also was hit by the rash of hurricanes that struck the Gulf Coast in September, closing three Houston facilities for a week, Rupert said.

        The company's order backlog grew by $75 million, or 22 percent, to $428 million at September's end, Rupert said. The company's earnings may not peak until beyond 2007 along with the industry, he added.

        RTI also made a $9 million contribution to four pension plans ahead of schedule, Rupert said. He said the company wanted to make the contribution before any proposed laws that will toughen pension funding take effect. The contribution was the first since 2002, he said.

    • CPA

      The interesting thing, the CFO was just HIRED and trumpeted as a savior in a PR.

      Funny, isn't it.

      BZ

 
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