RTI Announces Third Quarter Results

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PITTSBURGH--(Business Wire)--
RTI International Metals, Inc., (NYSE: RTI), released results today for the
third quarter of 2009 and nine months ended September 30, 2009.

Third Quarter 2009 Results

* Net sales for the third quarter were $100.2 million
* Operating income for the third quarter was $2.0 million
* Excluding charges of $5.7 million associated with the Company`s debt
repayment, earnings before taxes for the third quarter were $0.9 million
* Earnings before taxes were a $4.8 million loss for the third quarter.

For the third quarter, the Company reported net sales of $100.2 million,compared
to $150.6 million in the third quarter of 2008. Including charges of $5.7
million associated with the Company`s debt repayment plus a tax expense of $3.9
million, the Company reported a net loss of $8.7 million, or $0.35 per diluted
share, in the current quarter in comparison to net income of $11.3 million, or
$0.49 per diluted share, for the same period in the prior year. The third
quarter 2009 results were negatively affected primarily by lower trade shipments
and average realized selling prices for titanium mill products, the impact from
lower production utilization in the Fabrication Group, the continued weakness in
commercial aerospace demand, and charges related to the repayment of its
outstanding debt during the quarter.

During the third quarter, the Company repaid $242.8 million of its outstanding
bank indebtedness and thereby incurred finance-related charges of $5.7 million.
At the end of the third quarter, the Company had $124.7 million of cash and cash
equivalents and an undrawn revolving credit facility of $200 million.

For the nine months ended September 30, 2009, the Company reported net sales of
$310.7 million, compared with net sales of $461.1 million for the same period
last year. For the nine-month period, the Company reported a net loss of $10.0
million, or $0.42 per diluted share, compared with net income of $52.1 million,
or $2.26 per diluted share for the same period a year ago. Year-to-date results
also include finance-related charges of $5.7 million as well as charges of $2.5
million associated with the U.S. Customs` investigation related to the Company`s
previously filed duty drawback claims.

NOTE: Reconciliations of non-GAAP financial measures are provided in the
appendix.

Titanium Group

For the third quarter of 2009, the Titanium Group had operating income of $1.0
million on sales of $54.4 million, including intersegment sales of $25.6
million. During the same period in 2008, this Group had operating income of
$11.9 million on sales of $85.3 million, including intersegment sales of $35.9
million. Mill product shipments for the third quarter were 2.4 million pounds at
an average realized price of $21.32 per pound compared to mill product shipments
of 3.4 million pounds in the third quarter of 2008 at an average realized price
of $23.04 per pound.

The decrease in average realized selling prices year-over-year was driven
primarily by a larger portion of total sales under long-term agreements and
continued lack of spot market business, driven by lower end-market demand, as
well as the excess titanium inventory in the commercial aerospace supply chain.

During the first nine months of 2009, the Titanium Group posted operating income
of $7.4 million on sales of $180.9 million, including intersegment sales of
$94.6 million. For the same period in 2008, operating income was $58.7 million
on sales of $283.5 million, including intersegment sales of $126.6 million. Mill
product shipments for the first nine months of 2009 were 7.8 million pounds at
an average realized price of $21.95 per pound compared to mill product shipments
of 11.2 million pounds in 2008 at an average realized price of $23.79 per pound.

Fabrication Group

Net sales for the Fabrication Group declined during the third quarter to $27.3
million versus $35.7 million for the same period a year ago. This Group had an
operating loss of $0.5 million, compared to operating income of $1.0 million in
the third quarter of 2008. The Fabrication Group continues to be impacted by the
ongoing delays in the production of the Boeing 787, resulting in lower
utilization, and by a slowdown in orders from its energy customers.
Year-to-date, the Fabrication Group reported net sales of $79.9 million
resulting in an operating loss of $14.2 million compared with net sales of
$106.8 million and operating income of $3.4 million from the same period the
previous year.

Distribution Group

For the third quarter, net sales for the Distribution Group were $44.1 million
compared to $65.5 million for the same period a year ago. This Group had
operating income of $1.4 million compared to $4.9 million in the third quarter
of 2008. The operating income decline was primarily attributable to lower demand
in the commercial aerospace market, as well as the overall global economy.
Year-to-date, the Distribution Group reported net sales of $144.5 million
resulting in operating income of $6.4 million compared with net sales of $197.4
million and operating income of $19.9 million from the same period in the prior
year.

CEO Comment

Vice Chairman, President and CEO Dawne S. Hickton commented, "As we look toward
the end of 2009, we still have not seen a pickup in demand nor do I expect to
see demand improve until the end of 2010 at the earliest. The production delays
associated with the 787 Dreamliner continue to stress our Company, particularly
in the Fabrication Group. The Distribution Group, which has the best visibility
into the market among our three segments, continues to see depressed spot market
activity with somewhat volatile pricing. As was the case in the prior quarters
of 2009, our long-term customer agreements and ability to manage expenses allow
us to operate profitably in our Titanium and Distribution segments.

"Given the continued uncertainty in the commercial aerospace market, the
resulting reduced cash flows relative to our expectations, as well as our desire
to be positioned to be opportunistic in our organic growth initiatives,
particularly in the Fabrication Group, we elected to recalibrate our balance
sheet by raising common equity and paying off $242.8 million of bank debt. We
now have substantial financial flexibility with no funded debt, over $124
million in cash and cash equivalents and an undrawn $200 million revolving
credit facility."

Conference Call Information

To participate in today`s call at 11 a.m. Eastern Time, please dial toll free
(USA/Canada) 800-446-2782 or (International) 847-413-3235 a few minutes prior to
the start time and specify the RTI International Metals` Conference Call.

Replay Information

Replay of the call will be available one hour after the conference ends and
remains accessible until Tuesday, November 17, 2009, at 11:59 p.m., Eastern
Time. To listen to the replay, dial (USA/Canada) 888-843-8996 or (International)
630-652-3044 and enter passcode #25587585.

Forward Looking Statement

The statements in this release relating to matters that are not historical facts
are forward-looking statements that may involve risks and uncertainties. These
include, but are not limited to, the impact of global events on the commercial
aerospace industry, actual build-rates, production schedules and content per
aircraft for commercial and military aerospace programs, military spending and
continued support for the Joint Strike Fighter program, the impact from Boeing
787 production delays, global economic conditions, the competitive nature of the
markets for specialty metals, the ability of the Company to obtain an adequate
supply of raw materials, long-term contracts, the successful completion of our
capital expansion projects, the current delay and potential further delay,
idling, abandonment or impairment and other risks and uncertainties included in
the Company`s filings with the Securities and Exchange Commission. Actual
results can differ materially from those forecasted or expected. The information
contained in this release is qualified by and should be read in conjunction with
the statements and notes filed with the Securities and Exchange Commission on
Forms 10-K and 10-Q, as may be amended from time to time.

Company Description

RTI International Metals®, headquartered in Pittsburgh, Pennsylvania, is one of
the world`s largest producers of titanium mill products and a global supplier of
fabricated titanium and specialty metal components for the international market.
Through its various subsidiaries, RTI manufactures and distributes titanium and
specialty metal mill products, extruded shapes, formed parts and engineered
systems for commercial aerospace, defense, energy, industrial, chemical, and
consumer applications for customers around the world. To learn more about RTI
International Metals, Inc., visit our website at www.rtiintl.com.

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share amounts)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008

Net sales $ 100,247 $ 150,615 $ 310,655 $ 461,092
Cost and expenses:
Cost of sales 82,426 113,492 263,047 322,708
Selling, general, and administrative expenses 15,384 18,723 46,526 54,829
Research, technical, and product 466 555 1,493 1,590
development expenses
Operating income (loss) 1,971 17,845 (411 ) 81,965
Other income (expense) 252 551 2,006 (129 )
Interest income 257 799 1,325 2,172
Interest expense (7,231 ) (979 ) (12,007 ) (1,595 )

Income (loss) before income taxes (4,751 ) 18,216 (9,087 ) 82,413
Provision for income taxes 3,901 6,964 899 30,311
Net Income (loss) $ (8,652 ) $ 11,252 $ (9,986 ) $ 52,102

Earnings per share:
Basic $ (0.35 ) $ 0.49 $ (0.42 ) $ 2.26
Diluted $ (0.35 ) $ 0.49 $ (0.42 ) $ 2.26

Weighted-average shares outstanding:
Basic 24,643,301 22,838,900 23,588,555 22,881,457
Diluted 24,643,301 22,915,541 23,588,555 23,007,236

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)

September 30, December 31,
ASSETS 2009 2008
Current assets:
Cash and cash equivalents $ 124,733 $ 284,449
Receivables, less allowance for doubtful accounts of $605 and $2,260 66,265 79,778
Inventories, net 271,738 274,330
Deferred income taxes 25,577 29,456
Other current assets 8,073 11,109
Total current assets 496,386 679,122
Property, plant, and equipment, net 305,272 271,062
Goodwill 49,401 47,984
Other intangible assets, net 14,136 13,196
Deferred income taxes 30,611 15,740
Other noncurrent assets 1,602 2,099
Total assets $ 897,408 $ 1,029,203

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 43,032 $ 54,422
Accrued wages and other employee costs 10,744 20,452
Unearned revenue 20,249 22,352
Current portion of long-term debt - 1,375
Current liability for post-retirement benefits 2,632 2,632
Current liability for pension benefits 121 121
Other accrued liabilities 21,342 18,167
Total current liabilities 98,120 119,521
Long-term debt 86 238,550
Noncurrent liability for post-retirement benefits 31,520 30,732
Noncurrent liability for pension benefits 24,625 26,535
Deferred income taxes 154 154
Other noncurrent liabilities 7,310 11,777
Total liabilities 161,815 427,269
Commitments and Contingencies
Shareholders` equity:
Common stock, $0.01 par value; 50,000,000 shares authorized; 30,715,403 and 23,688,010 shares issued; 30,021,089 and 23,004,136 shares outstanding 307 237
Additional paid-in capital 438,547 307,604
Treasury stock, at cost; 694,314 and 683,874 shares (16,979 ) (16,891 )
Accumulated other comprehensive loss (33,632 ) (46,352 )
Retained earnings 347,350 357,336
Total shareholders` equity 735,593 601,934
Total liabilities and shareholders` equity $ 897,408 $ 1,029,203

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Nine Months Ended
September 30,
2009 2008
Cash provided by operating activities (including depreciation and $ 16,738 $ 53,155
amortization of $15,985 and $14,891 for the nine months
ended September 30, 2009 and 2008, respectively)

Cash used in investing activities (63,362 ) (88,815 )

Cash provided by (used in) financing activities (114,743 ) 218,986

Effect of exchange rate changes on cash and cash equivalents 1,651 (800 )

Increase (decrease) in cash and cash equivalents (159,716 ) 182,526
Cash and cash equivalents at beginning of period 284,449 107,505
Cash and cash equivalents at end of period $ 124,733 $ 290,031

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Selected Operating Segment Information

(Unaudited)

(In thousands)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net sales:
Titanium Group $ 28,853 $ 49,367 $ 86,280 $ 156,868
Intersegment sales 25,586 35,931 94,615 126,599
Total Titanium Group net sales 54,439 85,298 180,895 283,467

Fabrication Group 27,334 35,731 79,885 106,795
Intersegment sales 15,986 17,125 44,561 62,692
Total Fabrication Group net sales 43,320 52,856 124,446 169,487

Distribution Group 44,060 65,517 144,490 197,429
Intersegment sales 598 642 1,863 1,760
Total Distribution Group net sales 44,658 66,159 146,353 199,189

Eliminations 42,170 53,698 141,039 191,051
Total consolidated net sales $ 100,247 $ 150,615 $ 310,655 $ 461,092

Operating income (loss):
Titanium Group before corporate allocations $ 3,591 $ 16,138 $ 15,066 $ 68,825
Corporate allocations (2,569 ) (4,210 ) (7,713 ) (10,112 )
Total Titanium Group operating income 1,022 11,928 7,353 58,713

Fabrication Group before corporate allocations $ 1,898 $ 3,695 $ (6,968 ) $ 10,913
Corporate allocations (2,394 ) (2,713 ) (7,185 ) (7,511 )
Total Fabrication Group operating income (loss) (496 ) 982 (14,153 ) 3,402

Distribution Group before corporate allocations $ 3,349 $ 7,200 $ 12,101 $ 26,107
Corporate allocations (1,904 ) (2,265 ) (5,712 ) (6,257 )
Total Distribution Group operating income 1,445 4,935 6,389 19,850

Total consolidated operating income $ 1,971 $ 17,845 $ (411 ) $ 81,965

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

GAAP to Non-GAAP Reconciliation

(Unaudited)

(In thousands)

Three Months Ended
September 30, 2009
Income (loss) before income taxes - GAAP $ (4,751 )

Finance-related charges 5,623

Income before income taxes - Non-GAAP $ 872

RTI International Metals, Inc.
Richard E. Leone, Director - Investor Relations, 330-544-7622
rleone@rtiintl.com

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