**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

**For      the quarterly period ended March 31, 2007**

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

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

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

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

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

----

**TITANIUM            METALS CORPORATION**

**INDEX**

|                                                                                                                                                                                                                                                                                | PageNumber    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                                |          |
| **PART                      I.** **FINANCIAL INFORMATION**                                                                                                                                                                                                                     |          |
|                                                                                                                                                                                                                                                                                |          |
| Item                      1. Condensed                      Consolidated Financial Statements                                                                                                                                                                                  |          |
|                                                                                                                                                                                                                                                                                |          |
| Condensed                      Consolidated Balance Sheets - December                      31, 2006; March 31, 2007 (unaudited)                                                                                                                                                     |  2       |
|                                                                                                                                                                                                                                                                                |          |
| Condensed                      Consolidated Statements of Income -Three                      months ended March 31, 2006 and 2007 (unaudited)                                                                                                                                       |  4       |
|                                                                                                                                                                                                                                                                                |          |
| Condensed                      Consolidated Statements of Cash Flows -Three                      months ended March 31, 2006 and 2007 (unaudited)                                                                                                                                   |  5       |
|                                                                                                                                                                                                                                                                                |          |
|       Condensed                    Consolidated Statement of Stockholder’s Equity and                      Comprehensive Income - Three months ended March                      31, 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                                                                                                                                                                  | 22            |
|                                                                                                                                                                                                                                                                                |          |
| Item                      4.                       Controls and Procedures                                                                                                                                                                                                     | 22            |
|                                                                                                                                                                                                                                                                                |          |
| **PART                      II.** **OTHER                      INFORMATION**                                                                                                                                                                                                   |          |
|                                                                                                                                                                                                                                                                                |          |
| Item                      1. Legal Proceedings                                                                                                                                                                                                                                      | 23            |
|                                                                                                                                                                                                                                                                                |          |
| Item                      1A. Risk Factors                                                                                                                                                                                                                                          | 23            |
|                                                                                                                                                                                                                                                                                |          |
| Item                      6.  Exhibits                                                                                                                                                                                                                                         | 23            |

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                          |   | December                31, |    | **March                31,** |   |
|---------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
| ASSETS                                                        |   | 2006                        |    | **2007**                     |   |
|                                                          |   |                        |    | **(unaudited)**              |   |
|                                                          |   |                        |    |                         |   |   |   |
| Current                assets:                                |   |                        |    |                         |   |   |   |
| Cash                and cash equivalents                      |   | $                           | 29.4    |                         | **$**  | **75.6** |   |
| Accounts                and other receivables, less allowance |   |                        |    |                         |   |   |   |
| of                $1.4, respectively                          |   |                        | 213.0   |                         |   | **222.9** |   |
| Inventories                                                   |   |                        | 501.5   |                         |   | **518.3** |   |
| Refundable                income taxes                        |   |                        | -       |                         |   | **0.9** |   |
| Prepaid                expenses and other                     |   |                        | 4.6     |                         |   | **4.6** |   |
| Deferred                income taxes                          |   |                        | 9.1     |                         |   | **8.9** |   |
|                                                          |   |                        |    |                         |   |   |   |
| Total                current assets                           |   |                        | 757.6   |                         |   | **831.2** |   |
|                                                          |   |                        |    |                         |   |   |   |
| Marketable                securities                          |   |                        | 56.8    |                         |   | **46.1** |   |
| Property                and equipment, net                    |   |                        | 329.8   |                         |   | **334.9** |   |
| Pension                asset                                  |   |                        | 17.9    |                         |   | **19.1** |   |
| Deferred                income taxes                          |   |                        | 3.5     |                         |   | **3.3** |   |
| Prepaid                expenses and other                     |   |                        | 51.3    |                         |   | **50.5** |   |
|                                                          |   |                        |    |                         |   |   |   |
| Total                assets                                   |   | $                           | 1,216.9 |                         | **$**  | **1,285.1** |   |
|                                                          |   |                        |    |                         |   |   |   |
|                                                          |   |                        |    |                         |   |   |   |

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

|                                                                                                                                                                 |   | December                31, |    | **March                31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|------------------------------|--------|
| LIABILITIES,                MINORITY INTEREST AND                                                                                                                    |   | 2006                        |    | **2007**                     |   |
| STOCKHOLDERS’                EQUITY                                                                                                                            |   |                        |    | **(unaudited)**              |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Current                liabilities:                                                                                                                                  |   |                        |    |                         |   |   |   |
| Accounts                payable                                                                                                                                      |   | $                           | 87.8    |                         | **$**  | **80.5** |   |
| Accrued                liabilities                                                                                                                                   |   |                        | 82.0    |                         |   | **70.1** |   |
| Customer                advances                                                                                                                                     |   |                        | 18.7    |                         |   | **16.4** |   |
| Income                taxes payable                                                                                                                                  |   |                        | 22.0    |                         |   | **42.4** |   |
| Deferred                income taxes                                                                                                                                 |   |                        | 0.6     |                         |   | **0.7** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Total                current liabilities                                                                                                                             |   |                        | 211.1   |                         |   | **210.1** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Accrued                OPEB cost                                                                                                                                     |   |                        | 28.0    |                         |   | **28.3** |   |
| Accrued                pension cost                                                                                                                                  |   |                        | 52.2    |                         |   | **51.7** |   |
| Deferred                income taxes                                                                                                                                 |   |                        | 17.8    |                         |   | **14.9** |   |
| Other                                                                                                                                                                |   |                        | 7.6     |                         |   | **9.5** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Total                liabilities                                                                                                                                     |   |                        | 316.7   |                         |   | **314.5** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Minority                interest                                                                                                                                     |   |                        | 21.3    |                         |   | **24.7** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Stockholders’                equity:                                                                                                                           |   |                        |    |                         |   |   |   |
| Series                A Preferred Stock                                                                                                                              |   |                        | 75.0    |                         |   | **73.9** |   |
| Common                stock                                                                                                                                          |   |                        | 1.6     |                         |   | **1.6** |   |
| Additional                paid-in capital                                                                                                                            |   |                        | 484.4   |                         |   | **486.3** |   |
| Retained                earnings                                                                                                                                     |   |                        | 340.3   |                         |   | **415.2** |   |
| Accumulated                other comprehensive loss                                                                                                                  |   |                        | (22.4   | )                            |   | **(31.1** | **)** |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Total                stockholders’ equity                                                                                                                      |   |                        | 878.9   |                         |   | **945.9** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
|                            Total liabilities, minority interest and stockholders’                equity |   | $                           | 1,216.9 |                         | **$**  | **1,285.1** |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
| Commitments                and contingencies (Note 9)                                                                                                                |   |                        |    |                         |   |   |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |
|                                                                                                                                                                 |   |                        |    |                         |   |   |   |

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

|                                                                    |   | Three                months ended March 31, |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                    |   | 2006                                        |   | **2007** |   |
|                                                                    |   | (unaudited)                                 |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Net                sales                                                |   | $                                           | 286.9  |   | **$** | **341.7** |   |
| Cost                of sales                                            |   |                                        | 178.6  |   |   | **208.3** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Gross                margin                                             |   |                                        | 108.3  |   |   | **133.4** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Selling,                general, administrative and development expense |   |                                        | 15.3   |   |   | **17.3** |   |
| Other                income, net                                        |   |                                        | 2.1    |   |   | **0.1** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Operating                income                                         |   |                                        | 95.1   |   |   | **116.2** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Other                non-operating expense, net                         |   |                                        | 0.7    |   |   | **0.2** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Income                before income taxes and minority interest         |   |                                        | 94.4   |   |   | **116.0** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Provision                for income taxes                               |   |                                        | 33.2   |   |   | **36.4** |   |
| Minority                interest in after-tax earnings                  |   |                                        | 2.3    |   |   | **3.2** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Net                income                                               |   |                                        | 58.9   |   |   | **76.4** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Dividends                on Series A Preferred Stock                    |   |                                        | 2.1    |   |   | **1.4** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Net                income attributable to common stockholders           |   | $                                           | 56.8   |   | **$** | **75.0** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Earnings                per share attributable to common stockholders:  |   |                                        |   |   |   |   |   |
| Basic                                                                   |   | $                                           | 0.39   |   | **$** | **0.46** |   |
| Diluted                                                                 |   | $                                           | 0.32   |   | **$** | **0.41** |   |
|                                                                    |   |                                        |   |   |   |   |   |
| Weighted                average shares outstanding:                     |   |                                        |   |   |   |   |   |
| Basic                                                                   |   |                                        | 146.1  |   |   | **161.7** |   |
| Diluted                                                                 |   |                                        | 183.9  |   |   | **184.2** |   |

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                       |   | Three                months ended March 31, |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                       |   | 2006                                        |   | **2007** |   |
|                                                                                                       |   | (unaudited)                                 |   |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Cash                flows from operating activities:                                                       |   |                                        |   |   |   |   |   |
| Net                income                                                                                  |   | $                                           | 58.9   |   | **$** | **76.4** |   |
| Depreciation                and amortization                                                               |   |                                        | 8.3    |   |   | **8.9** |   |
| Deferred                income taxes                                                                       |   |                                        | 5.2    |   |   | **(0.8** | **)** |
| Minority                interest                                                                           |   |                                        | 2.3    |   |   | **3.2** |   |
| Other,                net                                                                                  |   |                                        | (1.2   | ) |   | **0.5** |   |
| Change                in assets and liabilities:                                                           |   |                                        |   |   |   |   |   |
| Receivables                                                                                                |   |                                        | (47.5  | ) |   | **(9.2** | **)** |
| Inventories                                                                                                |   |                                        | (33.1  | ) |   | **(15.7** | **)** |
| Accounts                payable and accrued liabilities                                                    |   |                                        | (4.0   | ) |   | **(20.1** | **)** |
| Income                taxes                                                                                |   |                                        | 24.1   |   |   | **20.0** |   |
| Other,                net                                                                                  |   |                                        | (3.6   | ) |   | **(3.3** | **)** |
| Net                cash provided by operating activities                                                   |   |                                        | 9.4    |   |   | **59.9** |   |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Cash                flows from investing activities:                                                       |   |                                        |   |   |   |   |   |
| Capital                expenditures                                                                        |   |                                        | (16.9  | ) |   | **(13.3** | **)** |
| Other,                net                                                                                  |   |                                        | (0.6   | ) |   | **-** |   |
| Net                cash used in investing activities                                                       |   |                                        | (17.5  | ) |   | **(13.3** | **)** |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Cash                flows from financing activities:                                                       |   |                                        |   |   |   |   |   |
| Indebtedness:                                                                                              |   |                                        |   |   |   |   |   |
| Borrowings                                                                                                 |   |                                        | 188.5  |   |   | **-** |   |
| Repayments                                                                                                 |   |                                        | (191.2 | ) |   | **-** |   |
| Dividends                paid on Series A Preferred Stock                                                  |   |                                        | (2.2   | ) |   | **(1.4** | **)** |
| Issuance                of common stock                                                                    |   |                                        | 7.9    |   |   | **0.4** |   |
| Other,                net                                                                                  |   |                                        | (0.8   | ) |   | **0.2** |   |
| Net                cash provided by (used in) financing activities                                         |   |                                        | 2.2    |   |   | **(0.8** | **)** |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Net                cash (used in) provided by operating, investing and financing                activities |   |                                        | (5.9   | ) |   | **45.8** |   |
| Effect                of exchange rate changes on cash                                                     |   |                                        | 0.2    |   |   | **0.4** |   |
|                                                                                                       |   |                                        | (5.7   | ) |   | **46.2** |   |
| Cash                and cash equivalents at beginning of period                                            |   |                                        | 17.6   |   |   | **29.4** |   |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                                  |   | $                                           | 11.9   |   | **$** | **75.6** |   |
|                                                                                                       |   |                                        |   |   |   |   |   |
| Supplemental                disclosures:                                                                   |   |                                        |   |   |   |   |   |
| Cash                paid for:                                                                              |   |                                        |   |   |   |   |   |
| Interest,                net of amounts capitalized                                                        |   | $                                           | 0.7    |   | **$** | **0.8** |   |
|                            Income taxes, net        |   | $                                           | 3.8    |   | **$** | **17.5** |   |

----

**TITANIUM      METALS CORPORATION**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY**

**AND      COMPREHENSIVE INCOME**

**FOR      THE **
**THREE      MONTHS ENDED MARCH 31, 2007**

|                                                                                            |   |   Common                Stock |    |  Series                APreferred                Stock |   |  Additional                Paid-in Capital |   |   Retained                Earnings |      | Accumulated                Other Comprehensive Loss |   |    Total |   | Comprehensive                Income |      |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|-------------------------------------------------------------|--------|-------------------------------------------------|--------|----------------------------------------------|-----------|-----------------------------------------------------|--------|-------------------------|--------|-------------------------------------|-----------|
|                                                                                            |   | (unaudited)                             |    |
|                                                                                            |   |                                    |    |                                                        |   |                                            |   |                                         |      |                                                |   |                    |   |                                |      |   |   |   |   |   |   |   |
| Balance                at January 1, 2007                                                       |   | $                                       | 1.6     |                                                        | $      | 75.0                                            |   | $                                            | 484.4     |                                                | $      | 340.3                   |   | $                                   | (22.4     | ) | $ | 878.9 |   | $ | - |   |
| Net                income                                                                       |   |                                    | -       |                                                        |   | -                                               |   |                                         | -         |                                                |   | 76.4                    |   |                                | -         |   |   | 76.4 |   |   | 76.4 |   |
|                    Other comprehensive income                                    |   |                                    | -       |                                                        |   | -                                               |   |                                         | -         |                                                |   | -                       |   |                                | (8.7      | ) |   | (8.7 | ) |   | (8.7 | ) |
| Issuance                of common stock                                                         |   |                                    | -       |                                                        |   | -                                               |   |                                         | 0.4       |                                                |   | -                       |   |                                | -         |   |   | 0.4 |   |   | - |   |
| Conversion                of Series A Preferred                Stock                            |   |                                    | -       |                                                        |   | (1.1                                            | )      |                                         | 1.1       |                                                |   | -                       |   |                                | -         |   |   | - |   |   | - |   |
| Tax                benefit of stock options        exercised |   |                                    | -       |                                                        |   | -                                               |   |                                         | 0.4       |                                                |   | -                       |   |                                | -         |   |   | 0.4 |   |   | - |   |
| Dividends                declared on    Series                A Preferred Stock  |   |                                    | -       |                                                        |   | -                                               |   |                                         | -         |                                                |   | (1.4                    | )      |                                | -         |   |   | (1.4 | ) |   | - |   |
|                   Change in Accounting - FIN                48                        |   |                                    | -       |                                                        |   | -                                               |   |                                         | -         |                                                |   | (0.1                    | )      |                                | -         |   |   | (0.1 | ) |   | - |   |
|                                                                                            |   |                                    |    |                                                        |   |                                            |   |                                         |      |                                                |   |                    |   |                                |      |   |   |   |   |   |   |   |
| Balance                at March 31, 2007                                                        |   | **$**                                   | **1.6** |                                                        | **$**  | **73.9**                                        |   | **$**                                        | **486.3** |                                                | **$**  | **415.2**               |   | **$**                               | **(31.1** | **)** | **$** | **945.9** |   |   |   |   |
|                                                                                            |   |                                    |    |                                                        |   |                                            |   |                                         |      |                                                |   |                    |   |                                |      |   |   |   |   |   |   |   |
| Comprehensive                income                                                             |   |                                    |    |                                                        |   |                                            |   |                                         |      |                                                |   |                    |   |                                |      |   |   |   |   | **$** | **67.7** |   |
|                                                                                            |   |                                    |    |                                                        |   |                                            |   |                                         |      |                                                |   |                    |   |                                |      |   |   |   |   |   |   |   |

----

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

***Basis      of presentation***

***Organization***

----

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

**Note      2 - Inventories**

|                                               |   | December                31, 2006 |   | **March                31, 2007** |   |
|----------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                               |   | (In                millions)     |   |
|                                               |   |                             |   |                              |   |   |   |
| Raw                materials                       |   | $                                | 134.0  |                              | **$**  | **124.5** |   |
| Work-in-process                                    |   |                             | 239.4  |                              |   | **245.2** |   |
| Finished                products                   |   |                             | 90.3   |                              |   | **105.9** |   |
| Inventory                consigned to customers    |   |                             | 20.1   |                              |   | **23.3** |   |
| Supplies                                           |   |                             | 17.7   |                              |   | **19.4** |   |
|                                               |   |                             |   |                              |   |   |   |
| Total                inventories    |   | $                                | 501.5  |                              | **$**  | **518.3** |   |

----

**Note      3 - Marketable securities**

|                                       |   | December                31, 2006 |   | **March                31, 2007** |   |
|--------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                       |   | (In                millions)     |   |
|                                       |   |                             |   |                              |   |   |   |
| CompX CompX(1)                        |   | $                                | 54.3   |                              | **$**  | **43.5** |   |
| NL NL                                 |   |                             | 2.3    |                              |   | **2.4** |   |
| Kronos Kronos                         |   |                             | 0.2    |                              |   | **0.2** |   |
|                                       |   |                             |   |                              |   |   |   |
| Total                marketable securities |   | $                                | 56.8   |                              | **$**  | **46.1** |   |

**Note      4 - Property and equipment**

|                                             |   | December                31, 2006 |   | **March                31, 2007** |   |
|--------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                             |   | (In                millions)     |   |
|                                             |   |                             |   |                              |   |   |   |
| Land                and improvements             |   | $                                | 9.3    |                              | **$**  | **9.3** |   |
| Buildings                and improvements        |   |                             | 41.6   |                              |   | **41.6** |   |
| Information                technology systems    |   |                             | 66.0   |                              |   | **66.2** |   |
| Manufacturing                equipment and other |   |                             | 376.2  |                              |   | **383.0** |   |
| Construction                in progress          |   |                             | 103.4  |                              |   | **108.3** |   |
|                                             |   |                             |   |                              |   |   |   |
| Total                property and equipment      |   |                             | 596.5  |                              |   | **608.4** |   |
|                                             |   |                             |   |                              |   |   |   |
| Less                accumulated depreciation     |   |                             | 266.7  |                              |   | **273.5** |   |
|                                             |   |                             |   |                              |   |   |   |
| Total                property and equipment, net |   | $                                | 329.8  |                              | **$**  | **334.9** |   |

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

|                                                              |   | December                31, 2006 |   | **March                31, 2007** |   |
|-------------------------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                                              |   | (In                millions)     |   |
|                                                              |   |                             |   |                              |   |   |   |
| Prepaid                conversion services                        |   | $                                | 49.7   |                              | **$**  | **49.1** |   |
| Other                                                             |   |                             | 1.6    |                              |   | **1.4** |   |
|                                                              |   |                             |   |                              |   |   |   |
| Total                prepaid expenses and other noncurrent assets |   | $                                | 51.3   |                              | **$**  | **50.5** |   |

----

**Note      6 - Accrued liabilities**

|                                     |   | December                31, 2006 |   | **March                31, 2007** |   |
|------------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                     |   | (In                millions)     |   |
|                                     |   |                             |   |                              |   |   |   |
| Employee                related          |   | $                                | 46.4   |                              | **$**  | **33.2** |   |
| Deferred                revenue          |   |                             | 6.9    |                              |   | **6.8** |   |
| Scrap                purchases           |   |                             | 8.9    |                              |   | **11.2** |   |
| Taxes,                other than income  |   |                             | 6.7    |                              |   | **6.2** |   |
| Other                                    |   |                             | 13.1   |                              |   | **12.7** |   |
|                                     |   |                             |   |                              |   |   |   |
| Total                accrued liabilities |   | $                                | 82.0   |                              | **$**  | **70.1** |   |

**Note****7      - Employee benefits**

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

|                                                                   |   | Three                months ended March 31, |   |
|------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                   |   | 2006                                        |   | **2007** |   |
|                                                                   |   | (In                millions)                |   |
|                                                                   |   |                                        |   |   |   |   |   |
| Service                cost                                            |   | $                                           | 1.1    |   | **$** | **1.3** |   |
| Interest                cost                                           |   |                                        | 3.4    |   |   | **4.2** |   |
| Expected                return on plan assets                          |   |                                        | (4.5   | ) |   | **(5.4** | **)** |
| Amortization                of net losses                              |   |                                        | 0.8    |   |   | **0.9** |   |
| Amortization                of prior  service                cost |   |                                        | 0.1    |   |   | **0.1** |   |
|                                                                   |   |                                        |   |   |   |   |   |
| Total                pension expense                                   |   | $                                           | 0.9    |   | **$** | **1.1** |   |

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

|                                                                   |   | Three                months ended March 31, |   |
|------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                   |   | 2006                                        |   | **2007** |   |
|                                                                   |   | (In                millions)                |   |
|                                                                   |   |                                        |   |   |   |   |   |
| Service                cost                                            |   | $                                           | 0.2    |   | **$** | **0.2** |   |
| Interest                cost                                           |   |                                        | 0.4    |   |   | **0.4** |   |
| Amortization                of net losses                              |   |                                        | 0.2    |   |   | **0.2** |   |
| Amortization                of prior  service                cost |   |                                        | (0.1   | ) |   | **(0.1** | **)** |
|                                                                   |   |                                        |   |   |   |   |   |
| Total                OPEB expense                                      |   | $                                           | 0.7    |   | **$** | **0.7** |   |

----

**Note      8 - Income taxes**

|                                               |   | Three                months ended March 31, |   |
|----------------------------------------------------|--------|---------------------------------------------|--------|
|                                               |   | 2006                                        |   | **2007** |   |
|                                               |   | (In                millions)                |   |
|                                               |   |                                        |   |   |   |   |   |
| Expected                income tax expense, at 35% |   | $                                           | 33.0   |   | **$** | **40.6** |   |
| Non-U.S.                tax rates                  |   |                                        | (0.8   | ) |   | **(0.8** | **)** |
| U.S.                state income taxes, net        |   |                                        | 1.7    |   |   | **2.0** |   |
| Nontaxable                income                   |   |                                        | (0.1   | ) |   | **(3.3** | **)** |
| Domestic                manufacturing credit       |   |                                        | (0.6   | ) |   | **(1.6** | **)** |
| Other,                net                          |   |                                        | -      |   |   | **(0.5** | **)** |
|                                               |   |                                        |   |   |   |   |   |
| Total                income tax expense            |   | $                                           | 33.2   |   | **$** | **36.4** |   |
|                                               |   |                                        |   |   |   |   |   |

**Note      9 - Commitments and contingencies**

***Environmental      matters.***

***            Legal proceedings***

----

**Note      10 **
**-**
**      Earnings per share**

|                                                                                             |   | Three                months ended March 31, |   |
|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                             |   | 2006                                        |   | **2007** |   |
|                                                                                             |   | (In                millions)                |   |
|                                                                                             |   |                                        |   |   |   |   |   |
| Numerator:                                                                                       |   |                                        |   |   |   |   |   |
| Net                income attributable to common   stockholders                        |   | $                                           | 56.8   |   | **$** | **75.0** |   |
| Dividends                on Series A   Preferred                Stock                  |   |                                        | 2.1    |   |   | **1.4** |   |
|                                                                                             |   |                                        |   |   |   |   |   |
| Diluted                net income attributable   to                common stockholders |   | $                                           | 58.9   |   | **$** | **76.4** |   |
|                                                                                             |   |                                        |   |   |   |   |   |
| Denominator:                                                                                     |   |                                        |   |   |   |   |   |
| Average                common shares outstanding                                                 |   |                                        | 146.1  |   |   | **161.7** |   |
| Average                dilutive stock options   and                restricted stock    |   |                                        | 0.8    |   |   | **0.1** |   |
| Series                A Preferred Stock                                                          |   |                                        | 36.5   |   |   | **22.4** |   |
| Other                                                                                            |   |                                        | 0.5    |   |   | **-** |   |
|                                                                                             |   |                                        |   |   |   |   |   |
| Diluted                shares                                                                    |   |                                        | 183.9  |   |   | **184.2** |   |
|                                                                                             |   |                                        |   |   |   |   |   |

----

**Note      11 - Business segment information**

|                                                |   | Three                months ended March 31,                |   |
|-----------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                |   | 2006                                                       |   | **2007** |   |
|                                                |   | (In                millions, except product shipment data) |   |
|                                                |   |                                                       |   |   |   |   |   |
| Titanium                melted and mill products:   |   |                                                       |   |   |   |   |   |
| Melted                product net sales             |   | $                                                          | 47.2   |   | **$** | **59.1** |   |
| Mill                product net sales               |   |                                                       | 205.1  |   |   | **250.0** |   |
| Other                product sales                  |   |                                                       | 34.6   |   |   | **32.6** |   |
|                                                |   |                                                       |   |   |   |   |   |
| Total                net sales                      |   | $                                                          | 286.9  |   | **$** | **341.7** |   |
|                                                |   |                                                       |   |   |   |   |   |
| Melted                product shipments:            |   |                                                       |   |   |   |   |   |
| Volume                (metric tons)                 |   |                                                       | 1,460  |   |   | **1,330** |   |
| Average                selling price (per kilogram) |   | $                                                          | 32.35  |   | **$** | **44.45** |   |
|                                                |   |                                                       |   |   |   |   |   |
| Mill                product shipments:              |   |                                                       |   |   |   |   |   |
| Volume                (metric tons)                 |   |                                                       | 3,675  |   |   | **3,720** |   |
| Average                selling price (per kilogram) |   | $                                                          | 55.80  |   | **$** | **67.20** |   |

----

**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***
* *

----

***Recent      developments***

**RESULTS      OF OPERATIONS**

**Quarter      ended March 31, 2006 compared to quarter ended March 31,      2007**

***Summarized      financial information***

|                                                                                   |   | Three                months ended March 31,                |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                                                   |   |  2006                                                 |   | %                of Total Net Sales |   |  **2007** |   | **%                of Total Net Sales** |   |
|                                                                                   |   | (In                millions, except product shipment data) |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net                sales:                                                              |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Melted                products                                                         |   | $                                                          | 47.2   |   |   | 17 | % | **$** | **59.1** |   |   | **17** | **%** |
| Mill                products                                                           |   |                                                       | 205.1  |   |   | 71 | % |   | **250.0** |   |   | **73** | **%** |
| Other                products                                                          |   |                                                       | 34.6   |   |   | 12 | % |   | **32.6** |   |   | **10** | **%** |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Total                net sales                                                         |   |                                                       | 286.9  |   |   | 100 | % |   | **341.7** |   |   | **100** | **%** |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                                                           |   |                                                       | (178.6 | ) |   | 62 | % |   | **(208.3** | **)** |   | **61** | **%** |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                            |   |                                                       | 108.3  |   |   | 38 | % |   | **133.4** |   |   | **39** | **%** |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                general, administrative and development                expense |   |                                                       | (15.3  | ) |   | 5 | % |   | **(17.3** | **)** |   | **5** | **%** |
| Other                income, net                                                       |   |                                                       | 2.1    |   |   | - |   |   | **0.1** |   |   | **-** |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income                                                        |   | $                                                          | 95.1   |   |   | 33 | % | **$** | **116.2** |   |   | **34** | **%** |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Melted                product shipments:                                               |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric tons)                                                    |   |                                                       | 1,460  |   |   |   |   |   | **1,330** |   |   |   |   |
| Average                selling price (per      kilogram)      |   | $                                                          | 32.35  |   |   |   |   | **$** | **44.45** |   |   |   |   |
|                                                                                   |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Mill                product shipments:                                                 |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Volume                (metric tons)                                                    |   |                                                       | 3,675  |   |   |   |   |   | **3,720** |   |   |   |   |
| Average                selling price (per kilogram)                               |   | $                                                          | 55.80  |   |   |   |   | **$** | **67.20** |   |   |   |   |

----

***Net      sales***

***Cost      of sales***

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

***Operating      income***

***Income      taxes.***

----

**European      operations**

**Outlook**

|   | · | In                  May 2005, we announced our plans to expand our existing titanium                  sponge                  facility in Henderson, Nevada. This expansion will provide the                  capacity to                  produce an additional 4,000 metric tons of sponge annually, an                  increase of                  approximately 47% over the current sponge production capacity levels                  at                  our Nevada facility. The expansion is now completed, and commercial                  production commenced in April 2007. We expect to be operating at                  full                  annual capacity of 12,600 metric tons by the end of the third quarter                  of                  2007. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In                  April 2006, we announced our plans for the expansion of our electron beam                  cold hearth melt capacity in Morgantown, Pennsylvania. This expansion,                  which we currently expect to complete by early 2008, will have                  the                  capacity to produce up to an additional 8,500 metric tons of melted                  products, an increase of approximately 54% over the current production                  capacity levels at our facility. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | 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. The                  new                  facility could initially provide an                  additional 10,000 to 20,000 metric tons of capacity to be built                  in phases                  at a site to be determined during 2007. This additional productive                  capacity will allow us to maintain the                  certainty, quality and reliability of supply of this critical raw                  material                  for all titanium products. We currently anticipate the new sponge                  facility                  will be operational as early as                  the end of 2009.  |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**LIQUIDITY      AND CAPITAL RESOURCES**

|                                                               |   | Three                months ended March 31, |   |
|--------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                               |   | 2006                                        |   | **2007** |   |
|                                                               |   | (In                millions)                |   |
|                                                               |   |                                        |   |   |   |   |   |
| Cash                (used in) provided by:                         |   |                                        |   |   |   |   |   |
| Operating                activities                                |   | $                                           | 9.4    |   | **$** | **59.9** |   |
| Investing                activities                                |   |                                        | (17.5  | ) |   | **(13.3** | **)** |
| Financing                activities                                |   |                                        | 2.2    |   |   | **(0.8** | **)** |
|                                                               |   |                                        |   |   |   |   |   |
| Net                cash (used in) provided by operating, investing |   |                                        |   |   |   |   |   |
| and                financing activities                            |   | $                                           | (5.9   | ) | **$** | **45.8** |   |

***Operating      activities.***
* *

|   | · | higher                operating income of $21.1 million in                2007; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | lower                  net cash used by changes in receivables, inventories, payables                  and accrued                  liabilities of $39.6 million in 2007 in response to changing working                  capital requirements; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | higher                net cash paid for income taxes in 2007 of $13.7 million due to the                utilization of the remainder of our U.S. net operating loss carryforward                in 2006. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Investing      activities***

***Financing      activities***

|   | · | dividends                paid on our Series A Preferred Stock of $2.2 million in the first                quarter                of 2006 compared to $1.4 million in the first quarter of 2007                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | proceeds                from the issuance of our common stock upon exercise of stock options                of                $7.9 million in the first quarter of 2006 and $0.4 million in the                first                quarter of 2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Future      cash requirements **

***Liquidity***
*.      *

***Capital      expenditures***

----

***Contractual      commitments***

***Off-balance      sheet arrangements***

***Recent      accounting pronouncements***

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

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

|   | · | 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 our assets that could                have a                material effect on our Consolidated Financial                Statements. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

**PART      II. - OTHER INFORMATION**

**Item      1.**
**LEGAL      PROCEEDINGS**

**Item      1A.**
**RISK      FACTORS**

**Item      6.**
**EXHIBITS      **

|                                                                                                                         |   |                                                                                                                                                                                                                                |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1**                                                                                                                       |   | Agreement                for the Purchase and Supply of Materials between Titanium Metals                Corporation and certain subsidiaries and Rolls-Royce plc and certain                subsidiaries effective January 1, 2007 |
|                                                                                                                         |   |                                                                                                                                                                                                                                |
| 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.                                                                                                                              |
|                                                                                                                         |   |                                                                                                                                                                                                                                |
| **                Portions of the exhibit have been omitted pursuant to a request for                confidential treatment. |

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

----

**SIGNATURES**

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