Shares of Titanium Metals Corp., which makes specialized aircraft parts, fell Wednesday after an analyst issued a 2009 earnings estimate well below the average estimate of other Wall Street analysts because of rising supply and falling demand.

Cowen & Co. analyst Gautam Khanna forecasts 2009 earnings per share of 71 cents, compared with the 89 cents analysts polled by Thomson Reuters expect, on average.

Khanna, who reiterated his "Neutral" rating on the shares, said a rising titanium supply and softening demand would erode the company's average selling price, profit margin and volume next year.

The analyst also said a three- to six-month delay in the production schedule of Boeing Co.'s 787 airplane could mean that the aeronautical company may have enough titanium in inventory to last through next year, something that could reduce demand – and thus selling prices – for the Dallas-based company's products.

"Contracted minimum buys make a total 'destock' unlikely; but titanium buys will be at low levels thru 2010, raising pressure on mills to cut utilization, build inventory and/or cut prices," he wrote. "Moreover, 2009 demand for engine spares may drop given likely flatish flight hours and reported airline inventory destocking."

In morning trading, shares fell 36 cents, or 4.4 percent, to $7.92. – Associated Press