Titanium mill products maker
RTI International Metals, Inc.
United Technologies Corp.
) unit Pratt & Whitney have signed a 13-year agreement; where
RTI International will supply rotor-quality titanium mill
products for the latter's PurePower family of Geared Turbofan jet
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Following the deal, Pratt & Whitney will also be the engine
launch customer for the new Electron Beam Furnace that commenced
production at RTI's Canton, Ohio facility.
This agreement is beneficial for RTI International in a number of
ways. This deal will re-establish RTI
International's emergence as a competent supplier in the
rotor-quality, jet engine titanium market. Additionally, the
decision to invest in EB furnace technology will solidify RTI
International's position in the fast-growing aerospace market.
On Jun 19, RTI International's wholly-owned subsidiary RTI Claro
had signed a long-term contract with Bombardier Aerospace
(Bombardier) to supply precision machined components and
assemblies for different Bombardier aircraft models.
RTI International, which is among the prominent specialty steel
companies along with
Sutor Technology Group Limited
Material Sciences Corporation
), posted its first-quarter 2013 results on Apr 30. The company's
reported earnings from continuing operations of 18 cents per
share exceeded the Zacks Consensus Estimate of 15 cents and
year-ago earnings of 17 cents. Profit from continuing operations
increased to $5.5 million from $5.1 million in the prior-year
Revenues surged 21% to $187.5 million in the quarter from $154.6
million in the year-ago quarter. It was also ahead of the Zacks
Consensus Estimate of $183 million.
RTI International expects its Boeing 787 pi-box seat track
program to ramp up to a ten ship sets per month run rate by the
end of 2013. It also anticipates its mill product shipments to
Airbus and the Joint Strike Fighter to remain as previously
projected. The company reaffirmed its operating income
expectations for 2013, which is forecasted in a range of $65
million to $75 million.
RTI International currently carries a Zacks Rank #3 (Hold).