The increase in net sales was mainly due to increased average selling prices, partially offset by reduced volumes for industrial-grade melted and mill products, and driven by strong demand within the commercial aerospace sector. 
 
However, operating income for the second quarter of 2012 was US$43.7 million compared to US$46.5 million during the same period in 2011, including a US$2.1 million curtailment gain recorded in the second quarter of 2011 as a result of an amendment to a retiree medical benefit plan. 
 
"We remain confident in a sustained growth pattern over the next several years in the commercial aerospace sector as the projected timelines for global fleet replacement and expansion are expected to generate significant titanium demand for our business in the years to come," said Bob O'Brien, TIMET president and CEO. "We believe our customer supply agreements, which secure major positions on the engines and structures for key growth platforms, will bolster our core aerospace business for the foreseeable future." 
 
To position TIMET for the expected demand growth under these platforms as the global fleet expands in developing areas, such as Asia, the Middle East and South America, O'Brien said the company has initiated several capital projects to increase melt capacity and improve efficiency at certain facilities in the US and abroad with completion expected within the next two years.