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
April 22, 1998
(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
<PAGE> 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 April 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 first quarter
earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
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Item Exhibit List
No.
99.1 Press release dated April 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: April 22, 1998
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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 FIRST QUARTER EARNINGS INCREASE
DENVER, COLORADO . . . April 22, 1998 . . . Titanium Metals Corporation
("TIMET") (NASDAQ: TIMT) reported first quarter net income of $18.3 million, or
$.56 per diluted share, compared to net income of $15.8 million, or $.49 per
diluted share, in the first quarter of 1997.
TIMET's operating income of $31.6 million and mill product shipments of
3,900 metric tons in the first quarter trailed fourth quarter operating income
of $40.3 million and shipments of 4,500 tons. J. Landis Martin,
TIMET's Chairman and CEO said, "About half of the decline in shipments versus
last year's fourth quarter was expected due to the high level of sales from
inventory in the fourth quarter. The balance of the decline was due to
shortfalls in shipments, principally from our U.K. operations. We are
implementing two substantial capital projects in the U.K. and our production
could not keep up with demand amidst this capital construction. These projects
should be completed during the second and third quarters."
With regard to the remainder of 1998, Mr. Martin said, "Demand for titanium
remains strong as airline profitability continues at record levels and the order
backlog for new aircraft as well as new orders are strong. Although Boeing and
Airbus are increasing production rates, these rates are somewhat lower than
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earlier forecasts indicated. This has resulted in some titanium order push outs
as our customers are matching inventory levels with new forecasted aircraft
production rates. While these inventory adjustments will have some impact on
our shipments for the balance of this year, we still expect a record year in
terms of mill product shipment levels and profitability."
The average price for mill product shipments in the first quarter of 1998
was approximately $34.50 per kilogram. Martin also said, "While mill product
pricing is flattening as expected, our backlog is strong at approximately $500
million as of the end of March, 1998."
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, changes
in product pricing, 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.
oo o o o
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TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
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<TABLE>
<CAPTION>
Quarter Ended
March 31,
1997 1998
<S> <C> <C>
Net sales $ 167.0 $187.1
Cost of sales 130.3 140.9
Selling, administrative and development costs 10.1 14.2
Other expense .1 .4
Operating income 26.5 31.6
General corporate income 1.0 1.2
Interest expense .6 .4
Pretax income 26.9 32.4
Income tax expense 8.3 11.0
Minority interest - Convertible Preferred 2.2 2.2
Securities, net of tax
Other minority interest .6 .9
Net income $ 15.8 $ 18.3
Diluted net income $ 18.0 $ 20.5
Earnings per share:
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Basic $ .50 $ .58
Diluted $ .49 $ .56
Weighted average shares outstanding:
Common shares 31.5 31.5
Diluted shares 36.9 36.9
</TABLE>
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