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 25, 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 April 25, 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 first quarter 1997 results.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
99.1 Press release dated April 25, 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.
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/ John R. Burt
John R. Burt
Corporate Attorney
and Assistant Secretary
Date: April 25, 1997
Exhibit 99.1
PRESS RELEASE
TREMONT REPORTS FIRST QUARTER 1997 RESULTS
DENVER, COLORADO . . . April 25, 1997 . . . Tremont Corporation (NYSE:
TRE) reported a first quarter net loss of $2.4 million, or $.32 per share,
compared to net income of $2.2 million, or $.29 per share, for the same quarter
in 1996. The Company's loss for the first quarter included its 18% equity in NL
Industries, whose results included a $30 million charge related to the adoption
of a new accounting standard for environmental remediation liabilities and
represented a loss to Tremont of $.70 per share.
The Company's equity in earnings of now 30%-owned TIMET was $4.8 million
in the first quarter of 1997 compared to $1.3 million in the first quarter of
1996. TIMET reported net income of $15.8 million in the first quarter of 1997
on sales of $167 million, up from net income of $2.1 million for the first
quarter of 1996. The significant improvement in TIMET's titanium metals
business was driven by continued price increases and a 17% increase in mill
product volume compared to the first quarter of 1996.
The Company's equity in earnings of 18%-owned NL was a loss of $7.2
million in the first quarter of 1997 compared to income of $1.4 million in the
first quarter of 1996. NL reported a net loss of $35.7 million in the first
quarter of 1997, including the $30 million charge referred to above, on sales of
$239 million compared to net income of $13.4 million in the same quarter of
1996. NL's first quarter average selling prices for titanium dioxide pigments
("TiO2") were 16% lower than the first quarter of 1996 and 2% lower than the
fourth quarter of 1996. NL continued to experience strong demand for TiO2,
reporting record first quarter sales volumes that were 22% higher than the first
quarter of 1996.
The Company's equity in earnings of other joint ventures was $3.9 million
in the first quarter of 1997 and principally represents earnings from land sales
made by its real estate development partnership. The Company's income tax rate
for the first quarter of 1997 approximated 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, and the strong demand NL is experiencing for TiO2, the Company
believes it will be profitable for the full year.
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 Corporation, 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
March 31,
1996 1997
Equity in earnings (losses) of:
TIMET $ 1.3 $ 4.8
NL Industries 1.4 (7.2)
Other - 3.9
------ -------
2.7 1.5
Corporate expenses, net of interest income .3 -
Interest expense .1 -
-------- -------
Income before taxes and minority
interest 2.3 1.5
Income tax expense - 2.9
Minority interest .1 1.0
-------- -------
Net income $ 2.2 $ (2.4)
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Net income per common share $ .29 $ (.32)
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Weighted average common shares outstanding 7.4 7.6
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