Citi Comments On RTI International Metals Following Recent Earnings Release

RTI International RTI announced 1Q operating EPS of $0.05, above Citi's estimate of -$0.04 and the consensus of -$0.03. Upside to the estimate was driven by better than expected profitability from the Titanium Group. Reported EPS of $0.08 included a $1.5 mln gain from contractual settlements related to the indefinitely idled sponge plant. Positives include the Titanium Group posted operating income of $8.7 mln on higher than expected shipments of 3.1 mln lbs and realized pricing of $20.00/lb. RTI increased guidance for 2011 mill product shipments to 13 mln lbs from the prior 12 mln lbs outlook due to increased orders from Airbus and the engine supply chain. The Distribution Group posted higher than expected operating income of $2.0 mln on revenues of $47.2 mln. Negatives include RTI's Fabrication operating loss was worse than expected at $1.3 mln on lower than expected sales of $38.1 mln. SG&A of $17.5 mln was $1.7 mln higher than anticipated. Citi has a $30 PT and Hold rating on RTI RTI is trading lower at $31.98