UPDATE 3-RTI International posts surprise Q4 loss; shares down

* Q4 adj loss $0.16/shr vs est EPS 2 cents

* Net sales fall 35 percent

* Says results hurt by titanium inventory build-up

* Says uncertain about market conditions

* Shares down as much as 16 pct
(Recasts; adds conference call details)

BANGALORE, Feb 4 (BestGrowthStock) – RTI International Metals Inc
(RTI.N: ) reported its second straight quarterly loss, against
analysts’ expectations of a profit, on contractual delays and
inventory build-up amid sluggish aerospace demand, sending its
shares down as much as 16 percent.

The titanium mill products maker, which supplies its
products to aerospace majors Airbus (EAD.PA: ), Boeing Co (BA.N: ),
Bombardier (BBDb.TO: ) and Lockheed Martin Corp (LMT.N: ), also
said it is uncertain about the titanium market in the near
term.

“In addition to the global economic upheaval, our
commercial aerospace customers experienced extended program
delays, resulting in significantly reduced current need for
titanium mill products and fabricated parts,” Chief Executive
Dawne Hickton said in a statement.

Weakness in air travel and general aviation had led the
global airline industry to trim budgets, flights and ground
aircraft. Airlines continue to suffer from weak demand, despite
nascent signs of a recovery.

Boeing, the second-largest plane maker after Airbus, saw
gross orders fall 61 percent to 263 airplanes last year.

RTI said Airbus’ challenges with the A400 military
transport and the A380 resulted in the titanium segment
operating at less than 50 percent capacity.

“Airbus has preliminarily advised RTI that during 2010 it
will require less than half of its 5 million pound contract
minimum,” RTI’s CEO Hickton said.

She added there could be further delays or a slower ramp up
in the production of the Boeing Dreamliner and consequently,
continued losses within RTI’s second-largest segment which
fabricates, machines and assembles titanium and other metal
parts and components.

The company expects 2010 to remain challenging and looks to
an industry recovery in 2011, Hickton said on a conference call
with analysts.

However, she expects long-term demand for titanium to be
“compelling,” and said that the company’s long-term contracts
are secure.

For the fourth quarter, RTI posted a net loss of $57.3
million, or $1.91 a share, compared with a profit of $3.6
million, or 16 cents a share, a year ago.

Excluding items, the company posted an adjusted loss of 16
cents a share, according to Thomson Reuters I/B/E/S.

Net sales plunged 35 percent to $97.3 million, primarily on
lower shipments.

Analysts on average expected the company to earn 2 cents a
share, excluding items, on sales of $94.9 million.

Shares of the company fell 16 percent to $21.97 Thursday
mid-day on the New York Stock Exchange, trailing the broader
Dow Jones U.S. Nonferrous Metals Index (.DJUSNF: ), which was
down 5 percent.

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(Reporting by Krishna N. Das and Antonita Madonna Devotta in
Bangalore; Editing by Ratul Ray Chaudhuri and Aradhana
Aravindan)

UPDATE 3-RTI International posts surprise Q4 loss; shares down