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 19, 2000
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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 October 19, 2000 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 third
quarter 2000 results.
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 October 19, 2000 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
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Joan H. Prusse
Vice President & Secretary
Date: October 19, 2000
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EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Titanium Metals Corporation Mark A. Wallace
1999 Broadway, Suite 4300 Executive Vice President and Denver,
Colorado 80202 Chief Financial Officer
(303) 296-5615
TIMET ANNOUNCES THIRD QUARTER RESULTS
DENVER, COLORADO . . . October 19, 2000 . . . Titanium Metals Corporation
("TIMET") (NYSE: TIE) reported a net loss for the third quarter of 2000 of $7.9
million, or $.25 per share, compared to a net loss in the third quarter of 1999
of $7.5 million or $.24 per share. For the nine months ended September 30, 2000,
the Company reported a loss before previously reported special and extraordinary
items of $.84 per share compared to a net loss of $.44 per share in the 1999
period.
Sales of $106.8 million in the third quarter of 2000 were 5% lower than the
year-ago period. This resulted principally from a 6% decline in average mill
product selling prices offset by a 1% increase in sales volume. Ingot and slab
sales volume increased 71% from year-ago levels, while average selling prices
were unchanged. As compared to the second quarter of 2000, mill product sales
volume in the third quarter of 2000 decreased 2%, while average selling prices
were unchanged. Ingot and slab sales volume in the third quarter of 2000
increased 5% compared to the second quarter of 2000, while average selling
prices increased 2%. TIMET's backlog at the end of September 2000 was
approximately $200 million compared to $160 million at the end of June 2000.
Backlog at the end of September 1999 was $260 million.
J. Landis Martin, Chairman, President and CEO of TIMET said, "We
continued to make steady progress during the third quarter towards improving our
financial performance. Continued reduction of excess inventory throughout the
supply chain coupled with projected aircraft build rates should allow us to see
moderate increases in both sales volume and capacity utilization in 2001.
Current indications are that these and other factors should result in
substantially reduced operating losses in 2001 as compared to this year's
levels."
The statements in this release and the conference call 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," "looks," "should," "anticipates,"
"expected" or comparable terminology or by discussions of strategy or trends.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurances that
these expectations will prove to be correct. Such statements involve substantial
risks and uncertainties, including, but not limited to, the cyclicality of the
commercial aerospace industry, the performance of The Boeing Company and other
aerospace manufacturers under their long-term purchase agreements with the
Company, global economic conditions, global productive capacity for titanium,
changes in product pricing, 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.
As previously announced, TIMET will host a conference call to discuss
its third quarter results on Thursday, October 19, 2000 at 11:00 AM (EDT). On
the conference call will be J. Landis Martin, Chairman, President and Chief
Executive Officer, and Mark A. Wallace, Chief Financial Officer. Participants
can access the call by dialing 1-800-260-0712 (domestic) and 612-332-0107
(international).
TIMET, headquartered in Denver, Colorado, is a leading worldwide
integrated producer of titanium metal products. Information on TIMET is
available on the World Wide Web at http://www.timet.com/.
o o o o o
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TITANIUM METALS CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
(Unaudited)
Quarters Ended Nine Months Ended
September 30, September 30,
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1999 2000 1999 2000
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<S> <C> <C> <C> <C>
Net sales $112.7 $ 106.8 $374.5 $ 320.3
Cost of sales 108.7 103.1 344.5 318.7
Selling, administrative and development costs 11.3 11.3 36.7 33.8
Other expense .5 .1 1.5 .5
Restructuring charge - - - 2.8
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Operating loss (7.8) (7.7) (8.2) (35.5)
General corporate income 1.9 1.3 3.5 4.8
Interest expense 2.1 1.9 5.0 6.0
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Pretax loss (8.0) (8.3) (9.7) (36.7)
Income tax benefit (2.8) (2.9) (3.4) (12.8)
Minority interest - Convertible Preferred Securities, net of tax
2.2 2.2 6.5 6.5
Other minority interest .1 .3 1.1 1.2
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Loss before extraordinary item (7.5) (7.9) (13.9) (31.6)
Extraordinary item - early
extinguishment of debt, net of tax - - - (.9)
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Net loss $ (7.5) $ (7.9) $ (13.9) $ (32.5)
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Basic and diluted loss per share:
Before extraordinary item $ (.24) $ (.25) $ (.44) $ (1.01)
Extraordinary item - - - (.03)
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$ (.24) $ (.25) $ (.44) $ (1.04)
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Basic and diluted weighted
average shares outstanding 31.4 31.4 31.4 31.4
Mill product shipments:
Volume (metric tons) 2,800 2,840 8,600 8,430
Average price ($ per kilogram) $ 31.75 $ 28.20 $ 33.75 $ 29.20
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