Timet cuts minimal in Las Vegas area

Kevin Ferguson

Thursday, Oct. 25, 2001 | 10:37 a.m.

Titanium Metals Corp., which has a large plant near Henderson, plans to cut fewer than 25 local jobs in its titanium melting division in response to slowing orders from aircraft manufacturers, a top executive said.

Denver-based Timet reported last week a profitable third quarter, but warned the slumping commercial aerospace industry will likely hamper its business in the fourth quarter.

"We plan to cut about 50 jobs (combined) at our (Clark County) and Pennsylvania plants," said Mark Wallace, chief financial officer, noting that the cuts will occur "soon" and will affect fewer than 25 employees at the Southern Nevada plant, which has about 500 workers.

The work force reduction was anticipated following a Boeing Co. announcement that it planned to lay off up to 30,000 workers through 2002 as demand slows for new airliners due to terrorism.

Timet produces 80 percent of its products for the commercial aerospace industry. The other 20 percent is used for military defense, such as armor and tanks, Wallace said.

Further job cuts will likely occur in the future as demand for titanium products declines, a Timet statement said.

In the recently ended third quarter, Timet reported a profit of $4.3 million, or 14 cents per share compared to a loss of $7.9 million, or 25 cents per share in the comparable quarter last year.

The company reported third quarter revenue of $126.4 million, an 18 percent increase.

Timet said the revenue increase was due to a 3 percent increase in mill product selling prices, a 6 percent increase in mill product sales volume and a favorable product mix.