(Fixes date in the dateline)
(Recasts; adds analyst’s comment, details, share movement, background)
By Shradhha Sharma
BANGALORE, April 29 (Reuters) - RTI International Metals Inc RTI.N, a maker of titanium products, posted a quarterly profit above analysts’ estimates, but forecast weak 2008 sales as it expects to be hurt by the revised production schedule of Boeing 787, sending its shares down to their lowest in 52 weeks.
RTI, manufactures and sells titanium mill products, and supplies fabricated titanium and specialty metal components to the commercial aerospace industry.
RTI said it expects near-term challenges linked to production delays of Boeing’s 787 Dreamliner aircraft to impact its fabrication and distribution (F&D) group.
“The delays are impacting everything... there is just nowhere to hide,” Longbow Research analyst David Macgregor said.
RTI and Boeing Co (BA.N) signed a 10-year deal in November 2007 for supply of titanium components for the planemaker’s 787 Dreamliner. The deal was expected to generate revenue in excess of $100 million per year.
For 2008, the Niles, Ohio-based company forecast mill product shipments of between 15.5 million to 16.5 million pounds. It had reported mill product shipments of 15.4 million pounds for 2007.
The company expects sales to be flat and operating income to fall by 5 percent to 10 percent in 2008. RTI had posted 2007 sales of $626.8 million.
Analysts expect 2008 sales of $715.1 million.
RTI, which competes with Allegheny Technologies Inc (ATI.N) and Titanium Metals Corp TIE.N, reported first-quarter net income of $22.2 million, or 96 cents a share, compared with $22.07 million, or 95 cents a share, a year ago.
Revenue rose more than 3 percent to $150.6 million.
Analysts on average were expecting earnings of 88 cents a share, before special items, on revenue of $165.6 million, according to Reuters Estimates.
RTI shares, which have lost more than half their value in the last one year, were down $5.69 at $42.19 in midday trade on the New York Stock Exchange. They touched a 52-week low of $41.68 earlier in the session. (Editing by Bernard Orr, Himani Sarkar)