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
January 24, 1997
(Date of Report, date of earliest event reported)
TITANIUM METALS CORPORATION
(Exact name of Registrant as specified in its charter)
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Delaware 0-28538 13-5630895
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
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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 January 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 the Registrant's 1996 Earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
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Item No. Exhibit List
99.1 Press release dated January 21, 1997 issued by Registrant.
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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/John R. Burt
John R. Burt
Corporate Attorney
And Assistant Secretary
Date: January 24, 1997
PRESS RELEASE
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FOR IMMEDIATE RELEASE: CONTACT:
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Titanium Metals Corporation J. Thomas Montgomery, Jr.
1999 Broadway, Suite 4300 Vice President - Finance
Denver, Colorado 80202 (303) 296-5617
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TIMET REPORTS SUBSTANTIALLY HIGHER 1996 EARNINGS
DENVER, COLORADO . . . January 21, 1997 . . . Titanium Metals Corporation
( TIMET ) (NASDAQ: TIMT) reported fourth quarter net income of $24.1 million, or
$.77 per common share ($.75 per fully diluted share), compared to net income of
$2.3 million, or $.14 per common share, in 1995. TIMET s net income for 1996
was $47.6 million, or $1.72 per common and fully diluted share, compared to a
1995 net loss. Included in the fourth quarter and full year 1996 results is a
$10 million income tax benefit resulting from the expected future realization of
certain tax credits due primarily to the Company s profitability. TIMET s 1996
results also include certain acquisitions, from dates of acquisition,
principally the titanium businesses of IMI plc acquired in February 1996 and
Axel Johnson Metals acquired in October 1996.
The significant improvement in earnings was driven by price and volume
increases in both commercial aerospace and other markets. TIMET s operating
income for the fourth quarter and full year 1996 was $21.4 million and $59.8
million, respectively. The 1996 operating results included $4.8 million of
special charges related to the acquisition and integration of IMI s titanium
businesses. Sales were $507.1 million in 1996, up 40% from 1995 (all percentage
comparisons are proforma for the effects of acquisitions). Mill product
shipments for 1996 were 27.2 million pounds, a 27 % increase over 1995. Selling
prices have continued to increase, and fourth quarter 1996 average mill product
prices of $14.80 per pound were up approximately 4% from the third quarter of
1996. At the end of 1996, TIMET s backlog was approximately $ 440 million,
almost double year-ago levels.
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 detailed in the
Company s Securities and Exchange Commission filings.
TIMET, headquartered in Denver, Colorado, is a leading integrated producer
of titanium metal products.
TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
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Quarter Ended Year Ended
December 31, December 31,
__________________________ ____________________
1995 1996 1995 1996
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Net sales $ 49.5 $ 157.3 $ 184.7 $ 507.1
Cost of sales 43.2 125.3 170.7 419.5
Selling, Administrative
and development costs 5.0 11.3 14.1 29.9
Equity in earnings of joint
ventures and other 1.1 0.8 4.3 6.9
Special charges (credit) (1.2) .1 (1.2) 4.8
----------- ----------- --------- -------
Operating Income 3.6 21.4 5.4 59.8
General coroprate income,
net 1.3 .4 1.1 1.0
Interest expense 2.5 2.9 10.4 10.2
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Pretax income (loss) 2.4 18.9 (3.9) 50.6
Income tax expense (benefit) .1 (5.9) .3 1.9
Minority interest and pre-
acquisition earnings - (.7) - (1.1)
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Net income (loss) $ 2.3 $ 24.1 $ (4.2) $ 47.6
============ =========== ========= =========
Fully diluted net income $ 25.0 $ 48.5
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Earnings (loss) per
per common share $ .14 $ .77 $ (.27) $ 1.72
============ =========== ========== =========
Fully diluted earnings
per share $ .75 $ 1.72
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Average common shares
outstanding 15.7 31.5 15.4 27.6
============ =========== ========== =========
Average common and
dilutive shares
outstanding 15.7 33.5 15.4 28.1
============ =========== ========== =========
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