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 23, 1998
(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
<PAGE> 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 23, 1998, 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 first quarter
earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
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Item Exhibit List
No.
99.1 Press release dated April 23, 1998 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: April 23, 1998
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PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Tremont Corporation J. Thomas Montgomery, Jr.
1999 Broadway, Suite 4300 Vice President, Controller and Treasurer
Denver, Colorado 80202 (303) 296-5617
TREMONT REPORTS FIRST QUARTER EARNINGS
DENVER, COLORADO . . . April 23, 1998 . . . Tremont Corporation (NYSE: TRE)
reported first quarter net income of $50.7 million, or $7.22 per diluted share,
compared to a loss of $2.4 million, or $.33 per diluted share, for the same
quarter in 1997.
The Company's equity in earnings of 30%-owned TIMET was $5.5 million in the
first quarter of 1998 compared to $4.8 million in 1997. TIMET reported first
quarter net income of $18.3 million in 1998 on sales of $187 million, up from
net income of $15.8 million on sales of $167 million for the first quarter of
1997. The improvement in TIMET's titanium metals business compared to the first
quarter of 1997 was primarily due to higher mill product volume.
The Company's equity in earnings (before extraordinary item) of 18%-owned
NL Industries, Inc. was $46.8 million in the first quarter of 1998,
approximately 95% of which related to the Company's equity in NL's $285 million
after-tax gain on the sale of its Rheox specialty chemicals operations. In the
first quarter of 1997, the Company's equity in NL was a loss of $7.2 million,
including it's equity in NL's $30 million non-cash charge related to
environmental liabilities.
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NL reported income from continuing operations of $16.3 million in the first
quarter of 1998 on sales of $223 million compared to a loss from continuing
operations of $40.2 million (including the $30 million environmental charge) on
sales of $204 million in the first quarter of 1997. NL reported record first
quarter titanium dioxide pigments ("TiO2") sales volumes in 1998. NL's first
quarter average selling prices for TiO2 were 5% higher than the fourth quarter
of 1997 and 17% higher than the first quarter of 1997.
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 varies from the statutory rate primarily because no income tax
provision is currently required 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.
oo o o o
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TREMONT CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
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<TABLE>
<CAPTION>
Quarter Ended
March 31,
1997 1998
<S> <C> <C>
Equity in earnings (loss) of:
TIMET $ 4.8 $ 5.5
NL Industries (7.2) 46.8
Other 3.9 1.9
1.5 54.2
Corporate expenses, net - .1
Income before taxes and minority 1.5 54.1
interest
Income tax expense 2.9 2.5
Minority interest 1.0 .5
Income (loss) before extraordinary (2.4) 51.1
item
Equity in extraordinary loss of NL-
early extinguishment of debt - (.4)
Net income (loss) $ (2.4) $ 50.7
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Earnings (loss) per share:
Before extraordinary item:
Basic $ (.32) $ 7.57
Diluted $ (.33) $ 7.28
Net income (loss):
Basic $ (.32) $ 7.51
Diluted $ (.33) $ 7.22
Weighted average shares outstanding:
Common shares 7.5 6.7
Diluted shares 7.5 6.9
</TABLE>
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