* Q1 EPS $0.38 vs of loss of $0.06 yr ago
* Q1 revenue rises 2 pct
* Receives $15.4 mln in contract settlement with Airbus
* Says 2010 to remain challenged
May 4 (Reuters) - Titanium products maker RTI International Metals Inc RTI.N swung to a first-quarter profit, helped by a contract settlement with Airbus, but warned 2010 earnings will remain challenged.
In the latest quarter, the company posted a net income of $11.4 million, or 38 cents a share, compared with a loss of $1.5 million, or 6 cents a share, a year ago.
However, the company which supplies its products to aerospace majors Airbus EAD.PA, Boeing Co (BA.N), Bombardier (BBDb.TO) and Lockheed Martin Corp (LMT.N), said the first quarter saw lower pricing in its long-term sales contracts.
Revenue for the quarter marginally rose to $107.9 million.
Analysts on average were looking for a loss of 11 cents a share, before items, on revenue of $94.5 million, according to Thomson Reuters I/B/E/S.
The company said its revenue gained $15.4 million from the supply contract settlement with Airbus, which had earlier said it will require less than half of the minimum volumes stipulated in the agreement with RTI during 2010.
“Until we see a sustainable increase in production for commercial aircraft and the (Lockheed‘s) Joint Strike Fighter, our overall operating environment will be difficult and challenge RTI’s ability to be meaningfully profitable,” Chief Executive Dawne Hickton said.
Shares of the Pittsburgh, Pennsylvania-based company closed at $26.09 Monday on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Maju Samuel)