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 1, 1999
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(Date of Report, date of earliest event reported)
TITANIUM METALS CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 0-28538 13-5630895
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
1999 Broadway, Suite 4300, Denver, CO 80202
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(Address of principal executive offices) (Zip Code)
(303) 296-5600
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or address, if changed since last report)
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ITEM 5: OTHER EVENTS
On September 30, 1999 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 that its results for the second
half of 1999 will be below expectations.
ITEM 7: FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(C) EXHIBITS
Item No. Exhibit List
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99.1 Press release dated September 30, 1999 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/ JOAN H. PRUSSE
Assistant General Counsel
Date: October 1, 1999
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EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE CONTACT:
Titanium Metals Corporation J. Thomas Montgomery
1999 Broadway, Suite 4300 Vice President - Finance
Denver, Colorado, 80202 (303) 296-5617
TIMET RESULTS TO BE BELOW EXPECTATIONS
Denver, Colorado . . . September 30, 1999 . . . Titanium Metals
Corporation ("TIMET") (NYSE: TIE) announced today that its results for the
second half of 1999 will be substantially lower than previously expected. TIMET
estimates that it will report a net loss for the third quarter of 1999 of
approximately $.25 per share. The principal reasons for the shortfall in third
quarter earnings from prior expectations are lower volumes and production
problems in its North American operations. For the fourth quarter, the Company
currently expects results to improve from third quarter levels, but now expects
to report a net loss primarily due to lower than previously expected shipment
volumes.
Third quarter volumes were lower than expected due in part to declines
in demand, including cancellations and push-outs by major aerospace customers.
Production difficulties and inefficiencies in North American Operations, also
negatively impacted volumes and overall plant operating rates were lower. Yield,
rework and deviated material costs were significantly higher than forecast and
resumption of production following certain maintenance shutdowns took longer
than expected.
TIMET is focusing additional attention and resources on those areas
where its operating performance requires immediate improvement. TIMET also plans
to consider further personnel reductions and rationalization of plant capacity
in light of its revised market outlook. If such action is taken, the Company
would likely incur a restructuring charge in the fourth quarter.
J. Landis Martin, Chairman and CEO of TIMET, said, "The downturn in our
commercial aerospace markets is lasting longer and is more pronounced than we
previously expected. We are continuing to work with our major customers to
determine volumes for next year. However, current indications are that, in at
least some cases, they are likely to be lower than in 1999. Until volumes for
next year are set, we are unable to forecast whether we will be profitable next
year."
In light of its revised market outlook, TIMET also intends to review
its dividend payment policy on both its common stock and its convertible
preferred securities.
TIMET also said that in view of its revised market outlook and the
uncertainty concerning next year's operating results, it may seek to amend its
bank credit agreements to provide relief from certain covenants.
The statements in this release, relating to matters that are not
historical facts, are forward-looking statements that represent management's
beliefs and assumptions based on currently available information.
Forward-looking statements can be identified by the use of words such as
"believes," "intends," "may," "will," "should," "anticipated" or comparable
terminology or by discussions of strategy. Although the Company believes that
the expectations reflected in such forward-looking statements are reasonable, it
cannot assure that these expectations will prove to be correct. Such statements
involve risks and uncertainties including, but not limited to, the cyclicality
of the commercial aerospace industry, global economic conditions, global
productive capacity, changes in product pricing, "Year 2000" issues and other
risks and uncertainties included in the Company's filings with the Securities
and Exchange Commission. Should one or more of these risks materialize (or the
consequences of such a development worsen), or should the underlying assumptions
prove incorrect, actual results could differ materially from those forecasted or
expected. The Company assumes no duty to update any forward-looking statements.
TIMET, headquartered in Denver, Colorado, is a leading worldwide
integrated producer of titanium metal products.
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