----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C.  20549**

**FORM      10-Q**

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

|   | **For                the quarterly period ended September 30,                2007** |
|--------|-------------------------------------------------------------------------------------|

|   | 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** |
|--------------------------------------------------------------------------|------------------------------------------|

----

|   | **TITANIUMMETALS                CORPORATION** |
|--------|-----------------------------------------------|

|   | **INDEX** |
|--------|-----------|

|                                            |                                                                                                                         | Page   |
|-------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                            |                                                                                                                         | Number |
|                                            |                                                                                                                         |   |
| **PART                I.**                      | **FINANCIAL                INFORMATION**                                                                                     |   |
|                                            |                                                                                                                         |   |
|     Item                1.  | Condensed                Consolidated Financial Statements                                                                   |   |
|                                            |                                                                                                                         |   |
|                                            | Condensed                Consolidated Balance Sheets–                                                                  |   |
|                                            | December                31, 2006; September 30, 2007 (unaudited)                                                             | 2      |
|                                            |                                                                                                                         |   |
|                                            | Condensed                Consolidated Statements of                Income–                                             |   |
|                                            | Three                and nine months ended September 30, 2006 and 2007                (unaudited)                            | 4      |
|                                            |                                                                                                                         |   |
|                                            | Condensed                Consolidated Statements of Cash                Flows–                                         |   |
|                                            | Nine                months ended September 30, 2006 and 2007 (unaudited)                                                     | 5      |
|                                            |                                                                                                                         |   |
|                                            | Condensed                Consolidated Statement of Stockholders’ Equity                and Comprehensive Income– |   |
|                                            | Nine                months ended September 30, 2007 (unaudited)                                                              | 6      |
|                                            |                                                                                                                         |   |
|                                            | Notes                to Condensed Consolidated Financial                Statements                                           | 7      |
|                                            |                                                                                                                         |   |
|     Item                2.  | Management’s                Discussion and Analysis of Financial                Condition and Results of Operations    | 14     |
|                                            |                                                                                                                         |   |
|     Item                3.  | Quantitative                and Qualitative Disclosures About Market                Risk                                     | 25     |
|                                            |                                                                                                                         |   |
|     Item                4.  | Controls                and Procedures                                                                                       | 25     |
|                                            |                                                                                                                         |   |
| **PART                II.**                     | **OTHER                INFORMATION**                                                                                         |   |
|                                            |                                                                                                                         |   |
|     Item                1.  | Legal                Proceedings                                                                                             | 26     |
|                                            |                                                                                                                         |   |
|     Item                1A. | Risk                Factors                                                                                                  | 26     |
|                                            |                                                                                                                         |   |
|     Item                6.  | Exhibits                                                                                                                     | 26     |

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                        |   | December                31, |        |   | **September                30,** |       |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-------------|--------|----------------------------------|------------|
| ASSETS                                                                                                      |   | 2006                        |        |   | **2007**                         |       |
|                                                                                                        |   |                        |        |   | **(unaudited)**                  |       |
| Current                assets:                                                                              |   |                        |        |   |                             |       |
| Cash                and cash                equivalents                                                     |   | $                           | 29.4        |   |                             | **$**      | **78.8** |   |
| Accounts                and other receivables,                less allowance of $1.4 and $2.0, respectively |   |                        | 213.0  |   |                             |       | **205.2**  |   |
| Inventories                                                                                                 |   |                        | 501.5       |   |                             | ** ** | **570.2** |   |
| Refundable                income                taxes                                                       |   |                        | -           |   |                             | ** ** | **12.5** |   |
| Prepaid                expenses and                other                                                    |   |                        | 4.6         |   |                             | ** ** | **6.9** |   |
| Deferred                income                taxes                                                         |   |                        | 9.1         |   |                             | ** ** | **9.2** |   |
|                                                                                                        |   |                        |        |   |                             |       |   |   |
| Total                current                assets                                                          |   |                        | 757.6       |   |                             | ** ** | **882.8** |   |
|                                                                                                        |   |                        |        |   |                             |       |   |   |
| Marketable                securities                                                                        |   |                        | 56.8        |   |                             | ** ** | **55.4** |   |
| Property                and equipment, net                                                                  |   |                        | 329.8       |   |                             | ** ** | **360.8** |   |
| Pension                asset                                                                                |   |                        | 17.9        |   |                             | ** ** | **21.3** |   |
| Deferred                income taxes                                                                        |   |                        | 3.5         |   |                             | ** ** | **2.3** |   |
| Prepaid                expenses and other                                                                   |   |                        | 51.3        |   |                             | ** ** | **59.8** |   |
|                                                                                                        |   |                        |        |   |                             |       |   |   |
| Total                assets                                                                                 |   | $                           | 1,216.9     |   |                             | **$**      | **1,382.4** |   |

Index

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

|                                                                                              |   | December                31, |    |   | **September                30,** |       |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|----------------------------------|------------|
| LIABILITIES,                MINORITY INTEREST AND                                                 |   | 2006                        |    |   | **2007**                         |       |
| STOCKHOLDERS’                EQUITY                                                         |   |                        |    |   | **(unaudited)**                  |       |
|                                                                                              |   |                        |    |   |                             |       |
| Current                liabilities:                                                               |   |                        |    |   |                             |       |
| Accounts                payable                                                                   |   | $                           | 87.8    |   |                             | **$**      | **66.2** |   |
| Accrued                liabilities                                                                |   |                        | 82.0    |   |                             | ** ** | **71.9** |   |
| Customer                advances                                                                  |   |                        | 18.7    |   |                             | ** ** | **17.4** |   |
| Income                taxes                payable                                                |   |                        | 22.0    |   |                             | ** ** | **2.1** |   |
| Deferred                income                taxes                                               |   |                        | 0.6     |   |                             | ** ** | **1.1** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Total                current                liabilities                                           |   |                        | 211.1   |   |                             | ** ** | **158.7** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Accrued                OPEB cost                                                                  |   |                        | 28.0    |   |                             | ** ** | **29.1** |   |
| Accrued                pension cost                                                               |   |                        | 52.2    |   |                             | ** ** | **50.7** |   |
| Deferred                income taxes                                                              |   |                        | 17.8    |   |                             | ** ** | **17.4** |   |
| Other                                                                                             |   |                        | 7.6     |   |                             | ** ** | **9.3** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Total                liabilities                                                                  |   |                        | 316.7   |   |                             | ** ** | **265.2** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Minority                interest                                                                  |   |                        | 21.3    |   |                             | ** ** | **22.1** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Stockholders’                equity:                                                        |   |                        |    |   |                             |       |   |   |
| Series                A Preferred                Stock                                            |   |                        | 75.0    |   |                             | ** ** | **73.4** |   |
| Common                stock                                                                       |   |                        | 1.6     |   |                             | ** ** | **1.6** |   |
| Additional                paid-in                capital                                          |   |                        | 484.4   |   |                             | ** ** | **487.7** |   |
| Retained                earnings                                                                  |   |                        | 340.3   |   |                             | ** ** | **543.7** |   |
| Accumulated                other comprehensive                loss                                |   |                        | (22.4   | )      |                             | ** ** | **(11.3** | **)** |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Total                stockholders’                equity                                    |   |                        | 878.9   |   |                             | ** ** | **1,095.1** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Total                liabilities, minority                interest and stockholders’ equity |   | $                           | 1,216.9 |   |                             | **$**      | **1,382.4** |   |
|                                                                                              |   |                        |    |   |                             |       |   |   |
| Commitments                and contingencies (Note 9)                                             |   |                        |    |   |                             |       |   |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

|                                                                                        |   | Three                months endedSeptember                30, |   |   | Nine                months endedSeptember                30, |       |
|---------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|------------|
|                                                                                        |   | 2006                                                          |   |   | **2007**                                                     |       |   | 2006 |   |   | **2007** |   |
|                                                                                        |   |                                                          |   |   | (unaudited)                                                  |       |   |   |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |
| Net                sales                                                                    |   | $                                                             | 271.8  |   |                                                         | **$**      | **297.3** |   |   | $ | 859.6 |   |   | **$** | **980.3** |   |
| Cost                of sales                                                                |   |                                                          | 174.0  |   |                                                         | ** ** | **199.3** |   |   |   | 547.2 |   |   | ** ** | **613.4** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                                 |   |                                                          | 97.8   |   |                                                         | ** ** | **98.0** |   |   |   | 312.4 |   |   | ** ** | **366.9** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development expense                     |   |                                                          | 17.2   |   |                                                         | ** ** | **16.7** |   |   |   | 49.8 |   |   | ** ** | **51.7** |   |
| Other                income, net                                                            |   |                                                          | 4.0    |   |                                                         | ** ** | **-** |   |   |   | 10.7 |   |   | ** ** | **0.2** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
|                    Operating income                                          |   |                                                          | 84.6   |   |                                                         | ** ** | **81.3** |   |   |   | 273.3 |   |   | ** ** | **315.4** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Other                non-operating (expense) income, net                                    |   |                                                          | (0.2   | )      |                                                         | ** ** | **0.9** |   |   |   | (3.2 | ) |   | ** ** | **1.2** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes and                minority interest              |   |                                                          | 84.4   |   |                                                         | ** ** | **82.2** |   |   |   | 270.1 |   |   | ** ** | **316.6** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                   |   |                                                          | 28.6   |   |                                                         | ** ** | **27.2** |   |   |   | 94.7 |   |   | ** ** | **101.5** |   |
| Minority                interest in after-tax earnings                                      |   |                                                          | 1.6    |   |                                                         | ** ** | **1.3** |   |   |   | 6.2 |   |   | ** ** | **7.3** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                   |   |                                                          | 54.2   |   |                                                         | ** ** | **53.7** |   |   |   | 169.2 |   |   | ** ** | **207.8** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Dividends                on Series A Preferred Stock                                        |   |                                                          | 1.5    |   |                                                         | ** ** | **1.4** |   |   |   | 5.4 |   |   | ** ** | **4.2** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Net                income attributable to                common                stockholders |   | $                                                             | 52.7   |   |                                                         | **$**      | **52.3** |   |   | $ | 163.8 |   |   | **$** | **203.6** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share attributable tocommonstockholders:                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                       |   | $                                                             | 0.33   |   |                                                         | **$**      | **0.32** |   |   | $ | 1.07 |   |   | **$** | **1.26** |   |
| Diluted                                                                                     |   | $                                                             | 0.29   |   |                                                         | **$**      | **0.29** |   |   | $ | 0.92 |   |   | **$** | **1.13** |   |
|                                                                                        |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding:                                         |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                       |   |                                                          | 161.1  |   |                                                         | ** ** | **162.2** |   |   |   | 152.9 |   |   | ** ** | **162.0** |   |
| Diluted                                                                                     |   |                                                          | 184.2  |   |                                                         | ** ** | **184.3** |   |   |   | 183.8 |   |   | ** ** | **184.3** |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                             |   | Nine                months ended September 30, |   |
|--------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                                             |   | 2006                                           |   |   | **2007** |   |
|                                                                                             |   | (unaudited)                                    |   |
| Cash                flows from operating activities:                                             |   |                                           |   |   |   |   |
| Net                income                                                                        |   | $                                              | 169.2  |   |   | **$** | **207.8** |   |
| Depreciation                and                amortization                                      |   |                                           | 25.5   |   |   | ** ** | **30.1** |   |
| Equity                in earnings of joint                ventures, net of distributions         |   |                                           | (7.7   | ) |   | ** ** | **0.1** |   |
| Deferred                income                taxes                                              |   |                                           | 9.8    |   |   | ** ** | **1.7** |   |
| Excess                tax benefit of stock option                exercises                       |   |                                           | (10.0  | ) |   | ** ** | **(0.8** | **)** |
| Minority                interest                                                                 |   |                                           | 6.2    |   |   | ** ** | **7.3** |   |
| Other,                net                                                                        |   |                                           | 0.3    |   |   | ** ** | **2.6** |   |
| Change                in assets and                liabilities:                                  |   |                                           |   |   |   |   |   |   |
| Receivables                                                                                      |   |                                           | (29.9  | ) |   | ** ** | **12.2** |   |
| Inventories                                                                                      |   |                                           | (114.8 | ) |   | ** ** | **(60.1** | **)** |
| Accounts                payable and accrued                liabilities                           |   |                                           | 2.7    |   |   | ** ** | **(32.8** | **)** |
| Income                taxes                                                                      |   |                                           | 9.4    |   |   | ** ** | **(31.7** | **)** |
| Other,                net                                                                        |   |                                           | (3.2   | ) |   | ** ** | **(6.7** | **)** |
| Net                cash provided by operating                activities                          |   |                                           | 57.5   |   |   | ** ** | **129.7** |   |
|                                                                                             |   |                                           |   |   |   |   |   |   |
| Cash                flows from investing activities:                                             |   |                                           |   |   |   |   |   |   |
| Capital                expenditures                                                              |   |                                           | (62.4  | ) |   | ** ** | **(60.6** | **)** |
| Other,                net                                                                        |   |                                           | (0.7   | ) |   | ** ** | **(10.0** | **)** |
| Net                cash used in investing                activities                              |   |                                           | (63.1  | ) |   | ** ** | **(70.6** | **)** |
|                                                                                             |   |                                           |   |   |   |   |   |   |
| Cash                flows from financing activities:                                             |   |                                           |   |   |   |   |   |   |
| Indebtedness:                                                                                    |   |                                           |   |   |   |   |   |   |
| Borrowings                                                                                       |   |                                           | 505.2  |   |   | ** ** | **-** |   |
| Repayments                                                                                       |   |                                           | (502.6 | ) |   | ** ** | **-** |   |
| Dividends                paid on Series A                Preferred Stock                         |   |                                           | (5.7   | ) |   | ** ** | **(4.2** | **)** |
| Dividends                paid to minority                shareholder                             |   |                                           | (3.0   | ) |   | ** ** | **(8.1** | **)** |
| Issuance                of common                stock                                           |   |                                           | 10.7   |   |   | ** ** | **0.9** |   |
| Excess                tax benefit of stock option                exercises                       |   |                                           | 10.0   |   |   | ** ** | **0.8** |   |
| Other,                net                                                                        |   |                                           | (0.8   | ) |   | ** ** | **(0.1** | **)** |
| Net                cash provided by (used in)                financing activities                |   |                                           | 13.8   |   |   | ** ** | **(10.7** | **)** |
|                                                                                             |   |                                           |   |   |   |   |   |   |
| Net                cash provided by operating, investing and financing                activities |   |                                           | 8.2    |   |   | ** ** | **48.4** |   |
| Effect                of exchange rate changes on                cash                            |   |                                           | 0.9    |   |   | ** ** | **1.0** |   |
|                                                                                             |   |                                           | 9.1    |   |   | ** ** | **49.4** |   |
| Cash                and cash equivalents at                beginning of period                   |   |                                           | 17.6   |   |   | ** ** | **29.4** |   |
|                                                                                             |   |                                           |   |   |   |   |   |   |
| Cash                and cash equivalents at end                of period                         |   | $                                              | 26.7   |   |   | **$** | **78.8** |   |
|                                                                                             |   |                                           |   |   |   |   |   |   |
| Supplemental                disclosures:                                                         |   |                                           |   |   |   |   |   |   |
| Cash                paid for:                                                                    |   |                                           |   |   |   |   |   |   |
| Interest,                net of amounts                capitalized                               |   | $                                              | 1.8    |   |   | **$** | **2.2** |   |
|                        Income taxes, net                      |   | $                                              | 75.0   |   |   | **$** | **130.7** |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY**

**AND      COMPREHENSIVE INCOME**

**FOR      THE NINE MONTHS ENDED SEPTEMBER 30, 2007**

|                                                                                                      |   | Series                A Preferred Stock |     |   | CommonStock |   |    | Additional                Paid-in Capital |   |   | Retained                Earnings |   |   | Accumulated                Other Comprehensive Loss |      |   | Total  |   |      | Comprehensive                Income |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|--------|-------------|--------|---------|-------------------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------------------------|-----------|--------|--------|--------|-----------|-------------------------------------|--------|
|                                                                                                      |   | (unaudited)                             |     |
|                                                                                                      |   |                                    |     |   |        |   |    |                                      |   |   |                             |   |   |                                                |      |   |   |   |      |                                |   |
| Balance                at January 1, 2007                                                                 |   | $                                       | 75.0     |   |        | $      | 1.6     |                                      |   | $      | 484.4                            |   |   | $                                                   | 340.3     |   |   | $      | (22.4     | )                                   |   | $ | 878.9 |   |   |   |   |
| Net                income                                                                                 |   |                                    | -        |   |        |   | -       |                                      |   |   | -                                |   |   |                                                | 207.8     |   |   |   | -         |                                |   |   | 207.8 |   |   | $ | 207.8 |   |
| Other                comprehensive                income                                                  |   |                                    | -        |   |        |   | -       |                                      |   |   | -                                |   |   |                                                | -         |   |   |   | 11.1      |                                |   |   | 11.1 |   |   |   | 11.1 |   |
| Issuance                of common                stock                                                    |   |                                    | -        |   |        |   | -       |                                      |   |   | 0.9                              |   |   |                                                | -         |   |   |   | -         |                                |   |   | 0.9 |   |   |   | - |   |
| Conversion                of Series                APreferred                Stock                        |   |                                    | (1.6     | )      |        |   | -       |                                      |   |   | 1.6                              |   |   |                                                | -         |   |   |   | -         |                                |   |   | - |   |   |   | - |   |
| Tax                benefit of stock                options      exercised   |   |                                    | -        |   |        |   | -       |                                      |   |   | 0.8                              |   |   |                                                | -         |   |   |   | -         |                                |   |   | 0.8 |   |   |   | - |   |
| Dividends                declared                onSeries                A Preferred                Stock |   |                                    | -        |   |        |   | -       |                                      |   |   | -                                |   |   |                                                | (4.2      | )      |   |   | -         |                                |   |   | (4.2 | ) |   |   | - |   |
| Change                in Accounting -                FIN                48                                |   |                                    | -        |   |        |   | -       |                                      |   |   | -                                |   |   |                                                | (0.2      | )      |   |   | -         |                                |   |   | (0.2 | ) |   |   | - |   |
|                                                                                                      |   |                                    |     |   |        |   |    |                                      |   |   |                             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                                                              |   | **$**                                   | **73.4** |   |        | **$**  | **1.6** |                                      |   | **$**  | **487.7**                        |   |   | **$**                                               | **543.7** |   |   | **$**  | **(11.3** | **)**                               |   | **$** | **1,095.1** |   |   |   |   |   |
|                                                                                                      |   |                                    |     |   |        |   |    |                                      |   |   |                             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                       |   |                                    |     |   |        |   |    |                                      |   |   |                             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   | **$** | **218.9** |   |

Index

----

**TITANIUMMETALS              CORPORATION**
**NOTES              TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER              30, 2007**

**Note      1 – Basis of presentation and organization**

***Basis      of presentation***

***Organization***

Index

----

***Recent      accounting pronouncements. ***
*Accounting for Uncertain Tax Positions*
*Accounting for Income Taxes*

**Note      2 – Inventories**

|                                            |   | December                31,2006 |   |   | **September                30,****2007** |       |
|-------------------------------------------------|--------|---------------------------------|--------|--------|------------------------------------------|------------|
|                                            |   | (In                millions)    |   |
|                                            |   |                            |   |   |                                     |       |
| Raw                materials                    |   | $                               | 134.0  |   |                                     | **$**      | **130.2** |   |
| Work-in-process                                 |   |                            | 239.4  |   |                                     | ** ** | **265.7** |   |
| Finished                products                |   |                            | 93.5   |   |                                     | ** ** | **130.7** |   |
| Inventory                consigned to customers |   |                            | 16.9   |   |                                     | ** ** | **21.6** |   |
| Supplies                                        |   |                            | 17.7   |   |                                     | ** ** | **22.0** |   |
|                                            |   |                            |   |   |                                     |       |   |   |
| Total                inventories                |   | $                               | 501.5  |   |                                     | **$**      | **570.2** |   |

Index

----

**Note      3 – Marketable securities**

|                                                      |   | December                31, 2006 |   |   | **September                30, 2007** |       |
|-----------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------------|------------|
|                                                      |   | (In                millions)     |   |
|                                                      |   |                             |   |   |                                  |       |
| CompX                                                     |   | $                                | 54.3   |   |                                  | **$**      | **52.8** |   |
| NL                                                        |   |                             | 2.3    |   |                                  | ** ** | **2.5** |   |
| Kronos                                                    |   |                             | 0.2    |   |                                  | ** ** | **0.1** |   |
|                                                      |   |                             |   |   |                                  |       |   |   |
| Total                marketable                securities |   | $                                | 56.8   |   |                                  | **$**      | **55.4** |   |

**Note      4 – Property and equipment**

|                                                                                             |   | December                31, 2006 |   |   | **September                30, 2007** |       |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------------|------------|
|                                                                                             |   | (In                millions)     |   |
|                                                                                             |   |                             |   |   |                                  |       |
| Land                and improvements                                                             |   | $                                | 9.3    |   |                                  | **$**      | **11.5** |   |
| Buildings                and improvements                                                        |   |                             | 41.6   |   |                                  | ** ** | **54.3** |   |
| Information                technology systems                                                    |   |                             | 66.0   |   |                                  | ** ** | **67.4** |   |
| Manufacturing                equipment and other                                                 |   |                             | 376.2  |   |                                  | ** ** | **443.5** |   |
| Construction                in progress                                                          |   |                             | 103.4  |   |                                  | ** ** | **77.3** |   |
|                                                                                             |   |                             |   |   |                                  |       |   |   |
|         Total                  property and equipment    |   |                             | 596.5  |   |                                  | ** ** | **654.0** |   |
|                                                                                             |   |                             |   |   |                                  |       |   |   |
| Less                accumulated depreciation                                                     |   |                             | 266.7  |   |                                  | ** ** | **293.2** |   |
|                                                                                             |   |                             |   |   |                                  |       |   |   |
|         Total                property and equipment, net |   | $                                | 329.8  |   |                                  | **$**      | **360.8** |   |

Index

----

**Note      5 – Prepaid expenses and other noncurrent assets**

|                                                                                                                    |   | December                31, 2006 |   |   | **September                30, 2007** |       |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------------|------------|
|                                                                                                                    |   | (In                millions)     |   |
|                                                                                                                    |   |                             |   |   |                                  |       |
| Prepaid                conversion services                                                                              |   | $                                | 49.7   |   |                                  | **$**      | **47.8** |   |
| Other                                                                                                                   |   |                             | 1.6    |   |                                  | ** ** | **12.0** |   |
|                                                                                                                    |   |                             |   |   |                                  |       |   |   |
|          Total                prepaid expenses and other noncurrent assets |   | $                                | 51.3   |   |                                  | **$**      | **59.8** |   |

**Note      6 – Accrued liabilities**

|                                                    |   | December                31,2006 |   |   | **September                30, 2007** |       |
|---------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------------|------------|
|                                                    |   | (In                millions)    |   |
|                                                    |   |                            |   |   |                                  |       |
| Employee                related                         |   | $                               | 46.4   |   |                                  | **$**      | **37.6** |   |
| Deferred                revenue                         |   |                            | 6.9    |   |                                  | ** ** | **6.7** |   |
| Scrap                purchases                          |   |                            | 8.9    |   |                                  | ** ** | **5.2** |   |
| Taxes,                other than income                 |   |                            | 6.7    |   |                                  | ** ** | **6.2** |   |
| Other                                                   |   |                            | 13.1   |   |                                  | ** ** | **16.2** |   |
|                                                    |   |                            |   |   |                                  |       |   |   |
| Total                accrued                liabilities |   | $                               | 82.0   |   |                                  | **$**      | **71.9** |   |

**Note      7 – Employee benefits**

***Defined      benefit pension      plans***
*.*

|                                                |   | Three                months endedSeptember                30, |   |   | Nine                months endedSeptember                30, |       |
|-----------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|------------|
|                                                |   | 2006                                                          |   |   | **2007**                                                     |       |   | 2006 |   |   | **2007** |   |
|                                                |   | (In                millions)                                  |   |
|                                                |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |
| Service                cost                         |   | $                                                             | 1.2    |   |                                                         | **$**      | **1.4** |   |   | $ | 3.4 |   |   | **$** | **4.0** |   |
| Interest                cost                        |   |                                                          | 3.5    |   |                                                         | ** ** | **4.2** |   |   |   | 10.3 |   |   | ** ** | **12.6** |   |
| Expected                return on plan assets       |   |                                                          | (4.6   | )      |                                                         | ** ** | **(5.5** | **)** |   |   | (13.6 | ) |   | ** ** | **(16.3** | **)** |
| Amortization                of net losses           |   |                                                          | 0.8    |   |                                                         | ** ** | **0.9** |   |   |   | 2.4 |   |   | ** ** | **2.6** |   |
| Amortization                of prior service cost   |   |                                                          | 0.1    |   |                                                         | ** ** | **0.1** |   |   |   | 0.4 |   |   | ** ** | **0.4** |   |
|                                                |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Total                pension                expense |   | $                                                             | 1.0    |   |                                                         | **$**      | **1.1** |   |   | $ | 2.9 |   |   | **$** | **3.3** |   |

Index

----

***        Postretirement        benefits other than pensions (“OPEB”)***
*.*

|                                              |   | Three                months endedSeptember                30, |   |   | Nine                months endedSeptember                30, |       |
|---------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|------------|
|                                              |   | 2006                                                          |   |   | **2007**                                                     |       |   | 2006 |   |   | **2007** |   |
|                                              |   | (In                millions)                                  |   |
|                                              |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |
| Service                cost                       |   | $                                                             | 0.2    |   |                                                         | **$**      | **0.2** |   |   | $ | 0.6 |   |   | **$** | **0.7** |   |
| Interest                cost                      |   |                                                          | 0.4    |   |                                                         | ** ** | **0.5** |   |   |   | 1.3 |   |   | ** ** | **1.3** |   |
| Amortization                of net losses         |   |                                                          | 0.4    |   |                                                         | ** ** | **0.2** |   |   |   | 1.1 |   |   | ** ** | **0.6** |   |
| Amortization                of prior service cost |   |                                                          | (0.1   | )      |                                                         | ** ** | **(0.1** | **)** |   |   | (0.3 | ) |   | ** ** | **(0.3** | **)** |
|                                              |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Total                OPEB                expense  |   | $                                                             | 0.9    |   |                                                         | **$**      | **0.8** |   |   | $ | 2.7 |   |   | **$** | **2.3** |   |

**Note      8 – Income taxes**

|                                                     |   | Nine                months ended September 30, |   |
|----------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                     |   | 2006                                           |   |   | **2007** |   |
|                                                     |   | (In                millions)                   |   |
|                                                     |   |                                           |   |   |   |   |
| Expected                income tax expense, at 35%       |   | $                                              | 94.5   |   |   | **$** | **111.0** |   |
| Non-U.S.                tax rates                        |   |                                           | (1.7   | ) |   | ** ** | **(2.0** | **)** |
| U.S.                state income taxes, net              |   |                                           | 4.6    |   |   | ** ** | **5.7** |   |
| Nontaxable                income                         |   |                                           | (1.0   | ) |   | ** ** | **(9.0** | **)** |
| Domestic                manufacturing credit             |   |                                           | (1.4   | ) |   | ** ** | **(4.7** | **)** |
| Other,                net                                |   |                                           | (0.3   | ) |   | ** ** | **0.5** |   |
|                                                     |   |                                           |   |   |   |   |   |   |
| Provision                for income                taxes |   | $                                              | 94.7   |   |   | **$** | **101.5** |   |

**Note      9 – Commitments and contingencies**

***Environmental      matters.***

Index

----

***              Legal proceedings***

**Note      10 – Earnings per share**

|                                                                                                |   | Three                months endedSeptember 30, |   |   | Nine                months endedSeptember                30, |       |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|--------------------------------------------------------------|------------|
|                                                                                                |   | 2006                                           |   |   | **2007**                                                     |       |   | 2006 |   |   | **2007** |   |
|                                                                                                |   | (In                millions)                   |   |
| Numerator:                                                                                          |   |                                           |   |   |                                                         |       |   |   |   |   |   |   |
| Net                income attributable to                common stockholders                   |   | $                                              | 52.7   |   |                                                         | **$**      | **52.3** |   |   | $ | 163.8 |   |   | **$** | **203.6** |   |
| Dividends                on Series A                Preferred                Stock                  |   |                                           | 1.5    |   |                                                         | ** ** | **1.4** |   |   |   | 5.4 |   |   | ** ** | **4.2** |   |
|                                                                                                |   |                                           |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Diluted                net income attributable                to                common stockholders |   | $                                              | 54.2   |   |                                                         | **$**      | **53.7** |   |   | $ | 169.2 |   |   | **$** | **207.8** |   |
|                                                                                                |   |                                           |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                        |   |                                           |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Average                common shares                outstanding                                     |   |                                           | 161.1  |   |                                                         | ** ** | **162.2** |   |   |   | 152.9 |   |   | ** ** | **162.0** |   |
| Average                dilutive stock                options                                        |   |                                           | 0.2    |   |                                                         | ** ** | **0.1** |   |   |   | 0.4 |   |   | ** ** | **0.1** |   |
| Series                A Preferred                Stock                                              |   |                                           | 22.9   |   |                                                         | ** ** | **22.0** |   |   |   | 30.4 |   |   | ** ** | **22.2** |   |
| Other                                                                                               |   |                                           | -      |   |                                                         | ** ** | **-** |   |   |   | 0.1 |   |   | ** ** | **-** |   |
|                                                                                                |   |                                           |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Diluted                shares                                                                       |   |                                           | 184.2  |   |                                                         | ** ** | **184.3** |   |   |   | 183.8 |   |   | ** ** | **184.3** |   |

Index

----

**Note      11 – Business segment information**

|                                                               |   | Three                months endedSeptember                30, |   |   | Nine                months endedSeptember                30, |       |
|--------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|------------|
|                                                               |   | 2006                                                          |   |   | **2007**                                                     |       |   | 2006 |   |   | **2007** |   |
|                                                               |   | (In                millions, except product shipment data)    |   |
| Titanium                melted and mill products:                  |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |
| Melted                product net                sales             |   | $                                                             | 49.7   |   |                                                         | **$**      | **41.6** |   |   | $ | 156.0 |   |   | **$** | **156.1** |   |
| Mill                product net                sales               |   |                                                          | 188.2  |   |                                                         | ** ** | **227.0** |   |   |   | 600.6 |   |   | ** ** | **727.4** |   |
| Other                product                sales                  |   |                                                          | 33.9   |   |                                                         | ** ** | **28.7** |   |   |   | 103.0 |   |   | ** ** | **96.8** |   |
|                                                               |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
|      Total net sales                           |   | $                                                             | 271.8  |   |                                                         | **$**      | **297.3** |   |   | $ | 859.6 |   |   | **$** | **980.3** |   |
|                                                               |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                           |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                 |   |                                                          | 1,275  |   |                                                         | ** ** | **1,045** |   |   |   | 4,280 |   |   | ** ** | **3,685** |   |
| Average                selling price (per                kilogram) |   | $                                                             | 38.95  |   |                                                         | **$**      | **39.85** |   |   | $ | 36.45 |   |   | **$** | **42.35** |   |
|                                                               |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                             |   |                                                          |   |   |                                                         |       |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                 |   |                                                          | 3,150  |   |                                                         | ** ** | **3,350** |   |   |   | 10,575 |   |   | ** ** | **10,665** |   |
| Average                selling price (per                kilogram) |   | $                                                             | 59.75  |   |                                                         | **$**      | **67.75** |   |   | $ | 56.80 |   |   | **$** | **68.20** |   |

Index

----

**Item      2.            MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS**

*     The      statements contained in this      Quarterly Report on Form 10-Q (“Quarterly Report”) that are not historical      facts, including, but not limited to, statements found in Management’s      Discussion and Analysis of Financial Condition and Results of Operations      (“MD&A”), are forward-looking statements that represent management’s beliefs      and assumptions based on currently available      information.  Forward-looking statements can generally be identified      by the use of words such as “believes,” “intends,” “may,” “will,” “looks,”“should,” “could,” “anticipates,” “expects” or comparable terminology or by      discussions of strategies or trends.  Although we believe that the      expectations reflected in such forward-looking statements are reasonable, we      do      not know if these expectations will prove to be correct.  Such      statements by their nature involve substantial risks and uncertainties that      could significantly affect expected results.  Actual future results      could differ materially from those described in such forward-looking statements,      and we disclaim any intention or obligation to update or revise any      forward-looking statements, whether as a result of new information, future      events or otherwise.  Among the factors that could cause actual      results to differ materially are the risks and uncertainties discussed in this      Quarterly Report, including risks and uncertainties in those portions referenced      above and those described from time to time in our other filings with the SEC      which include, but are not limited to:*

| *·  * | *the                cyclicality of the commercial aerospace                industry;* |
|----------------------|---------------------------------------------------------------------------------------|

| *·  * | *the                performance of aerospace manufacturers and us under our long-term                agreements;* |
|----------------------|-------------------------------------------------------------------------------------------------------------------|

| *·  * | *the                existence or renewal of certain long-term                agreements;* |
|----------------------|-------------------------------------------------------------------------------------------|

| *·  * | *the                difficulty in forecasting demand for titanium                products;* |
|----------------------|---------------------------------------------------------------------------------------------|

| *·  * | *global                economic 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;* |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *·  * | *competitive                products and strategies; and* |
|----------------------|-----------------------------------------------------------|

| *·  * | *other                risks and uncertainties.* |
|----------------------|-------------------------------------------------|

*  Should      one or more of      these risks materialize (or the consequences of such a development worsen),      or      should the underlying assumptions prove incorrect, actual results could differ      materially from those forecasted or expected.*

**SUMMARY**

***General      overview***
* *

Index

----

**RESULTS      OF OPERATIONS**

**Quarter      ended September 30, 2007 compared to quarter ended September 30,      2006**

***Summarized      financial information***

|                                                                                   |   | Three                months ended September 30,            |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                   |   | 2006                                                       |   |   | %                of TotalNet Sales |   |   | **2007** |   |   | **%                of TotalNet Sales** |   |
|                                                                                   |   | (In                millions, except product shipment data) |   |
| Net                sales:                                                              |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Melted                products                                                         |   | $                                                          | 49.7   |   |   |   | 18% |   |   | **$** | **41.6** |   |   | ** ** | **14%** |   |
| Mill                products                                                           |   |                                                       | 188.2  |   |   |   | 69% |   |   | ** ** | **227.0** |   |   | ** ** | **76%** |   |
| Other                products                                                          |   |                                                       | 33.9   |   |   |   | 13% |   |   | ** ** | **28.7** |   |   | ** ** | **10%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                net sales                                                         |   |                                                       | 271.8  |   |   |   | 100% |   |   | ** ** | **297.3** |   |   | ** ** | **100%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                                           |   |                                                       | (174.0 | ) |   |   | 64% |   |   | ** ** | **(199.3** | **)** |   | ** ** | **67%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                            |   |                                                       | 97.8   |   |   |   | 36% |   |   | ** ** | **98.0** |   |   | ** ** | **33%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development                expense |   |                                                       | (17.2  | ) |   |   | 6% |   |   | ** ** | **(16.7** | **)** |   | ** ** | **6%** |   |
| Other                income, net                                                       |   |                                                       | 4.0    |   |   |   | 1% |   |   | ** ** | **-** |   |   | ** ** | **-** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                        |   | $                                                          | 84.6   |   |   |   | 31% |   |   | **$** | **81.3** |   |   | ** ** | **27%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                                               |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 1,275  |   |   |   |   |   |   | ** ** | **1,045** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 38.95  |   |   |   |   |   |   | **$** | **39.85** |   |   |   |   |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                                                 |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 3,150  |   |   |   |   |   |   | ** ** | **3,350** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 59.75  |   |   |   |   |   |   | **$** | **67.75** |   |   |   |   |   |

Index

----

***Net      sales***

***Cost      of sales***

***Gross      margin***
**.**

***Operating      income***

***Income      taxes.***

Index

----

**First      nine months of 2007 compared to first nine months of 2006**

***Summarized      financial information***

|                                                                                   |   | Nine                months ended September 30,             |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                   |   | 2006                                                       |   |   | %                of TotalNet Sales |   |   | **2007** |   |   | **%                of TotalNet Sales** |   |
|                                                                                   |   | (In                millions, except product shipment data) |   |
| Net                sales:                                                              |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Melted                products                                                         |   | $                                                          | 156.0  |   |   |   | 18% |   |   | **$** | **156.1** |   |   | ** ** | **16%** |   |
| Mill                products                                                           |   |                                                       | 600.6  |   |   |   | 70% |   |   | ** ** | **727.4** |   |   | ** ** | **74%** |   |
| Other                products                                                          |   |                                                       | 103.0  |   |   |   | 12% |   |   | ** ** | **96.8** |   |   | ** ** | **10%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                net sales                                                         |   |                                                       | 859.6  |   |   |   | 100% |   |   | ** ** | **980.3** |   |   | ** ** | **100%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                                           |   |                                                       | (547.2 | ) |   |   | 64% |   |   | ** ** | **(613.4** | **)** |   | ** ** | **63%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                            |   |                                                       | 312.4  |   |   |   | 36% |   |   | ** ** | **366.9** |   |   | ** ** | **37%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development                expense |   |                                                       | (49.8  | ) |   |   | 5% |   |   | ** ** | **(51.7** | **)** |   | ** ** | **5%** |   |
| Other                income, net                                                       |   |                                                       | 10.7   |   |   |   | 1% |   |   | ** ** | **0.2** |   |   | ** ** | **-** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                        |   | $                                                          | 273.3  |   |   |   | 32% |   |   | **$** | **315.4** |   |   | ** ** | **32%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                                               |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 4,280  |   |   |   |   |   |   | ** ** | **3,685** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 36.45  |   |   |   |   |   |   | **$** | **42.35** |   |   |   |   |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                                                 |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 10,575 |   |   |   |   |   |   | ** ** | **10,665** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 56.80  |   |   |   |   |   |   | **$** | **68.20** |   |   |   |   |   |

***Net      sales***

Index

----

***Cost      of sales***

***Gross      margin***
**.**

***Operating      income***

***Income      taxes.***

**Subsequent        Event**

Index

----

**European      operations**

**Outlook**

***Raw      materials.  ***

Index

----

***Melted      products.***

Index

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***Mill      products and conversion services.***

**LIQUIDITY      AND CAPITAL RESOURCES**

|                                                                                                                |   | Nine                months endedSeptember 30, |   |
|---------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                                                |   | 2006                                          |   |   | **2007** |   |
|                                                                                                                |   | (In                millions)                  |   |
| Cash                provided by (used in):                                                                          |   |                                          |   |   |   |   |
| Operating                activities                                                                                 |   | $                                             | 57.5   |   |   | **$** | **129.7** |   |
| Investing                activities                                                                                 |   |                                          | (63.1  | ) |   | ** ** | **(70.6** | **)** |
| Financing                activities                                                                                 |   |                                          | 13.8   |   |   | ** ** | **(10.7** | **)** |
|                                                                                                                |   |                                          |   |   |   |   |   |   |
|                    Net cash provided by operating, investing and financing                activities |   | $                                             | 8.2    |   |   | **$** | **48.4** |   |

***Operating      activities.***
* *

| ·   | higher                operating income of $49.9 million in 2007 (exclusive of $7.8 million                non-cash equity in earnings in 2006 from our interest in the VALTIMET                joint venture that we sold in December                2006); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | lower                net cash used by changes in receivables, inventories, payables and                accrued                liabilities of $61.3 million in 2007 in response to changing working                capital requirements; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher                net cash paid for income taxes in 2007 (including our tax benefit                related                to stock option exercises which was $9.2 million lower in 2007) of                $55.7                million due to the utilization of the remainder of our U.S. net operating                loss carryforward in 2006 and higher taxable income in                2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

***Investing      activities***

***Financing      activities***

| ·   | dividends                paid to the minority interest shareholder of our 70%-owned French                subsidiary of $3.0 million in the first nine months of 2006 compared                to                $8.1 million in the first nine months of 2007;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | proceeds                from the issuance of our common stock upon exercise of stock options                of                $10.7 million (and the related tax benefit of $10.0 million) in the                first                nine months of 2006 compared to $0.9 million (and the related tax                benefit                of $0.8 million) in the first nine months of                2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Future      cash requirements**

***Liquidity***
*.  *

Index

----

***Capital      expenditures***

Index

----

***              Contractual commitments***

|                                                                                            |   | Payment                Due Date |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                            |   |                            |   |   |   | 2008/ |   |   |   | 2010/ |   |   | 2012                & |   |   |   |   |
|                                                                                            |   | 2007                            |   |   | 2009 |   |   | 2011 |   |   | After |   |   | Total |   |
|                                                                                            |   | (In                millions)    |   |
|                                                                                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractual                commitments as of  December                31, 2006        |   | $                               | 192.8  |   |   | $ | 33.5 |   |   | $ | 24.5 |   |   | $ | 39.7 |   |   | $ | 290.5 |   |
|                                                                                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additional                long-term purchase agreements                entered into during 2007 |   |                            | -      |   |   |   | 200.6 |   |   |   | 182.3 |   |   |   | 330.8 |   |   |   | 713.7 |   |
|                                                                                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                            |   | $                               | 192.8  |   |   | $ | 234.1 |   |   | $ | 206.8 |   |   | $ | 370.5 |   |   | $ | 1,004.2 |   |

***Off-balance      sheet arrangements***

***Recent      accounting pronouncements***

***Critical      accounting policies***
*Critical      Accounting Policies and Estimates*

***Affiliate      transactions***

Index

----

**Item      3.                      QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Item      4.                      CONTROLS      AND PROCEDURES**

***Evaluation      of disclosure      controls and procedures***
*.*

***Scope      of management’s      report on internal control over financial      reporting***
*.*

| ·   | 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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Changes      in internal control      over financial reporting***
*.  *

Index

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**PARTII.–OTHER      INFORMATION**

**Item      1.                     LEGAL      PROCEEDINGS**

**Item      1A.                 RISK FACTORS**

**Item      6.                     EXHIBITS**

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1    |   | Bylaws                  of Titanium Metals Corporation as Amended and Restated, dated November                  1,                  2007, incorporated by reference to Exhibit 3.1 to the Registrant’s                  Current Report on Form 8-K filed with the SEC on November 1,                  2007.                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.1   |   | Stock                Purchase Agreement dated as of October 16, 2007 between TIMET Finance                Management Company and CompX International Inc., incorporated by                reference                to Exhibit 10.1 to the Current Report on Form 8-K filed by                CompX International Inc. with the SEC on October 22, 2007 (File No.                1-13905).                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.2   |   | Agreement                and Plan of Merger dated as of October 16, 2007 among                CompX International Inc., CompX Group, Inc. and CompX KDL LLC,                incorporated by reference to Exhibit 10.2 to the Current Report on                Form 8-K filed by CompX International Inc. with the SEC on October                22, 2007 (File No. 1-13905).                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.3   |   | Form                of Subordination Agreement among TIMET Finance Management Company,                CompX                International Inc., CompX Security Products, Inc., CompX Precision                Slides Inc., CompX Marine Inc., Custom Marine Inc., Livorsi MarineInc.,                Wachovia Bank, National Association as administrative agent for itself,                Compass Bank and Comerica Bank, incorporated by reference to Exhibit                10.4 to the Current Report on Form 8-K filed by CompX International                Inc. with the SEC on October 22, 2007 (File No.                1-13905). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.4   |   | Subordinated                Term Loan Promissory Note dated October 26, 2007 executed by CompX                International Inc. and payable to the order of TIMET Finance Management                Company, incorporated by reference to Exhibit 10.4 to the Current                Report                of Form 8-K filed by CompX International Inc. with the SEC on October                30,                2007 (File No. 1-13905).                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|   | 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. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

**SIGNATURES**

|                                  |           | TITANIUM                METALS CORPORATION                                              |
|---------------------------------------|----------------|-----------------------------------------------------------------------------------------|
|                                  |           |                                                                                    |
|                                  |           |                                                                                    |
|                                  |           |                                                                                    |
| Date:                November 7, 2007 | By   | /s/                James W. Brown                                                       |
|                                  |           | James                W. Brown                                                           |
|                                  |           | Vice                President and Chief Financial Officer                               |
|                                  |           |                                                                                    |
|                                  |           |                                                                                    |
| Date:                November 7, 2007 | By   | /s/                Scott E. Sullivan                                                    |
|                                  |           | Scott                E. Sullivan                                                        |
|                                  |           | Vice                President and ControllerPrincipal                Accounting Officer |

Index

----