RTI Announces First Quarter Results

Business Wire, April 29, 2008

PITTSBURGH -- RTI International Metals, Inc. (NYSE: RTI) released results today for the first quarter of 2008.

* Net sales for the first quarter were $150.6 million, an increase of $5.0 million over the same period in 2007

* Operating income for the first quarter was $33.2 million

* Operating margin was 22%

* Net income was $22.2 million for the first quarter or $0.96 per diluted share

* Cash on hand was $92.4 million with total debt of $16.6 million

For the quarter ended March 31, 2008, the Company reported net sales of $150.6 million compared to $145.6 million in the first quarter of 2007. This increase from the same quarter in the prior year was primarily the result of continued strong demand from the aerospace market for our titanium mill products. First quarter net income was $22.2 million or $0.96 per diluted share in comparison to $22.1 million or $0.95 per diluted share for the same period in the prior year.

Titanium Group

RTI's Titanium Group reported operating income of $28.4 million on sales of $102.2 million, including intersegment sales of $47.1 million. This operating performance surpasses the first quarter of 2007 which had operating income of $21.3 million on sales of $103.2 million, including intersegment sales of $50.0 million. Mill product shipments for the first quarter were 3.9 million pounds at an average realized price of $24.94 per pound. RTI's average realized price was down 2.7% versus the same quarter in the prior year due to the impact of a larger percentage of volumes subject to pricing under long-term contracts.

Fabrication & Distribution Group

Net sales for the Fabrication & Distribution Group ("F&D") increased for the first quarter to $95.5 million versus $92.4 million in the same period a year ago. The F&D Group had operating income of $4.9 million, compared to $11.6 million in the first quarter of 2007. Ongoing startup costs, low utilization and softening in prices of certain specialty metals products through our distribution channel adversely impacted this Group's margins.

CEO Comment

Dawne S. Hickton, Vice Chairman & CEO commented, "The Titanium Group posted strong operating results, with the highest first quarter operating income in its history, aided primarily by the ramp up of our 2006 Airbus long-term agreement and continued strong demand from the aerospace market. However, we anticipate that near term challenges associated with the Boeing 787 delay will begin to impact this Group as we now expect total 2008 mill product shipments to range between 15.5 million and 16.5 million pounds.

"The F&D Group's performance continues to be driven by the 787 production delays which are now having a direct impact on the demand for our finished parts, especially seat tracks fabricated at our Houston and Montreal facilities. The most recent announced delay is causing us to reevaluate our current production plans and managed expenses throughout the entire F&D system. Based on conversations with our customers on the 787 program, we are planning that the impact for the balance of 2008 will be significant, particularly in the second half of 2008 and throughout all of 2009. Even though our fabrication work with Boeing and its supply chain will be pushed out beyond one year, we expect that the anticipated revenue will ultimately be realized.

"The long-term outlook for our business continues to be very strong," added Dawne Hickton. "Airbus and Boeing reported orders in the first quarter that once again exceeded deliveries, expanding their huge backlogs. In support of our almost $4.0 billion of long-term mill product contracts with Airbus and Lockheed Martin, our capital expansion projects are on schedule. With cash of $92.4 million, debt of $16.6 million and an undrawn credit facility of $240 million, we are prepared to manage through these near term challenges profitably and opportunistically."

Outlook

As a result of current market conditions associated with the revised 787 production schedule, the Company expects sales for this year to approximate sales for 2007 and operating income, compared to 2007, to decline within a range of five to ten percent.

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 program build-rates, military spending and continued support for the Joint Strike Fighter program, 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, the expansion of the scope of U.S. Custom's current investigation of the Company's duty drawback claims beyond those claims currently identified as being under investigation, the potential imposition of fines and penalties by U.S. Customs, the successful completion of our capital expansion projects, 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.