Exhibit 99.1 RTI International Announces Third Quarter Results NILES, Ohio--(BUSINESS WIRE)--Oct. 25, 2004--RTI International Metals, Inc., (NYSE:RTI) released results today for the third quarter of 2004. The Company reported a net loss for the third quarter of $2.2 million, or $0.10 per share, on sales of $53.9 million. Third quarter results included the recognition of $2.4 million in expense related to the implementation of Section 404 of the new Sarbanes-Oxley requirements. Results for the third quarter of 2003 were a loss of $2.5 million, or $0.12 per share, on sales of $50.2 million. The Titanium Group shipped 1.6 million pounds of mill products at an average realized price of $13.51 per pound during the quarter. The Group's operating results improved by $2.6 million over the third quarter of 2003, as cost reductions more than offset lower prices. Third quarter sales of $37.6 million, including intercompany sales of $25.1 million, generated a $1.0 million operating loss. During the same period a year ago, the Group had an operating loss of $3.6 million on sales of $38.8 million, including $24.9 million of intercompany sales. The Titanium Group's third quarter performance included a $1.4 million operating loss at its Niles, Ohio plant where non-represented personnel have been operating the facility since October, 2003 when former hourly employees declined a new contract offer. The Niles plant results represent a significant improvement over the third quarter of 2003, when the facility lost $3.4 million, and the second quarter this year, when it lost $3.0 million. The plant's current quarter shipments exceeded shipments in both of those prior periods. The Fabrication & Distribution Group had an operating loss of $1.5 million on sales of $50.7 million during the third quarter. In addition to conditions in many of the markets to which it sells, the Group's financial performance in the quarter was impacted by the additional expense related to the Sarbanes-Oxley implementation. For the same period in 2003, the Group had an operating loss of $0.6 million on sales of $36.2 million. Commenting on the quarter, Timothy G. Rupert, President and CEO, said, "While RTI's third quarter results reflect the production of low-priced orders taken at the bottom of the commercial aerospace downturn, market conditions are improving. Demand for titanium is improving, as is our order backlog. The initial cost of implementing Sarbanes-Oxley should be substantially reduced in the fourth quarter. As we go through 2005, we expect that increased capacity utilization and further cost reduction will result in a return to profitability in the Titanium Group. Activity should increase in the Fabrication & Distribution Group as well. We are excited about the acquisition of Claro Precision, Inc., which was completed earlier this month. Claro's ability to perform precision machining and produce subassemblies will enhance our fabricating capability, open new markets and improve profitability." The statements in this release relating to matters that are not historical facts are forward-looking statements that may involve risks and uncertainties including, but not limited to, the outcome of labor negotiations, the current impact of global events on the commercial aerospace industry, military spending, global economic conditions, the competitive nature of the markets for specialty metals, the assimilation of Claro Precision, Inc. into RTI, 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. RTI International Metals(R), headquartered in Niles, Ohio, is one of the world's largest producers of titanium. Through its various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world. To learn more about RTI International Metals, Inc., visit our website at www.rtiintl.com. NOTE: RTI International Metals, Inc. has scheduled a conference call for Tuesday, October 26, 2004, at 3:30 p.m., Eastern Time, to discuss this press release. Timothy G. Rupert, President and CEO, John H. Odle, Executive Vice President, and Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate in the call, please dial toll free (USA/Canada) 800-230-1093 or (International) 612-332-0226 a few minutes prior to the start time and specify the RTI International Metals Conference Call. Replay of the call will be available until 11:59 p.m., Eastern Time, on Friday, October 29, 2004, by dialing (USA/Canada) 800-475-6701 or (International) 320-365-3844 and Access Code 749199. RTI INTERNATIONAL METALS, INC. CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) (Dollars in thousands) QUARTER ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------- ------------------ 2004 2003 2004 2003 Sales $ 53,916 $ 50,173 $163,602 $157,788 Cost of sales 46,232 45,947 144,083 138,633 -------- -------- -------- -------- Gross profit 7,684 4,226 19,519 19,155 Selling, general and administrative expenses 10,242 8,107 27,057 23,362 Research, technical and product development expenses 281 336 865 1,030 Other operating income - net 420 - 517 967 -------- -------- -------- -------- Operating income (2,419) (4,217) (7,886) (4,270) Other income - net 149 243 9,521 9,286 Interest income (expense) 68 (99) 89 (469) -------- -------- -------- -------- Income before income taxes (2,202) (4,073) 1,724 4,547 Provision for income taxes (35) (1,548) 683 1,728 -------- -------- -------- -------- Net income $ (2,167) $ (2,525) $ 1,041 $ 2,819 ======== ======== ======== ======== Net income per common share: Basic $ (0.10) $ (0.12) $ 0.05 $ 0.14 ======== ======== ======== ======== Diluted $ (0.10) $ (0.12) $ 0.05 $ 0.13 ======== ======== ======== ======== Weighted average shares outstanding (in thousands): Basic 21,221 20,819 21,177 20,822 Diluted 21,351 20,951 21,476 20,935 RTI INTERNATIONAL METALS, INC. CONSOLIDATED BALANCE SHEET (Dollars in thousands) SEPTEMBER 30, DECEMBER 31, 2004 2003 (Unaudited) (Audited) ------------- ------------ ASSETS: Current assets Cash and cash equivalents $ 78,369 $ 67,970 Accounts receivable 38,639 30,855 Inventories 137,057 153,497 Current deferred income tax assets 5,251 5,251 Other current assets 3,804 3,284 ----------- ----------- Total current assets 263,120 260,857 Property, plant and equipment net 80,636 85,505 Goodwill 34,133 34,133 Noncurrent deferred income tax assets 5,602 5,616 Other noncurrent assets 3,634 3,823 ----------- ----------- Total assets $ 387,125 $ 389,934 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities Accounts payable $ 11,768 $ 14,008 Accrued liabilities 15,443 19,321 ----------- ----------- Total current liabilities 27,211 33,329 Long-term debt - - Accrued pension cost 14,182 12,445 Accrued postretirement benefit cost 20,996 20,428 Other noncurrent liabilities 4,565 6,072 ----------- ----------- Total liabilities 66,954 72,274 Total shareholders' equity 320,171 317,660 ----------- ----------- Total liabilities and shareholders' equity $ 387,125 $ 389,934 =========== =========== CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands) NINE MONTHS ENDED SEPTEMBER 30, ------------------------- 2004 2003 Cash provided by operating activities (adjustment for items not affecting funds from operations of $9,775 and $9,220 respectively) $ 13,686 $ 19,677 Cash used in investing activities (net of asset disposals of $550 and $1,437 respectively) (5,852) (2,697) Cash used in financing activities 2,565 (469) ----------- ----------- Increase in cash and cash equivalents 10,399 16,511 Cash and cash equivalents at beginning of period 67,970 40,666 ----------- ----------- Cash and cash equivalents at end of period $ 78,369 $ 57,177 =========== =========== CONTACT: RTI International Metals, Inc. Richard E. Leone, 330-544-7622 rleone@rtiintl.com To unsubscribe from this list, send a message to request@rtiintl.com and add the word Remove in the SUBJECT LINE.