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 22, 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 October 22, 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 third
quarter earnings.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item Exhibit List
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No.
99.1 Press release dated October 22, 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: October 22, 1998
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Exhibit 99.1
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 HIGHER THIRD QUARTER EARNINGS
DENVER, COLORADO . . . October 22, 1998 . . . Tremont Corporation (NYSE:
TRE) reported third quarter net income of $7.5 million, or $1.12 per diluted
share, compared to $5.1 million, or $.68 per diluted share, for the same quarter
in 1997.
The Company's equity in earnings of 33%-owned TIMET was $5.0 million in the
third quarter of 1998 compared to $6.5 million in 1997. TIMET reported third
quarter net income of $16.1 million in 1998 on sales of $174 million, down from
net income of $21.4 million on sales of $177 million for the third quarter of
1997. The decline in TIMET's third quarter results is primarily attributable to
lower sales volume and higher information technology costs, including
implementation of TIMET's enterprise-wide SAP system and addressing "Year 2000"
issues.
The Company's equity in earnings of 20%-owned NL Industries, Inc. was $4.8
million in the third quarter of 1998 compared to $.9 million for the same
quarter of 1997. NL reported income from continuing operations of $31.4 million
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in the third quarter of 1998 on sales of $222 million compared to $3.9 million
on sales of $210 million in the third quarter of 1997. NL's third quarter
titanium dioxide pigments ("TiO2") sales volume decreased 9% from the record
sales volume in the third quarter of 1997 as demand moderated. NL's third
quarter average selling prices for TiO2 were 17% higher than the third quarter
of 1997 and 2% higher than the second quarter of 1998.
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 Nine Months Ended
September 30, September 30,
1997 1998 1997 1998
<S> <C> <C> <C> <C>
Equity in earnings (loss) of:
TIMET $ 6.5 $ 5.0 $ 17.4 $ 14.8
NL Industries .9 4.8 (6.7) 55.0
Other .4 .2 4.7 2.2
7.8 10.0 15.4 72.0
Corporate income (expense), - (.3) 1.1 (.7)
net
Income before taxes and 7.8 9.7 16.5 71.3
minority interest
Income tax expense 2.6 1.8 8.2 5.9
Minority interest .1 - 1.2 .5
Income before 5.1 7.9 7.1 64.9
extraordinary item
Equity in extraordinary loss
of NL-
early extinguishment of - (.4) - (.8)
debt
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Net income $ 5.1 $ 7.5 $ 7.1 $ 64.1
Earnings per share:
Before extraordinary
item:
Basic $ .74 $ 1.23 $ .99 $ 9.82
Diluted $ .68 $ 1.19 $ .90 $ 9.47
Net income:
Basic $ .74 $ 1.17 $ .99 $ 9.69
Diluted $ .68 $ 1.12 $ .90 $ 9.35
Weighted average shares
outstanding:
Common shares 6.9 6.4 7.2 6.6
Diluted shares 7.1 6.5 7.3 6.8
</TABLE>
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