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
January 3, 2002
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(Date of Report, date of earliest event reported)
TITANIUM METALS CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 0-28538 13-5630895
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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)
Item 5: Other Events
On January 2, 2002 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 of the formation of a new division
named TiMET Automotive.
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 January 2, 2002 issued by Registrant.
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.
TITANIUM METALS CORPORATION
(Registrant)
By: /s/ Joan H. Prusse
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Joan H. Prusse
Vice President, Deputy General Counsel
and Secretary
Date: January 3, 2002
EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Titanium Metals Corporation Investor Relations and Media:
1999 Broadway, Suite 4300 Mark A. Wallace
Denver, Colorado 80202 Executive Vice President
and Chief Financial Officer
(303) 296-5615
Product and Technical:
Kurt Faller
President, TIMET Automotive
(610) 286-1222
TIMET LAUNCHES AUTOMOTIVE DIVISION
DENVER, COLORADO . . . January 2, 2002 . . . Titanium Metals Corporation
("TIMET") (NYSE: TIE) announced today the formation of a division specifically
to serve the automotive industry and its growing requirements for titanium. The
new division, named TiMET Automotive, is headquartered at the Company's
Morgantown, Pennsylvania facility. Its establishment formalizes TIMET's
intention to significantly expand its engagement with the automotive industry.
The new division is headed by Kurt Faller, age 37, who has been leading TIMET's
automotive initiatives for several years.
"TiMET Automotive is a natural step in the progression of the automotive
strategy we initiated in the mid-1990s," said J. Landis Martin, Chairman and
Chief Executive Officer of TIMET. "The need to meet the conflicting goals of
achieving higher mileage and lower emissions and improving safety has caused
automobile manufacturers to increase their application of light weight
materials. Titanium provides performance characteristics in the automotive
environment that are unmatched by other metals. The objective of TiMET
Automotive is to optimize the titanium production processes, controls, quality
procedures and supply channels to meet the needs of the automobile industry,"
continued Mr. Martin. "An integral part of our strategy is to provide the best
value titanium mill products to automotive industry oriented quality standards,"
Mr. Martin added.
The consumption of titanium by auto industry original equipment
manufacturers ("OEM's") for use in automobiles, trucks and motorcycles is
expected to approximate 1100 metric tons in 2002. While this volume is modest
compared to other automotive metals, it represents substantial growth over the
estimated 100 metric tons used by OEM's globally in 1995. Equally important,
this growth is taking place in all three of the world's primary auto producing
regions- the United States, Europe and Japan. Titanium's success in automotive
racing and other performance applications is now being translated into consumer
vehicles. At least seventeen OEM's are currently using titanium for an array of
components ranging from engine valves and connecting rods to wheel rim screws,
exhaust systems and suspension springs. Additional components are in development
or testing.
Titanium's unique combination of low mass, high strength and strong
resistance to automotive environment corrosion provides real solutions for
current automotive engineering challenges. The material makes possible engine
components that increase horsepower and torque while improving fuel economy and
solving noise, vibration and harshness problems. It offers lifetime exhaust
systems that weigh approximately 50% less than traditional systems. Titanium
suspension springs can give OEM's even greater mass reduction (up to 70%, in the
range of 20 to 45 lbs per vehicle) over conventional springs, performing the
same function in less space, allowing increased payload, and uniquely increasing
engine compartment or passenger compartment space.
"The reality is that titanium for automotive application is simply a lot
less expensive than is commonly thought," said Kurt Faller, president of TiMET
Automotive, "particularly when you look at the life cycle cost of the material."
Besides being much lower in mass, titanium exhaust components should easily last
several hundred thousand miles and, except in extreme racetrack environments,
are expected to exceed the life of the car. Titanium suspension springs save
weight, require no corrosion allowance and no protective coatings, and do the
same job in less space providing ever more valuable "real-estate" for designers
to work with. Titanium components also resist corrosion in the automotive
environment and, therefore, they retain much of the original material's value
when they are recycled at the end of the vehicle's life.
"Two of the more important tasks of TiMET Automotive are (i) to help OEM's
and component manufacturers see how titanium can cost-effectively improve their
products, and (ii) to match our titanium products, processing facilities and
production techniques to our customers' needs, further reducing costs as volumes
grow," Mr. Faller said. "In addition to our broad standard product line, we have
three proven automotive-focused, proprietary titanium alloys to address specific
needs. We have dedicated automotive product development, manufacturing and
quality personnel on staff, and believe titanium is well-positioned for strong
growth in the automotive industry," concluded Mr. Faller.
TIMET, headquartered in Denver, Colorado, is a leading worldwide integrated
producer of titanium metal products. Information on TIMET is available on the
World Wide Web at http://www.timet.com/.
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