Titanium Metals Corp. (TIE:US) fell for the third straight session on the New York Stock Exchange as the maker of specialty metals for jet planes said higher material costs may trim profit.
Titanium Metals fell $1.32, or 4.1 percent, to $30.57 at 4 p.m. in composite trading (TIE:US). The stock has dropped 13 percent in the past three days and the decline has shaved about $750.9 million from the Dallas-based company's market value.
Changes in customer inventories and delays in building some commercial aircraft may lead to ``fluctuating'' sales and prices for some titanium products, Titanium Metals said last week. Boeing Co.'s 787, known as the Dreamliner, is six months behind schedule, with the initial test flight planned for the first quarter and deliveries set to begin around December 2008.
``A lot of hot money has been exiting the sector,'' said David MacGregor, an analyst at Longbow Research in Independence, Ohio. ``Everyone has been relying heavily on commercial aerospace as a driver, and when that's on hold, it's felt in terms of prices and volumes.''
Titanium Metals reported on Nov. 1 third-quarter profit that was less than analysts expected and said results in the next several quarters will ``reflect higher-cost raw materials the company has already purchased.''
Titanium Metals' costs rose 15 percent in the third quarter, erasing the benefit of a 9.4 gain in sales to $297.3 million. Titanium is used in fan and compressor components, cases, discs and blades in jet engines.
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