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
July 21, 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 July 21, 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 2nd 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 July 21, 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: July 21, 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 SECOND QUARTER RESULTS
DENVER, COLORADO . . . July 21, 1999 . . . Titanium Metals Corporation
("TIMET") (NYSE: TIE) announced today a net loss of $.08 per share for the
quarter ended June 30, 1999. In the second quarter of 1998, TIMET reported net
income of $.44 per share.
Results in 1999 were below those in 1998 principally due to a decline in
volume caused by the previously-reported lower demand in both aerospace and
industrial markets.
Sales of $128 million in the second quarter of 1999 were 5% lower than the
first quarter of this year principally due to lower volume. The average mill
product selling price increased largely due to mix, as over 60% of the decline
in mill product volume from the first quarter level was in TIMET's lowest priced
product line. TIMET's cost reduction efforts and the changes in product mix
both contributed to the improvement in second quarter margins over first quarter
levels. The Company reported a modest operating profit for the second quarter.
J. Landis Martin, Chairman and CEO of TIMET said, "As expected, we reported
a net loss in the second quarter. We are focusing on improving our margins
through cost reductions, including shifting production to our more cost
effective equipment acquired or refurbished as part of our major capital
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expenditure program, and through increased utilization of our business-
enterprise system to help improve our business processes."
TIMET's backlog at the end of June 1999 was approximately $240 million.
Comparable backlog at the end of June 1998 was $400 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.
TIMET, headquartered in Denver, Colorado, is a leading worldwide integrated
producer of titanium metal products.
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NOTE: A conference call for the investment community will be held at 11:00
A.M., Eastern Time, on Wednesday, July 21, 1999. On the conference call will be
J. Landis Martin, Chairman and Chief Executive Officer, and J. Thomas
Montgomery, Jr., Vice President-Finance and Treasurer. Participants can access
the call by dialing 1-877-777-1972 (domestically) and 719-447-0008
(internationally). A taped replay of the call will be available until 12:00
P.M., Eastern Time, on August 21, 1999, by dialing 1-800-475-6701 (domestically)
and 320-365-3844 (internationally), and using the access code 461984.
oo o o o
TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
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<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1998 1999 1998 1999
<S> <C> <C> <C> <C>
Net sales $190.8 $127.6 $377.9 $261.7
Cost of sales 147.1 113.6 288.0 235.8
Selling, administrative and 14.2 12.6 28.4 25.4
development costs
Special charge 6.0 - 6.0 -
Other expense (income) (.4) .4 - .9
Operating income (loss) 23.9 1.0 55.5 (.4)
General corporate income 1.7 .8 2.9 1.7
Interest expense .5 1.7 .9 3.0
Pretax income (loss) 25.1 .1 57.5 (1.7)
Income tax expense (benefit) 8.6 - 19.6 (.6)
Minority interest - Convertible
Preferred Securities, net of tax 2.2 2.2 4.4 4.4
Other minority interest .5 .4 1.4 .9
Net income (loss) $ 13.8 $ (2.5) $ 32.1 $ (6.4)
Diluted net income (loss) $ 16.0 $ (.3) $ 36.5 $ (2.0)
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Earnings (loss) per share:
Basic $ .44 $ (.08) $ 1.02 $ (.20)
Diluted .44 * .99 *
Weighted average shares outstanding:
Common shares 31.5 31.4 31.5 31.4
Diluted shares 36.9 36.8 36.9 36.8
Mill product shipments:
Volume (metric tons)
3,900 2,800 7,800 5,800
Average price ($ per kilogram) $ 34.50 $ 35.00 $ 34.50 $ 34.75
* Assumed conversion of Convertible Preferred Securities is antidilutive
to earnings per share.
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