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 22, 1998
(Date of Report, date of earliest event reported)
TITANIUM METALS CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 13-5630895 0-28538
(State or other jurisdiction (IRS Employer (Commission
of incorporation) Identification Number) File 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 January 22, 1998, 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 1997
earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
99.1 Press release dated January 22, 1998 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: January 22, 1998<PAGE>
Exhibit 99.1
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 RECORD 1997 EARNINGS
DENVER, COLORADO . . . January 22, 1998 . . . Titanium Metals Corporation
("TIMET") (NASDAQ: TIMT) reported fourth quarter net income of $25.6 million, or
$.75 per diluted share, compared to net income of $24.1 million, or $.75 per
diluted share, in the fourth quarter of 1996. Disregarding a special income tax
credit in 1996 of $10 million ($.30 per diluted share), 1997 fourth quarter
earnings represent a 67% improvement in earnings per share over the fourth
quarter of 1996. For the full year 1997, the Company reported net income of
$83.0 million, or $2.49 per diluted share, compared to $47.6 million, or $1.72
per diluted share, for 1996.
The significant improvement in TIMET s 1997 sales and earnings was driven
by a 15% increase in annual mill products volume and higher average selling
prices compared to 1996. Operating income for the fourth quarter of 1997 was
$40.3 million, up 21% from the third quarter of 1997 and up 88% from the fourth
quarter of 1996. Fourth quarter 1997 sales were $208 million, up 17% from the
third quarter of 1997 and up 32% from 1996.
TIMET s mill product shipments in the fourth quarter of 1997 approximated
9.8 million pounds (4,450 metric tons) at an average price per pound shipped of
approximately $15.50 ($34 per kilogram). The Company s backlog of firm orders
at the end of 1997 was approximately $530 million.
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)
Quarter Ended Year Ended
December 31, December 31,
1996 1997 1996 1997
Net sales $ 157.3 $ 208.0 $ 507.1 $733.6
Cost of sales 125.3 153.4 419.5 554.6
Selling, administrative and 11.3 14.4 29.9 45.3
development costs
Other income (expense) .7 .1 2.1 (.7)
Operating income 21.4 40.3 59.8 133.0
General corporate income .4 .3 1.0 4.3
Interest expense 1.5 .1 8.8 2.1
Pretax income 20.3 40.5 52.0 135.2
Income tax expense (benefit) (5.4) 12.1 2.4 41.1
Minority interest - convertible
preferred
trust securities, net of tax. .9 2.2 .9 8.8
Other minority interest .7 .6 1.1 2.3
Net income $ 24.1 $ 25.6 $ 47.6 $ 83.0
Diluted net income $ 25.0 $ 27.8 $ 48.5 $ 91.8
Earnings per share:
Basic $ .77 $ .81 $ 1.72 $ 2.64
Diluted $ .75 $ .75 $ 1.72 $ 2.49
Weighted average shares outstanding:
Common shares 31.5 31.5 27.6 31.5
Diluted shares 33.5 37.0 28.1 36.9
