NEW YORK (AP) - Shares of titanium manufacturers fell sharply on Friday after an analyst downgraded two of the sector's leaders and the broader markets struggled under record oil prices.
Shares of RTI International Metals Inc. fell $4.17, or 8.6 percent, to $44.46 in afternoon trading on the New York Stock Exchange. The stock has traded in a 52-week range of $30.76 to $47.16.
Shares of Allegheny Technologies Inc. were off $2.72, or 4.4 percent, to $58.55, on the NYSE. The stock has traded in a 52-week range of $24.68 to $87.50. David MacGregor, an analyst at Longbow Research, downgraded RTI International and Allegheny Technologies on Friday from ''Buy'' to ''Neutral.'' He cited supply chain issues like inventory buildup and declining lead times.
For RTI International, MacGregor pointed to the recent announcement from aircraft manufacturer Airbus SAS that production of its A380 jumbo jet would be delayed. RTI International has a 10-year, $800 million contract to supply titanium products to the A380.
Airbus executives on Wednesday sought to downplay the delay, saying that production of 550-seat airplane would be ''brought back on course.''
MacGregor said he's still bullish on titanium in the commercial air space over the longer term, but said Airbus' delay could translate into a slowdown in metals demand for one or two quarters.
Mark Parr, an analyst with KeyBanc Capital Markets, said in an interview there is a perception among investors that U.S. economic growth might be slowing. Such a slowdown, he said, could negatively impact Allegheny because of its reliance on the aerospace industry.
But that just isn't the case, Parr said. ''Things look very robust from where we're standing.''
The broader market also struggled Friday as violence in the Middle East sent oil prices over $78 a barrel. In afternoon trading, the Dow Jones Industrial Average tumbled 124.63, or 1.2 percent, to 10,721.66. The Nasdaq composite index declined 17.16, or 0.84 percent, to 2,036.95.
Elsewhere in the sector, Titanium Metals Corp. was up 5 cents, at $26.45 on the NYSE after earlier trading as low as $23.38. The stock has traded in a 52-week range of $6.16 to $47.63.Shares of Carpenter Technology Corp. fell $1.88, or about 2 percent, to $107.68 on the Big Board, after earlier changing hands as low as $104.30. The stock has traded in a 52-week range of $51.18 to $142.11.