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
February 11, 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)
<PAGE>
Item 5: Other Events
On February 11, 2000 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 fourth
quarter and 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 February 11, 2000 issued by Registrant.
<PAGE>
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: February 11, 2000
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Tremont Corporation Mark A. Wallace
1999 Broadway, Suite 4300 Chief Financial Officer
Denver, Colorado 80202 (303) 296-5615
TREMONT REPORTS FOURTH QUARTER AND 1999 RESULTS
DENVER, COLORADO . . . February 11, 2000 . . . Tremont Corporation
(NYSE: TRE) reported a fourth quarter net loss of $40.5 million, or $6.34 per
share, compared to income of $9.7 million, or $1.49 per diluted share, for the
same quarter in 1998. For the full year of 1999, Tremont reported a net loss of
$28.2 million, or $4.41 per share, compared to income of $73.8 million, or
$10.88 per diluted share, for 1998. Tremont's fourth quarter results include a
$60.8 million pretax impairment charge for an other than temporary decline in
the market value of TIMET, a 39%-owned affiliate ($38 million, or $5.95 per
share, net of tax).
The Company's equity in losses of 39%-owned TIMET was $67.4 million in
the fourth quarter of 1999 compared to a loss of $.8 million in 1998. The 1999
loss includes the impairment charge. TIMET reported a net loss of $17.5 million
in the fourth quarter of 1999, including special charges of $11 million pretax.
These charges relate to costs associated with personnel reductions, write-downs
of TIMET's investments in certain start-up joint ventures and provisions for
slow-moving inventories. TIMET's sales for the fourth quarter were $106 million
compared to $156 million in the 1998 quarter. TIMET's results in 1999 were worse
than in 1998 primarily due to the decline in both volume and prices caused by
lower demand in both aerospace and industrial markets, and production-related
problems.
The Company's equity in earnings of 20%-owned NL Industries was $2.4
million in the fourth quarter of 1999 compared to $2.8 million in the same
quarter of 1998. NL reported income from continuing operations of $16.9 million
in the fourth quarter of 1999 on sales of $232 million compared to $18.8 million
on sales of $209 million in the fourth quarter of 1998. NL's fourth quarter
titanium dioxide pigments ("TiO2") sales volume increased 21% from the
year-earlier period with strong demand in all major regions. NL's fourth quarter
average selling prices for TiO2 were 1% higher than the third quarter of 1999
and 3% lower than the fourth quarter of 1998.
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
TREMONT CORPORATION
SUMMARY OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
Quarter Ended Year Ended
December 31, December 31,
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1998 1999 1998 1999
Equity in earnings (loss) of:
NL Industries $ 2.8 $ 2.4 $ 57.8 $ 28.1
TIMET (including provision for market (.8) (67.4) 14.0 (72.0)
value decline in 1999)
Other .7 (.1) 2.9 .6
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2.7 (65.1) 74.7 (43.3)
Corporate expenses, net (.4) .9 .3 3.6
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Income (loss) before taxes and 3.1 (66.0) 74.4 (46.9)
minority interest
Income tax expense (benefit) (7.9) (25.5) (2.0) (18.9)
Minority interest .2 - .7 .2
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Income (loss) before extraordinary
item 10.8 (40.5) 75.7 (28.2)
Equity in extraordinary loss of NL-
early extinguishment of debt (1.1) - (1.9) -
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Net income (loss) $ 9.7 $ (40.5) $ 73.8 $ (28.2)
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Income (loss) per share:
Before extraordinary item:
Basic $ 1.69 $ (6.34) $ 11.55 $ (4.41)
Diluted $ 1.66 * $ 11.18 *
Net income (loss):
Basic $ 1.52 $ (6.34) $ 11.25 $ (4.41)
Diluted $ 1.49 * $ 10.88 *
Weighted average shares outstanding:
Common shares 6.4 6.4 6.6 6.4
Diluted shares 6.5 6.4 6.7 6.5
* Antidilutive
