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 23, 1997
(Date of Report, date of earliest event reported)
TREMONT CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 1-10126 76-0262791
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
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 22, 1997, the Registrant issued the press release attached
hereto as Exhibit 99.1, which is incorporated herein by reference. The press
release relates to the Registrant's second quarter results.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
99.1 Press release dated July 22, 1997 issued by Registrant.
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.
TREMONT CORPORATION
(Registrant)
By: /s/ Robert E. Musgraves
Robert E. Musgraves
Vice President, General Counsel
and Secretary
Date: July 23, 1997
EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Tremont Corporation Joseph S.
Compofelice
1999 Broadway, Suite 4300 Vice President and
CFO Denver, Colorado 80202 (303) 296-5623
TREMONT REPORTS SECOND QUARTER RESULTS
DENVER, COLORADO . . . July 22, 1997 . . . Tremont Corporation (NYSE: TRE)
reported second quarter net income of $4.4 million, or $.62 per share, compared
to $24.1 million, or $3.14 per share, for the same quarter in 1996. For the
first six months of 1997, Tremont reported net income of $2.0 million, or $.28
per share, compared to $26.3 million, or $3.44 per share, for the same period in
1996. Tremont recognized a $27.6 million gain on the sale of TIMET stock in the
second quarter of 1996.
The Company's equity in earnings of 30%-owned TIMET was $6.1 million in
the second quarter of 1997 compared to $3.3 million in the second quarter of
1996. TIMET reported net income of $20.3 million in the second quarter of 1997
on sales of $181.4 million, up from net income of $8.1 million for the second
quarter of 1996. The significant improvement in TIMET's titanium metals
business was driven by price increases and a 30% increase in mill product volume
compared to the second quarter of 1996.
The Company's equity in earnings of 18%-owned NL Industries was a loss of
$.4 million in the second quarter of 1997 compared to income of $1.3 million in
the second quarter of 1996. NL reported net income of $2.3 million in the
second quarter of 1997 on sales of $253 million compared to net income of $11.9
million in the same quarter of 1996. NL's second quarter average selling prices
for titanium dioxide pigments ("TiO2") were 3% higher than the first quarter of
1997 and 8% below year-ago levels.
The Company's equity in earnings of other joint ventures principally
represents earnings from its real estate development partnership. General
corporate income, net in the second quarter of 1997 included $1.2 million
related to the sale of certain oil and gas production interests. The Company's
income tax rate in 1997 approximates the statutory rate except that no benefit
is recognized on NL s losses.
Based on continuing strength in the titanium metals business, especially
in aerospace, the strong demand and increasing prices NL is experiencing for
TiO2, the Company believes it will be profitable during the last half of 1997.
The statements in this release relating to matters that are not historical
facts are forward-looking statements that involve risks and uncertainties,
including, but not limited to, the cyclicality of the commercial aerospace
industry, future global economic conditions, global productive capacity and
pricing outlook of titanium metals and TiO2, and other risks and uncertainties
detailed in the Company's Securities and Exchange Commission filings.
Tremont, headquartered in Denver, Colorado, is principally a holding
company with operations in the titanium metals business, conducted through
TIMET, in the TiO2 business, conducted through NL, and in real estate
development, conducted through Victory Valley Land Company, L.P.
TREMONT CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
(Unaudited)
Quarter ended Six Months Ended
June 30, June 30,
1996 1997 1996 1997
Equity in earnings (loss) of:
TIMET $ 3.3 $ 6.1 $ 4.6 $ 10.9
NL Industries 1.3 (.4) 2.7 (7.6)
Other .7 .4 .7 4.3
----- ----- ----- -----
5.3 6.1 8.0 7.6
Gain on sale of TIMET stock 27.6 - 27.6 -
Corporate income (expense), net (2.6) 1.1 (3.0) 1.1
----- ----- ----- -----
Income before taxes and
minority interest 30.3 7.2 32.6 8.7
Income tax expense 6.1 2.7 6.1 5.6
Minority interest .l .1 .2 1.1
----- ----- ----- -----
Net income $ 24.1 $ 4.4 $ 26.3 $ 2.0
----- ----- ----- -----
Net income per share $ 3.14 $ .62 $ 3.44 $ .28
----- ----- ----- -----
Weighted average common shares
outstanding 7.7 7.1 7.7 7.3
----- ----- ----- -----
