Henderson manufacturer posts loss

Wednesday, Oct. 27, 1999 | 11:21 a.m.

THE ASSOCIATED PRESS

Titanium Metals Corp. of Denver announced a quarterly loss of $7.5 million, or 24 cents per share, and announced it is likely to have difficulty meeting terms of its credit agreements.

In the year-ago quarter, TIMET earned $16.1 million, or 51 cents per share. Sales during the quarter ending Sept. 30, 1999, declined 35 percent, to $112.7 million. The company said its production volumes were lowered significantly by dropping demand in the aerospace market, and "production difficulties and inefficiencies" at its North American plants.

The company also warned that it believed it would be unable to "meet all of the financial covenants in its principal bank agreement at the end of 1999." It said it was trying to amend the bank agreement, but didn't elaborate.

TIMET said it expected earnings to improve slightly in the fourth quarter. Analysts had expected a loss of 25 cents per share for the quarter.

TIMET, which employs about 300 in a plant in Henderson near Las Vegas, said it was still considering layoffs during the fourth quarter, and said it expected to take a restructuring charge. The company hasn't identified where layoffs will be. The company has laid off about 60 workers in Henderson over the past year.

Howard Gove, local unit chairman for the Steelworkers Union, said there haven't been any recent layoffs in Henderson, and that the plant actually recalled about seven workers.

"At a meeting this week, they assured us that everything is status quo right now," Gove said.