May 4 2004
Titanium Metals Corporation reported operating income of $2.8 million for the first quarter of 2004, compared to an operating loss of $8.1 million for the first quarter of 2003.
The Company reported a net loss for the first quarter of 2004 of $1.7 million, or $0.52 per share, compared to a net loss of $13.6 million, or $4.29 per share, for the year-ago period. The 2004 results include a one-time benefit of $1.9 million ($1.6 million in cost of sales and $0.3 million in selling, general, administrative and development expense) related to the Company's modification of its vacation policy for its U.S. salaried employees during the first quarter of 2004.
The Company's net sales were $120.5 million during the first quarter of 2004 compared to net sales of $99.3 million during the year-ago period. The increase in net sales was primarily due to a 26% increase in mill product sales volume and a 44% increase in melted product sales volume. These volume increases were partially offset by a decrease in both melted and mill product average selling prices (which prices were positively impacted by the continued weakening of the U.S. dollar compared to the British pound sterling and the euro but negatively impacted by changes in product mix).
The Company's backlog at the end of March 2004 was $220 million, an increase from $180 million at the end of December 2003 and $165 million at the end of March 2003. The Company was in a net cash position at March 31, 2004 of $35.0 million, consisting of $32.8 million of cash and cash equivalents, $2.2 million of restricted cash equivalents and no bank debt.