RTI Claro, the wholly-owned subsidiary of the titanium mill products maker RTI International Metals, Inc. (RTI), has signed a long-term contract with Bombardier Aerospace (Bombardier) to supply precision machined components and assemblies for different Bombardier aircraft models.
The agreement replaces the recently-expired supply contract. The latest agreement is for 7 years and will run till 2019. Under the new contract, RTI Claro will be producing components and assemblies for Bombardier aircraft models, which were not supplied in the previous agreement.
With the new deal, RTI Claro strengthens its offerings across Bombardier’s product line by making entry with new platforms such as the CSeries family of commercial airliners, the Learjet 85 and Global 7000 and Global 8000 business aircraft. However, RTI Claro will keep contributing to the CRJ Series regional jets, the Challenger and the Global business jets. In addition, RTI Claro will be enriching its offerings to Bombardier in order to offer the provision of including larger aluminum components.
RTI Claro plans to begin delivering these solutions as its new manufacturing equipment investments starts in 2013.
With this new agreement and the investments in additional machining capabilities, RTI Claro establishes itself as a high-performing and trusted supplier to Bombardier. RTI Claro has been a strategic supplier to Bombardier for over 25 years.
RTI Claro’s work performance is depicted through its achievements of a 4-STAR supplier rating and is the first supplier to reach the MACH 4 level under Bombardier’s sponsorship of the Aero Montréal MACH supplier recognition initiative.
RTI International, which is among the prominent specialty steel companies along with Allegheny Technologies Inc. (ATI), Sutor Technology Group Limited (SUTR) and Material Sciences Corporation (MASC), posted its first-quarter 2013 results on Apr 30. The company’s reported earnings from continuing operations of 18 cents per share exceeded the Zacks Consensus Estimate of 15 cents and year-ago earnings of 17 cents. Profit from continuing operations increased to $5.5 million from $5.1 million in the prior-year quarter.
Revenues surged 21% to $187.5 million in the quarter from $154.6 million in the year-ago quarter. It was also ahead of the Zacks Consensus Estimate of $183 million.
RTI International expects its Boeing 787 pi-box seat track program to ramp up to a ten ship sets per month run rate by the end of 2013. It also anticipates its mill product shipments to Airbus and the Joint Strike Fighter to remain as previously projected. The company reaffirmed its operating income expectations for 2013, which is forecast in a range of $65 million to $75 million.
RTI International currently carries a Zacks Rank #3 (Hold).