<PAGE>

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                             ---------------------


                                  FORM 10-Q/A


                               (AMENDMENT NO. 1)


(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005.

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from ____________ to____________

Commission file number 001-14437
                         RTI INTERNATIONAL METALS, INC.
             (Exact name of registrant as specified in its charter)

<Table>
  <S>                                    <C>
                  OHIO                             52-2115953
     (State or other jurisdiction of            (I.R.S. Employer
     incorporation or organization)            Identification No.)
</Table>

                     1000 WARREN AVENUE, NILES, OHIO 44446
                    (Address of principal executive offices)

                                 (330) 544-7700
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
                                 YES X   NO ___

     Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
                                 YES X   NO ___


     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).


                                  YES ___NO X


At May 1, 2005, 22,166,934 shares of common stock of the registrant were
outstanding.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>

                         RTI INTERNATIONAL METALS, INC.


                                  FORM 10-Q/A

                          QUARTER ENDED MARCH 31, 2005

                                     INDEX


EXPLANATORY NOTE



     RTI International Metals, Inc. is filing this Form 10-Q/A for the three
months ended March 31, 2005 to reflect the restatement of its consolidated
statements of cash flows for the three months ended March 31, 2005 and 2004. The
restatement arose as a result of management's determination that the tax effect
of employee stock options exercised were incorrectly reported as "cash flows
from financing activities." The tax effect should have been reported as "cash
flows from operating activities" as prescribed by Emerging Issues Task Force
("EITF") 00-15, "Classification in the Statement of Cash Flows of the Income Tax
Benefit Received by a Company upon Exercise of Nonqualified Employee Stock
Options." The Consolidated Statements of Cash Flows for 2005 and 2004 have been
restated. See note 17 in the notes to the consolidated financial statements
contained in this amendment for further information relating to the restatement.



     No attempt has been made in this Form 10-Q/A to modify or update other
disclosures presented in the original report on Form 10-Q except as required to
reflect the effects of the restatement. This Form 10-Q/A does not reflect events
occurring after the filing of the original Form 10-Q or modify or update those
disclosures. Information not affected by the restatement is unchanged and
reflects the disclosure made at the time of the original filing of Form 10-Q
with the Securities and Exchange Commission on May 10, 2005.



     The following Items are hereby amended and restated in their entirety.



<Table>
<Caption>
                                                                               PAGE
                                                                               ----
<S>              <C>                                                           <C>
PART I--CONDENSED FINANCIAL INFORMATION

Item 1.          Financial Statements........................................    2
     Consolidated Statement of Operations (Unaudited)........................    2
     Consolidated Balance Sheet (Unaudited)..................................    3
     Consolidated Statement of Cash Flows (Unaudited)........................    4
     Consolidated Statement of Changes in Shareholders' Equity (Unaudited)...    5
     Selected Notes to Consolidated Financial Statements (Unaudited).........    6

Item 2.          Management's Discussion and Analysis of Financial Condition    17
                 and Results of Operations...................................

Item 4.          Controls and Procedures.....................................   28

PART II--OTHER INFORMATION

Item 6.          Exhibits....................................................   30

Signatures...................................................................   31
</Table>

<PAGE>

                         PART I--FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                         RTI INTERNATIONAL METALS, INC.

                      CONSOLIDATED STATEMENT OF OPERATIONS
                                  (UNAUDITED)

                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                                     QUARTER ENDED
                                                                       MARCH 31,
                                                               --------------------------
                                                                  2005           2004
                                                               -----------    -----------
<S>                                                            <C>            <C>
Sales.......................................................   $    73,487    $    50,530
Operating costs:
Cost of sales...............................................        48,951         47,186
Selling, general and administrative expenses................        11,162          8,338
Research, technical and product development expenses........           366            287
                                                               -----------    -----------
     Total operating costs..................................        60,479         55,811
                                                               -----------    -----------
Operating income (loss).....................................        13,008         (5,281)
Other income (Note 10)......................................           138          9,318
Interest income (expense)...................................           158             (1)
                                                               -----------    -----------
Income from continuing operations before income taxes.......        13,304          4,036
Provision for income taxes (Note 5).........................         4,905          1,392
                                                               -----------    -----------
Net income from continuing operations.......................         8,399          2,644
Net income from discontinued operations (Note 15)...........            --            131
                                                               -----------    -----------
Net income..................................................   $     8,399    $     2,775
                                                               ===========    ===========
Basic earnings per common share (Note 6):
  Continuing operations.....................................   $      0.38    $      0.12
  Discontinued operations...................................   $        --    $      0.01
                                                               -----------    -----------
  Net income................................................   $      0.38    $      0.13
                                                               ===========    ===========
Diluted earnings per common share (Note 6):
     Continuing operations..................................   $      0.37    $      0.12
     Discontinued operations................................   $        --    $      0.01
                                                               -----------    -----------
  Net income................................................   $      0.37    $      0.13
                                                               ===========    ===========
Weighted average shares used to compute earnings per share:
  Basic.....................................................    21,989,659     21,106,372
                                                               ===========    ===========
  Diluted...................................................    22,455,617     21,452,858
                                                               ===========    ===========
</Table>

  The accompanying notes are an integral part of these Consolidated Financial
                                  Statements.

                                        2
<PAGE>

                         RTI INTERNATIONAL METALS, INC.

                           CONSOLIDATED BALANCE SHEET
                                  (UNAUDITED)

                             (DOLLARS IN THOUSANDS)

<Table>
<Caption>
                                                              MARCH 31,   DECEMBER 31,
                                                                2005          2004
                                                              ---------   ------------
<S>                                                           <C>         <C>
                           ASSETS
ASSETS:
  Cash and cash equivalents.................................  $ 63,013      $ 62,701
  Receivables--less allowance for doubtful accounts of
     $1,952 and $1,704......................................    50,503        44,490
  Inventories, net (Note 7).................................   160,331       133,512
  Current deferred income tax asset.........................     1,145         1,145
  Income tax receivable.....................................        --         3,321
  Other current assets......................................     4,407         3,597
                                                              --------      --------
     Total current assets...................................   279,399       248,766
  Property, plant and equipment, net........................    81,467        82,593
  Goodwill (Note 8).........................................    47,373        46,618
  Other intangible assets, net (Note 8).....................    16,536        16,040
  Noncurrent deferred income tax asset......................     3,079         3,012
  Intangible pension asset..................................     3,365         3,365
  Other noncurrent assets...................................     2,943         3,099
                                                              --------      --------
     Total assets...........................................  $434,162      $403,493
                                                              ========      ========

            LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:
  Accounts payable..........................................  $ 26,642      $ 14,253
  Accrued wages and other employee costs....................     5,993         4,863
  Billings in excess of costs and estimated revenues (Note
     9).....................................................     4,916         4,708
  Income taxes payable......................................       671            --
  Other accrued liabilities.................................     6,242         6,498
                                                              --------      --------
     Total current liabilities..............................    44,464        30,322
  Accrued postretirement benefit cost.......................    20,971        20,811
  Accrued pension cost......................................    21,952        21,090
  Other noncurrent liabilities..............................     7,010         7,312
                                                              --------      --------
     Total liabilities......................................    94,397        79,535
                                                              --------      --------
  Commitments and contingencies (Note 12)
SHAREHOLDERS' EQUITY:
  Common stock, $0.01 par value, 50,000,000 shares
     authorized; 22,610,873 and 22,194,344 shares issued;
     22,166,801 and 21,772,730 shares outstanding...........       225           221
  Additional paid-in capital................................   266,428       258,526
  Deferred compensation.....................................    (3,594)       (2,499)
  Treasury stock, at cost; 444,072 and 421,614 shares.......    (4,389)       (3,906)
  Accumulated other comprehensive loss......................   (21,679)      (22,759)
  Retained earnings.........................................   102,774        94,375
                                                              --------      --------
     Total shareholders' equity.............................   339,765       323,958
                                                              --------      --------
       Total liabilities and shareholders' equity...........  $434,162      $403,493
                                                              ========      ========
</Table>

  The accompanying notes are an integral part of these Consolidated Financial
                                  Statements.
                                        3
<PAGE>

                         RTI INTERNATIONAL METALS, INC.

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (UNAUDITED)

                             (DOLLARS IN THOUSANDS)


<Table>
<Caption>
                                                                      QUARTER ENDED
                                                                        MARCH 31,
                                                              -----------------------------
                                                                  2005            2004
                                                              -------------   -------------
                                                               (RESTATED)      (RESTATED)
                                                              (SEE NOTE 17)   (SEE NOTE 17)
<S>                                                           <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income..................................................     $ 8,399         $ 2,775
Net income from discontinued operations.....................          --             131
                                                                 -------         -------
Net income from continuing operations.......................       8,399           2,644
Adjustment to reconcile net income to net cash provided by
  operating activities:
  Depreciation and amortization.............................       3,133           2,925
  Deferred income taxes.....................................        (315)          1,778
  Stock-based compensation and other........................         450             306
  Tax benefits from exercise of stock options...............       1,217             620
  Other.....................................................        (627)            (73)
CHANGES IN ASSETS AND LIABILITIES:
  Receivables...............................................      (6,454)         (2,437)
  Inventories...............................................     (26,864)          8,716
  Accounts payable..........................................      12,547          (4,324)
  Income taxes payable......................................       4,305          (1,707)
  Billings in excess of costs and estimated earnings........         225          (4,742)
  Other current liabilities.................................         988             (41)
  Other assets and liabilities..............................         528              74
                                                                 -------         -------
     Cash (used) provided by continuing operating
      activities............................................      (2,468)          3,739
     Cash (used) by discontinued operating activities.......          --            (212)
                                                                 -------         -------
     Cash (used) provided by operating activities...........      (2,468)          3,527
                                                                 -------         -------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Acquisitions, net of cash acquired, and other investing...        (290)             --
  Capital expenditures......................................      (1,784)         (1,852)
                                                                 -------         -------
     Cash used in investing activities......................      (2,074)         (1,852)
                                                                 -------         -------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of employee stock options..........       5,334           1,768
  Purchase of common stock held in treasury.................        (483)           (288)
                                                                 -------         -------
     Cash provided by financing activities..................       4,851           1,480
                                                                 -------         -------
EFFECT OF EXCHANGE RATE CHANGES ON CASH.....................           3             109
                                                                 -------         -------
INCREASE IN CASH AND CASH EQUIVALENTS.......................         312           3,264
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD............      62,701          67,970
                                                                 -------         -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD..................     $63,013         $71,234
                                                                 =======         =======
SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid for interest, net of amounts capitalized........     $    96         $    99
  Cash paid for income taxes................................     $    18         $ 4,027
NON-CASH FINANCING ACTIVITIES:
  Issuance of common stock for restricted stock awards......     $ 1,355         $ 1,036
  Capital lease obligations incurred........................     $    36         $    --
</Table>


  The accompanying notes are an integral part of these Consolidated Financial
                                  Statements.
                                        4
<PAGE>

                         RTI INTERNATIONAL METALS, INC.

           CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                                  (UNAUDITED)

                  (DOLLARS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<Table>
<Caption>
                                                                                                     ACCUMULATED
                                                     ADDT'L                   TREASURY                  OTHER
                               SHARES      COMMON   PAID-IN      DEFERRED      COMMON    RETAINED   COMPREHENSIVE
                             OUTSTANDING   STOCK    CAPITAL    COMPENSATION    STOCK     EARNINGS   INCOME/(LOSS)    TOTAL
                             -----------   ------   --------   ------------   --------   --------   -------------   --------
<S>                          <C>           <C>      <C>        <C>            <C>        <C>        <C>             <C>
Balance at December 31,
  2004.....................  21,772,730     $221    $258,526     $(2,499)     $(3,906)   $ 94,375     $(22,759)     $323,958
Shares issued for
  restricted stock award
  plans....................      63,000        1       1,354      (1,355)          --          --           --            --
Compensation expense
  recognized...............          --       --          --         260           --          --           --           260
Treasury common stock
  purchased at cost........     (22,458)      --          --          --         (483)         --           --          (483)
Exercise of employee stock
  options including tax
  benefit of stock plans...     353,529        3       6,548          --           --          --           --         6,551
Net income.................          --       --          --          --           --       8,399           --         8,399
Foreign currency
  translation..............          --       --          --          --           --          --        1,080         1,080
Comprehensive income.......
                             ----------     ----    --------     -------      -------    --------     --------      --------
Balance at March 31,
  2005.....................  22,166,801     $225    $266,428     $(3,594)     $(4,389)   $102,774     $(21,679)     $339,765
                             ==========     ====    ========     =======      =======    ========     ========      ========

<Caption>

                             COMPREHENSIVE
                                INCOME
                             -------------
<S>                          <C>
Balance at December 31,
  2004.....................
Shares issued for
  restricted stock award
  plans....................
Compensation expense
  recognized...............
Treasury common stock
  purchased at cost........
Exercise of employee stock
  options including tax
  benefit of stock plans...
Net income.................    $  8,399
Foreign currency
  translation..............       1,080
                               --------
Comprehensive income.......    $  9,479
                               ========
Balance at March 31,
  2005.....................
</Table>

  The accompanying notes are an integral part of these Consolidated Financial
                                  Statements.

                                        5
<PAGE>

                         RTI INTERNATIONAL METALS, INC.

              SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)

NOTE 1--BASIS OF PRESENTATION

     The consolidated financial statements included herein have been prepared by
RTI International Metals, Inc. (the "Company"), without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission. The
consolidated financial statements include the accounts of RTI International
Metals, Inc. and its majority owned subsidiaries. All significant intercompany
transactions have been eliminated. The financial information presented reflects
all adjustments, consisting only of normal recurring adjustments, which are, in
the opinion of management, necessary for a fair statement of the results for the
interim periods presented. The financial statements should be read in
conjunction with accounting policies and notes to consolidated financial
statements included in the Company's 2004 Annual Report on Form 10-K and 10-K/A.
Certain prior period amounts have been reclassified to conform to the current
period presentation. The results for the interim periods are not necessarily
indicative of the results to be expected for the year.

NOTE 2-- ORGANIZATION

     RTI International Metals, Inc. is a leading U.S. producer of titanium mill
products and fabricated metal parts for the global market. The Company conducts
business in two segments: the Titanium Group and the Fabrication and
Distribution Group. The Titanium Group melts and produces a complete range of
titanium mill products, which are further processed by its customers for use in
a variety of commercial, aerospace, defense, and industrial applications. The
Fabrication and Distribution Group is comprised of companies that process and
distribute titanium and other specialty metals. Its products, many of which are
engineered parts and assemblies, serve aerospace, oil and gas, power generation,
and chemical process industries, as well as a number of other industrial and
consumer markets.

     On September 30, 1998, the shareholders of the Company's now wholly-owned
subsidiary RMI Titanium Company ("RMI") approved a proposal to reorganize into a
holding company structure (the "1998 Reorganization"). Pursuant to this
reorganization, the Company became the parent company of RMI, and shares of RMI
common stock were automatically exchanged on a one-for-one (1:1) basis for
shares of RTI. Shares of RTI began trading on the New York Stock Exchange on
October 1, 1998.

     The Company is a successor to entities that have been operating in the
titanium industry since 1951. In 1990, USX Corporation ("USX") and Quantum
Chemical Corporation ("Quantum") transferred their entire ownership interest in
RMI's immediate predecessor, RMI Company, an Ohio general partnership, to the
Company in exchange for shares of the Company's common stock (the "1990
Reorganization"). Quantum sold its shares of common stock to the public while
USX retained ownership of its shares. USX terminated its ownership interest in
RTI in 2000.

NOTE 3 -- ACQUISITIONS

     On October 1, 2004, RTI acquired all of the stock of Claro Precision, Inc.,
("Claro") of Montreal, Quebec, Canada. The aggregate purchase price was $30.6
million consisting of cash of $23.6 million less cash acquired of $1.6 million
and 358,908 shares of RTI common stock with a fair value of $7.0 million. The
purchase agreement provided for a post-closing audit period for adjustments to
the purchase price to finalize and determine whether the target equity amount of
$9.7 million existed on the closing date. In accordance with the purchase
agreement the Company determined that an adjustment to the purchase price of
$0.2 million was due the Company and has been included as a reduction to the
allocated purchase price.

     The purchase was made with available cash on hand and newly issued common
shares. Claro will operate and report under the Company's Fabrication and
Distribution segment.

                                        6
<PAGE>

     Claro Precision, Inc., is a manufacturer of precision-machined components
and complex mechanical and electrical assemblies for the aerospace industry.

     The following is a summary of the allocation of the purchase price to the
assets acquired and liabilities assumed based on their fair market values as of
October 1, 2004. In accordance with Statement of Financial Accounting Standards
("SFAS") No. 141, "Business Combinations," the purchase price was assigned to
the assets and liabilities acquired based on fair value. Fair value is defined
in SFAS 141 as the "amount at which that asset (or liability) could be bought
(or incurred) or sold (or settled) in a current transaction between willing
parties, that is, other than in a forced liquidation sale.

<Table>
<Caption>
                                                               ALLOCATED
                                                               PURCHASE
(IN THOUSANDS)                                                   PRICE
--------------                                                 ---------
<S>                                                            <C>
Acquired assets:
Cash........................................................    $    --
Accounts receivable.........................................      2,802
Inventories.................................................      4,728
Other assets................................................         46
Property, plant & equipment.................................      3,836
Goodwill....................................................     10,529
Intangible assets...........................................     16,200
                                                                -------
  Total assets..............................................     38,141
Acquired liabilities:
Accounts payable............................................      1,010
Income taxes payable........................................      1,543
Current deferred income taxes liability.....................      1,145
Other accrued liabilities...................................        160
Noncurrent deferred income taxes............................      5,414
                                                                -------
  Total liabilities.........................................      9,272
                                                                -------
  Net assets acquired.......................................     28,869
                                                                =======
  Purchase price
     Cash...................................................     22,014
     RTI common stock.......................................      7,016
     Target equity adjustment...............................       (161)
                                                                -------
                                                                $28,869
                                                                =======
</Table>


     The following unaudited pro forma information for RTI is provided to
include the results of Claro Precision, Inc. as if the acquisition had been
consummated at the beginning of the period presented;



<Table>
<Caption>
                                                                 PRO FORMA
                                                               FIRST QUARTER
                                                                   ENDED
                                                                 MARCH 31,
(IN THOUSANDS, EXCEPT PER SHARE DATA)                              2004
-------------------------------------                          -------------
                                                                (UNAUDITED)
<S>                                                            <C>
Net sales...................................................      $54,354
Net income..................................................      $ 3,403
Net income per common share
  Basic.....................................................         0.16
  Diluted...................................................         0.15
</Table>


                                        7
<PAGE>

     The $16.2 million of intangible assets represent the assigned value of
customer relationships with an estimated useful life of approximately 20 years.
Accumulated amortization at March 31, 2005 and December 31, 2004 related to
these intangible assets was $361 thousand and $160 thousand, respectively.
Goodwill of $10.5 million resulted from the acquisition and is non-deductible
for income tax purposes in Canada. Additionally, fixed assets were stepped-up to
approximate fair market value and are being depreciated over 10 years in
accordance with Company accounting policies. The preliminary purchase price
allocations are subject to adjustment and may be modified within one year from
the acquisition. Subsequent changes are not expected to have a material effect
on the Company's consolidated financial position.

     The pro forma combined financial results have been prepared for comparative
purposes only and include certain adjustments as described above. The pro forma
information does not purport to be indicative of the results of operations that
actually would have resulted had the combination occurred on January 1, 2004, or
of future results of the consolidated entities.

NOTE 4-- STOCK OPTION AND RESTRICTED STOCK AWARD PLANS

     The 2004 Stock Plan, which was approved by a vote of the Company's
shareholders at the 2004 Annual Meeting of Shareholders, replaced the 1995 Stock
Plan and the 2002 Non-Employee Director Stock Option Plan.

     The 2004 Plan limits the number of shares available for issuance to
2,500,000 (plus any shares covered by options already outstanding under the 1995
Plan and 2002 Plan that expire or are terminated without being exercised and any
shares delivered in connection with the exercise of any outstanding awards under
the 1995 Plan and 2002 Plan) during its ten-year term and limits the number of
shares available for grants of restricted stock to 1,250,000. The plan expires
after ten years and require that the exercise price of stock options, stock
appreciation rights and other similar instruments awarded under the plan are not
less than the fair market value of RTI stock on the date of the grant award.

     During the first quarter of 2005, options to purchase up to 84,500 shares
were granted at an exercise price of $21.50 per share. All option exercise
prices were equal to the common stock's fair market value on the date of the
grant. Options are for a term of ten years from the date of the grant, and vest
ratably over the three-year period beginning with the date of the grant. All
84,500 shares underlying options granted in 2005 were outstanding at March 31,
2005.

     During the three months ended March 31, 2005, 63,000 shares of restricted
stock were granted under the 2004 Stock Plan. Compensation expense equal to the
fair market value on the date of the grant is recognized ratably over the
vesting period of each grant which is typically five years.

     As permitted by the provisions of SFAS No. 123, "Accounting for Stock-Based
Compensation" (SFAS No. 123), the Company has elected to measure stock-based
compensation under the provisions of Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees" (APB No. 25), and to adopt the
disclosure-only alternative described in SFAS No. 123. For restricted stock
awards, the Company records deferred stock-based compensation based on the fair
market value of common stock on the date of the award. Such deferred stock-based
compensation is amortized over the vesting period of each individual award.

     If compensation expense for the Company's stock options granted had been
determined based on the fair value at the grant date for the awards in
accordance with SFAS No. 123, the effect on the Company's net

                                        8
<PAGE>

income and earnings per share for the quarter ended March 31, 2005 and 2004
would have been as follows (dollars in thousands; except per share amounts):

<Table>
<Caption>
                                                               QUARTER ENDED
                                                                 MARCH 31,
                                                              ---------------
                                                               2005     2004
                                                              ------   ------
                                                                (UNAUDITED)
<S>                                                           <C>      <C>
Net income..................................................  $8,399   $2,775
Add: Stock-based employee compensation expense included in
  reported net (loss) income, net of related tax effects....     163       97
Deduct: Total stock-based employee compensation expense
  determined under fair value methods for all awards, net of
  related tax effects.......................................    (298)    (260)
                                                              ------   ------
Pro forma net income........................................  $8,264   $2,612
                                                              ======   ======
Net income per share:
  As reported -basic........................................  $ 0.38   $ 0.13
                -diluted....................................    0.37     0.13
  Pro forma -basic..........................................    0.38     0.12
             -diluted.......................................    0.37     0.12
</Table>

     Included in the Company's income for the quarters ended March 31, 2005 and
2004 is stock-based compensation expense relating to restricted stock grants
amounting to $260 and $147, respectively. Net of tax, these amounts were $163
and $97, respectively.

NOTE 5-- INCOME TAXES

     Three months ended March 31, 2005, the Company recorded an income tax
expense of $4.9 million, or 37% of pre-tax income compared to an expense of $1.4
million, or 34% for the three months ended March 31, 2004. The first quarter
2005 rate of 37% was greater than the federal statutory rate of 35% primarily
due to state income taxes partially offset by lower foreign tax rates, the
utilization of previously impaired foreign net operating losses, and beneficial
effects of the American Jobs Creation Act (discussed below). The first quarter
2004 rate was less than the federal statutory rate of 35% primarily as a result
of foreign tax credits partially offset by state income taxes.

     On October 22, 2004, the President signed the American Jobs Creation Act of
2004 (the "Act"). The Company has estimated that the deduction attributable to
qualified production activities will decrease its annual effective tax rate by
approximately 1%. Other effects of the Act include the one-time deduction of 85%
of foreign earnings that are repatriated to the United States, as defined by the
Act. The deduction is subject to a number of limitations and at this time there
is uncertainty on how to interpret numerous provisions in the Act. As such, the
Company is not in a position to decide on whether, and to what extent, the
Company might repatriate foreign earnings that have not yet been remitted to the
U.S. Based on our analysis to date, however, it is reasonably possible that we
may repatriate some amount between $0 and $3 million, with the respective tax
liability ranging from $0 to $1 million. We expect to be in a position to
finalize our assessment by the fourth quarter of 2005.

                                        9
<PAGE>

NOTE 6-- EARNINGS PER SHARE

     A reconciliation of the income and weighted average number of outstanding
common shares used in the calculation of basic and diluted earnings per share
for the quarters ended March 31, 2005 and 2004 are as follows (in thousands
except number of shares and per share amounts):

<Table>
<Caption>
                                                         NET                  EARNINGS
                                                        INCOME     SHARES     PER SHARE
                                                        ------   ----------   ---------
<S>                                                     <C>      <C>          <C>
2005
Basic EPS.............................................  $8,399   21,989,659    $ 0.38
Effect of potential common stock issuances:
  Stock options.......................................      --      465,958     (0.01)
                                                        ------   ----------    ------
Diluted EPS...........................................  $8,399   22,455,617    $ 0.37
                                                        ======   ==========    ======
2004
Basic EPS.............................................  $2,775   21,106,372    $ 0.13
Effect of potential common stock issuances:
  Stock options.......................................      --      346,486        --
                                                        ------   ----------    ------
Diluted EPS...........................................  $2,775   21,452,858    $ 0.13
                                                        ======   ==========    ======
</Table>

     109,500 and 451,618 shares of common stock issuable upon exercise of
employee stock options have been excluded from the calculation of diluted
earnings per share for the quarters ended March 31, 2005 and 2004, respectively;
because the exercise price of the options exceeded the weighted average market
price of the Company's common stock during those periods.

NOTE 7-- INVENTORIES

     Inventories consisted of (dollars in thousands):

<Table>
<Caption>
                                                              MARCH 31,   DECEMBER 31,
                                                                2005          2004
                                                              ---------   ------------
<S>                                                           <C>         <C>
Raw material and supplies...................................  $ 54,363      $ 40,459
Work-in-process and finished goods..........................   131,290       112,010
Adjustment to LIFO values...................................   (25,322)      (18,957)
                                                              --------      --------
  Inventories, at LIFO cost.................................  $160,331      $133,512
                                                              ========      ========
</Table>

NOTE 8-- GOODWILL AND OTHER INTANGIBLE ASSETS

     The carrying amount of goodwill and other intangible assets attributable to
each segment at December 31, 2004 and March 31, 2005 is as follows (in
thousands):

Goodwill

<Table>
<Caption>
                                                                            TRANSLATION
                                          DECEMBER 31, 2004   ADJUSTMENTS   ADJUSTMENT    MARCH 31, 2005
                                          -----------------   -----------   -----------   --------------
<S>                                       <C>                 <C>           <C>           <C>
Titanium Group..........................       $ 1,955           $290          $ --          $ 2,245
Fabrication and Distribution Group......        44,663             --           465           45,128
                                               -------           ----          ----          -------
Total...................................       $46,618           $290          $465          $47,373
                                               =======           ====          ====          =======
</Table>

     During the three months ended March 31, 2005, additional goodwill was added
to the Titanium Group through the finalization of the acquisition of the
minority interest in Galt Alloys, Inc.

                                        10
<PAGE>

Intangibles

     The components of other intangible assets comprised of customer
relationships and their estimated useful lives is as follows:

<Table>
<Caption>
                                ESTIMATED                                       TRANSLATION
                               USEFUL LIFE   DECEMBER 31, 2004   AMORTIZATION   ADJUSTMENT    MARCH 31, 2005
                               -----------   -----------------   ------------   -----------   --------------
<S>                            <C>           <C>                 <C>            <C>           <C>
Titanium Group...............                     $    --           $  --          $ --          $    --
Fabrication and Distribution
  Group......................   20 years           16,040            (201)          697           16,536
                                                  -------           -----          ----          -------
Total........................                     $16,040           $(201)         $697          $16,536
                                                  =======           =====          ====          =======
</Table>

NOTE 9-- BILLINGS IN EXCESS OF COSTS AND ESTIMATED REVENUES

     The Company reported a liability for billings in excess of costs and
estimated revenues of $4.9 million as of March 31, 2005 and $4.7 million as of
December 31, 2004. These amounts primarily represent payments, received in
advance from energy market customers, and Fabrication and Distribution Group
customers on long-term orders, which the Company has not recognized as revenues.

NOTE 10-- OTHER INCOME

     For the three months ended March 31, 2005 and 2004, the components of other
income are as follows (dollars in millions):

<Table>
<Caption>
                                                              QUARTER ENDED
                                                                MARCH 31,
                                                              --------------
                                                              2005     2004
                                                              -----    -----
<S>                                                           <C>      <C>
Other Income
Gain on receipt of liquidated damages.......................  $ --     $9.1(1)
Foreign exchange gains and other............................   0.1      0.2
                                                              ----     ----
                                                              $0.1     $9.3
                                                              ====     ====
</Table>

---------------

(1) These gains were financial settlements from Boeing Airplane Group relating
    to Boeing's failure to meet minimum order requirements under terms of a
    long-term agreement between RTI and Boeing. Boeing satisfied the final claim
    under this agreement during the first quarter of 2004.

NOTE 11--PENSION AND OTHER POSTRETIREMENT BENEFITS

     The Company provides defined benefit pension plans for certain of its
salaried and represented workforce. Benefits for its salaried participants are
generally based on participant's years of service and compensation. Benefits for
represented pension participants are generally determined based on an amount for
years of service. Other Company employees participate in 401(k) plans whereby
the Company may provide a match of employee contributions. These plans are
generally not significant to the Company. The policy of the Company with respect
to its defined benefit plans is to contribute at least the minimum amounts
required by applicable laws and regulations.

     The cost of the Company's retiree health care plans (Other Postretirement
Benefits) is capped at predetermined out-of-pocket spending limits. Retiree
health care is available to participants in the defined benefit pension plans.
Benefit payments are made from company assets. Other Postretirement Benefits are
not funded.

                                        11
<PAGE>

     The 2005 and 2004 amounts shown below reflect the defined benefit pension
and other postretirement benefit expense for the three months ended March 31 for
each year for those salaried and hourly covered employees (dollars in
thousands):

<Table>
<Caption>
                                                                             OTHER
                                                         PENSION        POSTRETIREMENT
                                                        BENEFITS           BENEFITS
                                                    -----------------   ---------------
                                                     2005      2004       2005     2004
                                                    -------   -------   --------   ----
<S>                                                 <C>       <C>       <C>        <C>
Service cost......................................  $   550   $   589     $ 96     $ 95
Interest cost.....................................    1,592     1,587      410      407
Expected return on plan assets....................   (1,922)   (2,006)      --       --
Amortization of prior service cost................      160       144       44       44
Amortization of unrealized gains and losses.......      510       357       93       70
                                                    -------   -------     ----     ----
  Net periodic benefit cost.......................  $   890   $   671     $643     $616
                                                    =======   =======     ====     ====
</Table>

     RTI International Metals also has a Supplemental Pension Program
("Program") for certain key employees. The Program is unfunded. The first
quarter net periodic benefit cost related to the Program was approximately
$93,000 for 2005 and 129,000 for 2004.

NOTE 12-- COMMITMENTS AND CONTINGENCIES

     In connection with the 1990 Reorganization, the Company agreed to indemnify
USX and Quantum against liabilities related to their ownership of RMI and its
immediate predecessor, Reactive Metals, Inc., which was formed by USX and
Quantum in 1964.

     From time to time, the Company is involved in litigation relating to claims
arising out of its operations in the normal course of business. In our opinion,
the ultimate liability, if any, resulting from these matters will have no
significant effect on our consolidated financial statements. Given the critical
nature of many of the aerospace end uses for the Company's products, including
specifically their use in critical rotating parts of gas turbine engines, the
Company maintains aircraft products liability insurance of $250 million, which
includes grounding liability.

  Environmental Matters

     The Company is subject to environmental laws and regulations as well as
various health and safety laws and regulations that are subject to frequent
modifications and revisions. During the three months ended March 31, 2005, the
Company spent approximately $0.2 million for environmental remediation,
compliance, and related services. While the costs of compliance for these
matters have not had a material adverse impact on the Company in the past, it is
impossible to accurately predict the ultimate effect these changing laws and
regulations may have on the Company in the future. The Company continues to
evaluate its obligations for environmental related costs on a quarterly basis
and makes adjustments in accordance with provisions of Statement of Position No.
96-1, "Environmental Remediation Liabilities."

     The Company is involved in investigative or cleanup projects under federal
or state environmental laws at a number of waste disposal sites, including the
Fields Brook Superfund Site and the Ashtabula River Area of Concern. Given the
status of the proceedings with respect to these sites, ultimate investigative
and remediation costs cannot presently be accurately predicted, but could, in
the aggregate be material. Based on the information available regarding the
current ranges of estimated remediation costs at currently active sites, and
what the Company believes will be its ultimate share of such costs, provisions
for environmental-related costs have been recorded.

     Given the status of the proceedings at certain of these sites, and the
evolving nature of environmental laws, regulations, and remediation techniques,
the Company's ultimate obligation for investigative and remediation costs cannot
be predicted. It is the Company's policy to recognize environmental costs in its

                                        12
<PAGE>

financial statements when an obligation becomes probable and a reasonable
estimate of exposure can be determined.

     At March 31, 2005 and December 31, 2004, the amount accrued for future
environmental-related costs was $3.7 million and $3.8 million, respectively. Of
the total amount accrued at March 31, 2005, $0.6 million is expected to be paid
out within one year and is included in the other accrued liabilities line of the
balance sheet. The remaining $3.1 million is recorded in other non-current
liabilities.

     Based on available information, RMI believes that its share of potential
environmental-related costs, before expected contributions from third parties,
is in a range from $2.9 to $7.7 million in the aggregate. The Company has
included in its other noncurrent assets $2.1 million as expected contributions
from third parties. This amount represents the contributions from third parties
in conjunction with the company's most likely estimate of $3.7 million. These
third parties include prior owners of RMI property and prior customers of RMI,
that have agreed to partially reimburse the Company for certain
environmental-related costs. The Company has been receiving contributions from
such third parties for a number of years as partial reimbursement for costs
incurred by the Company.

     As these proceedings continue toward final resolution, amounts in excess of
those already provided may be necessary to discharge the Company from its
obligations for these sites.

  Former Ashtabula Extrusion Plant

     The Company's former extrusion plant in Ashtabula, Ohio was used to extrude
depleted uranium under a contract with the DOE from 1962 through 1990. In
accordance with that agreement, the DOE retained responsibility for the cleanup
of the facility when the facility was no longer needed for processing government
material. Processing ceased in 1990, and in 1993 RMI was chosen as the prime
contractor for the remediation and restoration of the site by the DOE. Since
then, contaminated buildings have been removed and approximately two-thirds of
the site has been free released by the Ohio Department of Health, to RMI, at DOE
expense.

     In December, 2003, in accordance with its terms, the Department of Energy
terminated the contract "for convenience." It is not known at this time what
role, if any, RMI will play in the balance of the cleanup although discussions
are ongoing. Remaining soil removal is expected to take approximately 18-24
months. As license holder and owner of the site, RMI is responsible to the state
of Ohio for complying with soil and water regulations. However, remaining
cleanup cost is expected to be borne by the DOE in accordance with their
contractual obligation.

  Gain Contingency

     As part of Boeing Commercial Airplane Group's long-term supply agreement
with the Company, Boeing was required to order a minimum of 3.25 million pounds
of titanium in each of the five years beginning in 1999. They failed to do so in
all five years of the contract.

     The Company made a claim against Boeing in accordance with the provisions
of the long-term contract for each of the years in which the minimum was not
achieved. Revenue under the provisions of Statement of Financial Accounting
Standards No. 5 ("SFAS No. 5"), "Accounting for Contingencies" was deemed not
realized until Boeing settled the claims. Accordingly, the claims were treated
as a gain contingency dependent upon realization.

     As a result of the application of SFAS No. 5 as to gain contingencies, the
Company recorded other income of approximately $6 million in 2000 and 2001, and
approximately $7 million in 2002, $8 million in 2003 and $9.1 million in 2004.
In all years, revenue recognized from these cash receipts was presented as other
income in the financial statements. The agreement with Boeing has since expired
as the final payment was received in 2004.

                                        13
<PAGE>

  Purchase Commitments

     The Company has purchase commitments for materials, supplies, and machinery
and equipments as part of the ordinary course of business. A few of these
commitments extend beyond one year. The Company believes these commitments are
not at prices in excess of current market.

  Other

     The Company is also the subject of, or a party to, a number of other
pending or threatened legal actions involving a variety of matters incidental to
its business.

     The ultimate resolution of these foregoing contingencies could,
individually or in the aggregate, be material to the consolidated financial
statements. However, management believes that the Company will remain a viable
and competitive enterprise even though it is possible that these matters could
be resolved unfavorably.

NOTE 13-- TRANSACTIONS WITH RELATED PARTIES

     In accordance with a stock purchase agreement dated October 1, 2004 the
Company purchased all of the shares of Claro Precision Inc., from Mr. Jean-Louis
Mourain and Mr. Daniel Molina. The purchase agreement provided for a lease
agreement whereby the Company would lease space in two buildings, owned
indirectly by Mr. Mourain and Mr. Molina, for three years from October 1, 2004
with an option to extend for an additional three years. The annual rental is
approximately $160,000 at current exchange rates. Rental expense of
approximately $40,000 was incurred in the quarter ended March 31, 2005 financial
statements. Mr. Mourain was engaged by the Company as a consultant and Mr.
Molina was made President of Claro Precision Inc. The Company believes that the
rental cost is representative of market conditions around the Montreal area.

     The Company acquired Reamet S.A., located in Villette, France, in December
2000. In accordance with the purchase agreement, the Company was obligated to
acquire a residence located on the previously acquired land. The owner of the
residence and his immediate family have been involved in the management of the
business before and since the acquisition. The residence was acquired for
$581,000 (the fair value as appraised) including closing costs in February 2004.

NOTE 14-- SEGMENT REPORTING

     The Company's reportable operating segments are the Titanium Group and the
Fabrication and Distribution Group.

     The Titanium Group manufactures and sells a wide range of titanium mill
products to a customer base consisting primarily of manufacturing and
fabrication companies in the aerospace and nonaerospace markets. Titanium mill
products consist of basic mill shapes such as ingot, slab, bloom, billet, bar,
plate and sheet. Titanium mill products are sold primarily to customers such as
metal fabricators, forge shops and, to a lesser extent, metal distribution
companies. Titanium mill products are usually raw or starting material for these
customers, who then form, fabricate or further process mill products into
finished or semi-finished components or parts. The Titanium Group also operates
a facility that produces ferro-titanium, an additive to certain grades of steel.
The Group also includes the activities related to the clean up and remediation
of a former titanium extrusion facility operated by the Company under a contract
from the U.S. Department of Energy.

     The Fabrication and Distribution Group is engaged primarily in the
fabrication of titanium, specialty metals and steel products, including pipe and
engineered tubular products, for use in the oil and gas and geo-thermal energy
industries; hot and superplastically formed parts; cut, forged, extruded and
rolled shapes; and commercially pure titanium strip and welded tube for
aerospace and nonaerospace applications. This segment also provides warehousing,
distribution, finishing, cut-to-size and just-in-time delivery services of
titanium, steel and other metal products.

                                        14
<PAGE>

     Intersegment sales are accounted for at prices which are generally
established by reference to similar transactions with unaffiliated customers.
Reportable segments are measured based on segment operating income after an
allocation of certain corporate items such as general corporate overhead and
expenses.

     Segment information for the quarters ended March 31, 2005 and 2004 is as
follows (dollars in thousands):

<Table>
<Caption>
                                                                QUARTER ENDED
                                                                   MARCH 31
                                                              ------------------
                                                                2005      2004
                                                              --------   -------
<S>                                                           <C>        <C>
TOTAL SALES
  Titanium Group............................................  $ 66,376   $37,718
  Fabrication and Distribution Group........................    60,300    41,528
                                                              --------   -------
     Total..................................................   126,676    79,246
INTER AND INTRA SEGMENT SALES
  Titanium Group............................................    41,401    24,618
  Fabrication and Distribution Group........................    11,788     4,098
                                                              --------   -------
     Total..................................................    53,189    28,716
TOTAL SALES TO EXTERNAL CUSTOMERS
  Titanium Group............................................    24,975    13,100
  Fabrication and Distribution Group........................    48,512    37,430
                                                              --------   -------
     Total..................................................  $ 73,487   $50,530
                                                              ========   =======
OPERATING (LOSS) INCOME
  Allocated corporate items included in segment operating
     income below:
  Titanium Group............................................  $  1,459   $   768
  Fabrication & Distribution Group..........................     3,199     1,511
                                                              --------   -------
     Total..................................................  $  4,658   $ 2,279
                                                              ========   =======
  Titanium Group............................................  $  9,548   $(4,145)
  Fabrication and Distribution Group........................     3,460    (1,136)
                                                              --------   -------
     Total..................................................  $ 13,008   $(5,281)
                                                              ========   =======
INCOME (LOSS) BEFORE INCOME TAXES:
  Allocated corporate items included in segment income
     before income taxes below:
  Titanium Group............................................  $  1,295   $ 9,120
  Fabrication & Distribution Group..........................     3,037        87
                                                              --------   -------
     Total..................................................  $  4,332   $ 9,207
                                                              ========   =======
  Titanium Group............................................  $  9,774   $ 5,152
  Fabrication & Distribution Group..........................     3,530    (1,116)
                                                              --------   -------
     Total..................................................  $ 13,304   $ 4,036
                                                              ========   =======
</Table>

                                        15
<PAGE>


NOTE 15-- DISCONTINUED OPERATIONS


     In December of 2004, the Company terminated operations at the Company's
Tube Mill operations as it had determined that its raw material source was
inadequate to maintain commercially viable operations. The operating results of
Tube Mill for the three months ended March 31, 2004, as summarized below, have
been reclassified and are presented as discontinued operations.

<Table>
<Caption>
                                                              QUARTER ENDED
(IN THOUSANDS)                                                MARCH 31, 2004
--------------                                                --------------
<S>                                                           <C>
Net sales...................................................      $3,582
                                                                  ======
Income before income taxes..................................         187
Provision for income taxes..................................          56
                                                                  ------
Net income from discontinued operations.....................      $  131
                                                                  ======
</Table>

NOTE 16-- NEW ACCOUNTING PRONOUNCEMENTS

     In December 2004 the Financial Accounting Standards Board (FASB) issued
SFAS No. 151, Inventory Costs (SFAS 151). The Company is required to adopt SFAS
151 on a prospective basis as of January 1, 2006. SFAS 151 clarifies the
accounting for abnormal amounts of idle facility expense, freight, handling
cost, and wasted material. SFAS 151 requires that those items--if abnormal--be
recognized as expenses in the period incurred. SFAS 151 requires the allocation
of fixed production overheads to the cost of conversion based upon the normal
capacity of the production facilities. The Company has not yet determined what
effect SFAS 151 will have on its financial statements.

     In December 2004, the FASB issued FASB Staff Position No. FAS 109-2,
"Accounting and Disclosure Guidance for the Foreign Earnings Repatriation
Provision within the American Jobs Creation Act of 2004," which states that the
FASB staff believes that the lack of clarification of certain provisions within
the Act and the timing of the enactment necessitate a practical exemption to the
FAS 109 requirement to reflect in the period of enactment the effect of a new
tax law. Accordingly, an enterprise is allowed time beyond the financial
reporting period of enactment to evaluate the effect of the Act on its plan for
reinvestment or repatriation of foreign earnings for purposes of applying FAS
109. The Company is evaluating the impact of earnings repatriation and once
concluded will apply its action in accordance with FAS 109.

     In December 2004, the FASB issued Statement of Financial Accounting
Standards No. 123 (revised 2004) (SFAS 123R), Share-Based Payment. In March
2005, the SEC issued Staff Accounting Bulletin No. 107 (SAB 107) regarding the
SEC Staff's interpretation of SFAS 123R and provides the Staff's views regarding
interactions between SFAS 123R and certain SEC rules and regulations and
provides interpretations of the valuation of share-based payments for public
companies. SFAS 123R requires the mandatory expensing of share-based payments,
including employee stock options, based on their fair value. In April 2005, the
SEC approved the delay for implementation of FAS 123R. The delay will affect all
awards granted subsequent to January 1, 2006. As a result the standard will be
adopted for the Company's 2006 fiscal year. SFAS 123R provides alternative
methods of adoption including prospective and modified retroactive applications.
The Company is currently evaluating the financial impact, including the
available alternatives under SFAS 123R and SAB 107.

     On December 8, 2003, the Medicare Prescription Drug, Improvement and
Modernization Act of 2003 (the Act) was signed into law. The Act introduced a
prescription drug benefit under Medicare (Medicare Part D), as well as a federal
subsidy to sponsors of retiree health care benefit plans that provide a benefit
that is at least actuarially equivalent to Medicare Part D. On May 19, 2004,
FASB issued Staff Position FSP FAS 106-2 (FSP 106-2), which supercedes FSP 106-1
and provides guidance on accounting for the effects of the new Medicare
prescription drug legislation for employers whose prescription drug benefits are
actuarially equivalent to the drug benefit under Medicare Part D. The effect of
the Act did not have a material impact on the company.

                                        16
<PAGE>


NOTE 17--RESTATEMENT OF STATEMENT OF CASH FLOWS FOR THE TAX EFFECTS OF STOCK
OPTIONS EXERCISED



     A restatement of the Company's Consolidated Statement of Cash Flows arose
as a result of management's determination that the tax effect of employee stock
options exercised were incorrectly reported as "cash flows from financing
activities." These should have been reported as "cash flows from operating
activities" as prescribed by Emerging Issues Task Force ("EITF") 00-15,
"Classification in the Statement of Cash Flows of the Income Tax Benefit
Received by a Company upon Exercise of Nonqualified Employee Stock Options." The
Consolidated Statements of Cash Flows for 2005 and 2004 have been restated.



     The restatement does not affect the net change in cash and cash equivalents
for any of the periods presented and has no effect on the Company's consolidated
balance sheet, the consolidated statement of operations and any related earnings
per share amounts for any of the periods presented.



     The effect of the above restatement for each period is shown below:



<Table>
<Caption>
                                              AS PREVIOUSLY
                                               REPORTED FOR                   AS RESTATED FOR
                                               THREE MONTHS                     THREE MONTHS
                                                  ENDED                            ENDED
                                                MARCH 31,        EFFECT OF       MARCH 31,
                                                   2004         RESTATEMENT         2004
                                             ----------------   -----------   ----------------
<S>                                          <C>                <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Tax benefits from exercise of stock
     options...............................       $    0           $ 620           $  620
  Cash provided by continuing operating
     activities............................       $3,119           $ 620           $3,739
  Cash provided by operating activities....       $2,907           $ 620           $3,527
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of employee stock
     options...............................       $2,388           $(620)          $1,768
  Cash provided by financing activities....       $2,100           $(620)          $1,480
</Table>



<Table>
<Caption>
                                                 AS PREVIOUSLY
                                                 REPORTED FOR                    AS RESTATED
                                                 THREE MONTHS                     FOR THREE
                                                     ENDED                      MONTHS ENDED
                                                   MARCH 31,       EFFECT OF      MARCH 31,
                                                     2005         RESTATEMENT       2005
                                                ---------------   -----------   -------------
<S>                                             <C>               <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Tax benefits from exercise of stock
     options..................................      $     0         $ 1,217        $ 1,217
  Cash (used in) provided by continuing
     operating activities.....................      $(3,685)        $ 1,217        $(2,468)
  Cash (used in) provided by operating
     activities...............................      $(3,685)        $ 1,217        $(2,468)
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from exercise of employee stock
     options..................................      $ 6,551         $(1,217)       $ 5,334
  Cash provided by financing activities.......      $ 6,068         $(1,217)       $ 4,851
</Table>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

     The following discussion should be read in connection with the information
contained in the Consolidated Financial Statements and Notes to Consolidated
Financial Statements. The following information contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, and are subject to the safe harbor created by that Act. Such
forward-looking statements may be identified by their use of words like
"expects," "anticipates," "intends," "projects," or other words of similar
meaning. Forward-looking statements are based on expectations and assumptions
regarding future events. In addition to factors discussed throughout this
report, the following factors and risks should also be considered, including,
without

                                        17
<PAGE>

limitation, statements regarding the future availability and prices of raw
materials, competition in the titanium industry, demand for the Company's
products, the historic cyclicality of the titanium and aerospace industries,
increased defense spending, the success of new market development, long-term
supply agreements, the outcome of proposed "Buy American" legislation, global
economic conditions, the Company's order backlog and the conversion of that
backlog into revenue, the long-term impact of the events of September 11, and
the continuing war on terrorism, and other statements contained herein that are
not historical facts. Because such forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements. These and other risk factors are set forth below in the "Outlook"
section, as well as in the Company's other filings with the Securities and
Exchange Commission ("SEC") over the last 12 months. All filings are available
via the Securities and Exchange Commission's website, the Internet address of
which is www.sec.gov, or may be obtained upon request from the Company.

     RTI International Metals, Inc. (the "Company" or "RTI") is a leading U.S.
producer of titanium mill products and fabricated metal parts for the global
market. The Company conducts business in two segments: the Titanium Group and
the Fabrication & Distribution Group ("F&D"). The Titanium Group melts and
produces a complete range of titanium mill products, which are further processed
by its customers for use in a variety of aerospace and industrial applications.
The Fabrication and Distribution Group is comprised of companies that fabricate,
machine, assemble and distribute titanium and other specialty metal parts and
components. Its products, many of which are engineered parts and assemblies,
serve aerospace, oil and gas, power generation, and chemical process industries,
as well as a number of other industrial and consumer markets.


     A restatement of the Company's Consolidated Statement of Cash Flows arose
as a result of management's determination that the tax effect of employee stock
options exercised were incorrectly reported as "cash flows from financing
activities." These should have been reported as "cash flows from operating
activities" as prescribed by Emerging Issues Task Force ("EITF") 00-15,
"Classification in the Statement of Cash Flows of the Income Tax Benefit
Received by a Company upon Exercise of Nonqualified Employee Stock Options." The
Consolidated Statements of Cash Flows for 2005 and 2004 have been restated. The
restatement does not affect the net change in cash and cash equivalents for any
of the periods presented and has no effect on the Company's consolidated balance
sheet, the consolidated statement of operations and any related earnings per
share amounts for any of the periods presented.


DISCONTINUED OPERATIONS

     The Company disclosed in a news release dated September 30, 2004 that its
Tube Mill operations had stopped soliciting new orders because of a shortage of
skelp, which is the key raw material in manufacturing titanium strip.

     The decision to halt the solicitation of new orders was to continue until a
search for other sources of skelp was concluded. In December 2004 the Company
terminated its search for other skelp sources and decided to terminate
production activity and discontinue the titanium strip product line and utilize
the facility for other purposes unrelated to the manufacture of welded tubing.
Tube Mill operations had been reported within the F&D segment.

     Discontinued operations, which represent operating results of the Tube Mill
operations for which further information is included in Note 15, reported trade
sales of $14.4 million, $10.5 million and $12.9 million for the years ended
December 31, 2004, 2003, and 2002, respectively.

                                        18
<PAGE>

RESULTS OF OPERATIONS

QUARTERS ENDED MARCH 31, 2005 AND 2004
(Dollars in millions)

  NET SALES

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005     2004
----------------------------                                  ------   ------
<S>                                                           <C>      <C>
Titanium Group
  Trade.....................................................  $ 25.0   $ 13.1
  Inter-company.............................................    41.4     24.6
                                                              ------   ------
  Total.....................................................    66.4     37.7
Fabrication and Distribution Group
  Trade.....................................................    48.5     37.4
  Inter-company.............................................    11.8      4.1
                                                              ------   ------
  Total.....................................................    60.3     41.5
Eliminations................................................   (53.2)   (28.7)
                                                              ------   ------
Net Sales...................................................  $ 73.5   $ 50.5
                                                              ======   ======
</Table>

  Titanium Group

     Sales for the Titanium Group amounted to $66.4 million, including
intercompany sales of $41.4 million, in the three months ended March 31, 2005
compared to $37.7 million including intercompany sales of $24.6 million, in the
same period of 2004. Of the $28.7 million increase $17.8 million was a result of
higher billet, bloom, and ingot mill product shipments and $10 million was a
result of increased sales of ferro titanium and titanium electrodes.

     Shipment of titanium mill products were 2.3 million pounds in the three
months ended March 31, 2005, compared to 1.5 million pounds for the same period
in 2004. Average realized prices on mill products for the three months ended
March 31, 2005 decreased to $14.30 per pound from a $15.03 per pound in 2004.
The decrease in average realized prices for mill products resulted primarily
from an increase of billet, bloom, and ingot within the 2005 product mix.

  Fabrication and Distribution Group

     Sales for F&D amounted to $60.3 million, including intercompany sales of
$11.8 million, in the three months ended March 31, 2005, compared to $41.5
million, including intercompany sales of $4.1 million in the same period of
2004. The increase of $18.8 million occurred primarily in the fabrication
businesses as a result of a Canadian acquisition in the fourth quarter of 2004
and increased intercompany shipments. Improved market conditions were reflected
in increased sales in the distribution and European units of $9.4 million. These
increases were offset by a decrease of $2.1 million in the completion of several
energy contracts from the first quarter of 2004.

GROSS PROFIT/(LOSS)

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005     2004
----------------------------                                   -----    -----
<S>                                                            <C>      <C>
Titanium Group..............................................   $12.6    $(1.5)
Fabrication & Distribution Group............................    11.9      4.8
                                                               -----    -----
Total.......................................................   $24.5    $ 3.3
                                                               =====    =====
</Table>

                                        19
<PAGE>

  Titanium Group

     Gross profit increased to $12.6 million in 2005 from a gross profit loss of
$(1.5) million in 2004. During the quarter, increased production activity
resulting in a 20% increase in inventory resulted in a favorable effect on
throughput and mill efficiency equaling approximately $6.0 million. An increase
in mill product shipments in 2005 of 2.3 million pounds from 1.5 million pounds
in 2004 resulted in an increase in gross profits of $4.4 million. Included in
the favorable change of $4.4 million was the effect of a reduction in price from
$15.03 in the year ago quarter to $14.30 per pound in the first quarter of 2005.
The decrease in selling price was a reflection of mix from quarter to quarter as
current selling prices are increased over the year ago quarter. In the year ago
quarter, input material shortages in flat-rolled product production resulted in
excess costs of $1.5 million. Included in the favorable change was an
improvement of $2.7 million in gross profit on ferro titanium as a result of
increased pricing of $1.02 per pound.

  Fabrication and Distribution Group

     Gross profit increased to $11.9 million for the three months ended March
31, 2005 from a gross profit of $4.8 million for the same period of 2004 or a
favorable change of $7.1 million. Increased revenue from the Company's
distribution sales markets of 36% resulted in an increase in margins of $3.2
million. The Company's recently acquired Canadian business and increased sales
and profitability in Europe resulted in increased gross profits of $2.5 million.
Sales and margin improvement in the energy markets resulted in an improvement in
gross profit of $1.4 million.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005     2004
----------------------------                                   -----    ----
<S>                                                            <C>      <C>
Titanium Group..............................................   $ 2.7    $2.3
Fabrication & Distribution Group............................     8.5     6.0
                                                               -----    ----
Total.......................................................   $11.2    $8.3
                                                               =====    ====
</Table>

  Titanium Group

     Accounting and audit expenses increased costs by $0.6 million, offset by a
decrease of $0.2 million due to termination of the Department of Energy
contract.

  Fabrication and Distribution Group

     SG&A increased $2.5 million from the three months ended March 31, 2005
compared to the same period in 2004. The Canadian acquisition and increased
expenses in the Distribution facilities increased SG&A costs by $1.6 million.
Accounting and audit expenses increased the costs of the group by $.9 million
for the quarter.

RESEARCH, TECHNICAL AND PRODUCT DEVELOPMENT EXPENSES

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005    2004
----------------------------                                   ----    ----
<S>                                                            <C>     <C>
Titanium Group..............................................   $0.4    $0.3
Fabrication & Distribution Group............................     --      --
                                                               ----    ----
Total.......................................................   $0.4    $0.3
                                                               ====    ====
</Table>

  Titanium Group

     Research and development costs increased $0.1 million for the three months
ended March 31, 2005 compared to the same period in 2004. This increase is
largely due to additional employee expenses.

                                        20
<PAGE>

  Fabrication and Distribution Group

     There were no R&D expenses for the group in 2005 or 2004.

OPERATING INCOME (LOSS)

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005     2004
----------------------------                                  ------    -----
<S>                                                           <C>       <C>
Titanium Group.............................................   $  9.5    $(4.2)
Fabrication & Distribution Group...........................      3.5     (1.1)
                                                              ------    -----
Total......................................................   $ 13.0    $(5.3)
                                                              ======    =====
</Table>

  Titanium Group

     Operating income for the three months end March 31, 2005 increased to $9.5
million compared to a loss of $(4.2) million for the same period in 2004. The
increase of $13.7 million resulted from improved gross profit of $14.1 million
due to increased sales and margin, offset by increased SG&A costs of $0.4
million.

  Fabrication and Distribution Group

     Operating income for the three months ended March 31, 2005 increased to
$3.5 million compared to a loss of $(1.1) million for the same period in 2004.
The increase of $4.6 million was primarily from the increase in revenue from
distribution sales due to an increase in market conditions and increased
revenues. The remainder of the change was from the energy unit's improvement in
operating costs from the previous year and increased income from fabrication and
European revenue increases.

OTHER INCOME

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005    2004
----------------------------                                   ----    ----
<S>                                                            <C>     <C>
Other Income................................................   $0.1    $9.3
</Table>

     Other income decreased by $9.2 million in 2005 compared to the same period
in 2004. The decrease was due to the expiration of payments received relating to
the Boeing long-term contract expiring in 2004. Final payment was received in
2004.

INTEREST INCOME, NET

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005    2004
----------------------------                                   ----    ----
<S>                                                            <C>     <C>
Total Interest Income, net..................................   $0.2    $ --
</Table>

     Interest income, net changed $0.2 million favorable as interest income of
$0.2 million was recorded in 2005 compared to zero in 2004. The favorable change
was the result of the net effect of interest income earned on cash balances
partially offsetting interest expense as a result of unused capacity fees on the
Company's credit revolver.

INCOME TAX EXPENSE

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005    2004
----------------------------                                   ----    ----
<S>                                                            <C>     <C>
Income Taxes Expense........................................   $4.9    $1.4
</Table>

     Income tax expense for 2005 was $4.9 million compared to $1.4 million in
expense for the same period in 2004. The effective income tax rate in 2005 was
37% compared to a rate of 34% in 2004. The first quarter 2005 rate of 37% was
greater that the federal statutory rate of 35% primarily due to state income
taxes partially offset by lower foreign tax rates, the utilization of previously
impaired foreign net operating losses, and

                                        21
<PAGE>

beneficial effects of the American Jobs Creation Act (discussed below). The
first quarter 2004 rate was less than the federal statutory rate of 35%
primarily as a result of foreign tax credits partially offset by state taxes.

     On October 22, 2004, the President signed the American Jobs Creation Act of
2004 (the "Act"). The Company has estimated that the deduction attributable to
qualified production activities will decrease its annual effective tax rate by
approximately 1%. Other effects of the Act include the one-time deduction of 85%
of foreign earnings that are repatriated to the United States, as defined by the
Act. The deduction is subject to a number of limitations and at this time there
is uncertainty on how to interpret numerous provisions in the Act. As such, the
Company is not in a position to decide on whether, and to what extent, the
Company might repatriate foreign earnings that have not yet been remitted to the
U.S. Based on our analysis to date, however, it is reasonably possible that we
may repatriate some amount between $0 and $3 million, with the respective tax
liability ranging from $0 to $1 million. We expect to be in a position to
finalize our assessment by the fourth quarter of 2005.

INCOME FROM DISCONTINUED OPERATIONS

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                    2005   2004
----------------------------                                    ----   ----
<S>                                                             <C>    <C>
Discontinued operations.....................................    $ --   $0.1
</Table>

     The operations of the Company's welded tubing operations were deemed a
discontinued operation in the fourth quarter of 2004 as the operation was unable
to source input material to satisfy its customers.

NET INCOME

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                   2005    2004
----------------------------                                   ----    ----
<S>                                                            <C>     <C>
Net income..................................................   $8.4    $2.8
</Table>

     Net income changed favorably by $5.6 million in 2005 compared to the same
period in 2004. The net income of $8.4 million in 2005 represented 11% of sales
compared to a net profit of $2.8 million in 2004 or 5% of sales.

OUTLOOK

 Overview

     Beginning in 2001, a confluence of events including weak U.S. and global
economies, combined with the terrorist attacks of September 11, 2001, followed
by the ongoing conflicts in the Middle East, and the worldwide outbreak of
Severe Acute Respiratory Syndrome ("SARS") had significant adverse effects on
the overall titanium industry through 2003. Beginning in 2004 however, the world
economies began to improve, air traffic demand rose significantly in the
commercial aircraft segment, and defense spending continued to grow, leading to
a strong rebound in the demand for titanium and specialty metal products.

     According to the U.S. Geological Survey, U.S. shipments of titanium mill
products in 2004 increased to 42 million pounds from 34 million pounds in 2003.
Aircraft manufacturers, as well as aerospace forecasters, all predict that the
growth in commercial aerospace, and therefore titanium, will continue to
increase in 2005 and beyond.

     The following is a discussion of what is happening within each of the three
major markets in which RTI participates.

 Commercial Aerospace Markets

     Aerospace demand is classified into two sectors: commercial aerospace and
defense programs. Demand from these two sectors comprises approximately 50% of
the worldwide consumption for titanium products and in the U.S. comprises in
excess of 65% of titanium consumption. The Company's sales to this market
represented 35% of total sales in 2004, up from 27% in 2003.

                                        22
<PAGE>

     Boeing and Airbus reduced their build rates for aircraft to 586 planes in
2003, a 13.5% reduction from prior year. However, a turnaround began in 2004,
with the two major producers delivering 605 new aircraft. According to The
Airline Monitor, the combined production of large commercial aircraft by Boeing
and Airbus is forecast to reach 680 aircraft in 2005, 760 aircraft in 2006, 790
aircraft in 2007, and 815 aircraft in 2008.

     Airbus has announced the launch of a large widebody aircraft, the A380, and
Boeing is expected to launch a new aircraft, the 787. Airbus has approved
another new aircraft, the A350, to compete with Boeing's 787 model. All three of
these aircraft are expected to use large quantities of titanium, in the second
half of this decade. Longer term, the commercial aerospace sector is expected to
continue to be a very significant consumer of titanium products over the next 20
years due to the expected long-term growth of worldwide traffic and the need to
repair and replace aging commercial fleets.

     Titanium mill products that are ordered by the prime aircraft producers and
their subcontractors are generally ordered in advance of final aircraft
production by six to eighteen months. This is due to the time it takes to
produce a final assembly or part that is ready for installation in an airframe
or jet engine.

     RMI entered into a long-term mill product agreement with Boeing on January
28, 1998. Under this agreement, Boeing agreed to purchase a minimum of 3.25
million pounds annually. The agreement, which began in 1999, had an initial term
of five years and concluded at the end of 2003. If volumes fell short of the
minimum commitment, the contract contained provisions for financial
compensation. Boeing failed to make minimum purchases in each of the five years,
making its final compensation payment in the first quarter of 2004. Beginning in
January of 2004, business between the companies, which is not covered by other
contracts within RTI, is being conducted on a non-committed basis, that is, no
volume commitment by Boeing and no commitment of capacity or price by RMI.

     RTI acquired Claro Precision, Inc., Montreal, Canada, in October of 2004.
Claro supplies precision machining and complex sub-assemblies to the aerospace
industry, primarily Bombardier. The acquisition provides RTI with additional
manufacturing capabilities as well as access to the regional and business jet
markets.

     RTI, through its RTI Europe subsidiary, entered into an agreement with the
European Aeronautic Defense and Space Company ("EADS") in January 2005 to supply
value-added titanium products and parts to the EADS group of companies,
including Airbus. The contract is in place through 2008, subject to extension.
The new Airbus A380 is expected to utilize more titanium per aircraft than any
commercial plane yet produced. In 2003, Airbus became the world's largest
producer of commercial aircraft and this continued in 2004.

  Defense Markets

     Shipments to military markets represented approximately 30% of the
Company's 2004 revenues and are expected to remain significant as U.S. and other
countries' defense budgets remain strong. In fact, the latest U.S. Department of
Defense budget figures for Research, Development Testing and Evaluation (RDT&E)
and Procurement reflect an increase of 21% from 2005 through 2009.

     RTI believes it is well positioned to supply mill products and fabrications
required for projected demand from this market. RTI currently supplies titanium
and other materials to most military aerospace programs, including the F/A-22,
C-17, F/A-18, F-15, F-16, Joint Strike Fighter ("JSF") (F-35) and in Europe, the
Mirage, Rafale and Eurofighter-Typhoon.

     The Company was chosen by BAE Systems RO Defence UK to supply the titanium
components for the new XM-777 lightweight 155 mm Howitzer. Delivery began late
in 2003 and will continue through 2010. Production approval for 495 units was
awarded to BAE in March 2005. Initial deliveries will be to the U.S. Marine
Corps, followed by deliveries to the U.S. Army and the Italian and British armed
forces. It is anticipated that over 1,000 guns may be produced. Sales under this
contract could potentially exceed $70 million.

     The Company entered into a new agreement with BAE Systems in January 2005
to provide value added titanium flat rolled products for the Eurofighter
Aircraft through 2009.

                                        23
<PAGE>

     Lockheed Martin, a major customer of the Company, was awarded the largest
military contract ever on October 26, 2001, for the military's $200 billion JSF
program. The aircraft, which will be used by all branches of the military, is
expected to consume 30,000 to 40,000 pounds of titanium per airplane depending
on the model specified. Timing and order patterns, which are likely to extend
well into the future for this program, have not been quantified, but may be as
many as 3,000 to 6,000 planes over the next 30 to 40 years. The Company has
entered into agreements with Lockheed and its teaming partner, BAE Systems, to
be the supplier of titanium sheet and plate for the design and development phase
of the program.

  Industrial and Consumer Markets

     35% of RTI's 2004 revenues were generated in various industrial and
consumer markets where increased demand is expected over the next twelve months.

     Revenues from oil and gas markets are expected to increase in 2005 and
beyond due to continued activity in deep water projects. In January 2005, RTI
Energy Systems was selected by BP to provide titanium stress joints for its Shah
Deniz project located in the Caspian Sea, Azerbaijan. Titanium was chosen
because both strength and flexibility will be needed to deal with the strong
currents in the development area. Fabrication will begin in 2005 and shipments
will be made over the next 9-12 months.

     RTI serves a number of other industrial and consumer markets through its
distribution businesses. The products sold and applications served are numerous
and varied. The resulting diversity tends to provide sales stability through
varying market conditions. The Company believes demand from these markets will
continue to improve in 2005.

     The Company operates a facility that produces ferro-titanium, an additive
to certain grades of steel. The recent world wide demand for steel has
significantly increased demand for ferro-titanium. Sales of ferro-titanium
constituted over 10% of total sales in 2004 and strong demand is expected to
continue into 2005.

     The Company's welded tubing operations supplied commercially pure titanium
products to various customers for use in industrial operations. The Company's
normal supplier advised that it was unable to meet orders due to their inability
to obtain raw materials from their suppliers. The Company was unable to find
alternate sources of material and had no choice but to declare the welded tubing
operations a discontinued business in 2004. The physical facilities, previously
utilized for the production of welded tube, are being used to support other
areas of RTI's operations.

  Backlog

     The Company's order backlog for all markets increased to approximately $269
million as of March 31, 2005, up from $238 million at December 31, 2004,
principally due to increased demand from the commercial aerospace industry. Of
the backlog at March 31, 2005, approximately $200 million will be realized in
2005.

LIQUIDITY AND CAPITAL RESOURCES
(Dollars in millions)

     The Company believes it will generate sufficient cash flow from operations
to fund operations and capital expenditures in 2005. In addition, RTI has cash
reserves and available borrowing capacity to maintain adequate liquidity. RTI
currently has no debt, and based on the expected strength of 2005 cash flows,
the Company does not believe there are any material near-term risks related to
fluctuations in interest rates.

  Cash (used) provided by operating activities


<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                  2005    2004
----------------------------                                  -----   ----
<S>                                                           <C>     <C>
Cash (used) provided by operating activities................  $(2.5)  $3.5
</Table>



     The decrease in net cash flows from operating activities for the three
months ended March 31, 2005 compared to the three months ended March 31, 2004
primarily reflects an increase in inventory levels due to the improved demand in
all market segments as mentioned in the "Outlook" section of Management's
Discussion and Analysis. The overall decrease in cash flows from operating
activities, due to increased inventory levels, was partially offset from cash
generated due to increases in net income, accounts payable and other balance
sheet line items. In addition, the overall decrease in cash flows from operating
activities was


                                        24
<PAGE>


partially offset by the increase in tax benefits from stock options. The
Company's income tax liability substantially increased in the quarter ended
March 31, 2005 as a result of improved operating income. The liability for
billings in excess of costs increased during the quarter as new work on projects
increased over the prior period.


     The Company's working capital ratio was 6.3 and 8.2 to 1 at March 31, 2005
and December 31, 2004, respectively.

  Cash used in investing activities

<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                  2005   2004
----------------------------                                  ----   -----
<S>                                                           <C>    <C>
Cash used in investing activities...........................  $2.1   $ 1.9
</Table>

     Gross capital expenditures for the three months ended March 31, 2005
amounted to $1.8 million compared to $1.9 million in 2004. In February 2005, the
Company amended its purchase of the minority interest in Galt Alloys, Inc. from
the prior owners agreeing to pay an additional $0.3 million. Additional capital
spending for all periods primarily reflected equipment additions and
improvements as well as information systems projects.

     During the three months ended March 31, 2005 and 2004, the Company's cash
flow requirements for capital expenditures were funded with cash provided by
operations. The Company anticipates that its capital expenditures for 2005 will
total approximately $13 million and will be funded with cash generated by
operations.

     At March 31, 2005 and December 31, 2004, the Company had a borrowing
capacity equal to $64.3 and $33.8 million, respectively.

  Cash provided by financing activities


<Table>
<Caption>
THREE MONTHS ENDED MARCH 31,                                  2005   2004
----------------------------                                  ----   ----
<S>                                                           <C>    <C>
Cash provided by financing activities.......................  $4.9   $1.5
</Table>



     The favorable change in cash flows from financing activities for the three
months ended March 31, 2005 compared to the three months ended March 31, 2004
primarily reflects an increase in proceeds from the exercise of employee stock
options of $3.6 million.


CONTRACTUAL OBLIGATIONS, COMMITMENTS, AND POST-RETIREMENT BENEFITS

     Following is a summary of the Company's contractual obligations and other
commercial commitments as of March 31, 2005 (dollars in thousands):

<Table>
<Caption>
                                     REMAINDER
                                       2005       2006      2007     2008     2009    THEREAFTER    TOTAL
                                     ---------   -------   ------   ------   ------   ----------   -------
<S>                                  <C>         <C>       <C>      <C>      <C>      <C>          <C>
CONTRACTUAL OBLIGATIONS
  Operating leases.................   $ 1,893    $ 2,438   $2,167   $1,485   $1,187    $   795     $ 9,965
  Capital leases...................       114         53       35       11        9          2         224
                                      -------    -------   ------   ------   ------    -------     -------
     Total contractual
       obligations.................     2,007      2,491    2,202    1,496    1,196        797      10,189
                                      =======    =======   ======   ======   ======    =======     =======

COMMERCIAL COMMITMENTS
  AMOUNT OF COMMITMENT EXPIRATION
  PER PERIOD
  Long-term supply agreements(1)...    42,874     11,431    4,784       --       --         --      59,089
  Purchase obligations(2)..........    23,871      2,051        3       --       --         --      25,925
  Standby letters of credit(3).....     1,584         --       --       --       --         --       1,584
                                      -------    -------   ------   ------   ------    -------     -------
     Total commercial
       commitments.................    68,329     13,482    4,787       --       --         --      86,598
                                      =======    =======   ======   ======   ======    =======     =======

POST-RETIREMENT BENEFITS
  Post-retirement benefits(4)......   $ 1,206    $ 1,881   $1,894   $1,915   $1,934    $10,096     $18,926
                                      =======    =======   ======   ======   ======    =======     =======
</Table>

                                        25
<PAGE>

---------------

(1) Amounts represent commitments for which contractual terms exceed twelve
    months.

(2) Amounts primarily represent purchase commitments under purchase orders.

(3) Amounts represent standby letters of credit primarily related to commercial
    performance and insurance guarantees.

(4) The Company does not fund its other post-retirement employee benefits
    obligation but instead pays amounts when incurred. However, these estimates
    are based on current benefit plan coverage and are not contractual
    commitments in as much as the Company retains the right to modify, reduce,
    or terminate any such coverage in the future. Amounts shown in the years
    2005 through 2008 are based on actuarial estimates of expected future cash
    payments. The Company is not forecasting or required to make a pension
    contribution in 2005. As in past years, the Company may make voluntary
    contributions when there is an economic advantage to contribute to the fund.
    Future contributions to the fund, if required, will be provided based on
    actuarial evaluation.

CREDIT AGREEMENT

     The Company amended its former $100 million, three-year credit agreement on
June 4, 2004. The amendment provides for $90 million of standby credit through
May 31, 2008. The Company has the option to increase the available credit to
$100 million with the addition of another bank, without the approval of the
existing bank group. The terms and conditions of the amended facility remain
unchanged with the exception that the tangible net worth covenant in the
replaced facility was eliminated.

     Under the terms of the facility, the Company, at its option, will be able
to borrow at (a) a base rate (which is the higher of PNC Bank's prime rate or
the Federal Funds Effective Rate plus 0.5% per annum), or (b) LIBOR plus a
spread (ranging from 1.0% to 2.25%) determined by the ratio of the Company's
consolidated total indebtedness to consolidated earnings before interest, taxes,
depreciation and amortization. The credit agreement contains restrictions, among
others, on the minimum cash flow required, and the maximum leverage ratio
permitted. At March 31, 2005, there was $1.6 million of standby letters of
credit outstanding under the facility, the Company was in compliance with all
covenants, and had a borrowing capacity equal to $64.3 million.

ENVIRONMENTAL MATTERS

     The Company is subject to environmental laws and regulations as well as
various health and safety laws and regulations that are subject to frequent
modifications and revisions. During the three months ended March 31, 2005, the
Company spent approximately $0.2 million for environmental remediation,
compliance, and related services. While the costs of compliance for these
matters have not had a material adverse impact on the Company in the past, it is
impossible to accurately predict the ultimate effect these changing laws and
regulations may have on the Company in the future. The Company continues to
evaluate its obligations for environmental related costs on a quarterly basis
and makes adjustments in accordance with provisions of Statement of Position No.
96-1, "Environmental Remediation Liabilities."

     The Company is involved in investigative or cleanup projects under federal
or state environmental laws at a number of waste disposal sites, including the
Fields Brook Superfund Site and the Ashtabula River Area of Concern. Given the
status of the proceedings with respect to these sites, ultimate investigative
and remediation costs cannot presently be accurately predicted, but could, in
the aggregate be material. Based on the information available regarding the
current ranges of estimated remediation costs at currently active sites, and
what the Company believes will be its ultimate share of such costs, provisions
for environmental-related costs have been recorded.

     Given the status of the proceedings at certain of these sites, and the
evolving nature of environmental laws, regulations, and remediation techniques,
the Company's ultimate obligation for investigative and remediation costs cannot
be predicted. It is the Company's policy to recognize environmental costs in its
financial statements when an obligation becomes probable and a reasonable
estimate of exposure can be determined.

                                        26
<PAGE>

     At March 31, 2005, the amount accrued for future environmental-related
costs was $3.7 million. Of the total amount accrued at March 31, 2005, $0.6
million is expected to be paid out within one year and is included in the other
accrued liabilities line of the balance sheet. The remaining $3.1 million is
recorded in other non-current liabilities.

     Based on available information, RMI believes that its share of potential
environmental-related costs, before expected contributions from third parties,
is in a range from $2.9 to $7.7 million in the aggregate. The Company has
included in its other noncurrent assets $2.1 million as expected contributions
from third parties. These third parties include prior owners of RMI property and
prior customers of RMI, that have agreed to partially reimburse the Company for
certain environmental-related costs. The Company has been receiving
contributions from such third parties for a number of years as partial
reimbursement for costs incurred by the Company.

     As these proceedings continue toward final resolution, amounts in excess of
those already provided may be necessary to discharge the Company from its
obligations for these sites.

  Former Ashtabula Extrusion Plant

     The Company's former extrusion plant in Ashtabula, Ohio was used to extrude
depleted uranium under a contract with the DOE from 1962 through 1990. In
accordance with that agreement, the DOE retained responsibility for the cleanup
of the facility when the facility was no longer needed for processing government
material. Processing ceased in 1990, and in 1993 RMI was chosen as the prime
contractor for the remediation and restoration of the site by the DOE. Since
then, contaminated buildings have been removed and approximately two-thirds of
the site has been free released by the Ohio Department of Health, to RMI, at DOE
expense.

     In December, 2003, in accordance with its terms, the Department of Energy
terminated the contract "for convenience." It is not known at this time what
role, if any, RMI will play in the balance of the cleanup although discussions
are ongoing. Remaining soil removal is expected to take approximately 18-24
months. As license holder and owner of the site, RMI is responsible to the state
of Ohio for complying with soil and water regulations. However, remaining
cleanup cost is expected to be borne by the DOE in accordance with their
contractual obligation.

EMPLOYEES

     As of March 31, 2005, the Company and its subsidiaries employed 1,193
persons, 373 of whom were classified as administrative and sales personnel. 605
of the total number of employees were in the Titanium Group, while 588 were
employed in the Fabrication & Distribution Group.

     The United Steelworkers of America represents 311 of the hourly clerical
and technical employees at RMI's plant in Niles, Ohio and 1 hourly employee at
RMI Environmental Services in Ashtabula, Ohio. No other Company employees are
represented by a union.

NEW ACCOUNTING STANDARDS

     In December 2004 the FASB issued SFAS No. 151, Inventory Costs. The Company
is required to adopt SFAS 151 on a prospective basis as of January 1, 2006. SFAS
151 clarifies the accounting for abnormal amounts of idle facility expense,
freight, handling cost, and wasted material. SFAS 151 requires that those
items--if abnormal--be recognized as expenses in the period incurred. SFAS 151
requires the allocation of fixed production overheads to the cost of conversion
based upon the normal capacity of the production facilities. The Company has not
yet determined what effect SFAS 151 will have on its financial statements.

     In December 2004, the FASB Issued FASB Staff Position No. FAS 109-2,
"Accounting and Disclosure Guidance for the Foreign Earnings Repatriation
Provision within the American Jobs Creation Act of 2004," which states that the
FASB staff believes that the lack of clarification of certain provisions within
the Act and the timing of the enactment necessitate a practical exemption to the
FAS 109 requirement to reflect in the period of enactment the effect of a new
tax law. Accordingly, an enterprise is allowed time beyond the financial
reporting period of enactment to evaluate the effect of the Act on its plan for
reinvestment or

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<PAGE>

repatriation of foreign earnings for purposes of applying FAS 109. The Company
is evaluating the impact of earnings repatriation and once concluded will apply
its action in accordance with FAS 109.

     In December 2004, the Financial Accounting Standards (FASB) issued
Statement of Financial Accounting Standards No. 123 (revised 2004) (SFAS 123R),
Share-Based Payment. In March 2005, the SEC issued Staff Accounting Bulletin No.
107 (SAB 107) regarding the SEC Staff's interpretation of SFAS 123R and provides
the Staff's views regarding interactions between SFAS 123R and certain SEC rules
and regulations and provides interpretations of the valuation of share-based
payments for public companies. SFAS 123R requires the mandatory expensing of
share-based payments, including employee stock options, based on their fair
value. Recently, the FASB delayed mandatory implementation for fiscal years
beginning after December 15, 2005. As a result the standard will be adopted for
the Company's 2006 fiscal year. SFAS 123R provides alternative methods of
adoption including prospective and modified retroactive applications. The
Company is currently evaluating the financial impact, including the available
alternatives under SFAS 123R and SAB 107.

     On December 8, 2003, the Medicare Prescription Drug, Improvement and
Modernization Act of 2003 (the Act) was signed into law. The Act introduced a
prescription drug benefit under Medicare (Medicare Part D), as well as a federal
subsidy to sponsors of retiree health care benefit plans that provide a benefit
that is at least actuarially equivalent to Medicare Part D. On May 19, 2004,
FASB issued Staff Position FSP FAS 106-2 (FSP 106-2), which supercedes FSP 106-1
and provides guidance on accounting for the effects of the new Medicare
prescription drug legislation for employers whose prescription drug benefits are
actuarially equivalent to the drug benefit under Medicare Part D. The effect of
the Act did not have a material impact on the Company.


ITEM 4.  CONTROLS AND PROCEDURES


  (a)  Evaluation of Disclosure Controls and Procedures

     The Company's management, with the participation of the Chief Executive
officer and Chief Financial Officer, evaluated the effectiveness of the
Company's disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly
report on Form 10-Q. Based upon that evaluation they have concluded that the
Company's disclosure controls and procedures are not effective in ensuring that
all material information required to be filed in reports that the Company files
with the Securities and Exchange Commission is recorded, processed, summarized
and reported within the time periods specified in the rules and forms of the
Commission because of material weaknesses in its internal control over financial
reporting as discussed in the Company's Form 10-K/A filed on May 9, 2005.


     The evaluation of our disclosure controls and procedures by our Chief
Executive Officer and Chief Administrative Officer included a review of the
restatement described in Note 17 on page 17 of this Form 10-Q/A, where the
Company restated its consolidated statement of cash flows for periods ended
March 31, 2004 and 2005, including all interim periods. Management has
determined that the restatement is an additional effect of the material
weaknesses already described in the Form 10-K/A Amendment No. 2.



     In light of material weaknesses described in our Form 10-K/A Amendment No.
2, management continues to perform additional analysis and other post-closing
procedures to ensure our Condensed Consolidated Financial Statements are
prepared in accordance with generally accepted accounting principles.
Accordingly, management believes that the financial statements included in this
report fairly present in all material respects our financial condition, results
of operations and cash flows for the period presented.


  (b)  Changes in Internal Control over Financial Reporting

     The Company reported material weaknesses in its Form 10-K/A. The Company
has begun to implement a remediation program to address those material
weaknesses during 2005.

     There were no changes in the Company's internal control over financial
reporting during the quarter ended March 31, 2005, other than those as described
below that are interim measures until all planned control measures are
implemented. Additionally, the Company replaced the Director of Corporate
Accounting and Consolidation. In the Company's 10-K/A filed May 9, 2005 the
Company identified numerous control

                                        28
<PAGE>

improvements over its disclosure controls and procedures that the Company plans
to implement in 2005. Those control improvements that were implemented in the
quarter ended March 31, 2005 included:

     - Reduction in the number of SAP users with unrestricted access;

     - Direction of the Company's internal audit department to concentrate on
       examination, evaluation and testing of reported material weaknesses.

     Interim measures used in the quarter ended March 31, 2005 and until
remediation is effective over all control weaknesses identified in the Company's
10-K/A are implemented include:

     - Re-testing of material internal control weaknesses identified in 2004 to
       determine their effectiveness in the current quarter;

     - Substantive testing for certain of its transactions to ensure their
       accuracy and compliance with GAAP and;

     - Enhanced review of critical transactions and balances to ensure their
       accuracy.

     These matters have been discussed with the Company's Audit Committee, and
the Company is taking appropriate, diligent action to continually improve its
internal control over financial reporting.

                                        29
<PAGE>

                           PART II--OTHER INFORMATION


ITEM 6.  EXHIBITS


     (a) Exhibits


<Table>
<Caption>
           EXHIBIT
           NUMBER                            DESCRIPTION
           -------                           -----------
           <S>       <C>
            10.1     Form of Indemnification Agreements with certain directors
                     and executive officers(1)
            10.2     Summary of Executive Compensation
            31.1     Certification pursuant to Exchange Act Rules 13a-14 and
                     15d-14.
            31.2     Certification pursuant to Exchange Act Rules 13a-14 and
                     15d-14.
            32.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted
                     pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
            32.2     Certification pursuant to 18 U.S.C. Section 1350, as adopted
                     pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
</Table>


---------------


(1) Previously filed.


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<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                          RTI INTERNATIONAL METALS, INC.
                                          --------------------------------------
                                                       (Registrant)


Date: December 15, 2005



                                          By:      /s/ WILLIAM T. HULL

                                            ------------------------------------

                                                      William T. Hull


                                            Vice President and Chief Accounting
                                                           Officer


                                        31