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 28, 1999
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(Date of Report, date of earliest event reported)
TREMONT CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 1-10126 76-0262791
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
1999 Broadway, Suite 4300, Denver, CO 80202
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(Address of principal executive offices) (Zip Code)
(303) 296-5600
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or address, if changed since last report)
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Item 5: Other Events
On October 28, 1999, 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 1999 financial results.
Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Item No. Exhibit List
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99.1 Press release dated October 28, 1999 issued by Registrant.
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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 28, 1999
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 THIRD QUARTER EARNINGS
DENVER, COLORADO . . . October 28, 1999 . . . Tremont Corporation (NYSE: TRE)
reported a third quarter 1999 net loss of $0.5 million, or $.08 per share,
compared to net income of $7.5 million, or $1.12 per diluted share, for the same
quarter in 1998.
The Company's equity in earnings of 39%-owned Titanium Metals
Corporation ("TIMET") was a loss of $2.7 million in the third quarter of 1999
compared to income of $5.0 million in 1998. TIMET reported a third quarter net
loss of $7.5 million in 1999 on sales of $113 million, down from net income of
$16.1 million on sales of $174 million for the third quarter of 1998. TIMET's
results in 1999 were worse than in 1998 primarily due to a decline in volume
caused by the previously-reported lower demand in both aerospace and industrial
markets. TIMET reported that titanium mill products volume in the third quarter
of 1999 was 20% lower than in the 1998 quarter, and that the average mill
products selling price was down approximately 11%.
The Company's equity in earnings of 20%-owned NL Industries, Inc. was
$2.5 million in the third quarter of 1999 compared to $4.8 million for the same
quarter of 1998. NL reported income from continuing operations for the third
quarter of 1999 of $17.1 million, down from $31.4 million for the third quarter
of 1998, primarily due to lower average selling prices and lower production
volume, offset by higher sales volume. NL's income from continuing operations in
the third quarter of 1998 includes an income tax benefit of $8.2 million related
to prior-year German withholding tax refunds.
NL reported that the average selling prices of titanium dioxide
pigments ("TiO2") in the third quarter of 1999 were 4% lower than the same
quarter in 1998 and 2% lower than the second quarter of 1999. NL's sales volume
increased 18% over the third quarter of 1998 with strong demand in all major
regions. NL's third quarter 1999 production volume was 10% lower than the
comparable 1998 period and 8% lower than the second quarter of 1999.
The Company's equity in earnings of other joint ventures principally
represents earnings from its real estate development partnership.
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 The Landwell Company.
o o o o o
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TREMONT CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
------------------------------- -------------------------------
1998 1999 1998 1999
<S> <C> <C> <C> <C> <C> <C>
Equity in earnings (loss) of:
NL Industries $ 4.8 $ 2.5 $ 55.0 $ 25.7
TIMET 5.0 (2.7) 14.8 (4.6)
Other .2 - 2.2 .7
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10.0 (0.2) 72.0 21.8
Corporate expense, net (.3) 1.0 (.7) 2.7
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Income before taxes and minority interest 9.7 (1.2) 71.3 19.1
Income tax expense 1.8 (.7) 5.9 6.6
Minority interest - - .5 .2
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Income before extraordinary item 7.9 (.5) 64.9 12.3
Equity in extraordinary loss of NL-
early extinguishment of debt (.4) - (.8) -
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Net income $ 7.5 $ (.5) $ 64.1 $ 12.3
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Earnings per share:
Before extraordinary item:
Basic $ 1.23 $ (.08) $ 9.82 $ 1.92
Diluted 1.19 (.08) 9.47 1.90
Net income:
Basic $ 1.17 $ (.08) $ 9.69 $ 1.92
Diluted 1.12 (.08) 9.35 1.90
Weighted average shares outstanding:
Common shares 6.4 6.4 6.6 6.4
Diluted shares 6.5 6.5 6.8 6.5
</TABLE>
