Titanium Metals Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Titanium Metals Corporation (NYSE:TIE) reported net income above Wall Street’s expectations for the second quarter. Titanium Metals Corporation is a producer of titanium melted and mill products, titanium sponge, and industrial fabrications. Is This the World’s First Silver Bond?>>

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Titanium Metals Earnings Cheat Sheet for the Second Quarter

Results: Net income for Titanium Metals Corporation rose to $32.1 million (18 cents per share) vs. $19.1 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 68.1% from the year earlier quarter.

Revenue: Rose 28.3% to $272 million from the year earlier quarter.

Actual vs. Wall St. Expectations: TIE beat the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $266.5 million.

Quoting Management: Bob O’Brien, President and CEO, said, “During the second quarter, demand from the commercial aerospace sector continued to show improvement as manufacturing activity and inventory levels throughout the supply chain continued to build to support current production and the anticipated increased output levels for the rest of 2011 and beyond. The most recent build rate forecast from The Airline Monitor continues to support our positive outlook for long-term demand growth in the industry. Through strategic relationships and long-term arrangements with key customers, we are well positioned to capitalize on expected demand growth for aircraft engines and structures. Additionally, infrastructure and chemical projects continue to drive improving demand for our products in the industrial sector.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 3.9 percentage points to 23.1% from the year earlier quarter. Over that span, margins have grown on average 6.6 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 72% and in the fourth quarter of the last fiscal year, the figure rose more than fourfold.

Revenue has risen the past four quarters. Revenue increased 15.9% to $252 million in the first quarter. The figure rose 18.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 15.9% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 12 cents versus a mean estimate of net income of 14 cents per share.

Competitors to Watch: RTI Intl. Metals, Inc. (NYSE:RTI), Allegheny Tech. Inc. (NYSE:ATI), HORSEHEAD HOLDING CORP. (NASDAQ:ZINC).

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(Source: Xignite Financials)