EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Titanium Metals Corporation Mark A. Wallace
1999 Broadway, Suite 4300 Executive Vice President
Denver, Colorado 80202 and Chief Financial Officer
(303) 296-5615
TIMET ANNOUNCES SECOND QUARTER RESULTS
DENVER, COLORADO . . . July 21, 2000 . . . Titanium Metals Corporation
("TIMET") (NYSE: TIE) reported a loss before restructuring items for the second
quarter of 2000 of $10.1 million, or $.32 per share, compared to a net loss in
the second quarter of 1999 of $2.5 million or $.08 per share. The second quarter
2000 results also include net-of-tax restructuring credits of $.6 million, or
$.02 per share, associated with revisions to previous estimates of such costs.
Net loss for the second quarter of 2000 was $9.5 million, or $.30 per share.
Sales of $108.8 million in the second quarter of 2000 were 15% lower
than the year-ago period. This resulted principally from a 10% decline in
average mill product selling prices offset by a 3% increase in sales volume.
Ingot and slab sales volume increased 34% from year-ago levels, while average
selling prices declined 4%. As compared to the first quarter of 2000, mill
product sales volume in the second quarter of 2000 increased 7%, while average
selling prices decreased 6%. Ingot and slab sales volume in the second quarter
of 2000 increased 53% compared to the first quarter of 2000, while average
selling prices decreased 4%. TIMET's backlog at the end of June 2000 was
approximately $160 million, compared to $185 million at the end of March 2000.
Backlog at the end of June 1999 was $240 million.
J. Landis Martin, Chairman, President and CEO of TIMET said, "We
believe our business in the second quarter continued to be adversely impacted by
an excess supply of titanium inventory throughout the aerospace industry supply
chain. Although there appears to be signs that this situation is abating in
selected products, the competitive environment has continued to result in a
softening of selling prices. Current indications are that sales and operating
margins, before special items, will be slightly lower for the balance of 2000
compared to the first half of this year. We are continuing our efforts to
increase sales and reduce costs wherever possible".
Regarding our previously reported lawsuit against The Boeing Company,
Boeing recently filed its answer to TIMET's complaint denying substantially all
of TIMET's allegations and making certain counterclaims against TIMET. TIMET
believes such counterclaims are without merit and intends to vigorously defend
against such claims. Since April 2000, the Company and Boeing have been in
discussions to determine if a settlement can be reached. Those discussions are
on-going; however, no assurance can be given that a settlement will be achieved.
Except in its quarterly conference calls, the Company does not plan to comment
on the Boeing lawsuit or the status of any settlement discussions in the absence
of a material development.
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," "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 second quarter results on Friday, July 21, 2000 at 11:00 AM (EDT). On the
conference call will be J. Landis Martin, Chairman, President and Chief
Executive Officer, and Mark Wallace, Chief Financial Officer. Participants can
access the call by dialing 1-800-450-0785 (domestic) and 612-332-0802
(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 Six Months Ended
June 30, June 30,
------------------------------- -----------------------------
1999 2000 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 127.6 $ 108.8 $ 261.7 $ 213.5
Cost of sales 113.6 107.6 235.8 215.6
Selling, administrative and development costs 12.6 11.2 25.4 22.5
Other expense .4 .4 .9 .4
Restructuring charge (credit) - (.9) - 2.8
-------------- ------------- ------------- ------------
Operating income (loss) 1.0 (9.5) (.4) (27.8)
General corporate income .8 1.1 1.7 3.6
Interest expense 1.7 2.0 3.0 4.2
-------------- ------------- ------------- ------------
Pretax income (loss) .1 (10.4) (1.7) (28.4)
Income tax benefit - (3.6) (.6) (10.0)
Minority interest - Convertible Preferred Securities,
net of tax 2.2 2.2 4.4 4.4
Other minority interest .4 .5 .9 .9
-------------- ------------- ------------- ------------
Loss before extraordinary item (2.5) (9.5) (6.4) (23.7)
Extraordinary item - early
extinguishment of debt, net of tax - - - (.9)
-------------- ------------- ------------- ------------
Net loss $ (2.5) $(9.5) $ (6.4) $(24.6)
============== ============= ============= ============
Basic and diluted loss per share:
Before extraordinary item $ (.08) $(.30) $ (.20) $(.76)
Extraordinary item - - - (.03)
-------------- ------------- ------------- ------------
$ (.08) $(.30) $ (.20) $(.79)
============== ============= ============= ============
Basic and diluted weighted
average shares outstanding 31.4 31.4 31.4 31.4
Mill product shipments:
Volume (metric tons) 2,800 2,890 5,800 5,590
Average price ($ per kilogram) $ 35.00 $28.65 $ 34.75 $29.70
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