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United States
Securities and Exchange Commission
Washington, D.C. 20549

Form 10-Q

|                    |  |                                                                                                                                                            
|------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|CHECK IN BALLOT BOX |  | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2001, or              
|                   
|OPEN BALLOT BOX     |  | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from
                to                .

Commission File No. 0-13787

INTERMET Corporation
(Exact name of registrant as specified in its charter)

|                                                                                         |  |                                             
|---------------------------------------------------------------------------------------- |  | --------------------------------------------
|Georgia
(State or other jurisdiction of
incorporation or organization)                   |  | 58-1563873
(IRS Employer
Identification No.)
|                                                                                        
|5445 Corporate Drive, Suite 200, Troy, Michigan
(Address of principal executive offices) |  | 48098-2683
(Zip code)                       

(248) 952-2500
(Registrants telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes
X IN BALLOT BOX No

At November 2, 2001 there were 25,415,324 shares of common stock, $0.10 par
value, outstanding.





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TABLE OF CONTENTS



|                                                             |  |  |  |  |  |  |  | 
|------------------------------------------------------------ |  |  |  |  |  |  |  | 
|Part I  Financial Information                              
|Interim Condensed Consolidated Statements of Operations     
|Interim Condensed Consolidated Balance Sheets               
|Interim Condensed Consolidated Statements of Cash Flows     
|Notes to Interim Condensed Consolidated Financial Statements
|Part II  Other Information                                 
|Signatures                                                  



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##### Table of Contents






Part I  Financial Information

Item 1. Financial Statements

INTERMET Corporation




Interim Condensed Consolidated Statements of Operations

|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |   |         |         |      | 
|--------------------------------- | ------------------------ | ----------------- | ------- | ------------------------------------------------ | ------ | - | ----------------- | ------ | ---- | ------------- | ------- | ------- | ------------- | - | ------- | ------- | ---- | 
|                                  |                          |                   |         | Three months ended                               |        |   | Nine months ended |       
|                                  |                          |                   |         |                                                  |        |   |                   |       
|                                  |                          |                   |         | September 30,                                    |        |   | September 30,     |        |      | September 30, |         |         | September 30, |  
|                                  |                          |                   |         | 2001                                             |        |   | 2000              |        |      | 2001          |         |         | 2000          |  
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |  
|                                  |                          |                   |         | (Unaudited)                                     
|                                  |                          |                   |         | (in thousands of dollars, except per share data)
|Net sales                         |                          | $                 | 197,871 |                                                  |        | $ | 239,585           |        |      | $             | 649,986 |         |               | $ | 823,685 |        
|Cost of sales                     |                          |                   | 183,975 |                                                  |        |   | 211,315           |        |      |               | 592,841 |         |               |   | 709,957 |        
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|Gross profit                      |                          |                   | 13,896  |                                                  |        |   | 28,270            |        |      |               | 57,145  |         |               |   | 113,728 |        
|                                 
|Operating expenses:               |                          |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |   |         |        
|                                  | Selling, general and     |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |   |         |         |     
|                                  | administrative           |                   |         | 7,394                                            |        |   |                   | 9,141  |      |               |         | 24,466  |               |   |         | 29,121  |     
|                                  | Goodwill amortization    |                   |         | 1,572                                            |        |   |                   | 1,588  |      |               |         | 4,726   |               |   |         | 4,764   |     
|                                  | Other operating expenses |                   |         | 279                                              |        |   |                   | (1,840 | )    |               |         | 218     |               |   |         | 4,283   |     
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|                                  |                          |                   | 9,245   |                                                  |        |   | 8,889             |        |      |               | 29,410  |         |               |   | 38,168  |        
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|Operating profit                  |                          |                   | 4,651   |                                                  |        |   | 19,381            |        |      |               | 27,735  |         |               |   | 75,560  |        
|Other income (expense):           |                          |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |   |         |        
|                                  | Interest, net            |                   |         | (9,248                                           | )      |   |                   | (9,276 | )    |               |         | (25,297 | )             |   |         | (29,853 | )   
|                                  | Other income, net        |                   |         | 260                                              |        |   |                   | 4,079  |      |               |         | 921     |               |   |         | 5,925   |     
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|                                  |                          |                   | (8,988  | )                                                |        |   | (5,197            | )      |      |               | (24,376 | )       |               |   | (23,928 | )      
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|Income (loss) before income taxes |                          |                   | (4,337  | )                                                |        |   | 14,184            |        |      |               | 3,359   |         |               |   | 51,632  |        
|Provision for income taxes        |                          |                   | (1,633  | )                                                |        |   | 6,162             |        |      |               | 1,903   |         |               |   | 22,244  |        
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|Net income (loss)                 |                          | $                 | (2,704  | )                                                |        | $ | 8,022             |        |      | $             | 1,456   |         |               | $ | 29,388  |        
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        
|Income (loss) per common share   |                          |                   |         |                                                  |        |   |                   |        |      |               |         |         |               |   |         |        
|                                  |                          | basic and diluted |         |                                                  | ($0.11 | ) |                   | $      | 0.32 |               |         | $       | 0.06          |   |         | $       | 1.16 | 
|                                  |                          |                   |         |                                                  |        |   |                   |        |      |               |         |        

See accompanying notes.

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INTERMET Corporation




Interim Condensed Consolidated Balance Sheets

|                                       |                                                                                         |                                                                                   |         |                           |         |   |              |         |         | 
|-------------------------------------- | --------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | ------- | ------------------------- | ------- | - | ------------ | ------- | ------- | 
|                                       |                                                                                         |                                                                                   |         | September 30,             |         |   | December 31, |        
|                                       |                                                                                         |                                                                                   |         | 2001                      |         |   | 2000         |        
|                                       |                                                                                         |                                                                                   |         |                           |         |   |              |        
|                                       |                                                                                         |                                                                                   |         | (Unaudited)               |         |   |              |         |        
|                                       |                                                                                         |                                                                                   |         | (in thousands of dollars) |        
|Assets                                 |                                                                                         |                                                                                   |         |                           |         |   |              |        
|Current assets:                        |                                                                                         |                                                                                   |         |                           |         |   |              |        
|                                       | Cash and cash equivalents                                                               |                                                                                   | $       | 18,450                    |         |   | $            | 19,737  |        
|                                       | Accounts receivable:                                                                    |                                                                                   |         |                           |         |   |              |         |        
|                                       |                                                                                         | Trade, less allowance for
doubtful accounts of $10,705 in
2001 and $9,451 in 2000 |         |                           | 128,527 |   |              |         | 125,745 | 
|                                       |                                                                                         | Other                                                                             |         |                           | 3,836   |   |              |         | 9,136   | 
|                                       |                                                                                         |                                                                                   |         |                           |         |  
|                                       |                                                                                         |                                                                                   | 132,363 |                           |         |   | 134,881      |        
|                                      
|                                       | Inventories                                                                             |                                                                                   |         | 76,601                    |         |   |              | 93,870  |        
|                                       | Other current assets                                                                    |                                                                                   |         | 18,216                    |         |   |              | 31,960  |        
|                                       |                                                                                         |                                                                                   |         |                           |         |  
|Total current assets                   |                                                                                         |                                                                                   | 245,630 |                           |         |   | 280,448      |        
|                                      
|Property, plant and equipment, at cost |                                                                                         |                                                                                   | 665,236 |                           |         |   | 636,132      |        
|Less:                                  |                                                                                         |                                                                                   |         |                           |         |   |              |        
|                                       | Accumulated depreciation and
foreign industrial development
grants, net of amortization |                                                                                   |         | 272,944                   |         |   |              | 238,498 |        
|                                       |                                                                                         |                                                                                   |         |                           |         |   |             
|Net property, plant and equipment      |                                                                                         |                                                                                   | 392,292 |                           |         |   | 397,634      |        
|                                      
|Intangibles, net of amortization       |                                                                                         |                                                                                   | 220,497 |                           |         |   | 224,873      |        
|Other noncurrent assets                |                                                                                         |                                                                                   | 16,536  |                           |         |   | 15,841       |        
|                                       |                                                                                         |                                                                                   |         |                           |         |  
|                                       |                                                                                         | $                                                                                 | 874,955 |                           |         | $ | 918,796      |        
|                                       |                                                                                         |                                                                                   |         |                           |         |  

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INTERMET Corporation
Interim Condensed Consolidated Balance Sheets

|                                     |                                            |   |                           |         |   |              |         |         |  
|------------------------------------ | ------------------------------------------ | - | ------------------------- | ------- | - | ------------ | ------- | ------- | -
|                                     |                                            |   | September 30,             |         |   | December 31, |        
|                                     |                                            |   | 2001                      |         |   | 2000         |        
|                                     |                                            |   |                           |         |   |              |        
|                                     |                                            |   | (Unaudited)               |         |   |              |         |        
|                                     |                                            |   | (in thousands of dollars) |        
|Liabilities and shareholders equity |                                            |   |                           |         |   |              |         |        
|Current liabilities:                 |                                            |   |                           |         |   |              |         |        
|                                     | Accounts payable                           |   | $                         | 87,213  |   |              | $       | 103,501 |  
|                                     | Income taxes and other accrued liabilities |   |                           | 61,522  |   |              |         | 82,555  |  
|                                     | Long term debt due within one year         |   |                           | 21,665  |   |              |         | 216,479 |  
|                                     |                                            |   |                           |         |   |             
|Total current liabilities            |                                            |   | 170,400                   |         |   |              | 402,535 |        
|                                    
|Noncurrent liabilities:              |                                            |   |                           |         |   |              |         |        
|                                     | Long term debt due after one year          |   |                           | 377,979 |   |              |         | 182,687 |  
|                                     | Other noncurrent liabilities               |   |                           | 46,936  |   |              |         | 54,166  |  
|                                     |                                            |   |                           |         |   |             
|Total noncurrent liabilities         |                                            |   | 424,915                   |         |   |              | 236,853 |        
|                                    
|Shareholders equity:                |                                            |   |                           |         |   |              |         |        
|                                     | Common stock                               |   |                           | 2,592   |   |              |         | 2,588   |  
|                                     | Capital in excess of par value             |   |                           | 57,171  |   |              |         | 57,110  |  
|                                     | Retained earnings                          |   |                           | 218,687 |   |              |         | 220,279 |  
|                                     | Accumulated other comprehensive income     |   |                           | 1,405   |   |              |         | (363    | )
|                                     | Unearned restricted stock                  |   |                           | (215    | ) |              |         | (206    | )
|                                     |                                            |   |                           |         |   |              |        
|Total shareholders equity           |                                            |   | 279,640                   |         |   |              | 279,408 |        
|                                     |                                            |   |                           |         |   |              |        
|                                     |                                            | $ | 874,955                   |         |   | $            | 918,796 |        
|                                     |                                            |   |                           |         |   |             

See accompanying notes.

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INTERMET Corporation




Interim Condensed Consolidated Statements of Cash Flows

|                                                                              |                                                                |                                    |         |                           |         |   |               |         |         |  
|----------------------------------------------------------------------------- | -------------------------------------------------------------- | ---------------------------------- | ------- | ------------------------- | ------- | - | ------------- | ------- | ------- | -
|                                                                              |                                                                |                                    |         | Nine months ended         |        
|                                                                              |                                                                |                                    |         |                           |        
|                                                                              |                                                                |                                    |         | September 30,             |         |   | September 30, |        
|                                                                              |                                                                |                                    |         | 2001                      |         |   | 2000          |        
|                                                                              |                                                                |                                    |         |                           |         |   |               |        
|                                                                              |                                                                |                                    |         | (Unaudited)               |        
|                                                                              |                                                                |                                    |         | (in thousands of dollars) |        
|Operating activities:                                                         |                                                                |                                    |         |                           |         |   |               |        
|Net income                                                                    |                                                                | $                                  | 1,456   |                           |         | $ | 29,388        |        
|Adjustments to reconcile net income to cash provided by
operating activities: |                                                                |                                    |         |                           |         |   |               |        
|                                                                              | Depreciation                                                   |                                    |         | 37,843                    |         |   |               | 35,025  |        
|                                                                              | Amortization                                                   |                                    |         | 5,693                     |         |   |               | 6,014   |        
|                                                                              | Result of equity investment                                    |                                    |         | (668                      | )       |   |               | (129    | )      
|                                                                              | Net gain on disposal of fixed assets                           |                                    |         |                           |         |   |               | (5,787  | )      
|                                                                              | Changes in operating assets and liabilities:                   |                                    |         |                           |         |   |               |         |        
|                                                                              |                                                                | Accounts receivable                |         |                           | 1,885   |   |               |         | (9,474  | )
|                                                                              |                                                                | Inventories                        |         |                           | 17,141  |   |               |         | 8,506   |  
|                                                                              |                                                                | Accounts payable and accrued taxes |         |                           | (38,474 | ) |               |         | (24,356 | )
|                                                                              |                                                                | Other assets and liabilities       |         |                           | 3,996   |   |               |         | (7,851  | )
|                                                                              |                                                                |                                    |         |                           |         |  
|Net cash provided by operating activities                                     |                                                                |                                    | 28,872  |                           |         |   | 31,336        |        
|                                                                             
|Investing activities:                                                         |                                                                |                                    |         |                           |         |   |               |        
|                                                                              | Additions to property, plant and equipment                     |                                    |         | (28,725                   | )       |   |               | (50,993 | )      
|                                                                              | Additions to property, plant and equipment funded by
insurance |                                    |         | (3,210                    | )       |   |               | (29,700 | )      
|                                                                              | Proceeds from insurance                                        |                                    |         | 3,210                     |         |   |               | 29,700  |        
|                                                                              | Proceeds from sale of equity investment                        |                                    |         |                           |         |   |               | 10,309  |        
|                                                                              | Proceeds from sale/replacement of fixed assets                 |                                    |         |                           |         |   |               | 14,352  |        
|                                                                              |                                                                |                                    |         |                           |         |  
|Net cash used in investing activities                                         |                                                                |                                    | (28,725 | )                         |         |   | (26,332       | )      
|                                                                             
|Financing activities:                                                         |                                                                |                                    |         |                           |         |   |               |        
|                                                                              | Net increase in revolving credit facility                      |                                    |         | 40,000                    |         |   |               | 6,500   |        
|                                                                              | Payoff of senior note                                          |                                    |         | (200,000                  | )       |   |               | (15,000 | )      
|                                                                              | Proceeds from term loan                                        |                                    |         | 182,750                   |         |   |               | 15,000  |        
|                                                                              | Net reduction in other debt                                    |                                    |         | (22,260                   | )       |   |               | (1,140  | )      
|                                                                              | Dividends paid                                                 |                                    |         | (3,048                    | )       |   |               | (3,046  | )      
|                                                                              | Issuance of common stock                                       |                                    |         | 65                        |         |   |               | 380     |        
|                                                                              |                                                                |                                    |         |                           |         |  
|Net cash (used in) provided by financing activities                           |                                                                |                                    | (2,493  | )                         |         |   | 2,694         |        
|Effect of exchange rate changes on cash and cash equivalents                  |                                                                |                                    | 1,059   |                           |         |   | (3,576        | )      
|                                                                              |                                                                |                                    |         |                           |         |  
|Net increase (decrease) in cash and cash equivalents                          |                                                                |                                    | (1,287  | )                         |         |   | 4,122         |        
|Cash and cash equivalents at beginning of period                              |                                                                |                                    | 19,737  |                           |         |   | 3,416         |        
|                                                                              |                                                                |                                    |         |                           |         |  
|Cash and cash equivalents at end of period                                    |                                                                | $                                  | 18,450  |                           |         | $ | 7,538         |        
|                                                                              |                                                                |                                    |         |                           |         |  

See accompanying notes.

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INTERMET Corporation




Notes to Interim Condensed Consolidated Financial Statements

September 30, 2001 (Unaudited)



|1. |  | Basis of Presentation
|-- |  | ---------------------

The accompanying unaudited condensed consolidated financial statements of
INTERMET Corporation and its subsidiaries have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the three months and the
nine months ended September 30, 2001 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2001. For further
information, refer to the consolidated financial statements and footnotes
included in INTERMETs annual report on Form 10-K for the year ended December
31, 2000.

Some amounts previously reported in the 2000 financial statements have been
reclassified to conform to the 2001 presentation.

The Financial Accounting Standards Board has recently issued two new
pronouncements. Statement of Financial Accounting Standards (SFAS) 141,
Business Combinations and SFAS 142  Goodwill and Other Intangible Assets
are both effective for fiscal years beginning after December 15, 2001. With the
adoption of SFAS 142, starting in 2002, INTERMET will no longer amortize its
goodwill, but will be required to complete annual evaluations of its value as
is required by the new promulgated guidance. INTERMET is in the process of
evaluating the impact of adopting these two new pronouncements.



|2. |  | Inventories
|-- |  | -----------

Net inventories consist of the following (in thousands of dollars):

|                      |  |               |        |  |              |   |        | 
|--------------------- |  | ------------- | ------ |  | ------------ | - | ------ | 
|                      |  | September 30, |        |  | December 31, |  
|                      |  | 2001          |        |  | 2000         |  
|                      |  |               |        |  |              |  
|Finished goods        |  | $             | 13,798 |  |              | $ | 17,865 | 
|Work in process       |  |               | 15,518 |  |              |   | 21,816 | 
|Raw materials         |  |               | 6,623  |  |              |   | 8,940  | 
|Supplies and patterns |  |               | 40,662 |  |              |   | 45,249 | 
|                      |  |               |        |  |              |  
|                      |  | $             | 76,601 |  |              | $ | 93,870 | 
|                      |  |               |        |  |              |  

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)



|3. |  | Property, Plant and Equipment
|-- |  | -----------------------------

Gross property, plant and equipment consist of the following (in thousands of
dollars):

|                           |  |               |         |  |              |   |         | 
|-------------------------- |  | ------------- | ------- |  | ------------ | - | ------- | 
|                           |  | September 30, |         |  | December 31, |  
|                           |  | 2001          |         |  | 2000         |  
|                           |  |               |         |  |              |  
|Land                       |  | $             | 5,396   |  |              | $ | 5,408   | 
|Buildings and improvements |  |               | 117,371 |  |              |   | 116,181 | 
|Machinery and equipment    |  |               | 483,073 |  |              |   | 467,819 | 
|Construction in progress   |  |               | 59,396  |  |              |   | 46,724  | 
|                           |  |               |         |  |              |  
|                           |  | $             | 665,236 |  |              | $ | 636,132 | 
|                           |  |               |         |  |              |  



|4. |  | Intangible Assets
|-- |  | -----------------

Intangible assets of $220,497,000 and $224,873,000 (net of accumulated
amortization of $20,231,000 and $15,531,000) at September 30, 2001 and
December 31, 2000, respectively, consist principally of costs in excess of
net assets acquired. Such costs are being amortized using the straight-line
method, principally over forty years.



|5. |  | Debt
|-- |  | ----

In July of 2001 we entered into an agreement with our banks providing for a new
term loan facility for
$182.8 million, replacing the $200 million term loan and the $15 million
unsecured note held by Scotia Bank. At the same time, we renegotiated certain
of the terms of our existing $300 million revolving credit facility. The
interest rate on the new term loan facility, as well as our existing revolving
facility is currently LIBOR plus 3% (as of September 30, 2001 the rate was
approximately 6%). The new term loan facility expires on December 20, 2002
while the term of the revolving facility remains in effect until November,
2004.

Long term debt consists of the following (in thousands of dollars):

|                                 |  |               |         |  |              |   |         | 
|-------------------------------- |  | ------------- | ------- |  | ------------ | - | ------- | 
|                                 |  | September 30, |         |  | December 31, |  
|                                 |  | 2001          |         |  | 2000         |  
|                                 |  |               |         |  |              |  
|Total debt                       |  | $             | 399,644 |  |              | $ | 399,166 | 
|Less amounts due within one year |  |               | 21,665  |  |              |   | 216,479 | 
|                                 |  |               |         |  |              |  
|Debt due after one year          |  | $             | 377,979 |  |              | $ | 182,687 | 
|                                 |  |               |         |  |              |  

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)

Maturities of long-term debt at September 30, 2001 and for each twelve month
period ended
September 30 are as follows (in thousands of dollars):

|           |  |   |         | 
|---------- |  | - | ------- | 
|2002       |  | $ | 21,665  | 
|2003       |  |   | 158,285 | 
|2004       |  |   | 1,328   | 
|2005       |  |   | 180,326 | 
|Thereafter |  |   | 38,040  | 
|           |  |   |        
|Totals     |  | $ | 399,644 | 
|           |  |   |        



|6. |  | Comprehensive Income
|-- |  | --------------------

Total comprehensive income consisted of the following:

|                                        |                                         |   |                    |       |   |                   |                           |        |               |   |       |               |   |   |        |     | 
|--------------------------------------- | --------------------------------------- | - | ------------------ | ----- | - | ----------------- | ------------------------- | ------ | ------------- | - | ----- | ------------- | - | - | ------ | --- | 
|                                        |                                         |   | Three months ended |       |   | Nine months ended |                          
|                                        |                                         |   |                    |       |   |                   |                          
|                                        |                                         |   | September 30,      |       |   | September 30,     |                           |        | September 30, |   |       | September 30, |  
|                                        |                                         |   | 2001               |       |   | 2000              |                           |        | 2001          |   |       | 2000          |  
|                                        |                                         |   |                    |       |   |                   |                           |        |               |   |       |               |  
|                                        |                                         |   |                    |       |   |                   | (in thousands of dollars) |        |               |   |       |              
|Net income(loss)                        |                                         |   | ($2,704            | )     |   | $                 | 8,022                     |        |               | $ | 1,456 |               |   | $ | 29,388 |    
|Other comprehensive income (loss):      |                                         |   |                    |       |   |                   |                           |        |               |   |       |               |   |   |        |    
|                                        | Fair value of interest rate swap        |   |                    | (557  | ) |                   |                           |       |               |   |       | (1,247        | ) |   |        |    | 
|                                        | Foreign currency translation
adjustment |   |                    | 3,276 |   |                   |                           | (1,046 | )             |   |       | 3,015         |   |   |        | 131 | 
|                                        |                                         |   |                    |       |   |                   |                           |        |               |   |       |              
|Total other comprehensive income
(loss) |                                         |   | 2,719              |       |   |                   | (1,046                    | )      |               |   | 1,768 |               |   |   | 131    |    
|Total comprehensive income              |                                         | $ | 15                 |       |   | $                 | 6,976                     |        |               | $ | 3,224 |               |   | $ | 29,519 |    
|                                        |                                         |   |                    |       |   |                   |                           |        |               |   |       |              



|7. |  | Financial Instruments
|-- |  | ---------------------

Effective January 1, 2001, INTERMET adopted SFAS 133, Accounting for
Derivative Instruments and Hedging Activities, as amended, which requires that
all derivative instruments be reported on the balance sheet at fair value. The
effect of SFAS 133 to INTERMET during the first nine months since adoption was
to decrease Other Comprehensive Income by $1,247,000, net of related taxes.
The adoption of SFAS 133 had no impact on the income statement for the period
ending September 30, 2001. Since the interest rate swap hedge entered into was
perfectly effective, the short cut method of accounting for derivatives was
utilized in accounting for the transaction.

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Our risk management policy is to protect our long-term debt at the lowest cost
options available. We assess market conditions periodically to determine
whether it is beneficial to enter into transactions which protect against
interest rate fluctuations on the variable portion of our long-term debt.

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)



|8. |  | Reporting for Business Segments
|-- |  | -------------------------------

We evaluate the operating performance of our business units individually.
Under the provisions of SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, we have aggregated operating segments
that have similar characteristics, including manufacturing processes and raw
materials. The ferrous-metalssegment consists of ferrous foundry operations
and their related machining operations. The light-metalssegment consists of
aluminum, magnesium and zinc casting operations and their related machining
operations. Corporate and otherconsists of operations that do not fall
within the other segments and has been combined with the corporate business
unit and its related expenses and eliminations. This information is displayed
in the following table:

|                                            |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |   |         |  
|------------------------------------------- | ---------------------- | -------------- | - | ------- | ------------- |  | ------------------------- | ------ |  |  | ------------ |  |  |  | - | ------ | - |  | - | ------- | -
|                                            |                        |                |   |         | Corporate and |  |                           |        | 
|                                            |                        | Ferrous Metals |   |         | Light Metals  |  |                           | Other  |  |  | Consolidated | 
|                                            |                        |                |   |         |               |  |                           |        |  |  |              | 
|                                            |                        |                |   |         |               |  | (in thousands of dollars) |        |  |  |              | 
|Three-month period ended
September 30, 2001 |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |   |        
|                                            | Net sales              |                | $ | 126,356 |               |  | $                         | 69,643 |  |  |              |  |  |  | $ | 1,872  |   |  | $ | 197,871 |  
|                                            | Operating profit(loss) |                |   | 3,962   |               |  |                           | 2,786  |  |  |              |  |  |  |   | (2,097 | ) |  |   | 4,651   |  
|                                            | Interest, net          |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | (9,248 | ) |  |   | (9,248  | )
|                                            | Other, net             |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | 260    |   |  |   | 260     |  
|                                            | Taxes                  |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | 1,633  |   |  |   | 1,633   |  
|                                            |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |       
|                                            | Net income (loss)      |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |   | (2,704  | )
|                                            |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |  
|Three-month period ended
September 30, 2000 |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |   |        
|                                            | Net sales              |                | $ | 139,195 |               |  | $                         | 78,958 |  |  |              |  |  |  | $ | 21,432 |   |  | $ | 239,585 |  
|                                            | Operating profit       |                |   | 14,444  |               |  |                           | 2,800  |  |  |              |  |  |  |   | 2,137  |   |  |   | 19,381  |  
|                                            | Interest, net          |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | (9,276 | ) |  |   | (9,276  | )
|                                            | Other, net             |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | 4,079  |   |  |   | 4,079   |  
|                                            | Taxes                  |                |   |         |               |  |                           |        |  |  |              |  |  |  |   | (6,162 | ) |  |   | (6,162  | )
|                                            |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |       
|                                            | Net income             |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  | $ | 8,022   |  
|                                            |                        |                |   |         |               |  |                           |        |  |  |              |  |  |  |   |        |   |  |  

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|                                           |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  |   |         |  
|------------------------------------------ | ---------------------- |  | -------------- | ------- | ------------- |  | ------------------------- | ------- |  |  | ------------ |  |  |  | - | ------- | - |  | - | ------- | -
|                                           |                        |  |                |         | Corporate and |  |                           |         | 
|                                           |                        |  | Ferrous Metals |         | Light Metals  |  |                           | Other   |  |  | Consolidated | 
|                                           |                        |  |                |         |               |  |                           |         |  |  |              | 
|                                           |                        |  |                |         |               |  | (in thousands of dollars) |         |  |  |              | 
|Nine-month period ended
September 30, 2001 |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  |  
|                                           | Net sales              |  | $              | 419,137 |               |  | $                         | 231,068 |  |  |              |  |  |  | $ | (219    | ) |  | $ | 649,986 |  
|                                           | Operating profit(loss) |  |                | 29,332  |               |  |                           | 9,946   |  |  |              |  |  |  |   | (11,543 | ) |  |   | 27,735  |  
|                                           | Interest, net          |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | (25,297 | ) |  |   | (25,297 | )
|                                           | Other, net             |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | 921     |   |  |   | 921     |  
|                                           | Taxes                  |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | (1,903  | ) |  |   | (1,903  | )
|                                           |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |        
|                                           | Net income             |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  | $ | 1,456   |  
|                                           |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  |  
|Nine-month period ended
September 30, 2000 |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  |   |        
|                                           | Net sales              |  | $              | 498,911 |               |  | $                         | 258,233 |  |  |              |  |  |  | $ | 66,541  |   |  | $ | 823,685 |  
|                                           | Operating profit       |  |                | 57,293  |               |  |                           | 16,842  |  |  |              |  |  |  |   | 1,425   |   |  |   | 75,560  |  
|                                           | Interest, net          |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | (29,853 | ) |  |   | (29,853 | )
|                                           | Other, net             |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | 5,925   |   |  |   | 5,925   |  
|                                           | Taxes                  |  |                |         |               |  |                           |         |  |  |              |  |  |  |   | (22,244 | ) |  |   | (22,244 | )
|                                           |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |        
|                                           | Net income             |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  | $ | 29,388  |  
|                                           |                        |  |                |         |               |  |                           |         |  |  |              |  |  |  |   |         |   |  |  

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)



|9. |  | Environmental and Legal Matters
|-- |  | -------------------------------

INTERMET and its subsidiaries are a party to a number of environmental matters
and legal proceedings in the ordinary course of business. We do not believe
there are any pending or threatened legal proceedings to which we are a party,
or to which any of our property is subject, that will have a material adverse
effect on our consolidated financial position, results of operations or
liquidity taken as a whole.



|10. |  | Earnings per Share
|--- |  | ------------------

Basic earnings per share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding for
the period. The dilutive earnings per share calculation reflects the assumed
exercise of stock options.

|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |        |        | 
|-------------------------------------------------------------------------------------------------------------- | ---------------------------------- | ------------------------------- | ------ | ------------------ | ------ | - | ----------------- | ------------------------------------- | ------ | ------------- | ------ | ----- | ------------- | - | ------ | ------ | ------ | 
|                                                                                                               |                                    |                                 |        | Three months ended |        |   | Nine months ended |                                      
|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                      
|                                                                                                               |                                    |                                 |        | September 30,      |        |   | September 30,     |                                       |        | September 30, |        |       | September 30, |  
|                                                                                                               |                                    |                                 |        | 2001               |        |   | 2000              |                                       |        | 2001          |        |       | 2000          |  
|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |  
|                                                                                                               |                                    |                                 |        |                    |        |   |                   | (in thousands, except per share data) |        |               |        |       |              
|Numerator:                                                                                                     |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |       
|                                                                                                               | Net income(loss)                   |                                 |        | ($2,704            | )      |   | $                 | 8,022                                 |        |               | $      | 1,456 |               |   | $      | 29,388 |       
|Denominator:                                                                                                   |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |       
|                                                                                                               | Denominator for basic earnings per |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |        |       
|                                                                                                               |                                    | share  weighted average shares |        |                    | 25,373 |   |                   |                                       | 25,364 |               |        |       | 25,370        |   |        |        | 25,361 | 
|Effect of dilutive securities:                                                                                 |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |       
|                                                                                                               | Stock options                      |                                 |        | 0                  |        |   |                   | 67                                    |        |               |        | 89    |               |   |        | 66     |       
|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |      
|Denominator for diluted earnings per  share  adjusted weighted
average shares and assumed exercise of options |                                    |                                 | 25,373 |                    |        |   | 25,431            |                                       |        |               | 25,459 |       |               |   | 25,427 |       
|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |      
|Basic and diluted earnings(loss)                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |       |               |   |        |       
|per share                                                                                                      |                                    |                                 | ($0.11 | )                  |        | $ | 0.32              |                                       |        | $             | 0.06   |       |               | $ | 1.16   |       
|                                                                                                               |                                    |                                 |        |                    |        |   |                   |                                       |        |               |        |      

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)



|11. |  | Impairment of Assets and Shutdown
|--- |  | ---------------------------------

During the fourth quarter of 1999, INTERMETs board of directors authorized the
closure of the Ironton Iron, Inc. facility. The decision to close this foundry
was the principal reason for treating the assets as held for sale and valuing
them at the estimated fair market value. Also at December 31, 1999, Ironton
Iron, Inc. recorded a shut down accrual for the building demolition and
remediation costs. Ironton Iron, Inc. is a wholly owned subsidiary of
INTERMET.

During the period of January 1, 2001 through September 30, 2001, the Company
paid approximately
$2 million primarily for environmental remediation, which was included
principally in accrued liabilities and accrued shutdown at December 31,
2000. The remaining shutdown costs accrued at September 30, 2001 of
$57,000 are managements estimate of the remaining costs for environmental
remediation.

The $1 million of assets still held at Ironton were included as Other current
assets on the accompanying balance sheet at September 30, 2001 and represents
the estimated fair value of the remaining assets.

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2001 (Unaudited)



|12. |  | Insurance Update in 2001
|--- |  | ------------------------

As discussed in the December 31, 2000 annual report, we have completed the
rebuild of our New River and Neunkirchen facilities. We reached a settlement
with our insurer during the quarter ended
September 30, 2001 for the assets lost and the resulting business interruption
related to the New River facility. The Neunkirchen facility, as noted in the
annual report, completed settlement with the insurance carrier before December
31, 2000. Refer to the December 31, 2000 annual report for further discussion.



|13. |  | Subsequent Event
|--- |  | ----------------

On October 23, 2001, we announced our plans to close the Alexander City,
Alabama lost-foam aluminum plant in mid-December 2001. Intermet purchased the
foundry in 1995. Currently employing 117 people, the plant expects total sales
of about $40 million for 2001. We expect to take a charge of about $0.40 per
share in the fourth quarter of this year as a result of the shutdown.

Managements Discussion and Analysis of Financial Condition and Results of
Operations

Managements Discussion and Analysis of Financial Condition and Results of
Operations and the Quantitative and Qualitative Disclosures about Market Risk
contain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. When used in these sections, the words
anticipate, believe, estimate and expect and similar expressions are
generally intended to identify forward-looking statements. Readers are
cautioned that any forward-looking statements, including statements regarding
the intent, belief or current expectations of INTERMET or its management, are
not guarantees of future performance and involve risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of various factors including, but not limited to:



| |  | General economic conditions, including any economic downturn in the markets in which we operate, including the effects of
the September 11, 2001 terrorist attacks on the economy   
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | Fluctuations in worldwide or regional automobile and light and heavy truck production                                                                                               
| 
| |  | Changes in practices or policies of our significant customers toward outsourcing their requirements for automotive
components                                                       
| 
| |  | Changes in the sourcing and pricing practices of our major customers, including demands for price concessions as a
condition to retaining current business or obtaining new business
| 
| |  | Fluctuations in foreign currency exchange rates                                                                                                                                     

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| |  | Fluctuations in interest rates that may affect our borrowing costs                                                                       
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | Fluctuations in the cost of raw materials, including the cost of energy, and our ability, if any, to pass those costs on to
our customers
| 
| |  | Work stoppages or other labor disputes that could disrupt production at our facilities or those of our major customers                   
| 
| |  | Factors or presently unknown circumstances that may affect the charges related to the impairment of assets                               
| 
| |  | Our ability to fully utilize the capacity available from the rebuilding of our New River facility within the timeframes we
are projecting
| 
| |  | Other risks as detailed from time to time in our filings with the Securities and Exchange Commission                                     

We do not intend to update these forward-looking statements.

Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations

Material Changes in Financial Condition

Through the third quarter of 2001 INTERMET generated cash from operations of $
28.9 million while providing $31.3 million for the same period last year.
Depreciation and amortization expense was $ 43.5 million year to date. As
compared to December 31, 2000, accounts receivable decreased $1.9 million while
inventory decreased $17.1 million. These fluctuations are a result of
decreasing sales during the third quarter as compared to the same period last
year. Accounts payable and accrued taxes decreased $38.5 million during the
nine months ended September 30, 2001, due primarily to the decreased operating
activity within the entire auto industry. During the first nine months we spent
$31.9 million for the purchase of property, plant and equipment, of which $3.2
million was funded by insurance proceeds related to the New River explosion and
the fire at Neunkirchen. Thus, investing activities for the first nine months
of 2001 used cash of $28.7 million. Borrowings under our bank revolver
increased $0.5 million in the first nine months of 2001. See further
discussion in note five to the accompanying financial statements.
Additionally, we paid $3.0 million in dividends during the first nine months of
2001. The Company has committed capital not yet spent of approximately $6.7
million as of September 30, 2001. We anticipate that the funds needed for the
committed capital spending will come from operations.

Material Changes in Results of Operations  Three months ended September 30,
2001

Sales for the third quarter of 2001 were $197.9 million, down $41.7 million
from the third quarter of 2000. Sales for operations in place and fully
operational during both periods were down $31.6 million (14%). This decrease
is almost entirely attributable to the decrease in sales of the domestic auto
industry and its decreased production levels. Ferrous-metals segment sales
were $126.4 million during the third quarter of 2001 compared to $139.2 million
for the same period last year. This represents a decrease of $12.8 million or
9.2%. This decline was mainly caused by the lower North American vehicle
production

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##### Table of Contents



and more significantly, the market share loss of the traditional
Big Three automakers. Light-metals
segment salesdecreased $9.3 million (11.8%) for the three months ended
September 30, 2001 as compared to the same period last year. This is also due
to the slowdown in the automotive production.

Domestic salesfor the third quarter were $176.3 million down from $219.2
million for the same period last year. This decrease, $42.9 million, is
largely explained by the slowdown in the automobile industry and the
divestiture of Iowa Mold Tooling Co. Inc. (IMT) which was reported in
Corporate and other. For operations in place both years, sales decreased $32.8
million or 16%. European salesduring the three months ended September 30,
2001 remained strong at $21.6 million. The effect of changes in the exchange
rates on consolidated European sales was an unfavorable $0.2 million for the
three-month period ended September 30, 2001, when compared using exchange rates
for the same period in 2000.

Gross profits for the quarter ended September 30, 2001 and 2000 were $13.9
million and $28.3 million, respectively. Gross profit as a percentage of sales
for the three months ended September 30, 2001 and 2000 was 7.0% and 11.8%,
respectively. Excluding the results of New River and IMT, gross profit as a
percentage of sales would have been 7.4% and 9.9%, respectively. The resulting
decreased gross profit percentage is a result of the lower North American
automotive activity and product mix.

SG&A, including amortization of goodwill, was 4.5% of sales for the three
months ended September 30, 2001 and 2000. Other operating expenses were $2.0
million higher in the current period. This increase is due to the inclusion of
$1.8 million of business interruption recovery at New River included in the
three month period ended September 30, 2000.

Interest expense at $9.2 million is about the same as the previous year with
the drop in LIBOR rate being offset by amortization of refinancing fees in the
current quarter.

Other income of $0.3 million, has decreased from the same period of 2000. The
prior year other income included approximately $4.6 million of gain, net of
related expenses, associated with the replacement of depreciated fixed assets
with new fixed assets as a result of the insurable events at the New River and
Neunkirchen facilities.

The effective income tax rate was 37.7% and 43.4% for the third quarter of 2001
and 2000, respectively. The effective rate differs from the statutory rates
as a result of the nondeductible goodwill the Company continues to amortize
related to various acquisitions INTERMET has completed. With the adoption of
SFAS 142, starting in 2002, INTERMET will no longer amortize its goodwill, but
will be required to complete annual evaluations of its value as is required by
the new promulgated guidance.

Material Changes in Results of Operations  Nine months ended September 30,
2001

INTERMETs total salesfor the first nine months of 2001 and 2000 were $650.0
million and $823.7 million, respectively. Again, the decrease relates
primarily to the decreased production in the automotive market and the
divestiture of IMT. For operations in place and fully functioning for both
years, sales were down $122.0 million or 16.3%. Ferrous-metals segment sales
were $79.8 million (16.0%) less in the nine-month period ended September 30,
2001 compared to the same period in 2000. This is due entirely to the
situations affecting New River and the low production levels throughout the
North American auto industry. Light-metals segment salesdecreased $27.2
million (10.5%) due to the slowdown in North American automotive production.
Corporate and other salesdecreased 82.3% due to the divestiture of IMT.

16



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Domestic salesfor the nine-month periods ended September 30, 2001 and 2000
were $580.1 million and $750.6 million, respectively. The decrease is mainly
due to decreased production levels in the North American automotive market,
decreased sales for New River and the divestiture of IMT. Domestic sales for
operations in place for both years were $558.3 million and $677.1 million,
respectively. European salesduring the nine months ended September 30,
2001 were $69.9 million, flat with the same period last year. The effect of
changes in the exchange rates on consolidated European sales was an unfavorable
$3.7 million for the first nine months of 2001 when compared to the same period
in 2000.

Gross profit for the nine-month period ended September 30, 2001 was $57.1
million, down 49.8% from the same time last year. Gross profit as a percentage
of sales for these same periods were 8.8% and 13.8%, respectively. Gross
profit as a percentage of sales were 9.1% and 13.5%, respectively, for
facilities operating in both years. The decrease relates to the same reasons
given for the decrease in the quarter ended September 30, 2001.

SG&A expenses, including amortization of goodwill, as a percent of sales were
4.5% for the nine months ended September 30, 2001 and 2000. Other operating
income decreased $4.5 million reflecting the gain on fixed assets in 2000.

Interest expense has decreased $4.6 million from the prior year as the
effective interest rate and debt levels have declined from the prior year.

Other income of $0.9 million, has decreased $5.0 million from the same period
of 2000. The prior year other income included approximately $4.6 million of
gain, net of related expenses, associated with the replacement of depreciated
fixed assets with new fixed assets as a result of the insurable events at the
New River and Neunkirchen facilities.

The effective income tax rate for the first nine months of 2001 and 2000 were
56.7% and 43.1%, respectively. The increased tax rate relates to the
nondeductibility of goodwill. With lower income in 2001 compared to 2000 to
offset the goodwill amortization, nondeductible goodwill causes a spike in the
effective tax rate.

Insurance Update in 2001

As discussed in the December 31, 2000 annual report, INTERMET has completed the
rebuild of our New River and Neunkirchen facilities. We reached a settlement
with our insurer during the quarter ended September 30, 2001 for the assets lost
and the resulting business interruption related to the New River facility. The
Neunkirchen facility, as noted in the annual report, completed settlement with
the insurance carrier before December 31, 2000. Refer to the December 31, 2000
annual report for further discussion.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to market risk with regard to interest rate, foreign exchange
and commodity pricing. We have analyzed the effect of these risks on the
balance sheets, results of operations and cash flows and we consider the impact
to be immaterial with respect to the commodity pricing risk.

There has been no material change in market risk with regard to interest rate
and foreign exchange since December 31, 2000.

17



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##### Table of Contents






Part II  Other Information

Item 1. Legal Proceedings

There have been no material changes in matters reported in the Form 10-K for
the year ended December 31, 2000.

We are engaged in various legal proceedings and other matters incidental to our
normal business activities. We do not believe there are any pending or
threatened legal proceedings to which we are a party, or to which any of our
property is subject, that will have a material effect on our consolidated
financial position, results of operations or liquidity taken as a whole.

Item 2. Changes in Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Securities Holders

None

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

None.




Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, INTERMET
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

| |  |                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------
| |  | INTERMET Corporation                                                                                                                
|
| |  | By:        /s/ Doretha ChristophDoretha Christoph.
Vice President of Finance and Chief Financial
Officer
Date:      November 2, 2001

18