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 21, 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 October 21, 1997, 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 earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
99.1 Press release dated October 21, 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: October 22, 1997
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 THIRD QUARTER RESULTS
DENVER, COLORADO . . . October 21, 1997 . . . Tremont Corporation (NYSE:
TRE) reported third quarter net income of $5.1 million, or $.74 per share,
compared to $2.1 million, or $.28 per share, for the same quarter in 1996. For
the first nine months of 1997, Tremont reported net income of $7.1 million, or
$.99 per share, compared to $28.5 million, or $3.72 per share, for the same
period in 1996. Tremont recognized a $27.6 million pre-tax gain on the sale of
TIMET stock in the second quarter of 1996.
The Company's equity in earnings of 30%-owned TIMET was $6.5 million in
the third quarter of 1997 compared to $4.0 million in the third quarter of
1996. TIMET reported net income of $21.4 million in the third quarter of
1997 on sales of $177.2 million, up from net income of $13.3 million for the
third quarter of 1996. The significant improvement in TIMET's titanium
metals business in 1997 was driven by higher average selling prices and a 20%
year-to-date increase in mill product volume.
The Company's equity in earnings of 18%-owned NL Industries was $.9
million in the third quarter of 1997 compared to a loss of $1.7 million in the
third quarter of 1996. NL reported net income of $9.8 million in the third
quarter of 1997 on sales of $248.2 million compared to a loss of $4.2 million in
the same quarter of 1996. NL's third quarter average selling prices for
titanium dioxide pigments ("TiO2") were 3% higher than the second quarter of
1997 and 1% higher than year-ago levels.
The Company's equity in earnings of other joint ventures principally
represents earnings from its real estate development partnership. The Company's
income tax rate in 1997 approximates the statutory rate except that no tax
provision or benefit is recognized on its equity in NL's earnings or losses.
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 Nine Months Ended
September 30, September 30,
1996 1997 1996 1997
Equity in earnings (loss) of:
TIMET $ 4.0 $ 6.5 $ 8.7 $ 17.4
NL Industries (1.7) .9 .9 (6.7)
Other .8 .4 1.5 4.7
Gain on sale of TIMET stock - - 27.6 -
Corporate income (expense), net (.2) - (3.2) 1.1
Income before taxes and minority
interest 2.9 7.8 35.5 16.5
Income tax expense .6 2.6 6.6 8.2
Minority interest .2 .1 .4 1.2
Net income $ 2.1 $ 5.1 $ 28.5 $ 7.1
Net income per share $ .28 $ .74 $ 3.72 $ .99
Weighted average common shares
outstanding 7.7 6.9 7.7 7.2
