Thu, Jul. 23, 3:39 PM
- Alcoa (NYSE:AA) closes on its $1.5B acquisition of RTI International Metals (NYSE:RTI), integrating the company as a standalone business unit unto its downstream engineered products and solutions segment, and announces a realignment of its downstream segment into two separate units.
- The RTI acquisition expands AA's reach into the titanium market as well as its advanced technologies and materials capabilities, most notably in the aerospace market.
- Sterne Agee CRT says the realignment will allow the high value aerospace assets to be more independent; while Alcoa has stated in the past that a break-up is prevented by technical support overlap, the realignment further silos the aerospace focused operations.
Tue, Apr. 28, 7:34 AM
Thu, Apr. 9, 2:27 PM
- Alcoa (AA -4%) remains sharply lower following mixed Q1 results and its expectations for global aluminum production to exceed demand by 326K metric tons in 2015, compared with its earlier forecast of a 38K ton deficit.
- Most analysts continue to keep the faith, defending their bullish stances even as they curb estimates: Citigroup reiterates its Buy rating, saying Q2 could be a tough quarter as the rolled-products businesses face headwinds but noting that Alcoa still expects to generate positive free cash flow of at least $500M in 2015 while growing its asset portfolio, and Sterne Agee is one of several firms to reaffirm a Buy rating as AA alters its cost structure and increases value-added products.
- BMO Capital is a voice of dissent, calling Q1 a good start for the company but seeing a challenging outlook ahead; it rates the stock Market Perform with a $14 target.
- Metal fabricator RTI International Metals (RTI -3.9%), which AA recently agreed to acquire, and aluminum producing peer Century Aluminum (CENX -5.4%) are both lower; also, KALU -1.5%, NOR -1.8%, ATI +0.3%.
- Earlier: Alcoa points to lower open after mixed Q1, but analysts still say Buy
Mon, Mar. 9, 12:45 PM
Mon, Mar. 9, 9:12 AM
Mon, Mar. 9, 7:19 AM
- Alcoa (NYSE:AA) has agreed to acquire RTI International (NYSE:RTI) in a stock-for-stock transaction with an enterprise value of $1.5B.
- RTI shareholders will receive 2.8315 Alcoa shares for each RTI share, representing a value of $41 per RTI share based on Alcoa’s closing price on March 6.
- The acquisition is expected to contribute $1.2B in revenues in 2019, up from $794M generated in 2014; RTI’s profitability is expected to reach 25% EBITDA margin in 2019, up from 14.5% in 2014.
- RTI will also grow Alcoa's pro forma 2014 annual aerospace revenues by 13%, up from $5B to $5.6B.
- AA +1.4%; RTI +28.3% premarket
Wed, Feb. 11, 7:34 AM
Tue, Feb. 10, 5:30 PM
Nov. 5, 2014, 7:35 AM
Nov. 4, 2014, 5:30 PM
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Sep. 25, 2014, 6:56 PM
- Titanium suppliers Allegheny Technologies (NYSE:ATI), Precision Castparts (NYSE:PCP) and RTI International Metals (NYSE:RTI) should benefit near and long term from supply chain de-risking in response to geopolitical instability in Russia, Credit Suisse says, seeing a secular positive through the cycle for titanium producers.
- New platforms from Boeing and Airbus are expected to be 12%-16% titanium by purchase weight compared to high single-digits in current gen platforms, which the firm says could result in as much as 50% growth in titanium consumption in aerospace over the next five years.
- The report didn't help shares today: ATI -4.8%, PCP -1.2%, RTI -2.6%.
Aug. 7, 2014, 5:49 PM
- Boeing (NYSE:BA) and United Technologies (NYSE:UTX) have been stockpiling titanium parts in case rising economic tensions disrupt supplies from the Russian producer the two U.S. companies rely on for the metal that is critical to building jetliners, WSJ reports.
- The aerospace giants, as well as Europe's Airbus (OTCPK:EADSF, OTCPK:EADSY), buy a substantial share of their titanium from VSMPO, the world's largest titanium producer; VSMPO also supplies ~35% of the titanium Boeing uses for commercial jetliners, with U.S. companies Allegheny Technologies (NYSE:ATI), RTI International Metals (NYSE:RTI) and Precision Castparts (NYSE:PCP) unit Titanium Metals supplying the rest.
- BA and UTX are said to have been stockpiling as much as six extra months' supply of highly customized titanium forgings.
Aug. 5, 2014, 12:47 PM
Aug. 5, 2014, 7:33 AM
Jun. 25, 2014, 1:33 PM
- The company creates the position of Chief Risk Officer and current CFO Bill Hull moves over to take that position. Taking Hull's spot as CFO is Michael McAuley who was most recently with Goodrich prior to its takeover by UTX.
- "RTI is a vastly different company today from seven years ago when I began as CEO," says Dawne Hickton.
- Source: Press Release
May 6, 2014, 7:46 AM
RTI vs. ETF Alternatives
RTI International Metals Inc is engaged in producing and supplying titanium mill products. It also manufactures titanium & specialty metal components for international aerospace, defense, energy, medical device, & other consumer and industrial markets.
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