| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------|

|   | For the quarterly period ended September 30, 2012 |
|--------|---------------------------------------------------|

|   | OR |
|--------|----|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-------------------------------------------------------------------------------------------|

|   | Commission file number 1-14368 |
|--------|--------------------------------|

| Titanium Metals Corporation                            |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                                                       |   | 13-5630895                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2697               |
|----------------------------------------------------------------------|
| (Address of principal executive offices)   (Zip Code) |

| Registrant’s telephone number, including area code: | (972) 233-1700 |
|-----------------------------------------------------------|----------------|

----

|   | TITANIUM METALS CORPORATION |
|--------|-----------------------------|

|   | INDEX |
|--------|-------|

|                                                                                                                                 |   | PageNumber |     |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|------------|----------|
|                                                                                                                                 |   |       |     |
| PART I.  FINANCIAL INFORMATION                                                                                             |   |       |     |
|                                                                                                                                 |   |       |     |
| Item 1.Condensed Consolidated Financial Statements                                                                                   |   |       |     |
|                                                                                                                                 |   |       |     |
| Condensed Consolidated Balance Sheets –December 31, 2011; September 30, 2012 (unaudited)                                       |   |       |  2  |   |
|                                                                                                                                 |   |       |     |   |
| Condensed Consolidated Statements of Income –Three and nine months ended September 30, 2011 and 2012 (unaudited)               |   |       |  4  |   |
|                                                                                                                                 |   |       |     |   |
| Condensed Consolidated Statements of Comprehensive Income –Three and nine months ended September 30, 2011 and 2012 (unaudited) |   |       |  5  |   |
|                                                                                                                                 |   |       |     |   |
| Condensed Consolidated Statements of Cash Flows –Nine months ended September 30, 2011 and 2012 (unaudited)                     |   |       |  6  |   |
|                                                                                                                                 |   |       |     |   |
| Condensed Consolidated Statement of Changes in Equity –Nine months ended September 30, 2012 (unaudited)                        |   |       |  7  |   |
|                                                                                                                                 |   |       |     |   |
| Notes to condensed Consolidated Financial Statements                                                                                 |   |       | 8        |   |
|                                                                                                                                 |   |       |     |   |
| Item 2.Management’s Discussion and Analysis of Financial Condition  and Results of Operations                        |   |       |  18 |   |
|                                                                                                                                 |   |       |     |   |
| Item 3.Quantitative and Qualitative Disclosures about Market Risk                                                                    |   |       | 27       |   |
|                                                                                                                                 |   |       |     |   |
| Item 4.Controls and Procedures                                                                                                       |   |       | 27       |   |
|                                                                                                                                 |   |       |     |   |
| PART II.  OTHER INFORMATION                                                                                                |   |       |     |   |
|                                                                                                                                 |   |       |     |   |
| Item 1.Legal Proceedings                                                                                                             |   |       | 28       |   |
|                                                                                                                                 |   |       |     |   |
| Item 1A.Risk Factors                                                                                                                 |   |       | 28       |   |
|                                                                                                                                 |   |       |     |   |
| Item 6.Exhibits                                                                                                                      |   |       | 28       |   |

----

|                             |   | December 31, |    |   | September 30, |   |
|----------------------------------|--------|--------------|---------|--------|---------------|--------|
| ASSETS                           |   | 2011         |    |   | 2012          |   |
|                             |   |         |    |   | (Unaudited)   |   |
|                             |   |         |    |   |          |   |
| Current assets:                  |   |         |    |   |          |   |
| Cash and cash equivalents        |   | $            | 47.3    |   |          | $      | 10.7 |   |
| Marketable securities            |   |         | -       |   |          |   | 9.9 |   |
| Accounts and other receivables   |   |         | 156.1   |   |          |   | 165.6 |   |
| Notes receivable from affiliates |   |         | 27.0    |   |          |   | 2.4 |   |
| Inventories                      |   |         | 677.5   |   |          |   | 844.8 |   |
| Refundable income taxes          |   |         | 0.8     |   |          |   | 3.3 |   |
| Deferred income taxes            |   |         | 40.8    |   |          |   | 41.3 |   |
| Other                            |   |         | 10.0    |   |          |   | 8.4 |   |
|                             |   |         |    |   |          |   |   |   |
| Total current assets             |   |         | 959.5   |   |          |   | 1,086.4 |   |
|                             |   |         |    |   |          |   |   |   |
| Marketable securities            |   |         | 138.0   |   |          |   | 85.8 |   |
| Notes receivable from affiliates |   |         | 21.2    |   |          |   | 19.5 |   |
| Property and equipment, net      |   |         | 385.8   |   |          |   | 402.4 |   |
| Deferred income taxes            |   |         | 22.8    |   |          |   | 16.2 |   |
| Other                            |   |         | 94.7    |   |          |   | 102.8 |   |
|                             |   |         |    |   |          |   |   |   |
| Total assets                     |   | $            | 1,622.0 |   |          | $      | 1,713.1 |   |
|                             |   |         |    |   |          |   |   |   |
|                             |   |         |    |   |          |   |   |   |

----

|                                    |   | December 31, |    |   | September 30, |   |
|-----------------------------------------|--------|--------------|---------|--------|---------------|--------|
| LIABILITIES AND EQUITY                  |   | 2011         |    |   | 2012          |   |
|                                    |   |         |    |   | (Unaudited)   |   |
|                                    |   |         |    |   |          |   |
| Current liabilities:                    |   |         |    |   |          |   |
| Accounts payable                        |   | $            | 84.9    |   |          | $      | 81.9 |   |
| Accrued and other current liabilities   |   |         | 88.4    |   |          |   | 91.7 |   |
| Income taxes payable                    |   |         | 9.3     |   |          |   | 6.4 |   |
| Current maturities of long-term debt    |   |         | -       |   |          |   | 0.5 |   |
|                                    |   |         |    |   |          |   |   |   |
| Total current liabilities               |   |         | 182.6   |   |          |   | 180.5 |   |
|                                    |   |         |    |   |          |   |   |   |
| Long-term debt                          |   |         | 2.5     |   |          |   | 104.8 |   |
| Accrued OPEB cost                       |   |         | 10.8    |   |          |   | 10.6 |   |
| Accrued pension cost                    |   |         | 110.0   |   |          |   | 101.5 |   |
| Deferred income taxes                   |   |         | 75.2    |   |          |   | 55.8 |   |
| Other                                   |   |         | 9.5     |   |          |   | 10.8 |   |
|                                    |   |         |    |   |          |   |   |   |
| Total liabilities                       |   |         | 390.6   |   |          |   | 464.0 |   |
|                                    |   |         |    |   |          |   |   |   |
| Equity:                                 |   |         |    |   |          |   |   |   |
| TIMET stockholders’ equity:       |   |         |    |   |          |   |   |   |
| Common stock                            |   |         | 1.8     |   |          |   | 1.7 |   |
| Additional paid-in capital              |   |         | 428.0   |   |          |   | 426.7 |   |
| Retained earnings                       |   |         | 885.7   |   |          |   | 920.7 |   |
| Accumulated other comprehensive loss    |   |         | (97.2   | )      |          |   | (116.7 | ) |
|                                    |   |         |    |   |          |   |   |   |
| Total TIMET stockholders’ equity  |   |         | 1,218.3 |   |          |   | 1,232.4 |   |
|                                    |   |         |    |   |          |   |   |   |
| Noncontrolling interest in subsidiary   |   |         | 13.1    |   |          |   | 16.7 |   |
|                                    |   |         |    |   |          |   |   |   |
| Total equity                            |   |         | 1,231.4 |   |          |   | 1,249.1 |   |
|                                    |   |         |    |   |          |   |   |   |
| Total liabilities and equity            |   | $            | 1,622.0 |   |          | $      | 1,713.1 |   |
|                                    |   |         |    |   |          |   |   |   |
| Commitments and contingencies (Note 13) |   |         |    |   |          |   |   |   |
|                                    |   |         |    |   |          |   |   |   |
|                                    |   |         |    |   |          |   |   |   |
|                                    |   |         |    |   |          |   |   |   |

----

|                                                                 |   | Three months endedSeptember 30, |   |   | Nine months endedSeptember 30, |   |
|----------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                                 |   | 2011                            |   |   | 2012                           |   |   | 2011 |   |   | 2012 |   |
|                                                                 |   | (Unaudited)                     |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Net sales                                                            |   | $                               | 262.5  |   |                           | $      | 257.7 |   |   | $ | 786.6 |   |   | $ | 816.2 |   |
| Cost of sales                                                        |   |                            | 207.4  |   |                           |   | 207.4 |   |   |   | 620.4 |   |   |   | 646.5 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                                         |   |                            | 55.1   |   |                           |   | 50.3 |   |   |   | 166.2 |   |   |   | 169.7 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general, administrative anddevelopment expense              |   |                            | 17.1   |   |                           |   | 17.7 |   |   |   | 48.6 |   |   |   | 52.6 |   |
| Other income, net                                                    |   |                            | 0.5    |   |                           |   | 0.1 |   |   |   | 12.5 |   |   |   | 1.4 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                     |   |                            | 38.5   |   |                           |   | 32.7 |   |   |   | 130.1 |   |   |   | 118.5 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other non-operating income (expense), net                            |   |                            | 3.5    |   |                           |   | (1.0 | ) |   |   | 4.5 |   |   |   | 0.2 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                           |   |                            | 42.0   |   |                           |   | 31.7 |   |   |   | 134.6 |   |   |   | 118.7 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                           |   |                            | 16.1   |   |                           |   | 12.3 |   |   |   | 47.1 |   |   |   | 40.9 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                           |   |                            | 25.9   |   |                           |   | 19.4 |   |   |   | 87.5 |   |   |   | 77.8 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling interest in net income ofsubsidiary                   |   |                            | 0.9    |   |                           |   | 0.8 |   |   |   | 2.1 |   |   |   | 3.5 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable toTIMET stockholders                         |   | $                               | 25.0   |   |                           | $      | 18.6 |   |   | $ | 85.4 |   |   | $ | 74.3 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings per shareattributable toTIMETstockholders |   | $                               | 0.14   |   |                           | $      | 0.11 |   |   | $ | 0.48 |   |   | $ | 0.42 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                |   |                            | 176.9  |   |                           |   | 175.1 |   |   |   | 179.0 |   |   |   | 175.1 |   |
| Diluted                                                              |   |                            | 176.9  |   |                           |   | 175.1 |   |   |   | 179.1 |   |   |   | 175.1 |   |
|                                                                 |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends per common share                                      |   | $                               | 0.075  |   |                           | $      | 0.075 |   |   | $ | 0.15 |   |   | $ | 0.225 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Three months endedSeptember 30, |   |   | Nine months endedSeptember 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2011                            |   |   | 2012                           |   |   | 2011 |   |   | 2012 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (Unaudited)                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                               | 25.9   |   |                           | $      | 19.4 |   |   | $ | 87.5 |   |   | $ | 77.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive (loss) income, net of tax:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                            |   |   |                           |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                            | (13.4  | )      |                           |   | 10.0 |   |   |   | (1.7 | ) |   |   | 10.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized (loss) gain on marketablesecurities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                            | (0.1   | )      |                           |   | (1.6 | ) |   |   | 29.5 |   |   |   | (33.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Pension plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                            | 1.8    |   |                           |   | 1.5 |   |   |   | 5.3 |   |   |   | 4.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| OPEB plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                            | (0.3   | )      |                           |   | (0.3 | ) |   |   | 3.9 |   |   |   | (0.8 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                            | (12.0  | )      |                           |   | 9.6 |   |   |   | 37.0 |   |   |   | (19.4 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            | 13.9   |   |                           |   | 29.0 |   |   |   | 124.5 |   |   |   | 58.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive (loss) incomeattributable to                                      noncontrolling interest                                                                                                                                                                                                                                                                                                      |   |                            | (0.3   | )      |                           |   | 1.2 |   |   |   | 2.3 |   |   |   | 3.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                   attributable toTIMET                                      stockholders |   | $                               | 14.2   |   |                           | $      | 27.8 |   |   | $ | 122.2 |   |   | $ | 54.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                   |   | Nine months ended September 30, |   |
|--------------------------------------------------------|--------|---------------------------------|--------|
|                                                   |   | 2011                            |   |   | 2012 |   |
|                                                   |   | (Unaudited)                     |   |
| Cash flows from operating activities:                  |   |                            |   |   |   |   |
| Net income                                             |   | $                               | 87.5   |   |   | $ | 77.8 |   |
| Depreciation and amortization                          |   |                            | 37.4   |   |   |   | 40.8 |   |
| Gain on settlement                                     |   |                            | (10.6  | ) |   |   | - |   |
| Deferred income taxes                                  |   |                            | 8.4    |   |   |   | 4.3 |   |
| Other, net                                             |   |                            | 1.5    |   |   |   | 2.5 |   |
| Change in assets and liabilities:                      |   |                            |   |   |   |   |   |   |
| Receivables                                            |   |                            | (45.9  | ) |   |   | (6.3 | ) |
|       Inventories        |   |                            | (119.1 | ) |   |   | (159.9 | ) |
| Accounts payable and accrued liabilities               |   |                            | 42.5   |   |   |   | (1.5 | ) |
| Income taxes                                           |   |                            | 4.4    |   |   |   | (5.5 | ) |
| Other, net                                             |   |                            | (20.3  | ) |   |   | (20.4 | ) |
| Net cash used in operating activities                  |   |                            | (14.2  | ) |   |   | (68.2 | ) |
|                                                   |   |                            |   |   |   |   |   |   |
| Cash flows from investing activities:                  |   |                            |   |   |   |   |   |   |
| Capital expenditures                                   |   |                            | (32.2  | ) |   |   | (53.9 | ) |
| Marketable securities:                                 |   |                            |   |   |   |   |   |   |
| Purchases of affiliate securities                      |   |                            | (35.1  | ) |   |   | - |   |
| Purchases of mutual funds and other                    |   |                            | (207.0 | ) |   |   | (15.8 | ) |
| Proceeds from sale of mutual funds and other           |   |                            | 212.2  |   |   |   | 6.4 |   |
| Notes receivable from affiliates:                      |   |                            |   |   |   |   |   |   |
| Loans                                                  |   |                            | (84.5  | ) |   |   | (38.8 | ) |
| Collections of principal payments                      |   |                            | 76.0   |   |   |   | 65.1 |   |
| Other, net                                             |   |                            | (2.0   | ) |   |   | 5.7 |   |
| Net cash used in investing activities                  |   |                            | (72.6  | ) |   |   | (31.3 | ) |
|                                                   |   |                            |   |   |   |   |   |   |
| Cash flows from financing activities:                  |   |                            |   |   |   |   |   |   |
| Indebtedness:                                          |   |                            |   |   |   |   |   |   |
| Borrowings                                             |   |                            | -      |   |   |   | 246.8 |   |
| Repayments                                             |   |                            | -      |   |   |   | (144.0 | ) |
| Treasury stock purchases                               |   |                            | (76.8  | ) |   |   | (1.4 | ) |
| Dividends paid:                                        |   |                            |   |   |   |   |   |   |
| Common stock                                           |   |                            | (26.8  | ) |   |   | (39.3 | ) |
| Noncontrolling interest in subsidiary                  |   |                            | (3.4   | ) |   |   | - |   |
| Other, net                                             |   |                            | (0.1   | ) |   |   | (0.1 | ) |
| Net cash (used in) provided by financing activities    |   |                            | (107.1 | ) |   |   | 62.0 |   |
|                                                   |   |                            |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                |   |                            | (0.6   | ) |   |   | 0.9 |   |
|                                                   |   |                            |   |   |   |   |   |   |
| Net cash used during period                            |   |                            | (194.5 | ) |   |   | (36.6 | ) |
| Cash and cash equivalents at beginning of period       |   |                            | 283.4  |   |   |   | 47.3 |   |
| Cash and cash equivalents at end of period             |   | $                               | 88.9   |   |   | $ | 10.7 |   |
|                                                   |   |                            |   |   |   |   |   |   |
| Supplemental disclosures of cash paid for:Income taxes |   | $                               | 34.3   |   |   | $ | 42.2 |   |
| Interest                                               |   |                            | 0.2    |   |   |   | 1.2 |   |

----

|                          |   | TIMET stockholder’s equity |   |   |                       |   |   |              |   |
|-------------------------------|--------|----------------------------------|--------|--------|----------------------------|--------|--------|-------------------|--------|
|                          |   | Common stock                     |   |   | Additional paid-in capital |   |   | Retained earnings |   |   | Accumulated other comprehensive loss |   |   | Treasury stock |   |   | Non-controlling interest |   |   |   Total |   |
|                          |   |                             |   |   |                       |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2011  |   | $                                | 1.8    |   |                       | $      | 428.0  |              |   | $ | 885.7 |   |   | $ | (97.2 | ) |   | $ | - |   |   | $ | 13.1 |   |   | $ | 1,231.4 |   |
| Net income                    |   |                             | -      |   |                       |   | -      |              |   |   | 74.3 |   |   |   | - |   |   |   | - |   |   |   | 3.5 |   |   |   | 77.8 |   |
| Other comprehensive income    |   |                             | -      |   |                       |   | -      |              |   |   | - |   |   |   | (19.5 | ) |   |   | - |   |   |   | 0.1 |   |   |   | (19.4 | ) |
| Treasury stock purchases      |   |                             | -      |   |                       |   | -      |              |   |   | - |   |   |   | - |   |   |   | (1.4 | ) |   |   | - |   |   |   | (1.4 | ) |
| Treasury stock retirement     |   |                             | (0.1   | )      |                       |   | (1.3   | )                 |   |   | - |   |   |   | - |   |   |   | 1.4 |   |   |   | - |   |   |   | - |   |
| Common stock dividends        |   |                             | -      |   |                       |   | -      |              |   |   | (39.3 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (39.3 | ) |
|                          |   |                             |   |   |                       |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2012 |   | $                                | 1.7    |   |                       | $      | 426.7  |              |   | $ | 920.7 |   |   | $ | (116.7 | ) |   | $ | - |   |   | $ | 16.7 |   |   | $ | 1,249.1 |   |

----

----

|                                                     |   | December 31,  |   |   | September 30, |   |
|----------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|
|                                                     |   | 2011          |   |   | 2012          |   |
|                                                     |   | (In millions) |   |
|                                                     |   |          |   |   |          |   |
| Notes receivable from affiliates:                        |   |          |   |   |          |   |
| CompX                                                    |   | $             | 22.2   |   |          | $      | 20.5 |   |
| Contran unsecured revolving demand promissory note       |   |          | 24.6   |   |          |   | - |   |
| Other                                                    |   |          | 1.4    |   |          |   | 1.4 |   |
|                                                     |   |          |   |   |          |   |   |   |
| Total notes receivable from affiliates                   |   |          | 48.2   |   |          |   | 21.9 |   |
|                                                     |   |          |   |   |          |   |   |   |
| Less current portion of notes receivable from affiliates |   |          | 27.0   |   |          |   | 2.4 |   |
|                                                     |   |          |   |   |          |   |   |   |
| Noncurrent notes receivable from affiliates              |   | $             | 21.2   |   |          | $      | 19.5 |   |
|                                                     |   |          |   |   |          |   |   |   |

|                                     |   | December 31,2011 |   |   | September 30,2012 |   |
|------------------------------------------|--------|------------------|--------|--------|-------------------|--------|
|                                     |   | (In millions)    |   |
|                                     |   |             |   |   |              |   |
| Raw materials                            |   | $                | 187.9  |   |              | $      | 257.5 |   |
| Work-in-process                          |   |             | 315.4  |   |              |   | 366.1 |   |
| Finished products                        |   |             | 116.1  |   |              |   | 152.3 |   |
| Inventory consigned to customers         |   |             | 31.2   |   |              |   | 37.6 |   |
| Supplies                                 |   |             | 26.9   |   |              |   | 31.3 |   |
|                                     |   |             |   |   |              |   |   |   |
| Total inventories Total inventories |   | $                | 677.5  |   |              | $      | 844.8 |   |

----

| Marketable security                        |   | Fair value measurement level |   |   | Market value  |   |   | Cost basis |   |   | Unrealized gain (loss) |   |
|--------------------------------------------|--------|------------------------------|--------|--------|---------------|--------|--------|------------|--------|--------|------------------------|--------|
|                                       |   |                         |   |   | (In millions) |   |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |
| As of December 31, 2011:                   |   |                         |   |   |          |   |   |       |   |   |                   |   |
| Noncurrent assets:                         |   |                         |   |   |          |   |   |       |   |   |                   |   |
| Valhi                                      |   |                         | 1      |   |          | $      | 128.4  |       |   | $      | 64.3                   |   |   | $ | 64.1 |   |
| NL                                         |   |                         | 1      |   |          |   | 2.9    |       |   |   | 2.5                    |   |   |   | 0.4 |   |
| Kronos                                     |   |                         | 1      |   |          |   | 6.7    |       |   |   | 6.4                    |   |   |   | 0.3 |   |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Total noncurrent marketablesecurities |   |                         | $      | 138.0  |          |   | $      | 73.2       |   |   | $                      | 64.8   |   |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| As of September 30, 2012:                  |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Current assets:                            |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Mutual funds                               |   |                         | 1      |   |          | $      | 9.9    |       |   | $      | 9.8                    |   |   | $ | 0.1 |   |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Noncurrent assets:                         |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Valhi                                      |   |                         | 1      |   |          | $      | 77.7   |       |   | $      | 64.3                   |   |   | $ | 13.4 |   |
| NL                                         |   |                         | 1      |   |          |   | 2.6    |       |   |   | 2.5                    |   |   |   | 0.1 |   |
| Kronos                                     |   |                         | 1      |   |          |   | 5.5    |       |   |   | 6.4                    |   |   |   | (0.9 | ) |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |
| Total noncurrent marketable securities     |   |                         | $      | 85.8   |          |   | $      | 73.2       |   |   | $                      | 12.6   |   |
|                                       |   |                         |   |   |          |   |   |       |   |   |                   |   |   |   |   |   |

----

|                              |   | December 31, 2011 |   |   | September 30,2012 |   |
|-----------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                              |   | (In millions)     |   |
|                              |   |              |   |   |              |   |
| Land and improvements             |   | $                 | 15.2   |   |              | $      | 15.5 |   |
| Buildings and improvements        |   |              | 70.5   |   |              |   | 79.9 |   |
| Computer equipment and software   |   |              | 70.8   |   |              |   | 72.0 |   |
| Manufacturing equipment and other |   |              | 594.9  |   |              |   | 622.0 |   |
| Construction in progress          |   |              | 48.4   |   |              |   | 64.1 |   |
|                              |   |              |   |   |              |   |   |   |
| Total property and equipment      |   |              | 799.8  |   |              |   | 853.5 |   |
|                              |   |              |   |   |              |   |   |   |
| Less accumulated depreciation     |   |              | 414.0  |   |              |   | 451.1 |   |
|                              |   |              |   |   |              |   |   |   |
| Total property and equipment, net |   | $                 | 385.8  |   |              | $      | 402.4 |   |

|                                                                            |   | December 31, 2011 |   |   | September 30,2012 |   |
|---------------------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                            |   | (In millions)     |   |
|                                                                            |   |              |   |   |              |   |
| Prepaid conversion services                                                     |   | $                 | 37.2   |   |              | $      | 35.3 |   |
| Other                                                                           |   |              | 57.5   |   |              |   | 67.5 |   |
|                                                                            |   |              |   |   |              |   |   |   |
| Total other noncurrent assetsTotal prepaid expenses and other noncurrent assets |   | $                 | 94.7   |   |              | $      | 102.8 |   |

|                                        |   | December 31,2011 |   |   | September 30,2012 |   |
|---------------------------------------------|--------|------------------|--------|--------|-------------------|--------|
|                                        |   | (In millions)    |   |
|                                        |   |             |   |   |              |   |
| Employee related                            |   | $                | 42.2   |   |              | $      | 37.0 |   |
| Customer advances                           |   |             | 16.4   |   |              |   | 23.0 |   |
| Deferred revenue                            |   |             | 15.0   |   |              |   | 14.3 |   |
| Other                                       |   |             | 14.8   |   |              |   | 17.4 |   |
|                                        |   |             |   |   |              |   |   |   |
| Total accrued and other current liabilities |   | $                | 88.4   |   |              | $      | 91.7 |   |

----

|                    |   | December 31,  |   |   | September 30, |   |
|-------------------------|--------|---------------|--------|--------|---------------|--------|
|                    |   | 2011          |   |   | 2012          |   |
|                    |   | (In millions) |   |
|                    |   |          |   |   |          |   |
| U.S. credit facility    |   | $             | -      |   |          | $      | 102.8 |   |
| Other                   |   |          | 2.5    |   |          |   | 2.5 |   |
|                    |   |          |   |   |          |   |   |   |
| Total debt              |   | $             | 2.5    |   |          | $      | 105.3 |   |
|                    |   |          |   |   |          |   |   |   |
| Less current maturities |   |          | -      |   |          |   | 0.5 |   |
|                    |   |          |   |   |          |   |   |   |
| Total long-term debt    |   | $             | 2.5    |   |          | $      | 104.8 |   |
|                    |   |          |   |   |          |   |   |   |

----

|                                |   | Three months endedSeptember 30, |   |   | Nine months endedSeptember 30, |   |
|-------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                |   | 2011                            |   |   | 2012                           |   |   | 2011 |   |   | 2012 |   |
|                                |   | (In millions)                   |   |
|                                |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Service cost                        |   | $                               | 0.7    |   |                           | $      | 0.1 |   |   | $ | 2.2 |   |   | $ | 0.4 |   |
| Interest cost                       |   |                            | 4.3    |   |                           |   | 3.9 |   |   |   | 12.7 |   |   |   | 11.7 |   |
| Expected return on plan assets      |   |                            | (4.6   | )      |                           |   | (4.6 | ) |   |   | (13.6 | ) |   |   | (13.7 | ) |
| Amortization of net losses          |   |                            | 2.5    |   |                           |   | 2.1 |   |   |   | 7.5 |   |   |   | 6.2 |   |
| Amortization of prior service costs |   |                            | 0.1    |   |                           |   | 0.1 |   |   |   | 0.3 |   |   |   | 0.4 |   |
|                                |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total pension expense               |   | $                               | 3.0    |   |                           | $      | 1.6 |   |   | $ | 9.1 |   |   | $ | 5.0 |   |

|                                                          |   | Three months endedSeptember 30, |   |   | Nine months endedSeptember 30, |   |
|---------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                          |   | 2011                            |   |   | 2012                           |   |   | 2011 |   |   | 2012 |   |
|                                                          |   | (In millions)                   |   |
|                                                          |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Service cost                                                  |   | $                               | -      |   |                           | $      | - |   |   | $ | 0.5 |   |   | $ | 0.1 |   |
| Interest cost                                                 |   |                            | 0.1    |   |                           |   | 0.1 |   |   |   | 0.6 |   |   |   | 0.4 |   |
| Amortization of net gains                                     |   |                            | (0.1   | )      |                           |   | (0.1 | ) |   |   | (0.5 | ) |   |   | (0.2 | ) |
| Amortization of prior service credit                          |   |                            | (0.3   | )      |                           |   | (0.3 | ) |   |   | (0.7 | ) |   |   | (1.0 | ) |
| Recognition of prior service credit dueto benefit curtailment |   |                            | -      |   |                           |   | - |   |   |   | (2.1 | ) |   |   | - |   |
|                                                          |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total OPEB income                                             |   | $                               | (0.3   | )      |                           | $      | (0.3 | ) |   | $ | (2.2 | ) |   | $ | (0.7 | ) |

----

|                                |   | Nine months ended September 30, |   |
|-------------------------------------|--------|---------------------------------|--------|
|                                |   | 2011                            |   |   | 2012 |   |
|                                |   | (In millions)                   |   |
|                                |   |                            |   |   |   |   |
| Expected income tax expense, at 35% |   | $                               | 47.1   |   |   | $ | 41.6 |   |
| Non-U.S. tax rates                  |   |                            | (1.5   | ) |   |   | (2.6 | ) |
| U.S. state income taxes, net        |   |                            | 1.7    |   |   |   | 1.9 |   |
| Domestic manufacturing credit       |   |                            | (2.8   | ) |   |   | (2.1 | ) |
| U.K. tax rate change                |   |                            | 1.5    |   |   |   | 1.7 |   |
| Other, net                          |   |                            | 1.1    |   |   |   | 0.4 |   |
|                                |   |                            |   |   |   |   |   |   |
| Total income tax expense            |   | $                               | 47.1   |   |   | $ | 40.9 |   |
|                                |   |                            |   |   |   |   |   |   |

----

----

|                                 |   | Three months endedSeptember 30,             |   |   | Nine months endedSeptember 30, |   |
|--------------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------|--------|
|                                 |   | 2011                                        |   |   | 2012                           |   |   | 2011 |   |   | 2012 |   |
|                                 |   | (In millions, except product shipment data) |   |
|                                 |   |                                        |   |   |                           |   |   |   |   |   |   |   |
| Titanium melted and mill products:   |   |                                        |   |   |                           |   |   |   |   |   |   |   |
| Melted product net sales             |   | $                                           | 34.4   |   |                           | $      | 29.6 |   |   | $ | 105.5 |   |   | $ | 96.6 |   |
| Mill product net sales               |   |                                        | 206.3  |   |                           |   | 211.5 |   |   |   | 625.4 |   |   |   | 657.2 |   |
| Other titanium product sales         |   |                                        | 21.8   |   |                           |   | 16.6 |   |   |   | 55.7 |   |   |   | 62.4 |   |
|                                 |   |                                        |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Total net sales                      |   | $                                           | 262.5  |   |                           | $      | 257.7 |   |   | $ | 786.6 |   |   | $ | 816.2 |   |
|                                 |   |                                        |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Melted product shipments:            |   |                                        |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                 |   |                                        | 1,565  |   |                           |   | 1,300 |   |   |   | 4,850 |   |   |   | 4,245 |   |
| Average selling price (per kilogram) |   | $                                           | 22.00  |   |                           | $      | 22.75 |   |   | $ | 21.75 |   |   | $ | 22.75 |   |
|                                 |   |                                        |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Mill product shipments:              |   |                                        |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                 |   |                                        | 3,955  |   |                           |   | 3,965 |   |   |   | 12,085 |   |   |   | 12,070 |   |
| Average selling price (per kilogram) |   | $                                           | 52.15  |   |                           | $      | 53.35 |   |   | $ | 51.75 |   |   | $ | 54.45 |   |

----

----

|   | AND RESULTS OF OPERATIONS |
|--------|---------------------------|

| • | the cyclicality of the commercial aerospace industry;                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the performance of our customers, our vendors and us under our long-term agreements;                                                                                       |
| • | the existence, amendment or renewal of certain long-term agreements;                                                                                                       |
| • | the difficulty in forecasting demand for titanium products;                                                                                                                |
| • | global economic, financial and political conditions;                                                                                                                       |
| • | global production capacity for titanium;                                                                                                                                   |
| • | changes in product pricing and costs;                                                                                                                                      |
| • | the impact of long-term contracts with vendors on our ability to reduce or increase supply;                                                                                |
| • | the possibility of labor disruptions;                                                                                                                                      |
| • | fluctuations in currency exchange rates;                                                                                                                                   |
| • | fluctuations in the market price of marketable securities;                                                                                                                 |
| • | uncertainties associated with new product or new market development;                                                                                                       |
| • | the availability of raw materials and services;                                                                                                                            |
| • | changes in raw material prices and other operating costs (including energy costs);                                                                                         |
| • | possible disruption of business or increases in the cost of doing business resulting from terrorist activities or global conflicts;                                        |
| • | possible disruption of business or increases in the cost of doing business resulting from natural disasters or other accidents impacting us, our customers or our vendors; |
| • | competitive products and strategies; and                                                                                                                                   |
| • | other risks and uncertainties.                                                                                                                                             |

----

| ·   | Melted and mill product sales volume and price |
|--------------------|------------------------------------------------|

| ·   | Raw materials and other manufacturing costs |
|--------------------|---------------------------------------------|

----

|                                                    |   | Three months ended September 30,            |   |
|---------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                    |   | 2011                                        |   |   | % of total net sales |   |   | 2012 |   |   | % of total net sales |   |
|                                                    |   | (In millions, except product shipment data) |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Net sales:                                              |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Melted products                                         |   | $                                           | 34.4   |   |   |   | 13 | % |   | $ | 29.6 |   |   |   | 12 | % |
| Mill products                                           |   |                                        | 206.3  |   |   |   | 79 | % |   |   | 211.5 |   |   |   | 82 | % |
| Other titanium products                                 |   |                                        | 21.8   |   |   |   | 8 | % |   |   | 16.6 |   |   |   | 6 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net sales                                         |   |                                        | 262.5  |   |   |   | 100 | % |   |   | 257.7 |   |   |   | 100 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                           |   |                                        | 207.4  |   |   |   | 79 | % |   |   | 207.4 |   |   |   | 80 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                            |   |                                        | 55.1   |   |   |   | 21 | % |   |   | 50.3 |   |   |   | 20 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general, administrative anddevelopment expense |   |                                        | 17.1   |   |   |   | 6 | % |   |   | 17.7 |   |   |   | 7 | % |
| Other income, net                                       |   |                                        | 0.5    |   |   |   | - |   |   |   | 0.1 |   |   |   | - |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                        |   | $                                           | 38.5   |   |   |   | 15 | % |   | $ | 32.7 |   |   |   | 13 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted product shipments:                               |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                                    |   |                                        | 1,565  |   |   |   |   |   |   |   | 1,300 |   |   |   |   |   |
| Average selling price (perkilogram)                     |   | $                                           | 22.00  |   |   |   |   |   |   | $ | 22.75 |   |   |   |   |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill product shipments:                                 |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                                    |   |                                        | 3,955  |   |   |   |   |   |   |   | 3,965 |   |   |   |   |   |
| Average selling price (perkilogram)                     |   | $                                           | 52.15  |   |   |   |   |   |   | $ | 53.35 |   |   |   |   |   |

----

|                                                    |   | Nine months ended September 30,             |   |
|---------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                    |   | 2011                                        |   |   | % of total net sales |   |   | 2012 |   |   | % of total net sales |   |
|                                                    |   | (In millions, except product shipment data) |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Net sales:                                              |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Melted products                                         |   | $                                           | 105.5  |   |   |   | 13 | % |   | $ | 96.6 |   |   |   | 12 | % |
| Mill products                                           |   |                                        | 625.4  |   |   |   | 80 | % |   |   | 657.2 |   |   |   | 81 | % |
| Other titanium products                                 |   |                                        | 55.7   |   |   |   | 7 | % |   |   | 62.4 |   |   |   | 7 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net sales                                         |   |                                        | 786.6  |   |   |   | 100 | % |   |   | 816.2 |   |   |   | 100 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                           |   |                                        | 620.4  |   |   |   | 79 | % |   |   | 646.5 |   |   |   | 79 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                            |   |                                        | 166.2  |   |   |   | 21 | % |   |   | 169.7 |   |   |   | 21 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general, administrative anddevelopment expense |   |                                        | 48.6   |   |   |   | 6 | % |   |   | 52.6 |   |   |   | 6 | % |
| Other income, net                                       |   |                                        | 12.5   |   |   |   | 2 | % |   |   | 1.4 |   |   |   | - |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                        |   | $                                           | 130.1  |   |   |   | 17 | % |   | $ | 118.5 |   |   |   | 15 | % |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted product shipments:                               |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                                    |   |                                        | 4,850  |   |   |   |   |   |   |   | 4,245 |   |   |   |   |   |
| Average selling price (perkilogram)                     |   | $                                           | 21.75  |   |   |   |   |   |   | $ | 22.75 |   |   |   |   |   |
|                                                    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill product shipments:                                 |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric tons)                                    |   |                                        | 12,085 |   |   |   |   |   |   |   | 12,070 |   |   |   |   |   |
| Average selling price (perkilogram)                     |   | $                                           | 51.75  |   |   |   |   |   |   | $ | 54.45 |   |   |   |   |   |

----

----

|             |   | Three months ended September 30, 2012 vs. 2011 |   |   | Nine months ended September 30, 2012 vs. 2011 |   |
|------------------|--------|------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|             |   | (In millions)                                  |   |
|             |   |                                           |   |   |                                               |   |
| Decrease in:     |   |                                           |   |   |                                               |   |
| Net sales        |   | $                                              | (8.2   | )      |                                               | $      | (18.4 | ) |
| Operating income |   |                                           | (0.8   | )      |                                               |   | (2.6 | ) |
|             |   |                                           |   |   |                                               |   |   |   |

----

|                                  |   | Nine months ended September 30, |   |
|---------------------------------------|--------|---------------------------------|--------|
|                                  |   | 2011                            |   |   | 2012 |   |
|                                  |   | (In millions)                   |   |
| Cash provided by (used in):           |   |                            |   |   |   |   |
| Operating activities                  |   | $                               | (14.2  | ) |   | $ | (68.2 | ) |
| Investing activities                  |   |                            | (72.6  | ) |   |   | (31.3 | ) |
| Financing activities                  |   |                            | (107.1 | ) |   |   | 62.0 |   |
|                                  |   |                            |   |   |   |   |   |   |
| Net cash used in operating, investing |   |                            |   |   |   |   |   |   |
| and financing activities              |   | $                               | (193.9 | ) |   | $ | (37.5 | ) |

| ·   | decreased operating income in 2012 of $1.0 million (excluding the impact of the $10.6 million non-cash settlement received from Tronox during the first quarter of 2011 discussed in Note 11 to our Condensed Consolidated Financial Statements); |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | net cash used from the relative changes in our receivables, inventories, payables and accruals and other operating assets and liabilities increased by $45.2 million in 2012 resulting primarily from increased inventories to support higher production levels and decreases to payables and accrued liabilities associated with the timing of payments partially offset by higher collections of receivables; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher cash paid for income taxes in 2012 of $7.9 million due to the timing of payments. |
|--------------------|------------------------------------------------------------------------------------------|

----

|   | December 31,2010 |   | September 30,2011 |   | December 31,2011 |   | September 30,2012 |
|--------|------------------|--------|-------------------|--------|------------------|--------|-------------------|
|   |             |   |              |   |             |   |              |
| DSO    | 52 days          |   | 59 days           |   | 55 days          |   | 58 days           |
|   |             |   |              |   |             |   |              |
| DSI    | 243 days         |   | 246 days          |   | 294 days         |   | 357 days          |
|   |             |   |              |   |             |   |              |

| ·   | Capital expenditures of $32.2 million during the first nine months of 2011 and $53.9 million in the same period of 2012; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Purchases of marketable securities of affiliates of $35.1 million in the first nine months of 2011 and none in the same period of 2012; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net proceeds from sale of mutual funds and other marketable securities of $5.2 million in the first nine months of 2011 and net purchases of mutual funds and other marketable securities of $9.4 million in the same period of 2012; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Investing activity on various notes receivables from affiliates (discussed in Note 3 to our Consolidated Financial Statements), including net loans of $8.5 million during the first nine months of 2011 and net collections of $26.3 million in the same period of 2012. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net borrowings from indebtedness of $102.8 million in the first nine months of 2012 and none in the same period of 2011; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Dividends paid on our common stock of $26.8 million in the first nine months of 2011 and $39.3 million in the first nine months of 2012; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Dividends paid to the noncontrolling interest in subsidiary of $3.4 million in the first nine months of 2011 and none in the same period of 2012; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Treasury stock purchases of $76.8 million in the first nine months of 2011 and $1.4 million in the first nine months of 2012. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our Consolidated Financial Statements.   |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|     |   |                                                                    |
|----------|--------|-------------------------------------------------------------------------|
| 31.1     |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|     |   |                                                                    |
| 31.2     |   | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|     |   |                                                                    |
| 32.1     |   | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|     |   |                                                                    |
| 101.INS* |   | XBRL Instance Document                                                  |
|     |   |                                                                    |
| 101.SCH* |   | XBRL Taxonomy Extension Schema                                          |
|     |   |                                                                    |
| 101.CAL* |   | XBRL Taxonomy Extension Calculation Linkbase                            |
|     |   |                                                                    |
| 101.DEF* |   | XBRL Taxonomy Extension Definition Linkbase                             |
|     |   |                                                                    |
| 101.LAB* |   | XBRL Taxonomy Extension Label Linkbase                                  |
|     |   |                                                                    |
| 101.PRE* |   | XBRL Taxonomy Extension Presentation Linkbase                           |
|     |   |                                                                    |
|     |   |                                                                    |
|     |   |                                                                    |

| * | In accordance with the temporary hardship exemption provided by Rule 201 of Regulation S-T, the date by which the interactive data file is required to be submitted has been extended by six business days. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Note: | We have retained a signed original of any exhibit listed above that contains signatures, and we will provide any such exhibit to the SEC or its staff upon request.  Such request should be directed to the attention of our Corporate Secretary at our corporate offices located at 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                   |   | TITANIUM METALS CORPORATION                               |
|------------------------|--------|-----------------------------------------------------------|
|                   |   |                                                      |
|                   |   |                                                      |
|                   |   |                                                      |
| Date: November 9, 2012 | By     | /s/ JAMES W. BROWN                                        |
|                   |   | James W. Brown                                            |
|                   |   | Vice President and Chief Financial Officer                |
|                   |   | Principal Financial Officer                               |
|                   |   |                                                      |
|                   |   |                                                      |
| Date: November 9, 2012 | By     | /s/ SCOTT E. SULLIVAN                                     |
|                   |   | Scott E. Sullivan                                         |
|                   |   | Vice President and ControllerPrincipal Accounting Officer |