PITTSBURGH - RTI International Metals Inc. shares sold off Tuesday after the company missed analysts' earnings expectations, but the titanium producer's chief executive said the company is on track to its goal to diversify its products and services.
The launch of its new forging mill in Martinsville, Va., along with final acquisition of titanium forming business RTI Advanced Forming and the acquisition of Remmele Engineering "will position RTI to bid on a much broader range of downstream opportunities and will help drive our overall performance," Dawne Hickton said after the company reported making $15 million in the fourth quarter versus a $1.4 million loss in the 2010 period.
Per-share profit, however, was breakeven, missing analysts' average forecast of 9 cents per share and sending the shares tumbling 11.55 percent, or $3.15, to close at $24.13.
Revenue for the quarter of $141.9 million finished 24 percent better than the year-ago quarter and beat analysts' projections of $139.1 million.
For the full year, earnings nearly doubled to $6.6 million, or 22 cents per share, from $3.4 million, or 11 cents per share, in 2010. Annual revenue rose 23 percent to $529.7 million.
Revenue increased in RTI's titanium group, which includes its RTI Niles titanium mill, fabrication and distribution groups.
Titanium mill product shipments were 4 million pounds at an average price of $19.11 per pound. A year ago shipments were 3.1 million pounds at an average price of $18.67 per pound.
The Pittsburgh company said it expects 2012 revenue of more than $700 million compared to analysts' projection of $672.9 million.
Hickton said the company expects gains in the titanium mill product cycle, which affects RTI Niles, to continue through the year, thanks to recent announcements of production increases by the major commercial aircraft manufacturers.
Total mill product shipments for the year are expected to range between 15.5 million pounds and 16 million pounds, the company said. Shipments in 2011 totaled 14.7 million pounds at an average price of $19.54 per pound.
, up from 10.5 million pounds in 2010 at $18.81 per pound.