Dawne S. Hickton, the Vice Chair, President and CEO of RTI International Metals, Inc. (RTI), Interviews with The Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - April 14, 2014 - The Wall Street Transcript has just published its Metals & Mining Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mining Safety and Environmental Concerns - Global Iron Ore Production - Emerging Market Infrastructure Construction - Chinese Demand for Industrial Metals - Zinc Supply Deficit - Demand Growth in Zinc - Accelerated Grid Spending in China - Copper Demand in China

Companies include: RTI International Metals Inc. (RTI) and many more.

In the following excerpt from the Metals & Mining Report, the Vice Chair, President and CEO of RTI International Metals, Inc. (RTI) discusses company strategy and the outlook for this vital industry:

TWST: In your view, what are the macro trends that might affect RTI, might present either headwinds or tailwinds?

Ms. Hickton: For our company specifically, there has been an ongoing transformation within the aerospace material supply chain. And I say that just under my watch, even within seven or eight years, you had mill companies that made the metal that were standalone, and we would supply to maybe a forger or a caster. And then from there it would be supplied to another independent member of the supply chain, a machining company or an extrusion company or a powders company or a technology company or a welding company, or even a heat treating company.

What's happened in the last several years is a combination of forces. First, the OEMs, the Airbuses and the Boeings of the world, are looking to reduce the number of suppliers they have to deal with and manage on a daily basis. Having thousands of suppliers spread across the world is a major management issue from the top down. So to the extent you can minimize the number of suppliers - by allowing for consolidation in the industry - that's a positive. It takes out cost; it takes out management time.

For RTI, as one of those suppliers, one of the reasons we've transformed ourselves into a vertically integrated supply chain is to meet that focus of the customer, who is looking to get more needs met using fewer suppliers, and then to be able to meet the challenge within our industry, because everybody is transforming in that way. And that's a challenge. You need to keep abreast of that transformation. You need to recognize that some of your customers are now your competitors, as there's been this transformation and consolidation. That's probably the biggest challenge we're dealing with.

And then - on a more macro level - where about 70% of our business is aerospace, we're looking at a major ramp up in that market area. If you look at the 20-year reports from both Boeing and Airbus, they're predicting we need over 30,000 new aircraft in the next 20 years. Well, we're out there ramping up to supply the material for those build rates. And the question is: Will the global economy continue to strengthen and support that long-term growth for the aerospace industry?

TWST: How much do domestic budget cuts and lower defense spending affect the company's margins?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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