The 10% increase in net sales was principally the result of increased average selling prices and product shipment volume for mill products, reflecting a continuation of strong demand for titanium products within the commercial aerospace sector. The increase in the average selling price for mill products was principally driven by annual adjustments under certain long-term agreements.
"The continued development and production of next generation aircraft, combined with the resurgence in orders for recently reintroduced legacy models with new engines engineered for improved fuel efficiency and a strong OEM order backlog, are indicators that our industry has entered the sustained growth period forecasted by industry experts,” said Bob O'Brien, TIMET president and CEO.
Net income attributable to TIMET stockholders was US$25.6 million, or US$0.15 per diluted share, for the quarter ended March 31, 2012, compared to US$28.9 million, or US$0.16 per diluted share, for the same period in 2011. The company's results in the first quarter of 2011 include a US$10.6 million pre-tax gain ($0.04 per diluted share, net of income taxes) on settlement of a claim to recover certain groundwater remediation costs attributable to a third-party facility adjoining one of its plant sites.
Operating income for the first quarter of 2012 was US$42.1 million compared to US$45.0 million during the same period in 2011, which included the US$10.6 million settlement gain discussed above.
Aircraft deliveries over a longer time horizon are also expected to remain strong as fuel efficiency and expansion of the global fleet in developing areas, such as Asia, the Middle East and South America, support future demand, the report says, adding: “based on current industry dynamics, we expect continued strong commercial aerospace mill product deliveries for the remainder of the year and foreseeable future."