TREMONT ANNOUNCES 1991 RESULTS
TREMONT ANNOUNCES 1991 RESULTS DENVER, Feb. 3 /PRNewswire/ -- Tremont Corp. (NYSE: TRE) reported
a net loss for 1991 of $1.5 million, or 21 cents per share, on net sales of $170.1 million compared to net income of $25.0 million, or $3.37 per share, on net sales of $246.2 million in 1990. For the fourth quarter of 1991, Tremont reported a net loss of $2.8 million, or 38 cents per share, on net sales of $40.0 million compared to net income of $6.5 million, or 88 cents per share, on net sales of $62.6 million in the like quarter of 1990.
Commenting on 1991 results, J. Landis Martin, chairman and chief executive officer of Tremont said: "While our 1991 financial results are very disappointing, the industries we service are experiencing major difficulties.
Despite these industry conditions, we are making every effort to strengthen our company in anticipation of an eventual improvement in our major markets. For example, TIMET has just commissioned its plasma hearth melting furnace, and completed a $4.5 million upgrade of its Sendzimir Mill and installation of a new billet peeler. In addition, TIMET has under construction a new $90 million vacuum distillation titanium sponge plant, which is on schedule. These and other projects are focused on improved cost, quality and services, and should assure TIMET's continuing leadership in its served markets."
Titanium metals net sales decreased 38 percent to $36.3 million in the fourth quarter of 1991 and decreased 32 percent to $155.7 million for the year, compared to the like periods in 1990, principally due to a decline in annual sales volume of 30 percent. Declines in average product prices during 1991 were partially offset by favorable changes in product mix. Titanium metals reported an operating loss of $2.1 million for the fourth quarter and operating income of $4.8 million for the full year, representing declines of $10.2 million and $31.0 million, respectively, from 1990. The decreases in operating income reflect both volume and price declines and resulting production inefficiencies. Market demand for titanium products used in the military and commercial aerospace industries and certain other industrial markets declined during 1991. Customers reduced inventories and delayed delivery of existing orders. The company believes that the current depressed volume level will persist at least into the first half of 1992 with moderate recovery thereafter. Average product prices realized on shipments during 1992 are expected to continue to decline at least through the first half of 1992 with an unfavorable effect from product mix changes. Titanium metals operations are expected to report an operating loss for calendar 1992. Bentonite mining operations reported a nominal operating loss in the fourth quarter of 1991 and break-even results for the year, down $.5 million and $1.5 million compared to the like periods of 1990. Bentonite results in 1991 include a second quarter charge of $.8 million resulting from a change in estimated severance and ad valorem tax liabilities for 1985-1990. As previously reported, the company completed the purchase of 7.8 million shares of NL Industries Inc.. common stock from Valhi Inc. on Dec. 3, 1991 for $92 million. The company reports its interest in NL by the equity method and 1991 results include a $.3 million fourth quarter loss attributable to NL. Interest income increased in 1991 principally from earnings on higher average levels of funds available for investment. Securities transactions in 1991 result from the sale of U.S. Treasury securities during the fourth quarter. Other general corporate items in 1991 reflect higher levels of administrative expenses and an aggregate $2.6 million loss related to certain surplus property, principally a second quarter charge resulting from changes in aggregate estimated net realizable values. Interest expense in 1991 reflects higher average outstanding borrowings, including TIMET's convertible subordinated debentures issued to finance construction of TIMET's new sponge plant. Minority interest in 1990 relates to Titanium Metals Corp. which became a wholly-owned subsidiary in March 1990. The extraordinary items in 1990 relate to the income tax benefit of utilization of tax loss carryforwards. Tremont's 1991 results are subject to final audit. Tremont, a leading integrated producer of titanium metal also engaged in bentonite mining operations, is headquartered in Denver. Tremont's common stock is traded on the New York and Pacific Stock Exchanges under the Symbol "TRE". TREMONT CORP. Summary of Consolidated Operations (In millions, except per share data) Three Months Ended Year Ended Dec. 31, Dec. 31, 1991 1990 1991 1990 Net sales: Titanium metals $36.3 $58.7 $155.7 $230.6 Bentonite mining 3.7 3.9 14.4 15.6 $40.0 $62.6 $170.1 $246.2 Operating income: Titanium metals $(2.1) $8.1 $4.8 $35.8 Bentonite mining (.1) .4 --- 1.5 Total operating income (2.2) 8.5 4.8 37.3 Equity in loss of NL (.3) --- (.3) --- General corporate items: Securities transactions 2.1 --- 2.1 1.3 Interest income 1.6 2.8 8.2 4.7 Other, net (3.4) (1.2) (11.3) (5.0) Interest expense (.8) (.8) (3.9) (2.0) Income before income taxes, minority interest and extraordinary items (3.0) 9.3 (.4) 36.3 Provision for income taxes (.2) 2.7 1.1 12.3 (2.8) 6.6 (1.5) 24.0 Minority interest --- --- --- 2.2 Income before extraordinary items (2.8) 6.6 (1.5) 21.8 Extraordinary items --- (.1) --- 3.2 Net income (loss) $(2.8) $6.5 $(1.5) $25.0 Per common share (a): Income (loss) before extraordinary items $(.38) $.89 $(.21) $2.93 Extraordinary items --- (.01) --- .44 Net income (loss) $(.38) $.88 $(.21) $3.37 Dividends $.20 --- $.60 --- Weighted average common shares(a) 7.3 7.4 7.4 7.4 (a) Reflects one-for-ten reverse stock split effective May 14, 1991. -0- 2/3/92 R /CONTACT: Susan E. Alderton of Tremont Corp., 212-421-7202/ (TRE) CO: Tremont Corp. ST: Colorado IN: MNG ARO SU: ERN
BB -- DV007 -- 6524 02/04/92 09:07 EST
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|Date:||Feb 4, 1992|
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