TABLE OF CONTENTS




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

| |  |                                                                                                                                                           
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2001, or                 
|
|
|
|
|
| |  | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                to                .





|                                                                                         |  |                                             
|---------------------------------------------------------------------------------------- |  | --------------------------------------------
|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)                       



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 No

At April 1, 2001 there were 25,393,824 shares of common stock, $0.10 par value,
outstanding.





---






Item 1. Financial Statements






|                                  |                                  |   |                                      |        |   |           |         |         |  
|--------------------------------- | -------------------------------- | - | ------------------------------------ | ------ | - | --------- | ------- | ------- | -
|                                  |                                  |   | Three months ended                   |       
|                                  |                                  |   |                                      |       
|                                  |                                  |   | March 31,                            |        |   | March 31, |        
|                                  |                                  |   | 2001                                 |        |   | 2000      |        
|                                  |                                  |   |                                      |        |   |           |        
|                                  |                                  |   | (Unaudited)                          |       
|                                  |                                  |   | (in thousands of dollars, except per |       
|                                  |                                  |   | share data)                          |       
|                                  |                                  |   |                                      |       
|Net sales                         |                                  | $ | 223,925                              |        |   | $         | 302,245 |        
|                                 
|                                 
|                                 
|                                 
|Cost of sales                     |                                  |   | 205,232                              |        |   |           | 258,077 |        
|                                  |                                  |   |                                      |        |   |          
|Gross profit                      |                                  |   | 18,693                               |        |   |           | 44,168  |        
|                                 
|                                 
|                                 
|                                 
|Operating expenses:              
|                                 
|                                 
|                                 
|                                 
|                                  | Selling, general and            
|                                 
|                                 
|                                 
|                                 
|                                  | administrative                   |   |                                      | 7,964  |   |           |         | 9,859   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Goodwill amortization            |   |                                      | 1,558  |   |           |         | 1,588   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Other operating (income) expense |   |                                      | (115   | )
|                                 
|                                 
|                                 
|                                 
|                                  |                                  |   |                                      |        |   |           | 6,014   |        
|                                  |                                  |   |                                      |        |   |          
|                                  |                                  |   | 9,407                                |        |   |           | 17,461  |        
|                                  |                                  |   |                                      |        |   |          
|Operating profit                  |                                  |   | 9,286                                |        |   |           | 26,707  |        
|                                 
|                                 
|                                 
|                                 
|Other income (expense):          
|                                 
|                                 
|                                 
|                                 
|                                  | Interest (net)                   |   |                                      | (8,403 | ) |           |         | (10,306 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Other, net                       |   |                                      | 293    |   |           |         | 900     |  
|                                  |                                  |   |                                      |        |   |          
|                                  |                                  |   | (8,110                               | )      |   |           | (9,406  | )      
|                                  |                                  |   |                                      |        |   |          
|Income before income taxes        |                                  |   | 1,176                                |        |   |           | 17,301  |        
|                                 
|                                 
|                                 
|                                 
|Provision for income taxes        |                                  |   | 837                                  |        |   |           | 7,805   |        
|                                  |                                  |   |                                      |        |   |          
|Net income                        |                                  | $ | 339                                  |        |   | $         | 9,496   |        
|                                  |                                  |   |                                      |        |   |          
|Income per common share  basic   |                                  | $ | 0.01                                 |        |   | $         | 0.37    |        
|                                  |                                  |   |                                      |        |   |          
|Income per common share  diluted |                                  | $ | 0.01                                 |        |   | $         | 0.37    |        
|                                  |                                  |   |                                      |        |   |          

See accompanying notes.

2



---





|                                       |                                                 |                                                |                                   |         |                           |         |         |              |       |         | 
|-------------------------------------- | ----------------------------------------------- | ---------------------------------------------- | --------------------------------- | ------- | ------------------------- | ------- | ------- | ------------ | ----- | ------- | 
|                                       |                                                 |                                                |                                   |         | March 31,                 |         |         | December 31, |      
|                                       |                                                 |                                                |                                   |         | 2001                      |         |         | 2000         |      
|                                       |                                                 |                                                |                                   |         |                           |         |         |              |      
|                                       |                                                 |                                                |                                   |         | (Unaudited)               |        
|                                       |                                                 |                                                |                                   |         | (in thousands of dollars) |        
|Assets                                
|                                      
|                                      
|                                      
|                                      
|Current assets:                       
|                                      
|                                      
|                                      
|                                      
|                                       | Cash and cash equivalents                       |                                                | $                                 | 87,181  |                           |         | $       | 19,737       |      
|                                      
|                                      
|                                      
|                                      
|                                       | Accounts receivable:                           
|                                      
|                                      
|                                      
|                                      
|                                       |                                                 | Trade, less allowance for doubtful accounts of
|                                      
|                                      
|                                      
|                                      
|                                       |                                                 |                                                | $8,135 in 2001 and $9,451 in 2000 |         |                           | 134,383 |         |              |       | 125,745 | 
|                                      
|                                      
|                                      
|                                      
|                                       |                                                 | Other                                          |                                   |         | 2,664                     |         |         |              | 9,136 |        
|                                       |                                                 |                                                |                                   |         |                           |        
|                                       |                                                 |                                                | 137,047                           |         |                           |         | 134,881 |             
|                                      
|                                      
|                                      
|                                      
|                                       | Inventories                                     |                                                |                                   | 87,193  |                           |         |         | 93,870       |      
|                                      
|                                      
|                                      
|                                      
|                                       | Other current assets                            |                                                |                                   | 36,503  |                           |         |         | 31,960       |      
|                                       |                                                 |                                                |                                   |         |                           |        
|Total current assets                   |                                                 |                                                | 347,924                           |         |                           |         | 280,448 |             
|                                      
|                                      
|                                      
|                                      
|Property, plant and equipment, at cost |                                                 |                                                | 640,610                           |         |                           |         | 636,132 |             
|                                      
|                                      
|                                      
|                                      
|Less:                                 
|                                      
|                                      
|                                      
|                                      
|                                       | Accumulated depreciation and foreign industrial
|                                      
|                                      
|                                      
|                                      
|                                       | development grants, net                         |                                                |                                   | 247,574 |                           |         |         | 238,498      |      
|                                       |                                                 |                                                |                                   |         |                           |        
|Net property, plant and equipment      |                                                 |                                                | 393,036                           |         |                           |         | 397,634 |             
|                                      
|                                      
|                                      
|                                      
|Intangibles, net of amortization       |                                                 |                                                | 223,315                           |         |                           |         | 224,873 |             
|                                      
|                                      
|                                      
|                                      
|Other noncurrent assets                |                                                 |                                                | 14,146                            |         |                           |         | 15,841  |             
|                                       |                                                 |                                                |                                   |         |                           |        
|                                       |                                                 | $                                              | 978,421                           |         |                           | $       | 918,796 |             
|                                       |                                                 |                                                |                                   |         |                           |        

3



---





|                                     |                                            |   |                           |         |   |              |         |         |  
|------------------------------------ | ------------------------------------------ | - | ------------------------- | ------- | - | ------------ | ------- | ------- | -
|                                     |                                            |   | March 31,                 |         |   | December 31, |        
|                                     |                                            |   | 2001                      |         |   | 2000         |        
|                                     |                                            |   |                           |         |   |              |        
|                                     |                                            |   | (Unaudited)               |        
|                                     |                                            |   | (in thousands of dollars) |        
|Liabilities and shareholders equity
|                                    
|                                    
|                                    
|                                    
|Current liabilities:                
|                                    
|                                    
|                                    
|                                    
|                                     | Accounts payable                           |   | $                         | 79,025  |   |              | $       | 103,501 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Income taxes and other accrued liabilities |   |                           | 79,798  |   |              |         | 82,555  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Long term debt due within one year         |   |                           | 216,452 |   |              |         | 216,479 |  
|                                     |                                            |   |                           |         |   |             
|Total current liabilities            |                                            |   | 375,275                   |         |   |              | 402,535 |        
|                                    
|                                    
|                                    
|                                    
|Noncurrent liabilities:             
|                                    
|                                    
|                                    
|                                    
|                                     | Long term debt due after one year          |   |                           | 275,966 |   |              |         | 182,687 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Other noncurrent liabilities               |   |                           | 48,554  |   |              |         | 54,166  |  
|                                     |                                            |   |                           |         |   |             
|Total noncurrent liabilities         |                                            |   | 324,520                   |         |   |              | 236,853 |        
|                                    
|                                    
|                                    
|                                    
|Shareholders equity:               
|                                    
|                                    
|                                    
|                                    
|                                     | Common stock                               |   |                           | 2,588   |   |              |         | 2,588   |  
|                                    
|                                    
|                                    
|                                    
|                                     | Capital in excess of par value             |   |                           | 57,110  |   |              |         | 57,110  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Retained earnings                          |   |                           | 219,602 |   |              |         | 220,279 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Accumulated other comprehensive income     |   |                           | (485    | ) |              |         | (363    | )
|                                    
|                                    
|                                    
|                                    
|                                     | Unearned restricted stock                  |   |                           | (189    | ) |              |         | (206    | )
|                                     |                                            |   |                           |         |   |             
|Total shareholders equity           |                                            |   | 278,626                   |         |   |              | 279,408 |        
|                                     |                                            |   |                           |         |   |             
|                                     |                                            | $ | 978,421                   |         |   | $            | 918,796 |        
|                                     |                                            |   |                           |         |   |             
|See accompanying notes              

4



---





|                                                              |                                              |                                    |         |                           |         |   |           |        |         |  
|------------------------------------------------------------- | -------------------------------------------- | ---------------------------------- | ------- | ------------------------- | ------- | - | --------- | ------ | ------- | -
|                                                              |                                              |                                    |         | Three months ended        |        
|                                                              |                                              |                                    |         |                           |        
|                                                              |                                              |                                    |         | March 31,                 |         |   | March 31, |       
|                                                              |                                              |                                    |         | 2001                      |         |   | 2000      |       
|                                                              |                                              |                                    |         |                           |         |   |           |       
|                                                              |                                              |                                    |         | (Unaudited)               |        
|                                                              |                                              |                                    |         | (in thousands of dollars) |        
|Operating activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|Net income                                                    |                                              | $                                  | 339     |                           |         | $ | 9,496     |       
|                                                             
|                                                             
|                                                             
|                                                             
|Adjustments to reconcile net income to cash provided by (used
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | in) operating activities:                   
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Depreciation                                 |                                    |         | 12,601                    |         |   |           | 12,228 |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Amortization                                 |                                    |         | 1,826                     |         |   |           | 2,018  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Gain on sale of assets                       |                                    |         |                          |         |   |           | (133   | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Changes in operating assets and liabilities:
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                              | Accounts receivable                |         |                           | (3,894  | ) |           |        | (20,323 | )
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                              | Inventories                        |         |                           | 6,268   |   |           |        | 4,147   |  
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                              | Accounts payable and accrued taxes |         |                           | (25,367 | ) |           |        | (7,568  | )
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                              | Other assets and liabilities       |         |                           | (7,363  | ) |           |        | (5,501  | )
|                                                              |                                              |                                    |         |                           |         |  
|Net cash used in operating activities                         |                                              |                                    | (15,590 | )                         |         |   | (5,636    | )     
|                                                             
|                                                             
|                                                             
|                                                             
|Investing activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Additions to property, plant and equipment   |                                    |         | (10,698                   | )       |   |           | (8,961 | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Proceeds from sale of assets                 |                                    |         |                          |         |   |           | 10,989 |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Other                                        |                                    |         |                          |         |   |           | (19    | )      
|                                                              |                                              |                                    |         |                           |         |  
|Net cash used in investing activities                         |                                              |                                    | (10,698 | )                         |         |   | 2,009     |       
|                                                             
|                                                             
|                                                             
|                                                             
|Financing activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net increase in revolving credit facility    |                                    |         | 93,284                    |         |   |           | 5,799  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Dividends paid                               |                                    |         | (1,015                    | )       |   |           | (1,015 | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Issuance of common stock                     |                                    |         |                          |         |   |           | 380    |        
|                                                              |                                              |                                    |         |                           |         |  
|Net cash provided by financing activities                     |                                              |                                    | 92,269  |                           |         |   | 5,164     |       
|                                                             
|                                                             
|                                                             
|                                                             
|Effect of exchange rate changes on cash and cash equivalents  |                                              |                                    | 1,463   |                           |         |   | 1,058     |       
|                                                              |                                              |                                    |         |                           |         |  
|Net increase in cash and cash equivalents                     |                                              |                                    | 67,444  |                           |         |   | 2,595     |       
|                                                             
|                                                             
|                                                             
|                                                             
|Cash and cash equivalents at beginning of period              |                                              |                                    | 19,737  |                           |         |   | 3,416     |       
|                                                              |                                              |                                    |         |                           |         |  
|Cash and cash equivalents at end of period                    |                                              | $                                  | 87,181  |                           |         | $ | 6,011     |       
|                                                              |                                              |                                    |         |                           |         |  
|See accompanying notes                                       

5



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|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 ended
March 31, 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 financial statements for the period
ended March 31, 2000 have been reclassified to conform to the 2001 presentation.



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

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

|                      |  |           |        |  |              |   |        | 
|--------------------- |  | --------- | ------ |  | ------------ | - | ------ | 
|                      |  | March 31, |        |  | December 31, |  
|                      |  | 2001      |        |  | 2000         |  
|                      |  |           |        |  |              |  
|Finished goods        |  | $         | 14,153 |  |              | $ | 17,865 | 
|                     
|                     
|                     
|                     
|Work in process       |  |           | 20,922 |  |              |   | 21,816 | 
|                     
|                     
|                     
|                     
|Raw materials         |  |           | 6,843  |  |              |   | 8,940  | 
|                     
|                     
|                     
|                     
|Supplies and patterns |  |           | 45,275 |  |              |   | 45,249 | 
|                      |  |           |        |  |              |  
|                      |  | $         | 87,193 |  |              | $ | 93,870 | 
|                      |  |           |        |  |              |  

6



---









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

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

|                           |  |           |         |  |              |   |         | 
|-------------------------- |  | --------- | ------- |  | ------------ | - | ------- | 
|                           |  | March 31, |         |  | December 31, |  
|                           |  | 2001      |         |  | 2000         |  
|                           |  |           |         |  |              |  
|Land                       |  | $         | 5,389   |  |              | $ | 5,408   | 
|                          
|                          
|                          
|                          
|Buildings and improvements |  |           | 116,737 |  |              |   | 116,181 | 
|                          
|                          
|                          
|                          
|Machinery and equipment    |  |           | 462,174 |  |              |   | 467,819 | 
|                          
|                          
|                          
|                          
|Construction in progress   |  |           | 56,310  |  |              |   | 46,724  | 
|                           |  |           |         |  |              |  
|                           |  | $         | 640,610 |  |              | $ | 636,132 | 
|                           |  |           |         |  |              |  



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

Intangible assets of $223,315,000 and $224,873,000 (net of accumulated
amortization of $17,089,000 and $15,531,000) at March 31, 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
|-- |  | ----

On March 3, 2000 we signed a seven month $15 million unsecured term loan
agreement with The Bank of Nova Scotia. We used the proceeds to pay off the $15
million outstanding balance on a note due to Prudential. The new term loan
agreement matured on October 2, 2000 and has been rolled over with a new
maturity date of June 29, 2001. Additionally, the term loan related to the
purchase of Ganton and Diemakers, which was issued for $200 million, is due on
June 20, 2001. Accordingly, the debt has been included with current liabilities.
We intend to refinance this debt prior to its expiration.

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

|                                 |  |           |         |  |              |   |         | 
|-------------------------------- |  | --------- | ------- |  | ------------ | - | ------- | 
|                                 |  | March 31, |         |  | December 31, |  
|                                 |  | 2001      |         |  | 2000         |  
|                                 |  |           |         |  |              |  
|Total debt                       |  |           | 492,418 |  |              |   | 399,166 | 
|                                
|                                
|                                
|                                
|Less amounts due within one year |  |           | 216,452 |  |              |   | 216,479 | 
|                                 |  |           |         |  |              |  
|Debt due after one year          |  | $         | 275,966 |  |              | $ | 182,687 | 
|                                 |  |           |         |  |              |  

7



---









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

We adopted Financial Accounting Standards Boards Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income as of January 1,
1998. However, the adoption of this Statement had no impact on our net income or
shareholders equity.

Effective January 1, 2001, INTERMET has 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 adoption to INTERMET was to decrease Other Comprehensive Income by
$412,000, net of related taxes. The adoption of SFAS 133 had no impact on the
income statement as of March 31, 2001, since the hedge entered into was
perfectly effective and thus the short cut method of accounting for derivatives
was utilized in accounting for the transaction.

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.

|                                   |                                         |   |                           |      |   |           |       |      |  
|---------------------------------- | --------------------------------------- | - | ------------------------- | ---- | - | --------- | ----- | ---- | -
|                                   |                                         |   | Three months ended        |     
|                                   |                                         |   |                           |     
|                                   |                                         |   | March 31,                 |      |   | March 31, |      
|                                   |                                         |   | 2001                      |      |   | 2000      |      
|                                   |                                         |   |                           |      |   |           |      
|                                   |                                         |   | (in thousands of dollars) |     
|                                  
|                                  
|                                  
|                                  
|                                  
|                                  
|                                  
|                                  
|Net income                         |                                         | $ | 339                       |      |   | $         | 9,496 |     
|                                  
|                                  
|                                  
|                                  
|Other comprehensive income (loss):
|                                  
|                                  
|                                  
|                                  
|                                   | Adoption of SFAS 133                    |   |                           | (412 | ) |           |       | 0    |  
|                                  
|                                  
|                                  
|                                  
|                                   | Foreign currency translation adjustment |   |                           | 290  |   |           |       | (686 | )
|                                   |                                         |   |                           |      |   |          
|Total other comprehensive loss     |                                         |   | (122                      | )    |   |           | (686  | )   
|                                   |                                         |   |                           |      |   |          
|Total comprehensive income (loss)  |                                         | $ | 217                       |      |   | $         | 8,810 |     
|                                   |                                         |   |                           |      |   |          

8



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|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-metals segment consists of ferrous foundry operations and their related
machining operations. The light-metals segment consists of aluminum, magnesium
and zinc casting operations and their related machining operations. Due to
changes in the makeup of the of the other segment, the Company has realigned the
other segment to include the operations which dont fall within the ferrous
metals segment or the Light metals segment. These operations have been combined
with the corporate business unit and its related expenses and eliminations. This
realigned segment will be referred to as corporate and other. Note that certain
administrative costs such as interest and amortization are included within the
corporate and other segment while in previous periods these cost have been
allocated to one of the three previous operating segments. This information is
displayed in the following table:

|                                  |                  |  |                |         |  |              |                           |        |               |  |       |              |   |  |   |         |  
|--------------------------------- | ---------------- |  | -------------- | ------- |  | ------------ | ------------------------- | ------ | ------------- |  | ----- | ------------ | - |  | - | ------- | -
|                                  |                  |  | Ferrous Metals |         |  | Light Metals |                           |        | Corporate and |  |       | Consolidated |  
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |             
|                                  |                  |  |                |         |  |              |                           |        |               |  | Other |              |  
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |             
|                                  |                  |  |                |         |  |              | (in thousands of dollars) |       
|Three months ended March 31, 2001
|                                 
|                                 
|                                 
|                                 
|                                 
|                                  | Net sales        |  | $              | 141,105 |  |              | $                         | 79,058 |               |  | $     | 3,762        |   |  | $ | 223,925 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Operating profit |  |                | 11,606  |  |              |                           | 1,125  |               |  |       | (3,445       | ) |  |   | 9,286   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest, net    |  |                |         |  |              |                           |        |               |  |       | (8,403       | ) |  |   | (8,403  | )
|                                 
|                                 
|                                 
|                                 
|                                  | Other, net       |  |                |         |  |              |                           |        |               |  |       | 293          |   |  |   | 293     |  
|                                 
|                                 
|                                 
|                                 
|                                  | Taxes            |  |                |         |  |              |                           |        |               |  |       | (837         | ) |  |   | (837    | )
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |              |   |  |  
|                                  | Net Income       |  |                |         |  |              |                           |        |               |  |       |              |   |  |   | 339     |  
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |              |   |  |  
|Three months ended March 31, 2000
|                                 
|                                 
|                                 
|                                 
|                                 
|                                  | Net sales        |  | $              | 190,015 |  |              | $                         | 90,734 |               |  | $     | 21,496       |   |  | $ | 302,245 |  
|                                 
|                                 
|                                 
|                                 
|                                  | Operating profit |  |                | 17,686  |  |              |                           | 7,463  |               |  |       | (997         | ) |  |   | 24,152  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Interest, net    |  |                |         |  |              |                           |        |               |  |       | (10,306      | ) |  |   | (10,306 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Other, net       |  |                |         |  |              |                           |        |               |  |       | 3,455        |   |  |   | 3,455   |  
|                                 
|                                 
|                                 
|                                 
|                                  | Taxes            |  |                |         |  |              |                           |        |               |  |       | (7,805       | ) |  |   | (7,805  | )
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |              |   |  |  
|                                  | Net Income       |  |                |         |  |              |                           |        |               |  |       |              |   |  |   | 9,946   |  
|                                  |                  |  |                |         |  |              |                           |        |               |  |       |              |   |  |  

9



---









|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                    |       
|                                 |                                |                           |      |                                       |       
|                                 |                                |                           |      | March 31,                             |        |   | March 31, |      
|                                 |                                |                           |      | 2001                                  |        |   | 2000      |      
|                                 |                                |                           |      |                                       |        |   |           |      
|                                 |                                |                           |      | (in thousands, except per share data) |       
|Numerator:                      
|                                
|                                
|                                
|                                
|                                 | Net income                     |                           | $    | 339                                   |        |   | $         | 9,496 |       
|                                
|                                
|                                
|                                
|Denominator:                    
|                                
|                                
|                                
|                                
|                                 | Denominator for basic         
|                                
|                                
|                                
|                                
|                                 |                                | earnings
per share      
|                                
|                                
|                                
|                                
|                                 |                                | weighted average shares   |      |                                       | 25,365 |   |           |       | 25,355 | 
|                                
|                                
|                                
|                                
|                                 | Effect of dilutive securities:
|                                
|                                
|                                
|                                
|                                 |                                | Stock options             |      |                                       | 32     |   |           |       | 74     | 
|                                 |                                |                           |      |                                       |        |  
|                                 | Denominator for diluted       
|                                
|                                
|                                
|                                
|                                 |                                | earnings
per share      
|                                
|                                
|                                
|                                
|                                 |                                | adjusted weighted average
|                                
|                                
|                                
|                                
|                                 |                                | shares and assumed       
|                                
|                                
|                                
|                                
|                                 |                                | exercise of options       |      |                                       | 25,397 |   |           |       | 25,429 | 
|                                 |                                |                           |      |                                       |        |  
|Fully diluted earnings per
share |                                | $                         | 0.01 |                                       |        | $ | 0.37      |      
|                                 |                                |                           |      |                                       |        |  
|Basic earnings per share         |                                | $                         | 0.01 |                                       |        | $ | 0.37      |      
|                                 |                                |                           |      |                                       |        |  

10



---









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

In December of 1999, INTERMET announced plans to permanently close its Ironton
Iron, Inc. foundry. 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, the Company recorded a shut down
accrual for the building demolition and remediation costs.

During the period of January 1, 2001 through March 31, 2001, the Company paid
approximately $0.5 million primarily for remediation, which was included
principally in Income taxes and accrued liabilities at December 31, 2000 in
the accompanying balance sheet. The remaining shutdown costs accrued of $1.0
million at March 31, 2001 is managements estimate of the remaining costs for
remediation.

The $1.9 million of assets included as Other current assets on the
accompanying balance sheet at March 31, 2001, represents the estimated fair
value of the remaining assets held for sale.



|12. |  | Insurance Claim
|--- |  | ---------------

As discussed in the December 31, 2000 annual report, INTERMET has substantially
completed the rebuild of our New River and Neunkirchen facilities. As of the
date of this report, INTERMET has not yet reached complete settlement with its
insurance company related to the accident at New River facility. The Neunkirchen
facility has complete settlement with the insurance carrier, as discussed in the
annual report. Refer to the December 31, 2000 annual report for further
discussion.

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
|- |  | -----------------------------------------------------------------------------------------------
| 
| |  | Fluctuations in worldwide or regional automobile and light and heavy truck production          

11



---





| |  | 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                                                                                                                                     
| 
| |  | 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 and Neunkirchen facilities 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

During the first quarter of 2001 INTERMET used $15.6 million in operations while
using $5.6 million for the same period last year. Depreciation and amortization
expense was $14.4 million for the period. As compared to December 31, 2000,
accounts receivable increased $3.9 million while inventory decreased $6.3
million. These fluctuations are a result of higher sales in March of 2001 than
December of 2000, which is related to the traditional holiday shutdowns during
the fourth quarter operating cycle. Accounts payable and accrued taxes decreased
$25.4 million from the beginning of 2001 due primarily to the decreased
operating activity within the entire auto industry. Investing activities for the
first three months of 2001 used cash of $10.3 million. During the period we
spent $10.7 million for the purchase of property, plant and equipment. Net cash
provided by financing activities was $92.3 million for the first three months of
2001. Borrowings under our bank revolver increased $93.3 million. We used this
cash to improve our liquidity while refinancing the debt agreement, which is to
expire in June of 2001. Additionally, we paid $1.0 million in dividends during
the first quarter of 2001. We have committed capital not yet spent of
approximately $15.5 million as of March 31, 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, 2000

12



---



Sales for the first quarter of 2001 were $223.9 million, down from $302.2
million in the first quarter of 2000. This represents a decrease of
approximately $78.3 million (25.9%). This decrease is directly correlated to the
slowdown in the North American automotive market. Including only those
operations that were in place for the both quarters entirely, sales were down
$47.9 million (18.1%). Ferrous-metals segment sales were $141.1 million and
$190.0 million for the first quarter of 2001 and 2000, respectively. This is a
decrease of $48.9 million or 25.7%. Excluding sales of New River (which suffered
the explosion in the first quarter of 2000), sales for our ferrous segment
decreased $35.0 million (20.8%). Light-metals segment sales decreased $11.7
million (12.9%) for the three months ended March 31, 2001 as compared to the
same period last year.

Domestic sales during the quarter ended March 31, 2001 were $198.4 million down
from $272.4 million in the first quarter of 2000. This is a decrease of $74.0
million (27.2%). This decrease is the result of the decreased production by the
North American Automotive market and the divestiture of Iowa Mold Tool Co. Inc.
from our other segment. For operations in place both years, sales decreased
$43.6 million or 18.6%. European sales during the three months ended March 31,
2001, in local currency, decreased 8.6% when compared to the same period last
year. The effect of changes in the exchange rates on consolidated European sales
was an unfavorable $2.0 million for the three-month period ended March 31, 2001,
when compared using exchange rates for the same period in 2000.

During the first quarter of 2001, INTERMET took a restructuring charge of $0.6
million for the closure of a plant in Mexico and for the downsize of another
manufacturing location. These operational changes are necessary to lower the
companys breakeven point and to position itself for future opportunities.

Gross profits for the quarter ended March 31, 2001 and 2000 were $18.7 million
and $44.2 million, respectively. Gross profit as a percentage of sales for the
three months ended March 31, 2001 and 2000 was 8.3% and 14.6%, respectively. The
resulting decreased gross profit percentage is a result of the decrease in the
North American automotive production.

Operating expenses as a percentage of sales were 4.2% and 5.8% for the three
months ended March 31, 2001 and 2000, respectively.

The effective income tax rate was 71.1% and 45.1% for the first quarters ended
March 31, 2001 and 2000, respectively. The high effective rates are a result of
the nondeductible goodwill the Company continues to amortize related to various
acquisitions INTERMET has completed.

Insurance Update in 2001

As discussed in the December 31, 2000 annual report, INTERMET has substantially
completed the rebuild of our New River and Neunkirchen facilities. As of the
date of this report, INTERMET has not yet reached complete settlement with its
insurance company related to the accident at our New River facility. The
Neunkirchen facility, as noted in the annual report, has completed settlement
with the insurance carrier.

The Impact of SFAS 133

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

13



---



balance sheet at fair value. The effect of adoption, to INTERMET, was to
decrease Other Comprehensive Income by $412,000, net of related taxes. The
adoption of SFAS 133 had no impact on the income statement as of March 31, 2001,
since the hedge entered into was perfectly effective and thus the short cut
method of accounting for derivatives was utilized in accounting for the
transaction.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

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



Item 1. Legal Proceedings

There have been no material changes in matters reported in the Form 10-K for the
year ended December 31, 1999.

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.

14



---



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/ Ronald C. Ryninger, Jr.                                                               
| |                                                                                                    
| | Ronald C. Ryninger, Jr.
            Corporate Controller
            (Principal Accounting Officer)
|
| | Date:   May 13, 2001                                                                               

15



---



Exhibits Index

|        |  |                                                                     
|------- |  | --------------------------------------------------------------------
|Exhibit
|Number  |  | Description of Exhibit                                              
|        |  |                                                                     
|10.1(c) |  | Employment agreement between INTERMET Corporation and Terry Graessle

16