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 26, 2000
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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 26, 2000, the Registrant issued the press release attached
hereto as Exhibit 99.1 which is incorporated herein by this reference. The Press
Release at Exhibit 99.1 relates to an announcement by Registrant regarding
Registrant's financial results for third quarter 2000
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 26, 2000 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/ Joan H. Prusse
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Joan H. Prusse
Assistant General Counsel
and Assistant Secretary
Date: October 26, 2000
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Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Tremont Corporation Mark A. Wallace
1999 Broadway, Suite 4300 Vice President and
Denver, Colorado 80202 Chief Financial Officer
(303) 296-5615
TREMONT REPORTS THIRD QUARTER RESULTS
DENVER, COLORADO . . . October 26, 2000 . . . Tremont Corporation
(NYSE: TRE) (the "Company") reported net income for the third quarter of 2000 of
$1.9 million, or $.30 per diluted share, compared to a net loss of $.5 million,
or $.08 per diluted share, for the same quarter in 1999. The Company's net
income for the first nine months of 2000 was $5.1 million or $.80 per diluted
share compared to net income of $12.3 million or $1.90 per diluted share for the
first nine months of 1999. The Company's income for the first nine months of
2000 included its 20% equity in NL Industries, Inc., whose results included a
second quarter $27.5 million net-of-tax gain from an insurance settlement,
representing income to Tremont of $.54 per diluted share. NL's results for the
first nine months of 1999 included a second quarter $90 million tax benefit,
representing income to Tremont of $1.70 per diluted share.
The Company's equity in earnings of 39%-owned Titanium Metals
Corporation ("TIMET") was a loss of $1.5 million in the third quarter of 2000
compared to a loss of $2.7 million in the third quarter of 1999. TIMET reported
a third quarter net loss of $7.9 million in 2000 compared to a net loss of $7.5
million in the third quarter of 1999. TIMET's sales of $106.8 million in the
third quarter of 2000 were 5% lower than the year-ago period. This resulted
principally from a 6% decline in average mill product selling prices offset by a
1% increase in sales volume. Ingot and slab sales volume increased 71% from
year-ago levels, while average selling prices were unchanged. As compared to the
second quarter of 2000, mill product sales volume in the third quarter of 2000
decreased 2%, while average selling prices were unchanged. Ingot and slab sales
volume in the third quarter of 2000 increased 5% compared to the second quarter
of 2000, while average selling prices increased 2%.
The Company's equity in earnings of 20%-owned NL Industries was $5.3
million in the third quarter of 2000 compared to $2.5 million for the same
quarter of 1999. NL Industries reported net income of $30.2 million in the third
quarter of 2000 compared to net income of $17.1 million in 1999. Excluding the
2000 settlement gain and 1999 income tax benefit, NL's net income in the first
nine months of 2000 was $89.8 million, up 70% from $52.9 million in the first
nine months of 1999. Operating income of NL's titanium dioxide pigments business
increased 65% to $57.5 million in the third quarter of 2000 compared to $34.8
million in the third quarter of 1999. NL's improved operating income is
primarily due to 10% higher average selling prices in billing currencies and 14%
higher production volume, partially offset by 4% lower sales volume. Third
quarter 2000 operating income declined from the $62.7 million reported in the
second quarter of 2000 due to 6% lower sales volume partially offset by 3%
higher average selling prices in billing currencies and 3% higher production
volume. Operating income in the first nine months of 2000 increased 52% to
$166.5 million compared to $109.9 million in the first nine months of 1999 due
to 5% higher average selling prices in billing currencies, 10% higher production
volume and 8% higher sales volume. NL's third quarter 2000 sales volume was at
near record levels and decreased 4% from the third quarter of 1999 and 6% from
the second quarter of 2000. Sales volume in the first nine months of 2000 was 8%
higher than the first nine months of 1999. NL's third quarter 2000 production
volume was 14% higher than the comparable 1999 period with operating rates near
full capacity in 2000 compared to 90% in the third quarter of 1999.
The Company's equity in earnings of other joint ventures principally
represents earnings from its real estate development partnership. The Company's
effective tax rate in 2000 varies from the expected tax rate because the Company
is not recognizing deferred tax benefits with respect to its equity in losses of
TIMET.
Tremont, headquartered in Denver, Colorado, is principally a holding
company with operations in the titanium metals business, conducted through
TIMET, in the titanium dioxide pigments business, conducted through NL, and in
real estate development, conducted through The Landwell Company.
o o o o o
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<TABLE>
<CAPTION>
TREMONT CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
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1999 2000 1999 2000
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<S> <C> <C> <C> <C>
Equity in earnings (loss) of:
TIMET $ (2.7) $ (1.5) $ (4.6) $ (7.7)
NL Industries 2.5 5.3 25.7 21.1
Other - .5 .7 .8
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(.2) 4.3 21.8 14.2
Corporate expenses, net .8 .6 2.1 1.8
Interest expense .2 .3 .6 .9
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Income (loss) before taxes and minority interest (1.2) 3.4 19.1 11.5
Income tax expense (benefit) (.7) 1.4 6.6 5.9
Minority interest - .1 .2 .2
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Income (loss) before extraordinary item (.5) 1.9 12.3 5.4
Equity in extraordinary loss of TIMET- early
extinguishment of debt - - - (.3)
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Net income (loss) $ (.5) $ 1.9 $ 12.3 $ 5.1
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Earnings (loss) per share:
Before extraordinary item:
Basic $ (.08) $0.31 $1.92 $0.86
Diluted $ (.08) $0.30 $1.90 $0.85
Net income (loss):
Basic $ (.08) $0.31 $1.92 $0.81
Diluted $ (.08) $0.30 $1.90 $0.80
Weighted average shares outstanding:
Common shares 6.4 6.2 6.4 6.3
Diluted shares 6.5 6.3 6.5 6.4
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