RTI International Metals has titanium on the
cranium. Through its Titanium Group the company produces
ingots, bars, plates, sheets, strips, pipes, wire, and welded
tubing, used primarily by the aerospace industry to make
bulkheads, tail sections, engine components, and wing
supports. Fabrication and Distribution groups operate through
subsidiary RTI Energy Systems, making pipe and tubing for
offshore oil and gas exploration and production, as well as
geothermal energy production. RTI caters to commercial
aerospace and defense industries, which represent almost 80%
of sales, and a growing number of industrial
and consumer customers.
The company operates through two segments: Titanium (45% of
total revenue) and EP&S (55%). The Titanium segment melts,
forges, processes, and produces a complete range of titanium mill
products which are further processed by its customers for use in a
variety of commercial aerospace, defense, and industrial, and
The EP&S segment offers hard and soft-metal services that form,
extrude, fabricate, machine, additively manufacture, micro-machine,
and assemble titanium, aluminum, and other specialty metal parts
Sales and Marketing
RTI markets its products to the international aerospace,
defense, energy, medical device, and other consumer and industrial
markets. Customers include prime aircraft manufacturers and their
family of subcontractors, including fabricators, forge shops,
extruders, castings producers, fastener manufacturers, machine
shops, and metal distribution companies.
RTI achieved record-setting growth in 2013, with revenues
peaking at $783 million. Profits, however, fell 40% from $24
million in 2012 to $14 million in 2013 due to increased expenses,
professional fees, and a loss from discontinued operations. (Note:
the company restated its annual financial report for 2012 due to
The historic revenue growth for 2013 was driven by a spike in
EP&S segment sales due to higher Boeing 787 volumes and higher
duty drawback recoveries. The company also earned additional
revenues from previous acquisitions it made.
RTI's operating cash flow dropped significantly from $75 million
in 2010 to $15 million in 2011. Its cash flow remained at $8
million in 2012 and $12 million in 2013.
Mergers and Acquisitions
RTI has been making acquisitions to add to its revenue stream.
In 2014 the company acquired Directed Manufacturing for $23 million
in cash. Directed Manufacturing provides additive manufacturing of
titanium, specialty metal, and plastic components for both
commercial production and engineering development applications in
the commercial aerospace, medical, and oil and gas markets.
RTI also in 2014 picked up Advanced Powder Materials for $19
million. Advanced Powder Materials has expertise in titanium powder
metallurgy and is a supplier of near-net shape titanium and
titanium alloy preforms and components to commercial aerospace,
defense, biomedical, and industrial customers.
To extend its international reach, in 2013 the company paid $16
million to acquire Extrusions Europe, Limited (formerly the
extrusions business of Osborn Metals Limited). Extrusions Europe
manufactures extruded, hot-or-cold stretched steel and titanium
parts for a number of markets including the aerospace and oil and
gas markets, and its business complements RTI's existing titanium
extrusion operations in Houston.