SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
October 21, 1997
(Date of Report, date of earliest event reported)
TITANIUM METALS CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 0-28538 13-5630895
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
1999 Broadway, Suite 4300, Denver, CO 80202
(Address of principal executive offices)(Zip Code)
(303) 296-5600
(Registrant's telephone number, including area code)
Not Applicable
(Former name or address, if changed since last report)
Item 5: Other Events
On October 21, 1997, the Registrant issued the press release attached
hereto as Exhibit 99.1, which is incorporated herein by reference. The press
release relates to an announcement by Registrant regarding Registrant's third
quarter earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
99.1 Press release dated October 21, 1997 issued by
Registrant.
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 hereunto duly authorized.
TITANIUM METALS CORPORATION
(Registrant)
By: /s/ Robert E. Musgraves
Robert E. Musgraves
Vice President, General Counsel
and Secretary
Date: October 22, 1997
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Titanium Metals Corporation J. Thomas Montgomery, Jr.
1999 Broadway, Suite 4300 Vice President - Finance
Denver, Colorado 80202 (303) 296-5617
TIMET REPORTS HIGHER THIRD QUARTER EARNINGS
DENVER, COLORADO . . . October 21, 1997 . . . Titanium Metals Corporation
("TIMET") (NASDAQ: TIMT) reported third quarter net income of $21.4 million, or
$.64 per fully diluted share, compared to net income of $13.3 million, or $.42
per share, in the third quarter of 1996. For the first nine months of 1997, the
Company reported net income of $57.5 million, or $1.73 per fully diluted share,
compared to $23.5 million, or $.89 per share, for the same period in 1996. The
significant improvement in TIMET's sales and earnings compared to last year was
driven by higher average selling prices and a 20% year-to-date increase in mill
product volume. The Company's backlog of firm orders as of the end of the third
quarter was approximately $530 million.
Operating income for the third quarter of 1997 was $33.3 million, up 64%
from the third quarter of 1996 and sales were $177.2 million, up 25% from last
year (both percentage comparisons proforma for the effect of an October 1996
acquisition). Mill product shipments in the third quarter of 1997 were 8.1
million pounds.
In the third quarter of 1997, TIMET completed its tubing joint venture,
ValTimet, which is reported as an unconsolidated affiliate. As a result, TIMET
now sells intermediate strip product to the joint venture rather than selling
finished tubing, which reduces TIMET's average sales price per mill product
pound shipped compared to prior periods. TIMET's average price per mill product
pound shipped in the third quarter was $15.50 (approximately $16.20 on a basis
comparable to the second quarter).
Sales and operating income in the third quarter were negatively impacted
by reduced production associated with (i) management decisions to complete
capacity-increasing projects early to help insure the higher demand levels
expected in 1998 are met, (ii) startup of the ValTimet joint venture and (iii) a
fire in September which destroyed a portion of the Oregon castings facility
(substantially all of the damage is covered by insurance).
Dividends on the Company's convertible preferred trust securities,
previously reported as interest expense, are now reported net of tax benefit as
minority interest. This reclassification within the income statement has no
effect on net income or earnings per share.
The statements in this release relating to matters that are not historical
facts are forward looking statements that involve risks and uncertainties,
including, but not limited to, the cyclicality of the commercial aerospace
industry, future global economic conditions, global productive capacity,
competitive products, and other risks and uncertainties included in the
Company s filings with the Securities and Exchange Commission. Actual results
can differ materially from those forecasted or expected.
TIMET, headquartered in Denver, Colorado, is a leading worldwide
integrated producer of titanium metal products.
TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
(Unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
1996 1997 1996 1997
Net sales $ 123.4 $ 177.2 $ 349.8 $ 525.6
Cost of sales 100.8 132.8 294.2 401.2
Selling, administrative and
development costs 6.5 10.0 18.6 30.8
Other income (expense) 1.7 (1.1) 1.4 (.9)
Operating income 17.8 33.3 38.4 92.7
General corporate income .2 1.5 .6 3.9
Interest expense .4 .9 7.3 2.0
Pretax income 17.6 33.9 31.7 94.6
Income tax expense 4.3 9.8 7.8 28.8
Minority interest - convertible
preferred trust securities,
net of tax. - 2.2 - 6.6
Other minority interest - .5 .4 1.7
Net income $ 13.3 $ 21.4 $ 23.5 $ 57.5
Fully diluted net income $ 13.3 $ 23.6 $ 23.5 $ 64.1
Earnings per common share $ .42 $ .68 $ .89 $ 1.83
Fully diluted earnings per share $ .42 $ .64 $ .89 $ 1.73
Average common shares outstanding 31.5 31.5 26.3 31.5
Average fully diluted shares
outstanding 31.5 37.0 26.3 37.0
