----

----

**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 June 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) |

**(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; June 30, 2007 (unaudited)                                                                     | 2       |
|                                                                      |                                                                                                                              |    |
|                                                                      | Condensed                  Consolidated Statements of Income                  –                                             |    |
|                                                                      | Three                  and six months ended June 30, 2006 and 2007 (unaudited)                                                    | 4       |
|                                                                      |                                                                                                                              |    |
|                                                                      | Condensed                  Consolidated Statements of Cash                  Flows –                                         |    |
|                                                                      | Six                  months ended June 30, 2006 and 2007 (unaudited)                                                              | 5       |
|                                                                      |                                                                                                                              |    |
|                                                                      | Condensed                  Consolidated Statement of                  Stockholders’ Equity and Comprehensive Income – |    |
|                                                                      | Six                  months ended June 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                                      | 23      |
|                                                                      |                                                                                                                              |    |
|     Item                  4.                          | Controls                  and Procedures                                                                                          | 23      |
|                                                                      |                                                                                                                              |    |
| **PART                  II.  OTHER INFORMATION**                     |                                                                                                                              |
|                                                                      |                                                                                                                              |    |
|     Item                  1.                          | Legal                  Proceedings                                                                                                | 25      |
|                                                                      |                                                                                                                              |    |
|     Item                  1A.                         | Risk                  Factors                                                                                                     | 25      |
|                                                                      |                                                                                                                              |    |
|     Item                  4.                          | Submission                  of Matters to a Vote of Security                  Holders                                             | 25      |
|                                                                      |                                                                                                                              |    |
|     Item                  6.                          | Exhibits                                                                                                                          | 25      |
|                                                                      |                                                                                                                              |    |

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                            |   | December                  31, |    |   | **June                  30,** |       |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|--------|-------------------------------|------------|
| ASSETS                                                                                                          |   | 2006                          |    |   | **2007**                      |       |
|                                                                                                            |   |                          |    |   | **(unaudited)**               |       |
| Current                  assets:                                                                                |   |                          |    |   |                          |       |
| Cash                  and cash                  equivalents                                                     |   | $                             | 29.4    |   |                          | **$**      | **44.0** |   |
| Accounts                  and other receivables,                  less allowance of $1.4 and $1.8, respectively |   |                          | 213.0   |   |                          | ** ** | **243.1** |   |
| Inventories                                                                                                     |   |                          | 501.5   |   |                          | ** ** | **546.4** |   |
| Refundable                  income                  taxes                                                       |   |                          | -       |   |                          | ** ** | **2.3** |   |
| Prepaid                  expenses and                  other                                                    |   |                          | 4.6     |   |                          | ** ** | **4.4** |   |
| Deferred                  income                  taxes                                                         |   |                          | 9.1     |   |                          | ** ** | **8.9** |   |
|                                                                                                            |   |                          |    |   |                          |       |   |   |
| Total                  current                  assets                                                          |   |                          | 757.6   |   |                          | ** ** | **849.1** |   |
|                                                                                                            |   |                          |    |   |                          |       |   |   |
| Marketable                  securities                                                                          |   |                          | 56.8    |   |                          | ** ** | **52.2** |   |
| Property                  and equipment, net                                                                    |   |                          | 329.8   |   |                          | ** ** | **344.4** |   |
| Pension                  asset                                                                                  |   |                          | 17.9    |   |                          | ** ** | **20.1** |   |
| Deferred                  income taxes                                                                          |   |                          | 3.5     |   |                          | ** ** | **0.1** |   |
| Prepaid                  expenses and other                                                                     |   |                          | 51.3    |   |                          | ** ** | **49.9** |   |
|                                                                                                            |   |                          |    |   |                          |       |   |   |
| Total                  assets                                                                                   |   | $                             | 1,216.9 |   |                          | **$**      | **1,315.8** |   |

Index

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

|                                                                                              |   | December                31, |    |   | **June                30,** |       |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|------------|
| LIABILITIES,                MINORITY INTEREST AND                                                 |   | 2006                        |    |   | **2007**                    |       |
| STOCKHOLDERS’                EQUITY                                                         |   |                        |    |   | **(unaudited)**             |       |
|                                                                                              |   |                        |    |   |                        |       |
| Current                liabilities:                                                               |   |                        |    |   |                        |       |
| Accounts                payable                                                                   |   | $                           | 87.8    |   |                        | **$**      | **67.7** |   |
| Accrued                liabilities                                                                |   |                        | 82.0    |   |                        | ** ** | **67.6** |   |
| Customer                advances                                                                  |   |                        | 18.7    |   |                        | ** ** | **15.6** |   |
| Income                taxes                payable                                                |   |                        | 22.0    |   |                        | ** ** | **6.1** |   |
| Deferred                income                taxes                                               |   |                        | 0.6     |   |                        | ** ** | **0.6** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Total                current                liabilities                                           |   |                        | 211.1   |   |                        | ** ** | **157.6** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Accrued                OPEB cost                                                                  |   |                        | 28.0    |   |                        | ** ** | **28.6** |   |
| Accrued                pension cost                                                               |   |                        | 52.2    |   |                        | ** ** | **51.4** |   |
| Deferred                income taxes                                                              |   |                        | 17.8    |   |                        | ** ** | **15.2** |   |
| Other                                                                                             |   |                        | 7.6     |   |                        | ** ** | **10.1** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Total                liabilities                                                                  |   |                        | 316.7   |   |                        | ** ** | **262.9** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Minority                interest                                                                  |   |                        | 21.3    |   |                        | ** ** | **19.7** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Stockholders’                equity:                                                        |   |                        |    |   |                        |       |   |   |
| Series                A Preferred                Stock                                            |   |                        | 75.0    |   |                        | ** ** | **73.4** |   |
| Common                stock                                                                       |   |                        | 1.6     |   |                        | ** ** | **1.6** |   |
| Additional                paid-in                capital                                          |   |                        | 484.4   |   |                        | ** ** | **487.6** |   |
| Retained                earnings                                                                  |   |                        | 340.3   |   |                        | ** ** | **491.5** |   |
| Accumulated                other comprehensive                loss                                |   |                        | (22.4   | )      |                        | ** ** | **(20.9** | **)** |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Total                stockholders’                equity                                    |   |                        | 878.9   |   |                        | ** ** | **1,033.2** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Total                liabilities, minority                interest and stockholders’ equity |   | $                           | 1,216.9 |   |                        | **$**      | **1,315.8** |   |
|                                                                                              |   |                        |    |   |                        |       |   |   |
| Commitments                and contingencies (Note 9)                                             |   |                        |    |   |                        |       |   |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

|                                                                                        |   | Three                months endedJune                30, |   |   | Six                months endedJune                30, |       |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|------------|
|                                                                                        |   | 2006                                                     |   |   | **2007**                                               |       |   | 2006 |   |   | **2007** |   |
|                                                                                        |   |                                                     |   |   | (unaudited)                                            |       |   |   |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |
| Net                sales                                                                    |   | $                                                        | 300.9  |   |                                                   | **$**      | **341.2** |   |   | $ | 587.8 |   |   | **$** | **682.9** |   |
| Cost                of sales                                                                |   |                                                     | 194.6  |   |                                                   | ** ** | **205.7** |   |   |   | 373.2 |   |   | ** ** | **414.0** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                                 |   |                                                     | 106.3  |   |                                                   | ** ** | **135.5** |   |   |   | 214.6 |   |   | ** ** | **268.9** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development expense                     |   |                                                     | 17.4   |   |                                                   | ** ** | **17.7** |   |   |   | 32.6 |   |   | ** ** | **35.0** |   |
| Other                income, net                                                            |   |                                                     | 4.7    |   |                                                   | ** ** | **0.2** |   |   |   | 6.7 |   |   | ** ** | **0.3** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
|   Operating                income                                                 |   |                                                     | 93.6   |   |                                                   | ** ** | **118.0** |   |   |   | 188.7 |   |   | ** ** | **234.2** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Other                non-operating (expense) income, net                                    |   |                                                     | (2.3   | )      |                                                   | ** ** | **0.4** |   |   |   | (3.0 | ) |   | ** ** | **0.2** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes and                minority interest              |   |                                                     | 91.3   |   |                                                   | ** ** | **118.4** |   |   |   | 185.7 |   |   | ** ** | **234.4** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                   |   |                                                     | 32.8   |   |                                                   | ** ** | **37.9** |   |   |   | 66.1 |   |   | ** ** | **74.3** |   |
| Minority                interest in after-tax earnings                                      |   |                                                     | 2.3    |   |                                                   | ** ** | **2.8** |   |   |   | 4.6 |   |   | ** ** | **5.9** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                   |   |                                                     | 56.2   |   |                                                   | ** ** | **77.7** |   |   |   | 115.0 |   |   | ** ** | **154.2** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Dividends                on Series A Preferred Stock                                        |   |                                                     | 1.9    |   |                                                   | ** ** | **1.4** |   |   |   | 3.9 |   |   | ** ** | **2.8** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Net                income attributable to                common                stockholders |   | $                                                        | 54.3   |   |                                                   | **$**      | **76.3** |   |   | $ | 111.1 |   |   | **$** | **151.4** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share attributable to common stockholders:                      |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
|                    Basic                                                     |   | $                                                        | 0.36   |   |                                                   | **$**      | **0.47** |   |   | $ | 0.75 |   |   | **$** | **0.94** |   |
|                    Diluted                                                   |   | $                                                        | 0.31   |   |                                                   | **$**      | **0.42** |   |   | $ | 0.63 |   |   | **$** | **0.84** |   |
|                                                                                        |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding:                                         |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
|                    Basic                                                     |   |                                                     | 152.1  |   |                                                   | ** ** | **162.1** |   |   |   | 149.0 |   |   | ** ** | **161.9** |   |
|                    Diluted                                                   |   |                                                     | 184.1  |   |                                                   | ** ** | **184.3** |   |   |   | 183.7 |   |   | ** ** | **184.3** |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                       |   | Six                months endedJune 30, |   |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                       |   | 2006                                    |   |   | **2007** |   |
|                                                                                                       |   | (unaudited)                             |   |
| Cash                flows from operating activities:                                                       |   |                                    |   |   |   |   |
| Net                income                                                                                  |   | $                                       | 115.0  |   |   | **$** | **154.2** |   |
| Depreciation                and                amortization                                                |   |                                    | 16.8   |   |   | ** ** | **19.2** |   |
| Equity                in earnings of joint                ventures, net of distributions                   |   |                                    | (5.2   | ) |   | ** ** | **0.1** |   |
| Deferred                income                taxes                                                        |   |                                    | 8.7    |   |   | ** ** | **2.5** |   |
| Excess                tax benefit of stock option                exercises                                 |   |                                    | (9.6   | ) |   | ** ** | **(0.8** | **)** |
| Minority                interest                                                                           |   |                                    | 4.6    |   |   | ** ** | **5.9** |   |
| Other,                net                                                                                  |   |                                    | 0.1    |   |   | ** ** | **1.4** |   |
| Change                in assets and                liabilities:                                            |   |                                    |   |   |   |   |   |   |
| Receivables                                                                                                |   |                                    | (49.4  | ) |   | ** ** | **(27.8** | **)** |
| Inventories                                                                                                |   |                                    | (63.2  | ) |   | ** ** | **(41.3** | **)** |
| Accounts                payable and accrued                liabilities                                     |   |                                    | 0.8    |   |   | ** ** | **(34.3** | **)** |
| Income                taxes                                                                                |   |                                    | 6.7    |   |   | ** ** | **(17.6** | **)** |
| Other,                net                                                                                  |   |                                    | (2.4   | ) |   | ** ** | **(4.2** | **)** |
| Net                cash provided by operating                activities                                    |   |                                    | 22.9   |   |   | ** ** | **57.3** |   |
|                                                                                                       |   |                                    |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                       |   |                                    |   |   |   |   |   |   |
| Capital                expenditures                                                                        |   |                                    | (34.9  | ) |   | ** ** | **(33.9** | **)** |
| Other,                net                                                                                  |   |                                    | (0.7   | ) |   | ** ** | **-** |   |
| Net                cash used in investing                activities                                        |   |                                    | (35.6  | ) |   | ** ** | **(33.9** | **)** |
|                                                                                                       |   |                                    |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                       |   |                                    |   |   |   |   |   |   |
| Indebtedness:                                                                                              |   |                                    |   |   |   |   |   |   |
| Borrowings                                                                                                 |   |                                    | 330.5  |   |   | ** ** | **-** |   |
| Repayments                                                                                                 |   |                                    | (334.7 | ) |   | ** ** | **-** |   |
| Dividends                paid on Series A                Preferred Stock                                   |   |                                    | (4.3   | ) |   | ** ** | **(2.8** | **)** |
| Dividends                paid to minority                shareholder                                       |   |                                    | (3.0   | ) |   | ** ** | **(8.1** | **)** |
| Issuance                of common                stock                                                     |   |                                    | 10.6   |   |   | ** ** | **0.8** |   |
| Excess                tax benefit of stock option                exercises                                 |   |                                    | 9.6    |   |   | ** ** | **0.8** |   |
| Other,                net                                                                                  |   |                                    | (0.7   | ) |   | ** ** | **-** |   |
| Net                cash provided by (used in)                financing activities                          |   |                                    | 8.0    |   |   | ** ** | **(9.3** | **)** |
|                                                                                                       |   |                                    |   |   |   |   |   |   |
| Net                cash (used in) provided by operating, investing and financing                activities |   |                                    | (4.7   | ) |   | ** ** | **14.1** |   |
| Effect                of exchange rate changes on                cash                                      |   |                                    | 0.9    |   |   | ** ** | **0.5** |   |
|                                                                                                       |   |                                    | (3.8   | ) |   | ** ** | **14.6** |   |
| Cash                and cash equivalents at                beginning of period                             |   |                                    | 17.6   |   |   | ** ** | **29.4** |   |
|                                                                                                       |   |                                    |   |   |   |   |   |   |
| Cash                and cash equivalents at end                of period                                   |   | $                                       | 13.8   |   |   | **$** | **44.0** |   |
|                                                                                                       |   |                                    |   |   |   |   |   |   |
| Supplemental                disclosures:                                                                   |   |                                    |   |   |   |   |   |   |
| Cash                paid for:                                                                              |   |                                    |   |   |   |   |   |   |
| Interest,                net of amounts                capitalized                                         |   | $                                       | 1.1    |   |   | **$** | **1.5** |   |
|                    Income taxes, net                                                        |   | $                                       | 50.5   |   |   | **$** | **88.9** |   |

Index

----

**TITANIUMMETALS      CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY **
**AND      COMPREHENSIVE INCOME**

**FOR      THE SIX MONTHS ENDED JUNE 30, 2007**

|                                                                                                                                                       |   | Series                A Preferred Stock |     |   | CommonStock |   |    | Additional                Paid-in Capital |   |   | RetainedEarnings |   |   | 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                                                                                                                                  |   |                                    | -        |   |        |   | -       |                                      |   |   | -                |   |   |                                                | 154.2     |   |   |   | -         |                                |   |   | 154.2 |   |   | $ | 154.2 |   |
| Other                comprehensive income                                                                                                             |   |                                    | -        |   |        |   | -       |                                      |   |   | -                |   |   |                                                | -         |   |   |   | 1.5       |                                |   |   | 1.5 |   |   |   | 1.5 |   |
| Issuance                of                common stock                                                                                                |   |                                    | -        |   |        |   | -       |                                      |   |   | 0.8              |   |   |                                                | -         |   |   |   | -         |                                |   |   | 0.8 |   |   |   | - |   |
| Conversion                of Series                APreferred                Stock                                                                         |   |                                    | (1.6     | )      |        |   | -       |                                      |   |   | 1.6              |   |   |                                                | -         |   |   |   | -         |                                |   |   | - |   |   |   | - |   |
|                      Tax benefit                  of stock options                        exercised |   |                                    | -        |   |        |   | -       |                                      |   |   | 0.8              |   |   |                                                | -         |   |   |   | -         |                                |   |   | 0.8 |   |   |   | - |   |
|                      Dividends declared on Series APreferred                  Stock                                                         |   |                                    | -        |   |        |   | -       |                                      |   |   | -                |   |   |                                                | (2.8      | )      |   |   | -         |                                |   |   | (2.8 | ) |   |   | - |   |
| Change                in Accounting -                FIN                48                                                                                 |   |                                    | -        |   |        |   | -       |                                      |   |   | -                |   |   |                                                | (0.2      | )      |   |   | -         |                                |   |   | (0.2 | ) |   |   | - |   |
|                                                                                                                                                       |   |                                    |     |   |        |   |    |                                      |   |   |             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   |   |   |   |
| Balance                at June 30, 2007                                                                                                                    |   | **$**                                   | **73.4** |   |        | **$**  | **1.6** |                                      |   | **$**  | **487.6**        |   |   | **$**                                               | **491.5** |   |   | **$**  | **(20.9** | **)**                               |   | **$** | **1,033.2** |   |   |   |   |   |
|                                                                                                                                                       |   |                                    |     |   |        |   |    |                                      |   |   |             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                        |   |                                    |     |   |        |   |    |                                      |   |   |             |   |   |                                                |      |   |   |   |      |                                |   |   |   |   |   | **$** | **155.7** |   |

Index

----

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

**JUNE            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 |   |   | **June                30,****2007** |       |
|-------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------------|------------|
|                                            |   | (In                millions)    |   |
|                                            |   |                            |   |   |                                |       |
| Raw                materials                    |   | $                               | 134.0  |   |                                | **$**      | **128.3** |   |
| Work-in-process                                 |   |                            | 239.4  |   |                                | ** ** | **268.7** |   |
| Finished                products                |   |                            | 90.3   |   |                                | ** ** | **105.8** |   |
| Inventory                consigned to customers |   |                            | 20.1   |   |                                | ** ** | **23.3** |   |
| Supplies                                        |   |                            | 17.7   |   |                                | ** ** | **20.3** |   |
|                                            |   |                            |   |   |                                |       |   |   |
| Total                inventories                |   | $                               | 501.5  |   |                                | **$**      | **546.4** |   |

Index

----

**Note      3 – Marketable securities**

|                                                      |   | December                31,2006 |   |   | **June                30, 2007** |       |
|-----------------------------------------------------------|--------|---------------------------------|--------|--------|----------------------------------|------------|
|                                                      |   | (In                millions)    |   |
|                                                      |   |                            |   |   |                             |       |
| CompX                                                     |   | $                               | 54.3   |   |                             | **$**      | **49.9** |   |
| NL                                                        |   |                            | 2.3    |   |                             | ** ** | **2.2** |   |
| Kronos                                                    |   |                            | 0.2    |   |                             | ** ** | **0.1** |   |
|                                                      |   |                            |   |   |                             |       |   |   |
| Total                marketable                securities |   | $                               | 56.8   |   |                             | **$**      | **52.2** |   |

**Note      4 – Property and equipment**

|                                                                     |   | December                31,2006 |   |   | **June                30,2007** |       |
|--------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|------------|
|                                                                     |   | (In                millions)    |   |
|                                                                     |   |                            |   |   |                            |       |
| Land                and improvements                                     |   | $                               | 9.3    |   |                            | **$**      | **11.2** |   |
| Buildings                and improvements                                |   |                            | 41.6   |   |                            | ** ** | **55.7** |   |
| Information                technology systems                            |   |                            | 66.0   |   |                            | ** ** | **66.9** |   |
| Manufacturing                equipment and other                         |   |                            | 376.2  |   |                            | ** ** | **433.6** |   |
| Construction                in progress                                  |   |                            | 103.4  |   |                            | ** ** | **61.6** |   |
|                                                                     |   |                            |   |   |                            |       |   |   |
| Total                property and equipment                              |   |                            | 596.5  |   |                            | ** ** | **629.0** |   |
|                                                                     |   |                            |   |   |                            |       |   |   |
| Less                accumulated depreciation                             |   |                            | 266.7  |   |                            | ** ** | **284.6** |   |
|                                                                     |   |                            |   |   |                            |       |   |   |
|     Total                property and equipment, net |   | $                               | 329.8  |   |                            | **$**      | **344.4** |   |

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

|                                                                                            |   | December                31,2006 |   |   | **June                30,2007** |       |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|------------|
|                                                                                            |   | (In                millions)    |   |
|                                                                                            |   |                            |   |   |                            |       |
| Prepaid                conversion services                                                      |   | $                               | 49.7   |   |                            | **$**      | **48.4** |   |
| Other                                                                                           |   |                            | 1.6    |   |                            | ** ** | **1.5** |   |
|                                                                                            |   |                            |   |   |                            |       |   |   |
|      Total                prepaid expenses and other noncurrent assets |   | $                               | 51.3   |   |                            | **$**      | **49.9** |   |

Index

----

**Note      6 – Accrued liabilities**

|                                                             |   | December                31,2006 |   |   | **June                30,2007** |       |
|------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|------------|
|                                                             |   | (In                millions)    |   |
|                                                             |   |                            |   |   |                            |       |
| Employee                related                                  |   | $                               | 46.4   |   |                            | **$**      | **33.7** |   |
| Deferred                revenue                                  |   |                            | 6.9    |   |                            | ** ** | **6.8** |   |
| Scrap                purchases                                   |   |                            | 8.9    |   |                            | ** ** | **5.6** |   |
| Taxes,                other than income                          |   |                            | 6.7    |   |                            | ** ** | **8.7** |   |
| Other                                                            |   |                            | 13.1   |   |                            | ** ** | **12.8** |   |
|                                                             |   |                            |   |   |                            |       |   |   |
|     Total                accrued liabilities |   | $                               | 82.0   |   |                            | **$**      | **67.6** |   |

**Note      7 – Employee benefits**

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

|                                                         |   | Three                months endedJune                30, |   |   | Six                months endedJune                30, |       |
|--------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|------------|
|                                                         |   | 2006                                                     |   |   | **2007**                                               |       |   | 2006 |   |   | **2007** |   |
|                                                         |   | (In                millions)                             |   |
|                                                         |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |
| Service                cost                                  |   | $                                                        | 1.1    |   |                                                   | **$**      | **1.3** |   |   | $ | 2.2 |   |   | **$** | **2.7** |   |
| Interest                cost                                 |   |                                                     | 3.4    |   |                                                   | ** ** | **4.2** |   |   |   | 6.8 |   |   | ** ** | **8.3** |   |
| Expected                return on plan assets                |   |                                                     | (4.5   | )      |                                                   | ** ** | **(5.4** | **)** |   |   | (9.0 | ) |   | ** ** | **(10.8** | **)** |
| Amortization                of net losses                    |   |                                                     | 0.8    |   |                                                   | ** ** | **0.9** |   |   |   | 1.6 |   |   | ** ** | **1.7** |   |
| Amortization                of prior service cost       |   |                                                     | 0.1    |   |                                                   | ** ** | **0.1** |   |   |   | 0.3 |   |   | ** ** | **0.2** |   |
|                                                         |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
|     Total                pension expense |   | $                                                        | 0.9    |   |                                                   | **$**      | **1.1** |   |   | $ | 1.9 |   |   | **$** | **2.1** |   |

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

|                                                   |   | Three                months endedJune                30, |   |   | Six                months endedJune                30, |       |
|--------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|--------------------------------------------------------|------------|
|                                                   |   | 2006                                                     |   |   | **2007**                                               |       |   | 2006 |   |   | **2007** |   |
|                                                   |   | (In                millions)                             |   |
|                                                   |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |
| Service                cost                            |   | $                                                        | 0.2    |   |                                                   | **$**      | **0.3** |   |   | $ | 0.4 |   |   | **$** | **0.5** |   |
| Interest                cost                           |   |                                                     | 0.5    |   |                                                   | ** ** | **0.4** |   |   |   | 0.9 |   |   | ** ** | **0.9** |   |
| Amortization                of net losses              |   |                                                     | (0.1   | )      |                                                   | ** ** | **(0.1** | **)** |   |   | 0.1 |   |   | ** ** | **(0.2** | **)** |
| Amortization                of prior service cost |   |                                                     | 0.5    |   |                                                   | ** ** | **0.2** |   |   |   | 0.4 |   |   | ** ** | **0.4** |   |
|                                                   |   |                                                     |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Total                OPEB                expense       |   | $                                                        | 1.1    |   |                                                   | **$**      | **0.8** |   |   | $ | 1.8 |   |   | **$** | **1.6** |   |

Index

----

**Note      8 – Income taxes**

|                                                     |   | Six                months endedJune 30, |   |
|----------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                     |   | 2006                                    |   |   | **2007** |   |
|                                                     |   | (In                millions)            |   |
|                                                     |   |                                    |   |   |   |   |
| Expected                income tax expense, at 35%       |   | $                                       | 65.0   |   |   | **$** | **82.0** |   |
| Non-U.S.                tax rates                        |   |                                    | (0.9   | ) |   | ** ** | **(1.7** | **)** |
| U.S.                state income taxes, net              |   |                                    | 3.2    |   |   | ** ** | **4.1** |   |
| Nontaxable                income                         |   |                                    | (0.2   | ) |   | ** ** | **(6.3** | **)** |
| Domestic                manufacturing credit             |   |                                    | (1.0   | ) |   | ** ** | **(3.3** | **)** |
| Other,                net                                |   |                                    | -      |   |   | ** ** | **(0.5** | **)** |
|                                                     |   |                                    |   |   |   |   |   |   |
| Provision                for income                taxes |   | $                                       | 66.1   |   |   | **$** | **74.3** |   |

**Note      9 – Commitments and contingencies**

***    Environmental      matters.***

***    Legal      proceedings***

Index

----

**Note      10 – Earnings per share**

|                                                                                                |   | Three                months endedJune 30, |   |   | Six                months endedJune                30, |       |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|--------------------------------------------------------|------------|
|                                                                                                |   | 2006                                      |   |   | **2007**                                               |       |   | 2006 |   |   | **2007** |   |
|                                                                                                |   | (In                millions)              |   |
| Numerator:                                                                                          |   |                                      |   |   |                                                   |       |   |   |   |   |   |   |
| Net                income attributable to                common stockholders                   |   | $                                         | 54.3   |   |                                                   | **$**      | **76.3** |   |   | $ | 111.1 |   |   | **$** | **151.4** |   |
| Dividends                on Series A                Preferred                Stock                  |   |                                      | 1.9    |   |                                                   | ** ** | **1.4** |   |   |   | 3.9 |   |   | ** ** | **2.8** |   |
|                                                                                                |   |                                      |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Diluted                net income attributable                to                common stockholders |   | $                                         | 56.2   |   |                                                   | **$**      | **77.7** |   |   | $ | 115.0 |   |   | **$** | **154.2** |   |
|                                                                                                |   |                                      |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                        |   |                                      |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Average                common shares                outstanding                                     |   |                                      | 152.1  |   |                                                   | ** ** | **162.1** |   |   |   | 149.0 |   |   | ** ** | **161.9** |   |
| Average                dilutive stock                options                                        |   |                                      | 0.3    |   |                                                   | ** ** | **0.1** |   |   |   | 0.5 |   |   | ** ** | **0.1** |   |
| Series                A Preferred                Stock                                              |   |                                      | 31.7   |   |                                                   | ** ** | **22.1** |   |   |   | 34.1 |   |   | ** ** | **22.3** |   |
| Other                                                                                               |   |                                      | -      |   |                                                   | ** ** | **-** |   |   |   | 0.1 |   |   | ** ** | **-** |   |
|                                                                                                |   |                                      |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Diluted                shares                                                                       |   |                                      | 184.1  |   |                                                   | ** ** | **184.3** |   |   |   | 183.7 |   |   | ** ** | **184.3** |   |

Index

----

**Note      11 – Business segment information**

|                                                               |   | Three                months endedJune 30,                  |   |   | Six                months endedJune                30, |       |
|--------------------------------------------------------------------|--------|------------------------------------------------------------|--------|--------|--------------------------------------------------------|------------|
|                                                               |   | 2006                                                       |   |   | **2007**                                               |       |   | 2006 |   |   | **2007** |   |
|                                                               |   | (In                millions, except product shipment data) |   |
| Titanium                melted and mill products:                  |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |
| Melted                product net                sales             |   | $                                                          | 59.3   |   |                                                   | **$**      | **55.3** |   |   | $ | 106.4 |   |   | **$** | **114.4** |   |
| Mill                product net                sales               |   |                                                       | 207.2  |   |                                                   | ** ** | **250.4** |   |   |   | 412.1 |   |   | ** ** | **497.4** |   |
| Other                product                sales                  |   |                                                       | 34.4   |   |                                                   | ** ** | **35.5** |   |   |   | 69.3 |   |   | ** ** | **71.1** |   |
|                                                               |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
|                     Total net sales            |   | $                                                          | 300.9  |   |                                                   | **$**      | **341.2** |   |   | $ | 587.8 |   |   | **$** | **682.9** |   |
|                                                               |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                           |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                 |   |                                                       | 1,550  |   |                                                   | ** ** | **1,310** |   |   |   | 3,005 |   |   | ** ** | **2,640** |   |
| Average                selling price (per                kilogram) |   | $                                                          | 38.25  |   |                                                   | **$**      | **42.20** |   |   | $ | 35.40 |   |   | **$** | **43.35** |   |
|                                                               |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                             |   |                                                       |   |   |                                                   |       |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                 |   |                                                       | 3,750  |   |                                                   | ** ** | **3,595** |   |   |   | 7,425 |   |   | ** ** | **7,315** |   |
| Average                selling price (per                kilogram) |   | $                                                          | 55.25  |   |                                                   | **$**      | **69.65** |   |   | $ | 55.50 |   |   | **$** | **68.00** |   |

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 June 30, 2007 compared to quarter ended June 30,      2006**

***Summarized      financial information***

|                                                                                   |   | Three                months endedJune 30,                  |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                   |   | 2006                                                       |   |   | %                of TotalNet Sales |   |   | **2007** |   |   | **%                of TotalNet Sales** |   |
|                                                                                   |   | (In                millions, except product shipment data) |   |
| Net                sales:                                                              |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Melted                products                                                         |   | $                                                          | 59.3   |   |   |   | 20% |   |   | **$** | **55.3** |   |   | ** ** | **16%** |   |
| Mill                products                                                           |   |                                                       | 207.2  |   |   |   | 69% |   |   | ** ** | **250.4** |   |   | ** ** | **74%** |   |
| Other                products                                                          |   |                                                       | 34.4   |   |   |   | 11% |   |   | ** ** | **35.5** |   |   | ** ** | **10%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                net sales                                                         |   |                                                       | 300.9  |   |   |   | 100% |   |   | ** ** | **341.2** |   |   | ** ** | **100%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                                           |   |                                                       | (194.6 | ) |   |   | 65% |   |   | ** ** | **(205.7** | **)** |   | ** ** | **60%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                            |   |                                                       | 106.3  |   |   |   | 35% |   |   | ** ** | **135.5** |   |   | ** ** | **40%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development                expense |   |                                                       | (17.4  | ) |   |   | 6% |   |   | ** ** | **(17.7** | **)** |   | ** ** | **5%** |   |
| Other                income, net                                                       |   |                                                       | 4.7    |   |   |   | 2% |   |   | ** ** | **0.2** |   |   | ** ** | **-** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                        |   | $                                                          | 93.6   |   |   |   | 31% |   |   | **$** | **118.0** |   |   | ** ** | **35%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                                               |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 1,550  |   |   |   |   |   |   | ** ** | **1,310** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 38.25  |   |   |   |   |   |   | **$** | **42.20** |   |   |   |   |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                                                 |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 3,750  |   |   |   |   |   |   | ** ** | **3,595** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 55.25  |   |   |   |   |   |   | **$** | **69.65** |   |   |   |   |   |

Index

----

***Net      sales***

***Cost      of sales***

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

***Operating      income***

***Income      taxes.***

Index

----

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

***Summarized      financial information***

|                                                                                   |   | Six                months endedJune 30,                    |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                   |   | 2006                                                       |   |   | %                of TotalNet Sales |   |   | **2007** |   |   | **%                of TotalNet Sales** |   |
|                                                                                   |   | (In                millions, except product shipment data) |   |
| Net                sales:                                                              |   |                                                       |   |   |   |   |   |   |   |   |   |   |
| Melted                products                                                         |   | $                                                          | 106.4  |   |   |   | 18% |   |   | **$** | **114.4** |   |   | ** ** | **17%** |   |
| Mill                products                                                           |   |                                                       | 412.1  |   |   |   | 70% |   |   | ** ** | **497.4** |   |   | ** ** | **73%** |   |
| Other                products                                                          |   |                                                       | 69.3   |   |   |   | 12% |   |   | ** ** | **71.1** |   |   | ** ** | **10%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                net sales                                                         |   |                                                       | 587.8  |   |   |   | 100% |   |   | ** ** | **682.9** |   |   | ** ** | **100%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                                           |   |                                                       | (373.2 | ) |   |   | 63% |   |   | ** ** | **(414.0** | **)** |   | ** ** | **61%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                            |   |                                                       | 214.6  |   |   |   | 37% |   |   | ** ** | **268.9** |   |   | ** ** | **39%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development                expense |   |                                                       | (32.6  | ) |   |   | 6% |   |   | ** ** | **(35.0** | **)** |   | ** ** | **5%** |   |
| Other                income, net                                                       |   |                                                       | 6.7    |   |   |   | 1% |   |   | ** ** | **0.3** |   |   | ** ** | **-** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                        |   | $                                                          | 188.7  |   |   |   | 32% |   |   | **$** | **234.2** |   |   | ** ** | **34%** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                                               |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 3,005  |   |   |   |   |   |   | ** ** | **2,640** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 35.40  |   |   |   |   |   |   | **$** | **43.35** |   |   |   |   |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                                                 |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric                tons)                                     |   |                                                       | 7,425  |   |   |   |   |   |   | ** ** | **7,315** |   |   |   |   |   |
| Average                selling price (per                kilogram)                     |   | $                                                          | 55.50  |   |   |   |   |   |   | **$** | **68.00** |   |   |   |   |   |

***Net      sales***

Index

----

***Cost      of sales***

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

***Operating      income***

***Income      taxes.***

**European      operations**

Index

----

**Outlook**

|   | · | In                April 2007, we completed the expansion of our existing titanium sponge                facility in Henderson, Nevada and commenced commercial                production.  This expansion, when operating at full capacity,                will produce an additional 4,000 metric tons of sponge annually,                an                increase of approximately 47% over the previous sponge capacity levels                at                our Nevada facility.  We expect to be operating at full annual                capacity of 12,600 metric tons by the end of the third quarter of                2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We                are in the process of expanding our global melt capacity.  We                currently expect to complete an 8,500 metric ton expansion of our                electron                beam cold hearth (“EB”) melt capacity in Morgantown, Pennsylvania by early                2008.  We also commenced efforts to add a similar EB furnace at                the same facility in Morgantown, Pennsylvania, scheduled to be completed                in the last half of 2009.  During 2007 we have also commenced                construction of additional vacuum arc remelt (“VAR”) capacity additions at                our Witton, Morgantown and Savoie locations, all of which are expected                to                be completed by the end of the second quarter of 2008.  Upon                completion, these melt capacity additions will increase our EB melt                capacity by approximately 107% and will increase our VAR capacity                by                approximately 34%.  As we continue to adjust our long-term business                plan in response to industry trends, we will consider more additions                to                our melt capacity based on our raw material and product                mix. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Under                our conversion services agreement with Haynes International, Inc.,                we have                access to a dedicated annual rolling capacity of 4,500 metric tons                at                Haynes’ facility, and we have the option of increasing the output capacity                to 9,000 metric tons.  This agreement provides us with a                long-term secure source for processing flat products, resulting in                a                significant increase in our existing mill product conversion capabilities                which allows us to provide assurance to our customers of our long-term                ability to meet their needs. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                March 2007, we commenced design and engineering efforts for the                construction of a new premium-grade titanium sponge facility that                could                provide an additional 10,000 to 20,000 metric tons of capacity and                would                be built in phases at a site to be determined during 2007.  We                currently anticipate that a new sponge facility could be operational                within approximately two years of the commencement of                construction.  In addition to this potential new sponge                facility, we are also exploring other opportunities to increase our                supply                of raw materials, including titanium sponge and scrap, from third-party                sources. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We                have several additional projects in process, including those intended                to                provide greater efficiency, which are expected to increase our melted                and                mill capacity. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

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*The *
*Airline Monitor*

**LIQUIDITY      AND CAPITAL RESOURCES**

|                                                                                                           |   | Six                  months endedJune 30, |   |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                                           |   | 2006                                      |   |   | **2007** |   |
|                                                                                                           |   | (In                  millions)            |   |
| Cash                  (used in) provided by:                                                                   |   |                                      |   |   |   |   |
| Operating                  activities                                                                          |   | $                                         | 22.9   |   |   | **$** | **57.3** |   |
| Investing                  activities                                                                          |   |                                      | (35.6  | ) |   | ** ** | **(33.9** | **)** |
| Financing                  activities                                                                          |   |                                      | 8.0    |   |   | ** ** | **(9.3** | **)** |
|                                                                                                           |   |                                      |   |   |   |   |   |   |
| Net                  cash (used in) provided by                  operating, investing and financing activities |   | $                                         | (4.7   | ) |   | **$** | **14.1** |   |

***Operating      activities.***
* *

Index

----

|   | · | higher                operating income of $50.8 million in 2007 (exclusive of $5.3 million                non-cash equity in earnings in 2006 from our VALTIMET joint venture                that                we sold in December 2006); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lower                net cash used by changes in receivables, inventories, payables and                accrued                liabilities of $8.4 million in 2007 in response to changing working                capital requirements; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | higher                net cash paid for income taxes in 2007 (exclusive of our tax benefit                related to stock option exercises which was $8.8 million lower in                2007) of                $38.4 million due to the utilization of the remainder of our U.S.                net                operating loss carryforward in 2006 and higher taxable                income. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Investing      activities***

***Financing      activities***

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

|   | · | proceeds                from the issuance of our common stock upon exercise of stock options                of                $10.6 million (and the related tax benefit of $9.6 million) in the                first                six months of 2006 compared to $0.8 million (and the related tax                benefit                of $0.8 million) in the first six months of                2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Future      cash requirements**

***Liquidity***
*.  *

Index

----

***Capital      expenditures***

***             Contractual commitments***

***Off-balance      sheet arrangements***

***Recent      accounting pronouncements***

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

Index

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***Affiliate      transactions***

**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; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Index

----

|   | · | 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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**PART      II. – OTHER INFORMATION**

**Item      1.     LEGALPROCEEDINGS**

**Item      1A.  RISK FACTORS**

**Item      4.     SUBMISSION OF MATTERS TO A      VOTE OF SECURITY HOLDERS**

**Item      6.     EXHIBITS**

|                                 |   |                                                                                                                             |
|--------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                  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

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**SIGNATURES**

|                                  |   | TITANIUM                  METALS CORPORATION                                                                 |
|---------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|
|                                  |   |                                                                                                         |
|                                  |   |                                                                                                         |
|                                  |   |                                                                                                         |
| Date:                  August 7, 2007 | By     |  /s/                  Bobby D. O’Brien                                                            |
|                                  |   | Bobby                  D. O’Brien                                                                      |
|                                  |   | Executive                  Vice President and   Chief                  Financial Officer      |
|                                  |   |                                                                                                         |
|                                  |   |                                                                                                         |
| Date:                  August 7, 2007 | By     |  /s/                  Scott E. Sullivan                                                                 |
|                                  |   | Scott                  E. Sullivan                                                                           |
|                                  |   | Vice                  President and ControllerPrincipal                  Accounting                  Officer |

Index

----