Titanium Metals Corp., the largest U.S. titanium producer, said Thursday its third-quarter profit plunged on lower shipments to commercial aircraft builders and weaker selling prices amid competitive pressures.
For the three months ended in October, profit dropped to $1.1 million, or 1 cent per share, from $40.2 million, or 22 cents per share, in the year-earlier period
Analysts polled by Thomson Reuters expected earnings per share of 3 cents.
Sales fell to $181.4 million from $295.4 million. Analysts expected revenue of $173.3 million.
A decline in raw material costs plus competitive pricing pressure contributed to lower selling prices, the company said. Titanium Metals also cited the weak global economy and production delays by commercial aircraft makers that cut shipping volumes.
Although results missed Wall Street expectations, D.A. Davidson analyst Avinash Kant upgraded the stock to “Buy” from “Hold” on expectations of a recovery.