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

|   | For      the quarterly period ended September 30,2008 |
|--------|-------------------------------------------------------|

|   | 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 itscharter) |

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

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

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

----

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

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

|          |                       |                                                                                                                                                       |   | PageNumber |
|---------------|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|
| PART      I.  | FINANCIAL      INFORMATION |                                                                                                                                                       |   |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      1.               | Condensed      Consolidated Financial Statements                                                                                                           |   |       |
|          |                       |                                                                                                                                                       |   |       |
|          |                       | Condensed      Consolidated Balance Sheets – December 31, 2007; September 30, 2008      (unaudited)                                                  |   | 2          |
|          |                       |                                                                                                                                                       |   |       |
|          |                       | Condensed      Consolidated Statements of Income – Three and nine months ended September      30, 2007 and 2008 (unaudited)                          |   | 4          |
|          |                       |                                                                                                                                                       |   |       |
|          |                       | Condensed      Consolidated Statements of Cash Flows – Nine months ended September 30,      2007 and 2008 (unaudited)                                |   | 5          |
|          |                       |                                                                                                                                                       |   |       |
|          |                       | Condensed      Consolidated Statement of Stockholders’ Equity and Comprehensive Income –      Nine months ended September 30, 2008 (unaudited) |   | 6          |
|          |                       |                                                                                                                                                       |   |       |
|          |                       | Notes      to Condensed Consolidated Financial Statements                                                                                                  |   | 7          |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      2.               | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                      |   | 15         |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      3.               | Quantitative      and Qualitative Disclosures about Market Risk                                                                                            |   | 24         |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      4.               | Controls      and Procedures                                                                                                                               |   | 25         |
|          |                       |                                                                                                                                                       |   |       |
| PART      II. | OTHER      INFORMATION     |                                                                                                                                                       |   |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      1.               | Legal      Proceedings                                                                                                                                     |   | 26         |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      1A.              | Risk      Factors                                                                                                                                          |   | 26         |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      2.               | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                           |   | 26         |
|          |                       |                                                                                                                                                       |   |       |
|          | Item      6.               | Exhibits                                                                                                                                                   |   | 26         |

----

| ASSETS                              |   | December      31,2007 |    |   | September      30, 2008 |   |
|-------------------------------------|--------|-----------------------|---------|--------|-------------------------|--------|
|                                |   |                  |    |   | (unaudited)             |   |
| Current      assets:                |   |                  |    |   |                    |   |
| Cash and cash      equivalents      |   | $                     | 90.0    |   |                    | $      | 36.4 |   |
| Accounts and other      receivables |   |                  | 209.9   |   |                    |   | 182.0 |   |
| Inventories                         |   |                  | 562.7   |   |                    |   | 598.0 |   |
| Refundable income      taxes        |   |                  | 14.5    |   |                    |   | 7.7 |   |
| Prepaid expenses and      other     |   |                  | 6.1     |   |                    |   | 7.4 |   |
| Deferred income    taxes            |   |                  | 14.6    |   |                    |   | 15.0 |   |
|                                |   |                  |    |   |                    |   |   |   |
| Total current    assets             |   |                  | 897.8   |   |                    |   | 846.5 |   |
|                                |   |                  |    |   |                    |   |   |   |
| Marketable      securities          |   |                  | 2.7     |   |                    |   | 24.3 |   |
| Note      receivable from affiliate |   |                  | 50.5    |   |                    |   | 42.0 |   |
| Property      and equipment, net    |   |                  | 382.0   |   |                    |   | 428.3 |   |
| Pension      asset                  |   |                  | 23.3    |   |                    |   | 26.9 |   |
| Deferred      income taxes          |   |                  | 2.6     |   |                    |   | 4.4 |   |
| Other                               |   |                  | 61.0    |   |                    |   | 66.0 |   |
|                                |   |                  |    |   |                    |   |   |   |
| Total assets                        |   | $                     | 1,419.9 |   |                    | $      | 1,438.4 |   |

----

| LIABILITIES,      MINORITY INTEREST AND STOCKHOLDERS’      EQUITY  |   | December      31, 2007 |    |   | September      30, 2008 |   |
|--------------------------------------------------------------------------|--------|------------------------|---------|--------|-------------------------|--------|
|                                                                     |   |                   |    |   | (unaudited)             |   |
|                                                                     |   |                   |    |   |                    |   |
| Current      liabilities:                                                |   |                   |    |   |                    |   |
| Accounts payable                                                         |   | $                      | 72.6    |   |                    | $      | 74.3 |   |
| Accrued and other current      liabilities                               |   |                   | 87.7    |   |                    |   | 72.5 |   |
| Customer advances                                                        |   |                   | 17.4    |   |                    |   | 13.2 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Total current      liabilities                                           |   |                   | 177.7   |   |                    |   | 160.0 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Long      term debt                                                      |   |                   | -       |   |                    |   | 13.1 |   |
| Accrued      OPEB cost                                                   |   |                   | 29.3    |   |                    |   | 30.4 |   |
| Accrued      pension cost                                                |   |                   | 36.0    |   |                    |   | 29.4 |   |
| Deferred      income taxes                                               |   |                   | 11.3    |   |                    |   | 5.1 |   |
| Other                                                                    |   |                   | 9.0     |   |                    |   | 10.0 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Total liabilities                                                        |   |                   | 263.3   |   |                    |   | 248.0 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Minority      interest                                                   |   |                   | 23.9    |   |                    |   | 22.5 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Stockholders’      equity:                                         |   |                   |    |   |                    |   |   |   |
| Series A Preferred      Stock                                            |   |                   | 4.1     |   |                    |   | 3.2 |   |
| Common stock                                                             |   |                   | 1.8     |   |                    |   | 1.8 |   |
| Additional paid-in      capital                                          |   |                   | 558.2   |   |                    |   | 523.4 |   |
| Retained earnings                                                        |   |                   | 589.0   |   |                    |   | 675.9 |   |
| Accumulated other comprehensive      loss                                |   |                   | (20.4   | )      |                    |   | (36.4 | ) |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Total stockholders’      equity                                    |   |                   | 1,132.7 |   |                    |   | 1,167.9 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Total liabilities, minority      interest and stockholders’ equity |   | $                      | 1,419.9 |   |                    | $      | 1,438.4 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Commitments      and contingencies (Note 11)                             |   |                   |    |   |                    |   |   |   |

----

|                                                              |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                              |   | 2007                                       |   |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |
|                                                              |   |                                       |   |   | (unaudited)                               |   |   |   |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |
| Net      sales                                                    |   | $                                          | 297.3  |   |                                      | $      | 295.4 |   |   | $ | 980.3 |   |   | $ | 886.3 |   |
| Cost      of sales                                                |   |                                       | 199.3  |   |                                      |   | 222.5 |   |   |   | 613.4 |   |   |   | 648.0 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                                      |   |                                       | 98.0   |   |                                      |   | 72.9 |   |   |   | 366.9 |   |   |   | 238.3 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general, administrative and development expense     |   |                                       | 16.7   |   |                                      |   | 18.0 |   |   |   | 51.7 |   |   |   | 51.5 |   |
| Other      income (expense), net                                  |   |                                       | -      |   |                                      |   | (2.0 | ) |   |   | 0.2 |   |   |   | (2.3 | ) |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|   Operating      income                                 |   |                                       | 81.3   |   |                                      |   | 52.9 |   |   |   | 315.4 |   |   |   | 184.5 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Other      non-operating income, net                              |   |                                       | 0.9    |   |                                      |   | 4.8 |   |   |   | 1.2 |   |   |   | 3.3 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes and      minority interest        |   |                                       | 82.2   |   |                                      |   | 57.7 |   |   |   | 316.6 |   |   |   | 187.8 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                                   |   |                                       | 27.2   |   |                                      |   | 16.1 |   |   |   | 101.5 |   |   |   | 54.9 |   |
| Minority      interest in after-tax earnings                      |   |                                       | 1.3    |   |                                      |   | 1.3 |   |   |   | 7.3 |   |   |   | 4.9 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                        |   |                                       | 53.7   |   |                                      |   | 40.3 |   |   |   | 207.8 |   |   |   | 128.0 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      on Series A Preferred Stock                        |   |                                       | 1.4    |   |                                      |   | 0.1 |   |   |   | 4.2 |   |   |   | 0.2 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to      common      stockholders          |   | $                                          | 52.3   |   |                                      | $      | 40.2 |   |   | $ | 203.6 |   |   | $ | 127.8 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share attributable to common stockholders: |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|          Basic                                     |   | $                                          | 0.32   |   |                                      | $      | 0.22 |   |   | $ | 1.26 |   |   | $ | 0.70 |   |
|          Diluted                                   |   | $                                          | 0.29   |   |                                      | $      | 0.22 |   |   | $ | 1.13 |   |   | $ | 0.70 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                         |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|          Basic                                     |   |                                       | 162.2  |   |                                      |   | 181.0 |   |   |   | 162.0 |   |   |   | 181.6 |   |
|          Diluted                                   |   |                                       | 184.3  |   |                                      |   | 182.0 |   |   |   | 184.3 |   |   |   | 182.6 |   |
|                                                              |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividend per common share                               |   | $                                          | -      |   |                                      | $      | 0.075 |   |   | $ | - |   |   | $ | 0.225 |   |

----

|                                                                                            |   | Nine      months ended September 30, |   |
|-------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                            |   | 2007                                 |   |   | 2008 |   |
|                                                                                            |   | (unaudited)                          |   |
| Cash      flows from operating activities:                                                      |   |                                 |   |   |   |   |
| Net income                                                                                      |   | $                                    | 207.8  |   |   | $ | 128.0 |   |
| Depreciation and      amortization                                                              |   |                                 | 30.1   |   |   |   | 35.5 |   |
| Deferred income    taxes                                                                        |   |                                 | 1.7    |   |   |   | (6.5 | ) |
| Minority interest                                                                               |   |                                 | 7.3    |   |   |   | 4.9 |   |
| Other, net                                                                                      |   |                                 | 1.9    |   |   |   | 1.6 |   |
| Change in assets and      liabilities:                                                          |   |                                 |   |   |   |   |   |   |
| Receivables                                                                                     |   |                                 | 12.2   |   |   |   | 25.5 |   |
| Inventories                                                                                     |   |                                 | (60.1  | ) |   |   | (44.2 | ) |
| Accounts payable and accrued      liabilities                                                   |   |                                 | (32.8  | ) |   |   | (10.6 | ) |
| Income taxes                                                                                    |   |                                 | (31.7  | ) |   |   | 7.3 |   |
| Other, net                                                                                      |   |                                 | (6.7   | ) |   |   | (13.5 | ) |
|               Net cash provided by operating activities |   |                                 | 129.7  |   |   |   | 128.0 |   |
|                                                                                            |   |                                 |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                      |   |                                 |   |   |   |   |   |   |
| Capital    expenditures                                                                         |   |                                 | (60.6  | ) |   |   | (89.3 | ) |
| Purchases of marketable      securities                                                         |   |                                 | -      |   |   |   | (26.4 | ) |
| Principal payments on note      receivable from affiliate                                       |   |                                 | -      |   |   |   | 7.0 |   |
| Other, net                                                                                      |   |                                 | (10.0  | ) |   |   | (2.2 | ) |
|              Net cash used in investing activities           |   |                                 | (70.6  | ) |   |   | (110.9 | ) |
|                                                                                            |   |                                 |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                      |   |                                 |   |   |   |   |   |   |
| Indebtedness:                                                                                   |   |                                 |   |   |   |   |   |   |
| Borrowings                                                                                      |   |                                 | -      |   |   |   | 60.7 |   |
| Repayments                                                                                      |   |                                 | -      |   |   |   | (47.6 | ) |
| Dividends paid:                                                                                 |   |                                 |   |   |   |   |   |   |
|              Common stock                                    |   |                                 | -      |   |   |   | (40.9 | ) |
|              Series A Preferred Stock                        |   |                                 | (4.2   | ) |   |   | (0.2 | ) |
| Minority    shareholder                                                                         |   |                                 | (8.1   | ) |   |   | (5.4 | ) |
| Treasury stock      purchases                                                                   |   |                                 | -      |   |   |   | (36.5 | ) |
| Other, net                                                                                      |   |                                 | 1.6    |   |   |   | 0.4 |   |
|         Net      cash used in financing activities      |   |                                 | (10.7  | ) |   |   | (69.5 | ) |
|                                                                                            |   |                                 |   |   |   |   |   |   |
| Net      cash provided by (used in) operating, investing and financing      activities          |   |                                 | 48.4   |   |   |   | (52.4 | ) |
| Effect of exchange rate changes on      cash                                                    |   |                                 | 1.0    |   |   |   | (1.2 | ) |
|                                                                                            |   |                                 | 49.4   |   |   |   | (53.6 | ) |
| Cash and cash equivalents at      beginning of period                                           |   |                                 | 29.4   |   |   |   | 90.0 |   |
|                                                                                            |   |                                 |   |   |   |   |   |   |
| Cash and cash equivalents at end      of period                                                 |   | $                                    | 78.8   |   |   | $ | 36.4 |   |
|                                                                                            |   |                                 |   |   |   |   |   |   |
| Supplemental      disclosures:                                                                  |   |                                 |   |   |   |   |   |   |
| Cash paid for:                                                                                  |   |                                 |   |   |   |   |   |   |
| Interest                                                                                        |   | $                                    | 2.2    |   |   | $ | 1.1 |   |
|              Income taxes                                    |   |                                 | 130.7  |   |   |   | 54.0 |   |

----

|                                                                           |   | Series      A Preferred Stock |   |   | Common      Stock |   |   | Additional      Paid-in Capital |   |   |  Retained      Earnings |   |   | Accumulated      Other Comprehensive Loss |   |   | TreasuryStock |   |   |   Total |   |   | Comprehensive      Income |   |
|--------------------------------------------------------------------------------|--------|-------------------------------|--------|--------|-------------------|--------|--------|---------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------------------|--------|--------|---------------|--------|--------|-------------------|--------|--------|---------------------------|--------|
|                                                                           |   | (unaudited)                   |   |
|                                                                           |   |                          |   |   |              |   |   |                            |   |   |                         |   |   |                                      |   |   |          |   |   |              |   |   |                      |   |
| Balance      at January 1, 2008                                                |   | $                             | 4.1    |   |              | $      | 1.8    |                            |   | $      | 558.2                        |   |   | $                                         | 589.0  |   |          | $      | (20.4  | )                 |   | $      | -                         |   |   | $ | 1,132.7 |   |   |   |   |
| Net income                                                                     |   |                          | -      |   |              |   | -      |                            |   |   | -                            |   |   |                                      | 128.0  |   |          |   | -      |              |   |   | -                         |   |   |   | 128.0 |   |   | $ | 128.0 |   |
| Other comprehensive      income                                                |   |                          | -      |   |              |   | -      |                            |   |   | -                            |   |   |                                      | -      |   |          |   | (16.0  | )                 |   |   | -                         |   |   |   | (16.0 | ) |   |   | (16.0 | ) |
| Conversion of Series A      Preferred Stock                               |   |                          | (0.9   | )      |              |   | -      |                            |   |   | 0.9                          |   |   |                                      | -      |   |          |   | -      |              |   |   | -                         |   |   |   | - |   |   |   | - |   |
| Treasury stock      purchases                                                  |   |                          | -      |   |              |   | -      |                            |   |   | -                            |   |   |                                      | -      |   |          |   | -      |              |   |   | (36.5                     | )      |   |   | (36.5 | ) |   |   | - |   |
| Treasury stock      retirement                                                 |   |                          | -      |   |              |   | -      |                            |   |   | (36.5                        | )      |   |                                      | -      |   |          |   | -      |              |   |   | 36.5                      |   |   |   | - |   |   |   | - |   |
| Dividends    declared:                                                         |   |                          |   |   |              |   |   |                            |   |   |                         |   |   |                                      |   |   |          |   |   |              |   |   |                      |   |   |   |   |   |   |   |   |   |
|               Series A Preferred Stock |   |                          | -      |   |              |   | -      |                            |   |   | -                            |   |   |                                      | (0.2   | )      |          |   | -      |              |   |   | -                         |   |   |   | (0.2 | ) |   |   | - |   |
|               Common stock             |   |                          | -      |   |              |   | -      |                            |   |   | -                            |   |   |                                      | (40.9  | )      |          |   | -      |              |   |   | -                         |   |   |   | (40.9 | ) |   |   | - |   |
| Other                                                                          |   |                          | -      |   |              |   | -      |                            |   |   | 0.8                          |   |   |                                      | -      |   |          |   | -      |              |   |   | -                         |   |   |   | 0.8 |   |   |   | - |   |
|                                                                           |   |                          |   |   |              |   |   |                            |   |   |                         |   |   |                                      |   |   |          |   |   |              |   |   |                      |   |   |   |   |   |   |   |   |   |
| Balance      at September 30, 2008                                             |   | $                             | 3.2    |   |              | $      | 1.8    |                            |   | $      | 523.4                        |   |   | $                                         | 675.9  |   |          | $      | (36.4  | )                 |   | $      | -                         |   |   | $ | 1,167.9 |   |   |   |   |   |
|                                                                           |   |                          |   |   |              |   |   |                            |   |   |                         |   |   |                                      |   |   |          |   |   |              |   |   |                      |   |   |   |   |   |   |   |   |   |
| Comprehensive      income                                                      |   |                          |   |   |              |   |   |                            |   |   |                         |   |   |                                      |   |   |          |   |   |              |   |   |                      |   |   |   |   |   |   | $ | 112.0 |   |

----

----

|                                  |   | December      31, 2007 |   |   | September      30, 2008 |   |
|---------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                  |   | (In      millions)     |   |
|                                  |   |                   |   |   |                    |   |
| Raw      materials                    |   | $                      | 121.8  |   |                    | $      | 123.0 |   |
| Work-in-process                       |   |                   | 268.7  |   |                    |   | 308.5 |   |
| Finished      products                |   |                   | 125.8  |   |                    |   | 119.4 |   |
| Inventory      consigned to customers |   |                   | 23.0   |   |                    |   | 17.9 |   |
| Supplies                              |   |                   | 23.4   |   |                    |   | 29.2 |   |
|                                  |   |                   |   |   |                    |   |   |   |
| Total    inventories                  |   | $                      | 562.7  |   |                    | $      | 598.0 |   |

----

|                             |   | December      31, 2007 |   |   | September      30, 2008 |   |
|----------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                             |   | (In      millions)     |   |
|                             |   |                   |   |   |                    |   |
| Valhi                            |   | $                      | -      |   |                    | $      | 21.9 |   |
| NL                               |   |                   | 2.5    |   |                    |   | 2.3 |   |
| Kronos                           |   |                   | 0.2    |   |                    |   | 0.1 |   |
|                             |   |                   |   |   |                    |   |   |   |
| Total marketable      securities |   | $                      | 2.7    |   |                    | $      | 24.3 |   |

|                                   |   | December      31, 2007 |   |   | September      30, 2008 |   |
|----------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                   |   | (In      millions)     |   |
|                                   |   |                   |   |   |                    |   |
| Land      and improvements             |   | $                      | 11.6   |   |                    | $      | 12.6 |   |
| Buildings      and improvements        |   |                   | 55.0   |   |                    |   | 59.7 |   |
| Information      technology systems    |   |                   | 70.3   |   |                    |   | 72.2 |   |
| Manufacturing      equipment and other |   |                   | 455.8  |   |                    |   | 484.6 |   |
| Construction      in progress          |   |                   | 88.7   |   |                    |   | 113.5 |   |
|                                   |   |                   |   |   |                    |   |   |   |
| Total property and      equipment      |   |                   | 681.4  |   |                    |   | 742.6 |   |
|                                   |   |                   |   |   |                    |   |   |   |
| Less      accumulated depreciation     |   |                   | 299.4  |   |                    |   | 314.3 |   |
|                                   |   |                   |   |   |                    |   |   |   |
| Total property and equipment,      net |   | $                      | 382.0  |   |                    | $      | 428.3 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | December      31, 2007 |   |   | September      30,  2008 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (In      millions)     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   |   |   |                               |   |
| Prepaid      conversion services                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                      | 47.2   |   |                               | $      | 45.3 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                   | 13.8   |   |                               |   | 20.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                   |   |   |                               |   |   |   |
| Total other noncurrent      assets                                                                            |   | $                      | 61.0   |   |                               | $      | 66.0 |   |

|                           |   | December      31, 2007 |   |   | September      30, 2008 |   |
|--------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                           |   | (In      millions)     |   |
|                           |   |                   |   |   |                    |   |
| Employee      related          |   | $                      | 45.5   |   |                    | $      | 32.9 |   |
| Deferred      revenue          |   |                   | 14.3   |   |                    |   | 16.6 |   |
| Other                          |   |                   | 27.9   |   |                    |   | 23.0 |   |
|                           |   |                   |   |   |                    |   |   |   |
| Total accrued      liabilities |   | $                      | 87.7   |   |                    | $      | 72.5 |   |

Note 7 – Bank debt

----

|                                    |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-----------------------------------------|--------|--------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                    |   | 2007                                       |   |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |
|                                    |   | (In      millions)                         |   |
|                                    |   |                                       |   |   |                                      |   |   |   |   |   |   |   |
| Service      cost                       |   | $                                          | 1.4    |   |                                      | $      | 1.2 |   |   | $ | 4.0 |   |   | $ | 3.6 |   |
| Interest      cost                      |   |                                       | 4.2    |   |                                      |   | 4.3 |   |   |   | 12.6 |   |   |   | 13.1 |   |
| Expected      return on plan assets     |   |                                       | (5.5   | )      |                                      |   | (5.7 | ) |   |   | (16.3 | ) |   |   | (17.2 | ) |
| Amortization      of net losses         |   |                                       | 0.9    |   |                                      |   | 0.6 |   |   |   | 2.6 |   |   |   | 1.9 |   |
| Amortization      of prior service cost |   |                                       | 0.1    |   |                                      |   | 0.1 |   |   |   | 0.4 |   |   |   | 0.3 |   |
|                                    |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Total pension      expense              |   | $                                          | 1.1    |   |                                      | $      | 0.5 |   |   | $ | 3.3 |   |   | $ | 1.7 |   |

|                                      |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|-------------------------------------------|--------|--------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                      |   | 2007                                       |   |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |
|                                      |   | (In      millions)                         |   |
|                                      |   |                                       |   |   |                                      |   |   |   |   |   |   |   |
| Service      cost                         |   | $                                          | 0.2    |   |                                      | $      | 0.3 |   |   | $ | 0.7 |   |   | $ | 0.8 |   |
| Interest      cost                        |   |                                       | 0.5    |   |                                      |   | 0.4 |   |   |   | 1.3 |   |   |   | 1.2 |   |
| Amortization      of net losses           |   |                                       | 0.2    |   |                                      |   | 0.1 |   |   |   | 0.6 |   |   |   | 0.4 |   |
| Amortization      of prior service credit |   |                                       | (0.1   | )      |                                      |   | (0.1 | ) |   |   | (0.3 | ) |   |   | (0.2 | ) |
|                                      |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Total OPEB    expense                     |   | $                                          | 0.8    |   |                                      | $      | 0.7 |   |   | $ | 2.3 |   |   | $ | 2.2 |   |

----

|                                     |   | Nine      months ended September      30, |   |
|------------------------------------------|--------|-------------------------------------------|--------|
|                                     |   | 2007                                      |   |   | 2008 |   |
|                                     |   | (In      millions)                        |   |
|                                     |   |                                      |   |   |   |   |
| Expected      income tax expense, at 35% |   | $                                         | 111.0  |   |   | $ | 65.7 |   |
| Non-U.S.      tax rates                  |   |                                      | (2.0   | ) |   |   | (1.3 | ) |
| U.S.      state income taxes, net        |   |                                      | 5.7    |   |   |   | 3.7 |   |
| Nontaxable      income                   |   |                                      | (9.0   | ) |   |   | (11.2 | ) |
| Domestic      manufacturing credit       |   |                                      | (4.7   | ) |   |   | (4.0 | ) |
| Uncertain      tax positions, net        |   |                                      | 0.5    |   |   |   | 2.1 |   |
| Other,      net                          |   |                                      | -      |   |   |   | (0.1 | ) |
|                                     |   |                                      |   |   |   |   |   |   |
| Total income tax      expense            |   | $                                         | 101.5  |   |   | $ | 54.9 |   |

----

|                                                             |   | Three      months ended September      30, |   |   | Nine      months ended September      30, |   |
|------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                             |   | 2007                                       |   |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |
|                                                             |   | (In      millions)                         |   |
| Numerator:                                                       |   |                                       |   |   |                                      |   |   |   |   |   |   |   |
| Net income attributable to      common stockholders         |   | $                                          | 52.3   |   |                                      | $      | 40.2 |   |   | $ | 203.6 |   |   | $ | 127.8 |   |
| Dividends on Series A      Preferred      Stock                  |   |                                       | 1.4    |   |                                      |   | 0.1 |   |   |   | 4.2 |   |   |   | 0.2 |   |
|                                                             |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income attributable      to common      stockholders |   | $                                          | 53.7   |   |                                      | $      | 40.3 |   |   | $ | 207.8 |   |   | $ | 128.0 |   |
|                                                             |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                     |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Average common shares      outstanding                           |   |                                       | 162.2  |   |                                      |   | 181.0 |   |   |   | 162.0 |   |   |   | 181.6 |   |
| Average dilutive stock      options                              |   |                                       | 0.1    |   |                                      |   | - |   |   |   | 0.1 |   |   |   | - |   |
| Series A Preferred      Stock                                    |   |                                       | 22.0   |   |                                      |   | 1.0 |   |   |   | 22.2 |   |   |   | 1.0 |   |
|                                                             |   |                                       |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted shares                                                   |   |                                       | 184.3  |   |                                      |   | 182.0 |   |   |   | 184.3 |   |   |   | 182.6 |   |

----

|                                          |   | Three      months ended September 30,            |   |   | Nine      months ended September      30, |   |
|-----------------------------------------------|--------|--------------------------------------------------|--------|--------|-------------------------------------------|--------|
|                                          |   | 2007                                             |   |   | 2008                                      |   |   | 2007 |   |   | 2008 |   |
|                                          |   | (In      millions, except product shipment data) |   |
| Titanium      melted and mill products:       |   |                                             |   |   |                                      |   |   |   |   |   |   |   |
| Melted product net      sales                 |   | $                                                | 41.6   |   |                                      | $      | 33.3 |   |   | $ | 156.1 |   |   | $ | 94.6 |   |
| Mill product net      sales                   |   |                                             | 227.0  |   |                                      |   | 228.4 |   |   |   | 727.4 |   |   |   | 693.5 |   |
| Other titanium product      sales             |   |                                             | 28.7   |   |                                      |   | 33.7 |   |   |   | 96.8 |   |   |   | 98.2 |   |
|                                          |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|           Total net sales |   | $                                                | 297.3  |   |                                      | $      | 295.4 |   |   | $ | 980.3 |   |   | $ | 886.3 |   |
|                                          |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Melted      product shipments:                |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric      tons)                     |   |                                             | 1,045  |   |                                      |   | 1,115 |   |   |   | 3,685 |   |   |   | 3,060 |   |
| Average selling price (per      kilogram)     |   | $                                                | 39.85  |   |                                      | $      | 29.85 |   |   | $ | 42.35 |   |   | $ | 30.90 |   |
|                                          |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Mill      product shipments:                  |   |                                             |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric      tons)                     |   |                                             | 3,350  |   |                                      |   | 3,845 |   |   |   | 10,665 |   |   |   | 11,195 |   |
| Average selling price (per      kilogram)     |   | $                                                | 67.75  |   |                                      | $      | 59.40 |   |   | $ | 68.20 |   |   | $ | 61.95 |   |

----

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

|   | · | the cyclicality of the      commercial aerospaceindustry; |
|--------|--------|-----------------------------------------------------------|

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

|   | · | the existence or renewal of      certain long-termagreements; |
|--------|--------|---------------------------------------------------------------|

|   | · | the difficulty in forecasting      demand for titaniumproducts; |
|--------|--------|-----------------------------------------------------------------|

|   | · | 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 marketablesecurities; |
|--------|--------|----------------------------------------------------------------|

|   | · | uncertainties associated with      new product or new marketdevelopment; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | 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 globalconflicts; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

|                                                               |   | Three      months ended September 30,            |   |
|--------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                               |   | 2007                                             |   |   | %      of Total Net Sales |   |   | 2008 |   |   | %      of Total Net Sales |   |
|                                                               |   | (In      millions, except product shipment data) |   |
| Net      sales:                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Melted products                                                    |   | $                                                | 41.6   |   |   |   | 14 | % |   | $ | 33.3 |   |   |   | 11 | % |
| Mill products                                                      |   |                                             | 227.0  |   |   |   | 76 | % |   |   | 228.4 |   |   |   | 77 | % |
| Other titanium      products                                       |   |                                             | 28.7   |   |   |   | 10 | % |   |   | 33.7 |   |   |   | 12 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net sales                                                    |   |                                             | 297.3  |   |   |   | 100 | % |   |   | 295.4 |   |   |   | 100 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                                 |   |                                             | 199.3  |   |   |   | 67 | % |   |   | 222.5 |   |   |   | 75 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      margin                                                  |   |                                             | 98.0   |   |   |   | 33 | % |   |   | 72.9 |   |   |   | 25 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general, administrative and development      expense |   |                                             | 16.7   |   |   |   | 6 | % |   |   | 18.0 |   |   |   | 6 | % |
| Other      income (expense), net                                   |   |                                             | -      |   |   |   | - |   |   |   | (2.0 | ) |   |   | 1 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                              |   | $                                                | 81.3   |   |   |   | 27 | % |   | $ | 52.9 |   |   |   | 18 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted      product shipments:                                     |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric    tons)                                            |   |                                             | 1,045  |   |   |   |   |   |   |   | 1,115 |   |   |   |   |   |
| Average selling price (per      kilogram)                          |   | $                                                | 39.85  |   |   |   |   |   |   | $ | 29.85 |   |   |   |   |   |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill      product shipments:                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric    tons)                                            |   |                                             | 3,350  |   |   |   |   |   |   |   | 3,845 |   |   |   |   |   |
| Average selling price (per      kilogram)                          |   | $                                                | 67.75  |   |   |   |   |   |   | $ | 59.40 |   |   |   |   |   |

----

----

|                                                               |   | Nine      months ended September 30,             |   |
|--------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                               |   | 2007                                             |   |   | %      of Total Net Sales |   |   | 2008 |   |   | %      of Total Net Sales |   |
|                                                               |   | (In      millions, except product shipment data) |   |
| Net      sales:                                                    |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Melted products                                                    |   | $                                                | 156.1  |   |   |   | 16 | % |   | $ | 94.6 |   |   |   | 11 | % |
| Mill products                                                      |   |                                             | 727.4  |   |   |   | 74 | % |   |   | 693.5 |   |   |   | 78 | % |
| Other titanium      products                                       |   |                                             | 96.8   |   |   |   | 10 | % |   |   | 98.2 |   |   |   | 11 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total net sales                                                    |   |                                             | 980.3  |   |   |   | 100 | % |   |   | 886.3 |   |   |   | 100 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                                 |   |                                             | 613.4  |   |   |   | 63 | % |   |   | 648.0 |   |   |   | 73 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      margin                                                  |   |                                             | 366.9  |   |   |   | 37 | % |   |   | 238.3 |   |   |   | 27 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general, administrative and development      expense |   |                                             | 51.7   |   |   |   | 5 | % |   |   | 51.5 |   |   |   | 6 | % |
| Other      income (expense), net                                   |   |                                             | 0.2    |   |   |   | - |   |   |   | (2.3 | ) |   |   | - |   |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                              |   | $                                                | 315.4  |   |   |   | 32 | % |   | $ | 184.5 |   |   |   | 21 | % |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Melted      product shipments:                                     |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric    tons)                                            |   |                                             | 3,685  |   |   |   |   |   |   |   | 3,060 |   |   |   |   |   |
| Average selling price (per      kilogram)                          |   | $                                                | 42.35  |   |   |   |   |   |   | $ | 30.90 |   |   |   |   |   |
|                                                               |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mill      product shipments:                                       |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (metric    tons)                                            |   |                                             | 10,665 |   |   |   |   |   |   |   | 11,195 |   |   |   |   |   |
| Average selling price (per      kilogram)                          |   | $                                                | 68.20  |   |   |   |   |   |   | $ | 61.95 |   |   |   |   |   |

----

----

----

----

|                                                                                   |   | Nine      months ended September 30, |   |
|----------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                   |   | 2007                                 |   |   | 2008 |   |
|                                                                                   |   | (In      millions)                   |   |
| Cash      provided by (used in):                                                       |   |                                 |   |   |   |   |
| Operating    activities                                                                |   | $                                    | 129.7  |   |   | $ | 128.0 |   |
| Investing    activities                                                                |   |                                 | (70.6  | ) |   |   | (110.9 | ) |
| Financing    activities                                                                |   |                                 | (10.7  | ) |   |   | (69.5 | ) |
|                                                                                   |   |                                 |   |   |   |   |   |   |
|                                                                                   |   |                                 |   |   |   |   |   |   |
| Net      cash provided by (used in) operating, investing and financing      activities |   | $                                    | 48.4   |   |   | $ | (52.4 | ) |

|   | · | lower      operating income of $130.9 million in2008; |
|--------|--------|-------------------------------------------------------|

|   | · | lower      net cash used by changes in receivables, inventories, payables and accrued      liabilities of $51.4 million in 2008 in response to changing working      capital requirements as overall sales volumes and purchased inventory      costs per unit have declined; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | lower      net cash paid for income taxes in 2008 of $76.7 million primarily due to      the lower taxable income in 2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | construction      in progress in 2008 for the first and second phases of our EB melt      capacity expansion at our facility in Morgantown, of which phase one      commenced commercial production in the second quarter of 2008, and other      capacity expansion projects in the U.S. and Europe;  and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | construction      in progress in 2007 for the first phase of our EB capacity expansion in      Morgantown and for our sponge plant expansion in Henderson, which      commenced commercial production in April2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | net      borrowings of $13.1 million during the first nine months of      2008; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | dividends      paid on our common stock of $40.9 million in the first nine months of      2008, as we began paying a regular quarterly dividend of $0.075 per share      in the fourth quarter of 2007; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | dividends      paid to the minority interest shareholder of our 70%-owned French      subsidiary of $8.1 million in the first nine months of 2007 compared to      $5.4 million in the first nine months of 2008;  and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | treasury      stock purchases of $36.5 million during the first nine months of      2008. |
|--------|--------|-------------------------------------------------------------------------------------------|

----

----

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

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

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

----

|   |   |                                                                          |
|--------|--------|-------------------------------------------------------------------------------|
| 31.1   |   | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|   |   |                                                                          |
| 31.2   |   | Certification      pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|   |   |                                                                          |
| 32.1   |   | Certification      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |
|   |   |                                                                          |

|   | 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, Texas75240. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                        |                 | TITANIUM      METALS CORPORATION                                    |
|-----------------------------|----------------------|---------------------------------------------------------------------|
|                        |                 |                                                                |
|                        |                 |                                                                |
|                        |                 |                                                                |
| Date:      November 4, 2008 | By         | /s/      James W. Brown                                             |
|                        |                 | James      W. Brown                                                 |
|                        |                 | Vice      President and Chief Financial Officer                     |
|                        |                 |                                                                |
|                        |                 |                                                                |
| Date:      November 4, 2008 |  By        | /s/      Scott E. Sullivan                                          |
|                        |                 | Scott      E. Sullivan                                              |
|                        |                 | Vice      President and ControllerPrincipal      Accounting Officer |

----