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
July 27, 1999
(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)
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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 July 27, 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 Second Quarter
1999 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 July 27, 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: July 27, 1999
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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 SECOND QUARTER EARNINGS
DENVER, COLORADO . . . July 27, 1999 . . . Tremont Corporation (NYSE: TRE)
reported second quarter 1999 net income of $12.5 million, or $1.93 per diluted
share, compared to $5.9 million, or $.86 per diluted share, for the same quarter
in 1998. The Company's income for the quarter included its 20% equity in NL
Industries, whose results included a $90 million tax benefit, discussed below,
representing income to Tremont of $1.70 per share.
The Company's equity in earnings of 39%-owned TIMET was a loss of $.7
million in the second quarter of 1999 compared to income of $4.2 million in
1998. TIMET reported a second quarter net loss of $2.5 million in 1999 on sales
of $127.6 million, down from net income of $13.8 million on sales of $190.8
million for the second quarter of 1998. TIMET's results in 1999 were below
those in 1998 principally due to a decline in volume caused by lower demand in
both aerospace and industrial markets. TIMET's $2.5 million net loss for the
second quarter of 1999 was lower than its net loss of $3.9 million for the first
quarter.
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The Company's equity in earnings of 20%-owned NL Industries, Inc. was $21.4
million in the second quarter of 1999 compared to $3.4 million for the same
quarter of 1998. NL reported income from continuing operations for the second
quarter of 1999 of $111.8 million, which includes a $90 million noncash income
tax benefit. The income tax benefit relates to a favorable resolution of a tax
contingency in Germany and a change in estimate of NL's ability to utilize
certain German income tax attributes for which the benefit had not been
previously recognized.
Excluding the tax benefit, NL's income from continuing operations in the
second quarter of 1999 would have been $21.8 million compared to $23.4 million
in the second quarter of 1998. NL reported second quarter titanium dioxide
pigments ("TiO2") sales volumes in 1999 that were 1% lower than the record sales
volume in the same quarter in 1998 and 24% higher than the first quarter of
1999. NL's second quarter average selling prices for TiO2 were comparable to
the second quarter of 1998 and 2% lower than the first quarter of 1999. NL's
production rates continue to closely match sales volumes.
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 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 Six Months Ended
June 30, June 30,
1998 1999 1998 1999
<S> <C> <C> <C> <C>
Equity in earnings (loss) of:
NL Industries $ 3.4 $ 21.4 $ 50.3 $ 23.2
TIMET 4.2 (.7) 9.7 (1.9)
Other .2 (.1) 2.0 .6
7.8 20.6 62.0 21.9
Corporate expense, net .3 .8 .4 1.7
Income before taxes and 7.5 19.8 61.6 20.2
minority interest
Income tax expense 1.6 7.3 4.1 7.2
Minority interest - - .5 .2
Income before 5.9 12.5 57.0 12.8
extraordinary item
Equity in extraordinary loss
of NL-
early extinguishment of - - (.4) -
debt
Net income $ 5.9 $ 12.5 $ 56.6 $ 12.8
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Earnings per share:
Before extraordinary
item:
Basic $ .88 $ 1.95 $ 8.47 $ 2.00
Diluted $ .86 $ 1.93 $ 8.15 $ 1.98
Net income:
Basic $ .88 $ 1.95 $ 8.41 $ 2.00
Diluted $ .86 $ 1.93 $ 8.09 $ 1.98
Weighted average shares
outstanding:
Common shares 6.7 6.4 6.7 6.4
Diluted shares 6.9 6.4 6.9 6.5
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