Shares of Titanium Metals Corp. jumped Wednesday, a day after the company reported first-quarter profit fell 46 percent but still met analyst expectations.

Shares jumped $2.53, or 16 percent, to $18.37 in midday trading.

The Dallas company blamed its declining earnings on a global titanium capacity increase and delays by Boeing in buying products for its 787 plane. Net income for the three months ended March 31 declined to $40.3 million, or 22 cents per share, from $75 million, or 41 cents per share. Revenue fell to $293.7 million from $341.7 million.

On average, analyst surveyed by Thomson Financial forecast a quarterly profit of 22 cents per share and revenue of $294.2 million.

Titanium Metals said increases in global titanium sponge capacity and manufacturing activity for titanium products increased availability of titanium sponge and scrap. That, in turn, cut costs for such raw materials, which then produced lower selling prices.

"Recently announced changes in the production schedule for the Boeing 787 Dreamliner are expected to impact customer inventory levels and product mix and contribute to additional fluctuations in demand over the near term," the company said in a statement.

Citi Investment Research analyst Brian Yu said pricing was better than he expected and that the company's prospects were bright.

"(The company) appears well positioned to benefit from continuing growth in (titanium) demand from the commercial aerospace market, even though the growth profile is more gradual than previously expected," Yu wrote. – AP

Analysts at Canaccord Adams maintain their "buy" rating on Kenmare Resources Plc (KMR-GBX). The target price has been reduced from £0.75 to £0.65.

In a research note published this morning, the analysts mention that the company is taking steps to resolve the start-up commissioning difficulties at its MOMA mineral sands project in Mozambique. Kenmare Resources is targeting ilmenite production of 20Kt in March, growing it to 65Kt by December. The downward revision in the target price reflects a delay in production, a rise in operating costs and rising interest charges, Canaccord Adams says. – newratings.com

Kenmare Resources Plc. said its loss for the full year 2007 widened mainly due to foreign exchange losses on euro-denominated debt and the company's corporate operating costs, net of interest earned.

The company posted a pretax loss of $9.63 million for the year ended Dec 31 compared with $4.33 million last year as its operating expenses rose to $12.56 million compared with $7.26 million last year.

The company also said it now expects the ramp-up at its Moma Titanium minerals mine in northern Mozambique will continue through 2008, full production rate being achieved in the last quarter.

Kenmare said while it has experienced some cost increases caused mainly by salary and fuel costs, it is very confident that its Moma mine will achieve its targeted production rates in 2008 and attain its predicted – Thomson Financial