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 26, 1999
(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)
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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 April 26, 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 regarding Registrant's First Quarter
1999 results.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item Exhibit List
No.
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99.1 Press release dated April 26, 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/ Robert E. Musgraves
Robert E. Musgraves
Vice President, General Counsel
and Secretary
Date: April 26, 1999
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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 ANNOUNCES FIRST QUARTER RESULTS
DENVER, COLORADO . . . April 26, 1999 . . . Titanium Metals Corporation
("TIMET") (NYSE: TIE) announced today a net loss of $.12 per share for the
quarter ended March 31, 1999. In the first quarter of 1998, TIMET reported net
income of $.56 per diluted share.
Sales of $134 million in the first quarter of 1999 were 28% lower than the
first quarter of last year due principally to a 23% decline in mill products
volume caused by reduced demand for both aerospace and industrial products.
Average selling prices in most product lines were lower than in the 1998 period,
with changes in mix resulting in a comparable overall average selling price.
The lower volumes and selling prices contributed significantly to the lower
gross profit margin.
J. Landis Martin, Chairman and CEO of TIMET said, "As expected, reduced
demand and lower selling prices caused lower sales and margins in 1999. Our
previously announced plan of action designed to address current market
conditions is on schedule. I still expect a net loss in the second quarter and,
possibly, the third quarter. We should return to profitability no later than
the fourth quarter."
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Mr. Martin also said, "Our major capital expenditure program is complete
with all major equipment now in production. Our business-enterprise system is
installed, and we are now focusing on using it to help improve our business
processes. In addition, our previously announced facility closures and most of
our workforce reductions have been implemented."
In addition, Martin said, "I am cautiously optimistic about 2000 and
beyond. With our short-term plan in place, our long-term agreements with major
aerospace customers should limit future pricing and volume volatility and
provide TIMET with a solid base of aerospace volume as we continue to focus on
reducing our costs."
TIMET's backlog at the end of March 1999 was approximately $325 million.
Comparable backlog at the end of March 1998 was $475 million.
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," "anticipates" 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.
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TIMET, headquartered in Denver, Colorado, is a leading worldwide integrated
producer of titanium metal products.
NOTE: A conference call for the investment community will be held at 11:00
A.M., Eastern Time, on Monday, April 26, 1999. On the conference call will be
J. Landis Martin, Chairman and Chief Executive Officer, Andrew R. Dixey,
President and Chief Operating Officer, and J. Thomas Montgomery, Jr., Vice
President-Finance and Treasurer. Participants can access the call by dialing 1-
800-611-1148 (domestically) and 612-332-0806 (internationally). A taped replay
of the call will be available until 12:00 P.M., Eastern Time, on May 26, 1999,
by dialing 1-800-475-6701 (domestically) and 320-365-3844 (internationally), and
using the access code 446946.
oo o o o
TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
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<TABLE>
<CAPTION>
Quarter Ended
March 31,
1998 1999
<S> <C> <C>
Net sales $187.1 $134.1
Cost of sales 140.9 122.2
Selling, administrative and development costs 14.2 12.8
Other expense .4 .5
Operating income (loss) 31.6 (1.4)
General corporate income 1.2 .9
Interest expense .4 1.3
Pretax income (loss) 32.4 (1.8)
Income tax expense (benefit) 11.0 (.6)
Minority interest - Convertible Preferred 2.2 2.2
Securities, net of tax
Other minority interest .9 .5
Net income (loss) $ 18.3 $ (3.9)
Diluted net income (loss) $ 20.5 $ (1.7)
Earnings (loss) per share:
Basic $ .58 $ (.12)
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Diluted .56 *
Weighted average shares outstanding:
Common shares 31.5 31.4
Diluted shares 36.9 36.8
Mill product shipments:
Volume (metric tons) 3,900 3,000
Average price ($ per kilogram) $ 34.50 $ 34.50
* Assumed conversion of Convertible Preferred Securities is
antidilutive to earnings per share.
</TABLE>
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