Titanium Metals Corp. said Monday its second-quarter operating income came in at $93.6 million, compared with $36.9 million a year earlier, as the company saw increases in average selling prices and sales volume, partially offset by increases in raw material and energy costs.
The company said net sales increased 64 percent to $300.9 million during the second quarter of 2006 compared to net sales of $183.7 million during the year-ago period. Mill product average selling prices increased 40 percent and melted product average selling prices increased 118 percent during the second quarter of 2006 compared to the year-ago period. Mill product sales volume increased 12 percent while melted product sales volume increased 14 percent versus a year ago.
"TIMET achieved record sales levels during the second quarter of 2006, as we continue to experience increasing product demand and rising sales prices in all key market sectors," said Steven L. Watson, Vice Chairman and CEO. "As a result, we anticipate our full year 2006 sales revenue to range between $1.1 billion and $1.2 billion and we expect full-year operating income to be between $325 million and $350 million. We currently anticipate completion of our Henderson, Nevada, VDP sponge capacity expansion project in the next six months and the expansion of our Morgantown, Pennsylvania, electron beam cold hearth melt capacity in early 2008."
Watson said the company is also evaluating additional capacity expansion alternatives, which could provide a significant increase in existing production capabilities.