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Titanium Metals Corporation Message Board

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  • raybans2 raybans2 Jan 13, 2006 5:10 PM Flag

    Soaring aircraft sales article on MSNBC

    I don�t think you will get them to disclose the details of their LTAs simply because in order to tell us, they will be telling their competitors as well. I�m sure that in the contract wording, that BA has promised to not disclose and pricing information to any of TIEs competitors. There are numerous reasons why they don�t what their competitors to know these details. In a highly competitive market you don�t want them to know how cheap you are so they can�t underbid you the next time. In a non competitive situation where you can sell all you can make, like it is now, you don�t want them to know how much money your making so they will maybe agree to sell their metal for less, make less profit, and as a result not be as well capitalized as you are. Competition between companies is like war and all this info. is top secret need to know. I believe that they negotiate LTAs at prices lower than the spot market so that they can lock in a guaranteed long term order at known price. This allows then to plan their finances based on know numbers. At times like this, I�m sure they want their competition to sell their metal at a lower price giving TIE more profits for plant expansions, process improvements, allowing them to incur less debt, etc., etc. As a result they will be more competitive in the future and capable of getting larger market share.