TIE - Titanium Metals Corp - operating income increased 74%

Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected growth rate of 25%. Full Analysis Titanium Metals Corporation (TIE), together with its subsidiaries, produces titanium melted and mill products for commercial aerospace, military, industrial, and other applications worldwide. It offers titanium sponge, which is the basic form of titanium metal used in titanium products; and melted products, such as ingot, electrodes, and slab that are the result of melting sponge and titanium scrap either alone or with various alloys. The company also provides mill products that are forged and rolled from ingot or slab products, including billets, bars, plates, sheets and strips, and pipes; and fabrications, which comprise spools, pipe fittings, manifolds, and vessels that are cut, formed, welded, and assembled from titanium mill products. Titanium Metals Corporation sells its products directly in the United States and Europe, as well as through independent agents and distributors worldwide. Demand for the company's products are strong as evidenced by the decision to expand production. TIE said it plans to expand production of titanium sponge, the porous metal used in manufacturing titanium alloys, to meet strong demand for its metals products. The company plans to build a new factory with capacity for 10,000 to 20,000 metric tons of titanium sponge, with room for future expansion. Titanium Metals reported operating income of $109.5 million for the quarter ended December 31, 2006 compared to $63.0 million for the quarter ended December 31, 2005, an increase of 74%. The increase in operating income results primarily from increases in average selling prices and sales volume, partially offset by increases in raw material costs. Steven L. Watson, Vice Chairman and Chief Executive Officer, said, "TIMET maintained strong sales volumes and operating margins during the fourth quarter of 2006. We achieved operating income margins of approximately 34% for the fourth quarter and 32% for the full year 2006, despite continued volatility in certain raw material and energy costs. We remain focused on investment in expansion of our productive capacity across all areas of our manufacturing operations to position ourselves to capitalize on the positive outlook for growth in key market segments." Titanium Metals is enjoying strong demand for its products and is focused on investment in expansion of its productive capacity. The stock is only covered by one analyst, but earnings estimates have jumped. Over the past 60 days, this year's estimates have risen 13 cents to $1.65 per share. The stock is attractive at 17.9x next year's estimates, below its projected growth rate of 25%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home