##### Table of Contents



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

Form 10-Q

|      |  |                                                                                         
|----- |  | ----------------------------------------------------------------------------------------
|[X]   |  | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 
|      |  | For the quarterly period ended September 30, 2000, or                                   
|     
|     
|     
|     
|[   ] |  | 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                                                                                  |  | 58-1563873                       
|                                                                                        
|                                                                                        
|                                                                                        
|                                                                                        
|(State or other jurisdiction of
incorporation or organization)                           |  | (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 No

At November 1, 2000 there were 25,393,824 shares of common stock, $0.10 par value, outstanding.





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TABLE OF CONTENTS



|                        |  |  |  |  |  |  |  | 
|----------------------- |  |  |  |  |  |  |  | 
|Financial Data Schedule



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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,
|                                  |                            |   | 2000                                             |        | 1999              |   | 2000          |               | 1999
|                                  |                            |   |                                                  |        |                   |   |               |               |     
|                                  |                            |   | (Unaudited)                                     
|                                  |                            |   | (in thousands of dollars, except per share data)
|Net sales                         |                            | $ | 239,585                                          |        |                   | $ | 225,350       |               |      | $ | 828,873 |         |   | $ | 716,275 |        
|                                 
|                                 
|                                 
|                                 
|Cost of sales                     |                            |   | 211,416                                          |        |                   |   | 201,361       |               |      |   | 721,369 |         |   |   | 625,003 |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Gross profit                      |                            |   | 28,169                                           |        |                   |   | 23,989        |               |      |   | 107,504 |         |   |   | 91,272  |        
|                                 
|                                 
|                                 
|                                 
|Operating expenses:              
|                                 
|                                 
|                                 
|                                 
|                                  | Selling                    |   |                                                  | 3,083  |                   |   |               | 3,047         |      |   |         | 10,026  |   |   |         | 9,044   |  
|                                 
|                                 
|                                 
|                                 
|                                  | General and administrative |   |                                                  | 5,926  |                   |   |               | 5,702         |      |   |         | 18,932  |   |   |         | 17,253  |  
|                                 
|                                 
|                                 
|                                 
|                                  | Goodwill amortization      |   |                                                  | 1,650  |                   |   |               | 789           |      |   |         | 4,950   |   |   |         | 2,367   |  
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|                                  |                            |   | 10,659                                           |        |                   |   | 9,538         |               |      |   | 33,908  |         |   |   | 28,664  |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Operating profit                  |                            |   | 17,510                                           |        |                   |   | 14,451        |               |      |   | 73,596  |         |   |   | 62,608  |        
|                                 
|                                 
|                                 
|                                 
|Other income (expense):          
|                                 
|                                 
|                                 
|                                 
|                                  | Interest (net)             |   |                                                  | (9,276 | )                 |   |               | (3,576        | )    |   |         | (29,853 | ) |   |         | (10,069 | )
|                                 
|                                 
|                                 
|                                 
|                                  | Other, net                 |   |                                                  | 5,950  |                   |   |               | 312           |      |   |         | 7,889   |   |   |         | 424     |  
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|                                  |                            |   | (3,326                                           | )      |                   |   | (3,264        | )             |      |   | (21,964 | )       |   |   | (9,645  | )      
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Income before income taxes        |                            |   | 14,184                                           |        |                   |   | 11,187        |               |      |   | 51,632  |         |   |   | 52,963  |        
|                                 
|                                 
|                                 
|                                 
|Provision for income taxes        |                            |   | 6,162                                            |        |                   |   | 3,745         |               |      |   | 22,244  |         |   |   | 16,762  |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Net income                        |                            | $ | 8,022                                            |        |                   | $ | 7,442         |               |      | $ | 29,388  |         |   | $ | 36,201  |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Income per common share  basic   |                            | $ | 0.32                                             |        |                   | $ | 0.29          |               |      | $ | 1.16    |         |   | $ | 1.42    |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        
|Income per common share  diluted |                            | $ | 0.32                                             |        |                   | $ | 0.29          |               |      | $ | 1.16    |         |   | $ | 1.41    |        
|                                  |                            |   |                                                  |        |                   |   |               |               |      |   |         |         |   |   |         |        

See accompanying notes.

2



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##### Table of Contents



INTERMET Corporation

Interim Condensed Consolidated Balance Sheets

|                                       |                                               |                                                |              |                                   |  |                           |         |              |  |        |         | 
|-------------------------------------- | --------------------------------------------- | ---------------------------------------------- | ------------ | --------------------------------- |  | ------------------------- | ------- | ------------ |  | ------ | ------- | 
|                                       |                                               |                                                |              |                                   |  | September 30,             |         | December 31,
|                                       |                                               |                                                |              |                                   |  | 2000                      |         | 1999        
|                                       |                                               |                                                |              |                                   |  |                           |         |             
|                                       |                                               |                                                |              |                                   |  | (Unaudited)              
|                                       |                                               |                                                |              |                                   |  | (in thousands of dollars)
|Assets                                
|                                      
|                                      
|                                      
|                                      
|Current assets:                       
|                                      
|                                      
|                                      
|                                      
|                                       | Cash and cash equivalents                     |                                                | $            | 7,538                             |  |                           | $       | 3,416        | 
|                                      
|                                      
|                                      
|                                      
|                                       | Accounts receivable:                         
|                                      
|                                      
|                                      
|                                      
|                                       |                                               | Trade, less allowance for doubtful accounts of
|                                      
|                                      
|                                      
|                                      
|                                       |                                               |                                                |              | $6,611 in 2000 and $7,426 in 1999 |  |                           | 154,887 |              |  |        | 154,742 | 
|                                      
|                                      
|                                      
|                                      
|                                       |                                               |                                                | Other        |                                   |  | 20,393                    |         |              |  | 19,649 |        
|                                       |                                               |                                                |              |                                   |  |                           |         |              | 
|                                       |                                               |                                                | 175,280      |                                   |  |                           | 174,391 |             
|                                      
|                                      
|                                      
|                                      
|                                       | Inventories                                   |                                                |              | 94,776                            |  |                           |         | 102,802      | 
|                                      
|                                      
|                                      
|                                      
|                                       | Other current assets                          |                                                |              | 28,226                            |  |                           |         | 23,911       | 
|                                       |                                               |                                                |              |                                   |  |                           |         |              | 
|Total current assets                   |                                               |                                                | 305,820      |                                   |  |                           | 304,520 |             
|                                      
|                                      
|                                      
|                                      
|Property, plant and equipment, at cost |                                               |                                                | 616,612      |                                   |  |                           | 606,221 |             
|                                      
|                                      
|                                      
|                                      
|Less:                                 
|                                      
|                                      
|                                      
|                                      
|                                       | Foreign industrial development grants, net of
|                                      
|                                      
|                                      
|                                      
|                                       |                                               |                                                | amortization |                                   |  | 3,166                     |         |              |  | 3,533  |        
|                                      
|                                      
|                                      
|                                      
|                                       | Accumulated depreciation and amortization     |                                                |              | 237,901                           |  |                           |         | 232,957      | 
|                                       |                                               |                                                |              |                                   |  |                           |         |              | 
|Net property, plant and equipment      |                                               |                                                | 375,545      |                                   |  |                           | 369,731 |             
|                                      
|                                      
|                                      
|                                      
|Intangibles, net of amortization       |                                               |                                                | 244,172      |                                   |  |                           | 248,864 |             
|                                      
|                                      
|                                      
|                                      
|Other noncurrent assets                |                                               |                                                | 28,211       |                                   |  |                           | 34,177  |             
|                                       |                                               |                                                |              |                                   |  |                           |         |              | 
|                                       |                                               | $                                              | 953,748      |                                   |  | $                         | 957,292 |             
|                                       |                                               |                                                |              |                                   |  |                           |         |              | 

3



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##### Table of Contents



INTERMET Corporation

Interim Condensed Consolidated Balance Sheets

|                                     |                                            |   |                           |              |      |   |         |         |  
|------------------------------------ | ------------------------------------------ | - | ------------------------- | ------------ | ---- | - | ------- | ------- | -
|                                     |                                            |   | September 30,             | December 31,
|                                     |                                            |   | 2000                      |              | 1999
|                                     |                                            |   |                           |              |     
|                                     |                                            |   | (Unaudited)              
|                                     |                                            |   | (in thousands of dollars)
|Liabilities and shareholders equity
|                                    
|                                    
|                                    
|                                    
|Current liabilities:                
|                                    
|                                    
|                                    
|                                    
|                                     | Term loan                                  |   | $                         | 15,000       |      |   |         |        |  
|                                    
|                                    
|                                    
|                                    
|                                     | Accounts payable                           |   |                           | 87,947       |      |   | $       | 114,105 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Income taxes and other accrued liabilities |   |                           | 88,325       |      |   |         | 87,963  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Long term debt due within one year         |   |                           | 201,486      |      |   |         | 6,406   |  
|                                     |                                            |   |                           |              |      |   |         |         |  
|Total current liabilities            |                                            |   | 392,758                   |              |      |   | 208,474 |        
|                                    
|                                    
|                                    
|                                    
|Noncurrent liabilities:             
|                                    
|                                    
|                                    
|                                    
|                                     | Long term debt due after one year          |   |                           | 243,814      |      |   |         | 448,634 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Other noncurrent liabilities               |   |                           | 49,805       |      |   |         | 57,807  |  
|                                     |                                            |   |                           |              |      |   |         |         |  
|Total noncurrent liabilities         |                                            |   | 293,619                   |              |      |   | 506,441 |        
|                                    
|                                    
|                                    
|                                    
|Shareholders equity:               
|                                    
|                                    
|                                    
|                                    
|                                     | Common stock                               |   |                           | 2,589        |      |   |         | 2,585   |  
|                                    
|                                    
|                                    
|                                    
|                                     | Capital in excess of par value             |   |                           | 57,037       |      |   |         | 56,661  |  
|                                    
|                                    
|                                    
|                                    
|                                     | Retained earnings                          |   |                           | 209,774      |      |   |         | 183,432 |  
|                                    
|                                    
|                                    
|                                    
|                                     | Accumulated other comprehensive income     |   |                           | (1,853       | )    |   |         | (234    | )
|                                    
|                                    
|                                    
|                                    
|                                     | Unearned restricted stock                  |   |                           | (176         | )    |   |         | (67     | )
|                                     |                                            |   |                           |              |      |   |         |         |  
|Total shareholders equity           |                                            |   | 267,371                   |              |      |   | 242,377 |        
|                                     |                                            |   |                           |              |      |   |         |         |  
|                                     |                                            | $ | 953,748                   |              |      | $ | 957,292 |        
|                                     |                                            |   |                           |              |      |   |         |         |  

See accompanying notes.

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##### Table of Contents



INTERMET Corporation

Interim Condensed Consolidated Statements of Cash Flows

|                                                              |                                                |                                    |         |                           |         |               |         |         |         |  
|------------------------------------------------------------- | ---------------------------------------------- | ---------------------------------- | ------- | ------------------------- | ------- | ------------- | ------- | ------- | ------- | -
|                                                              |                                                |                                    |         | Nine months ended        
|                                                              |                                                |                                    |         | September 30,             |         | September 30,
|                                                              |                                                |                                    |         | 2000                      |         | 1999         
|                                                              |                                                |                                    |         |                           |         |              
|                                                              |                                                |                                    |         | (Unaudited)              
|                                                              |                                                |                                    |         | (in thousands of dollars)
|Operating activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|Net income                                                    |                                                | $                                  | 29,388  |                           |         | $             | 36,201  |        
|                                                             
|                                                             
|                                                             
|                                                             
|Adjustments to reconcile net income to cash provided by (used
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | in) operating activities:                     
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Depreciation                                   |                                    |         | 35,025                    |         |               |         | 26,631  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Amortization                                   |                                    |         | 6,014                     |         |               |         | 2,898   |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Gain on sale of equity investment              |                                    |         | (129                      | )       |               |         |        |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net (gain) loss on disposal of fixed assets    |                                    |         | (5,787                    | )       |               |         | 189     |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Changes in operating assets and liabilities:  
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                | Accounts receivable                |         |                           | (9,474  | )             |         |         | (37,229 | )
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                | Inventories                        |         |                           | 8,506   |               |         |         | (2,978  | )
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                | Accounts payable and accrued taxes |         |                           | (24,356 | )             |         |         | (18,193 | )
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              |                                                | Other assets and liabilities       |         |                           | (7,851  | )             |         |         | (10,300 | )
|                                                              |                                                |                                    |         |                           |         |               |         |        
|Net cash provided by (used in) operating activities           |                                                |                                    | 31,336  |                           |         |               | (2,781  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|Investing activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Additions to property, plant and equipment     |                                    |         | (50,993                   | )       |               |         | (50,666 | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Investment in Portcast joint venture           |                                    |         |                           |         |               |         | (4,500  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Proceeds from the sale of equity investment    |                                    |         | 10,309                    |         |               |         |        |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Proceeds from sale/replacement of fixed assets |                                    |         | 14,352                    |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Other                                          |                                    |         |                           |         |               |         | (1,607  | )      
|                                                              |                                                |                                    |         |                           |         |               |         |        
|Net cash used in investing activities                         |                                                |                                    | (26,332 | )                         |         |               | (56,773 | )      
|                                                             
|                                                             
|                                                             
|                                                             
|Financing activities:                                        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net increase in revolving credit facility      |                                    |         | 6,500                     |         |               |         | 50,000  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Payoff of senior note                          |                                    |         | (15,000                   | )       |               |         |        |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Proceeds from term loan                        |                                    |         | 15,000                    |         |               |         |        |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net reduction in other debt                    |                                    |         | (1,140                    | )       |               |         | (1,262  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Net increase in notes payable                  |                                    |         |                          |         |               |         | 16,000  |        
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Acquisition of treasury stock                  |                                    |         |                          |         |               |         | (6,669  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Dividends paid                                 |                                    |         | (3,046                    | )       |               |         | (3,062  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|                                                              | Issuance of common stock                       |                                    |         | 380                       |         |               |         | 113     |        
|                                                              |                                                |                                    |         |                           |         |               |         |        
|Net cash provided by financing activities                     |                                                |                                    | 2,694   |                           |         |               | 55,120  |        
|                                                             
|                                                             
|                                                             
|                                                             
|Effect of exchange rate changes on cash and cash equivalents  |                                                |                                    | (3,576  | )                         |         |               | 3,029   |        
|                                                              |                                                |                                    |         |                           |         |               |         |        
|Net increase (decrease) in cash and cash equivalents          |                                                |                                    | 4,122   |                           |         |               | (1,405  | )      
|                                                             
|                                                             
|                                                             
|                                                             
|Cash and cash equivalents at beginning of period              |                                                |                                    | 3,416   |                           |         |               | 5,848   |        
|                                                              |                                                |                                    |         |                           |         |               |         |        
|Cash and cash equivalents at end of period                    |                                                | $                                  | 7,538   |                           |         | $             | 4,443   |        
|                                                              |                                                |                                    |         |                           |         |               |         |        

See accompanying notes.

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INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements

September 30, 2000 (Unuadited)

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 and nine months ended September 30, 2000 are not necessarily
indicative of the results that may be expected for the year ending December 31, 2000. Third and fourth quarter
sales are usually lower than the first- and second-quarter sales due to plant closings by automotive
manufacturers for vacations and model changeovers. 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, 1999.

Some amounts previously reported in the financial statements for the period ended September 30, 1999 have been
reclassified to conform to the 2000 presentation.

2. Inventories

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

| |                       |   |               |        |              |   |         |        | 
| | --------------------- | - | ------------- | ------ | ------------ | - | ------- | ------ | 
| |                       |   | September 30, |        | December 31,
| |                       |   | 2000          |        | 1999        
| |                       |   |               |        |             
| | Finished goods        |   | $             | 18,877 |              |   | $       | 24,235 | 
|
|
|
|
| | Work in process       |   |               | 24,513 |              |   |         | 19,054 | 
|
|
|
|
| | Raw materials         |   |               | 12,319 |              |   |         | 15,313 | 
|
|
|
|
| | Supplies and patterns |   |               | 39,067 |              |   |         | 44,200 | 
| |                       |   |               |        |              |   |         |        | 
| |                       | $ | 94,776        |        |              | $ | 102,802 |       
| |                       |   |               |        |              |   |         |        | 

6



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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (Unaudited)

3. Property, Plant and Equipment

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

| |                            |   |               |         |              |   |         |         | 
| | -------------------------- | - | ------------- | ------- | ------------ | - | ------- | ------- | 
| |                            |   | September 30, |         | December 31,
| |                            |   | 2000          |         | 1999        
| |                            |   |               |         |             
| | Land                       |   | $             | 5,527   |              |   | $       | 5,411   | 
|
|
|
|
| | Buildings and improvements |   |               | 117,469 |              |   |         | 110,777 | 
|
|
|
|
| | Machinery and equipment    |   |               | 400,016 |              |   |         | 422,215 | 
|
|
|
|
| | Construction in progress   |   |               | 93,600  |              |   |         | 67,818  | 
| |                            |   |               |         |              |   |         |         | 
| |                            | $ | 616,612       |         |              | $ | 606,221 |        
| |                            |   |               |         |              |   |         |         | 

4. Intangible Assets

Intangible assets of $244,172,000 and $248,864,000 (net of accumulated amortization of $15,973,000 and
$10,867,000) at September 30, 2000 and December 31, 1999, 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):

|                                  |  |               |         |              |  |   |         | 
|--------------------------------- |  | ------------- | ------- | ------------ |  | - | ------- | 
|                                  |  | September 30, |         | December 31,
|                                  |  | 2000          |         | 1999        
|                                  |  |               |         |             
|INTERMET                          |  | $             | 400,000 |              |  | $ | 408,500 | 
|                                 
|                                 
|                                 
|                                 
|Subsidiaries                      |  |               | 45,300  |              |  |   | 46,540  | 
|                                  |  |               |         |              |  |   |         | 
|Total long term debt              |  |               | 445,300 |              |  |   | 455,040 | 
|                                 
|                                 
|                                 
|                                 
|Less amounts due within one year  |  |               | 201,486 |              |  |   | 6,406   | 
|                                  |  |               |         |              |  |   |         | 
|Long term debt due after one year |  | $             | 243,814 |              |  | $ | 448,634 | 
|                                  |  |               |         |              |  |   |         | 

7



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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (Unaudited)

6. Income Taxes

During the second quarter of 1999, we were able to use a one-time tax benefit of $4.5 million related to a change
of tax law in Germany.

7. 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.

|                                   |                              |            |                    |        |                   |       |                           |     |               |        |  |        |   |        |  |      |  
|---------------------------------- | ---------------------------- | ---------- | ------------------ | ------ | ----------------- | ----- | ------------------------- | --- | ------------- | ------ |  | ------ | - | ------ |  | ---- | -
|                                   |                              |            | Three months ended |        | Nine months ended
|                                   |                              |            | September 30,      |        | September 30,     |       | September 30,             |     | September 30,
|                                   |                              |            | 2000               |        | 1999              |       | 2000                      |     | 1999         
|                                   |                              |            |                    |        |                   |       |                           |     |              
|                                   |                              |            |                    |        |                   |       | (in thousands of dollars)
|Net income                         | $                            | 8,022      |                    |        | $                 | 7,442 |                           |     | $             | 29,388 |  |        | $ | 36,201 | 
|                                  
|                                  
|                                  
|                                  
|Other comprehensive income (loss):
|                                  
|                                  
|                                  
|                                  
|                                   | Foreign currency translation
|                                  
|                                  
|                                  
|                                  
|                                   |                              | adjustment |                    | (1,046 | )                 |       |                           | 131 |               |        |  | (1,619 | ) |        |  | (520 | )
|                                   |                              |            |                    |        |                   |       |                           |     |               |        |  |        |   |        |  |     
|Total other comprehensive income  
|                                  
|                                  
|                                  
|                                  
|                                   | (loss)                       |            |                    | (1,046 | )                 |       |                           | 131 |               |        |  | (1,619 | ) |        |  | (520 | )
|                                   |                              |            |                    |        |                   |       |                           |     |               |        |  |        |   |        | 
|Total comprehensive income         | $                            | 6,976      |                    |        | $                 | 7,573 |                           |     | $             | 27,769 |  |        | $ | 35,681 | 
|                                   |                              |            |                    |        |                   |       |                           |     |               |        |  |        |   |        |  |     

8



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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (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-metals segment consists of aluminum, magnesium and zinc casting operations and their related machining
operations. The operating units that comprise other are all non-foundry operations, and none of them
constitutes a reportable segment on its own. Previously, we had one segment, but with the acquisitions at the
end of 1999 of two significant companies that fall in the light metals segment, we now have two segments. We
have restated 1999 quarterly segment disclosure information to conform to the new segment disclosure
structure. This information is displayed in the following table:

|                                            |            |  |                           |         |              |  |       |         |              |  |   |        |  |  |   |         | 
|------------------------------------------- | ---------- |  | ------------------------- | ------- | ------------ |  | ----- | ------- | ------------ |  | - | ------ |  |  | - | ------- | 
|                                            |            |  | FerrousMetals            |         | LightMetals |  | Other |         | Consolidated
|                                            |            |  |                           |         |              |  |       |         |             
|                                            |            |  | (in thousands of dollars)
|Three-month period ended September 30, 2000
|                                           
|                                           
|                                           
|                                           
|                                            | Net sales  |  | $                         | 139,195 |              |  | $     | 78,958  |              |  | $ | 21,432 |  |  | $ | 239,585 | 
|                                           
|                                           
|                                           
|                                           
|                                            | Net income |  |                           | 6,551   |              |  |       | 692     |              |  |   | 779    |  |  |   | 8,022   | 
|                                           
|                                           
|                                           
|                                           
|Three-month period ended September 30, 1999
|                                           
|                                           
|                                           
|                                           
|                                            | Net sales  |  | $                         | 179,686 |              |  | $     | 24,086  |              |  | $ | 21,578 |  |  | $ | 225,350 | 
|                                           
|                                           
|                                           
|                                           
|                                            | Net income |  |                           | 5,863   |              |  |       | 609     |              |  |   | 970    |  |  |   | 7,442   | 
|                                           
|                                           
|                                           
|                                           
|Nine-month period ended September 30, 2000 
|                                           
|                                           
|                                           
|                                           
|                                            | Net sales  |  | $                         | 504,099 |              |  | $     | 258,233 |              |  | $ | 66,541 |  |  | $ | 828,873 | 
|                                           
|                                           
|                                           
|                                           
|                                            | Net income |  |                           | 20,051  |              |  |       | 6,846   |              |  |   | 2,491  |  |  |   | 29,388  | 
|                                           
|                                           
|                                           
|                                           
|Nine-month period ended September 30, 1999 
|                                           
|                                           
|                                           
|                                           
|                                            | Net sales  |  | $                         | 578,343 |              |  | $     | 73,576  |              |  | $ | 64,356 |  |  | $ | 716,275 | 
|                                           
|                                           
|                                           
|                                           
|                                            | Net income |  |                           | 31,585  |              |  |       | 1,892   |              |  |   | 2,724  |  |  |   | 36,201  | 

9



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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (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,
| |                            |                                |                           |      | 2000                                  |        | 1999              |      | 2000          |        | 1999         
| |                            |                                |                           |      |                                       |        |                   |      |               |        |              
| |                            |                                |                           |      | (in thousands, except per share data)
| | Numerator:                
|
|
|
|
| |                            | Net income                     |                           | $    | 8,022                                 |        |                   | $    | 7,442         |        |               | $    | 29,388 |        |   | $    | 36,201 |       
|
|
|
|
| | Denominator:              
|
|
|
|
| |                            | Denominator for basic         
| |                            |                                | earnings per share      
| |                            |                                | weighted average
shares   |      |                                       | 25,364 |                   |      |               | 25,360 |               |      |        | 25,361 |   |      |        | 25,529 | 
|
|
|
|
| |                            | Effect of dilutive securities:
|
|
|
|
| |                            |                                | Stock options             |      |                                       | 67     |                   |      |               | 70     |               |      |        | 66     |   |      |        | 105    | 
| |                            |                                |                           |      |                                       |        |                   |      |               |        |               |      |        |        |   |      |        |       
| |                            | Denominator for diluted       
| |                            |                                | earnings per share      
| |                            |                                | adjusted weighted average
| |                            |                                | shares and assumed       
|
|
|
|
| |                            |                                | exercise of options       |      |                                       | 25,431 |                   |      |               | 25,430 |               |      |        | 25,427 |   |      |        | 25,634 | 
| |                            |                                |                           |      |                                       |        |                   |      |               |        |               |      |        |        |   |      |        |       
| | Fully diluted earnings per
|
|
|
|
| | share                      |                                | $                         | 0.32 |                                       |        | $                 | 0.29 |               |        | $             | 1.16 |        |        | $ | 1.42 |       
| |                            |                                |                           |      |                                       |        |                   |      |               |        |               |      |        |        |   |      |        |       
| | Basic earnings per share   |                                | $                         | 0.32 |                                       |        | $                 | 0.29 |               |        | $             | 1.16 |        |        | $ | 1.41 |       
| |                            |                                |                           |      |                                       |        |                   |      |               |        |               |      |        |        |   |      |        |       

10



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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (Unaudited)

11. Impairment of Assets and Shutdown

During the fourth quarter of 1999, our board of directors authorized the closure of our Ironton Iron, Inc.
facility and we approved and announced our plan for the orderly shutdown of Ironton. Ironton recorded expenses
associated with asset impairment and shutdown during the fourth quarter of 1999. Ironton ceased all operations
on March 31, 2000 and terminated employment of approximately 575 persons during the first quarter as a result of
the shutdown. At September 30, 2000, the Ironton location had no employees. Pursuant to a closing agreement
negotiated with the United Steelworkers of America and its Local 3664, all of the hourly employees were paid
severance of approximately $1.0 million, in the aggregate, during the first quarter of 2000. These expenses were
charged against cost of sales. Ironton agreed to make another $1.0 million severance payment to hourly employees
after production ended, which was contingent on predetermined production performance as set forth in the closing
agreement. However, the predetermined and agreed upon production performance was not achieved. Thus, no
severance was paid to hourly employees beyond that which was paid during the first quarter. On April 7, 2000,
the union filed a grievance seeking payment of the remaining $1.0 million severance payment. We denied the
grievance on May 8, 2000 and the union filed an appeal of the denial in June. The grievance is subject to
arbitration under the collective bargaining agreement. We expect the grievance will be arbitrated in the first
quarter of 2001. We are unable to estimate how much, if any, may be awarded. Thus, we have not recorded any
amounts for contingent liabilities with regard to the arbitration.

During the period of January 1, 2000 to September 30, 2000, Ironton had revenues of $6.1 million and a net loss
of $4.3 million. Included in the net loss is the $1.0 million of severance paid to the hourly employees during
the first quarter of 2000. During the fourth quarter of 1999, Ironton accrued approximately $1.3 million for
severance for salaried employees, as part of the $7.8 million shutdown accrual. Approximately $0.9 million of
that severance accrual and approximately $0.7 million of the remaining shutdown accrual items were paid during
the nine-month period ended September 30, 2000. During the first quarter of 2000, Ironton accrued an additional
$0.5 million for asset impairment and nothing additional for the shutdown. During the first nine months of 1999,
Ironton had revenues of $44.8 million and a net loss of $12.3 million.

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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (Unaudited)

12. Update on the Fire at Neunkirchen Foundry and the New River Explosion

Neunkirchen Foundry

On May 20, 2000, INTERMETÎs Neunkirchen Foundry, Germany, suffered a fire that caused extensive damage. There
were no injuries. The plant was shut down for several days and production started again on a limited basis after
two weeks. As of September 1, 2000 all four casting lines are fully operational. Certain ancillary equipment
including finishing and core making operations are expected to be in full operation by the end of the year.

Local fire and law enforcement officials completed their investigation of the incident. The cause of the fire was
deemed accidental. INTERMET carries insurance for property, business interruption and general liability. We have
notified our insurance carriers under all of our applicable insurance policies and we have or will make claims
under the policies as appropriate. Based on the information currently available to us, we believe that we have
adequate insurance coverage for the losses that have been identified to date.

New River Foundry

Although we continue to investigate the March 5, 2000 explosion and fire that occurred at our New River Foundry,
we believe that the cause was accidental due to an accumulation and ignition of flammable gas in an unused
basement. On September 5, 2000 the Virginia Department of Labor and Industry issued citations of alleged
violations for applicable health and safety requirements and assessed fines in the total amount of $0.8 million.
We are contesting the citations and proposed fines. Other agencies, including local law enforcement officials,
are continuing their investigations.

We have notified our insurance carriers under all of our applicable insurance policies and we have or will make
claims under the policies as appropriate. Based on the information currently available to us, we believe that we
have adequate insurance coverage for the various losses and costs that have been identified to date. However, we
cannot assure that all of our costs and expenses resulting from the accident will be covered by insurance.

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##### Table of Contents



INTERMET Corporation

Notes to Interim Condensed Consolidated Financial Statements (continued)

September 30, 2000 (Unaudited)

12. Update on the Fire at Neunkirchen Foundry and the New River Explosion (continued)

New River Foundry (continued)

We started rebuilding our New River Foundry at its current site during the second quarter. The first production
line began operating in September and the second line is expected to be operational in December. When the second
line becomes operational, we expect that New River will be at the approximate casting capacity it had before the
fire.

Accounting for Insurance Proceeds

For the nine months ended September 30, 2000, we received advance insurance proceeds of approximately $62.4
million for Neunkirchen and New River, in the aggregate.



| |  | For the nine months ended September 30, 2000, we recorded estimated insurance recovery of approximately
$21.7 million against cost of goods sold for the cost of lost sales.
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | We incurred estimated insurance recovery for accident-related expenses of approximately $10.4 million.                                                                      
| 
| |  | We incurred an estimated $29.7 million for replacement of property, plant and equipment.                                                                                    
| 
| |  | At September 30, 2000, approximately $0.6 million remains as deferred revenue for Neunkirchen and New
River.                                                                

Additionally, we recorded a gain on replacement assets of approximately $5.7 million in other non-operating
income.

13. Subsequent Event

On October 16, 2000, the Company sold its interest in Iowa Mold Tooling Co, Inc. (IMT) to an unrelated entity.
The sale of IMT is not considered material to the financial statements taken as a whole.

14. Recently Issued Accounting Pronouncements

In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities."
The Statement establishes accounting and reporting standards for derivative financial instruments. The statement
is effective for Companies on January 1, 2001. At this time we are evaluating the impact of this statement on
our financial statements.

13



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##### Table of Contents



Forward Looking Statement

The following Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations and
Item 3. 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 this section, 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. In addition, readers are cautioned that 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 in the markets in which we operate                                                                                                                                            
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | fluctuations in worldwide or regional automobile and light and heavy truck production                                                                                                                     
| 
| |  | labor disputes involving us or our significant customers                                                                                                                                                  
| 
| |  | changes in practices and/or policies of our significant customers toward outsourcing automotive
components and systems                                                                                    
| 
| |  | foreign currency and exchange fluctuations                                                                                                                                                                
| 
| |  | interest rate fluctuations                                                                                                                                                                                
| 
| |  | materials price fluctuations                                                                                                                                                                              
| 
| |  | ability to secure all regulatory permits on a timely basis with respect to ongoing capital expenditures
for additional foundry capacity                                                                   
| 
| |  | factors or presently unknown circumstances that may affect the charges related to the impairment of
assets and shutdown of Ironton                                                                        
| 
| |  | ability to complete the rebuild of the New River and Neunkirchen foundries on a timely basis and that
the capacity utilized will be less than the pre-accident levels within the timeframes considered and
| 
| |  | other risks 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 nine months of 2000 operating activities provided $31.3 million in cash compared to using $2.8
million for the same period last year. Depreciation and amortization expense was $41.0 million for the
period. As compared to December 31, 1999, accounts receivable increased $9.5 million while inventory decreased
$8.5 million. These fluctuations are a result of higher sales in September of 2000 than December of 1999, which
is related to the traditional holiday shutdowns during the fourth quarter operating cycle. Accounts payable and
accrued taxes decreased $24.4 million from the beginning of 2000 due primarily to the timing of payments.
Investing activities for the first nine months of 2000 used cash of $26.3 million. During the period we recorded
$51.0 million for the purchase of property, plant and equipment, of which $12.4 represents expenditures related
to insurance proceeds resulting from the fire at Neunkirchen and the explosion at New River. Also in investing
activities, we received $10.3 million in cash and receivables for the sale of our equity interest in General
Products Delaware Corporation. Net cash provided by financing activities was $2.7 million for the first nine
months of 2000. Borrowings under our bank revolver increased $6.5 million. We used this cash to finance
operating activities and purchase fixed assets. Additionally, we paid $3.0 million in dividends during the first
nine months of 2000. We have committed capital not yet spent of approximately $28.5 million as of

14



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##### Table of Contents



September 30,
2000. Of this amount, approximately $13.5 million is expected to be financed through future insurance proceeds
from the fire at Neunkirchen and the explosion at New River. We anticipate that the balance of the funds needed
for the committed capital spending will come from operations.

On October 12, 2000, the Board of Directors approved a $.04 per share dividend to all shareholders of record as
of December 1, 2000 to be paid on December 29, 2000.

Material Changes in Results of Operations  Three months ended September 30, 2000

Total salesfor the third quarter of 2000 were $239.6 million, an increase of $14.2 million (6.3%) from third
quarter 1999 sales of $225.4 million. This increase relates primarily to our acquisitions of Ganton
Technologies, Inc. and Diversified Diemakers, Inc. in December of 1999. In addition, in the two largest markets
where we supply, domestic and European light trucks, we have had strong sales in 2000. North American
light-vehicle production was greater in the third quarter of 2000 versus that of 1999. These increases were
offset by the decrease in sales due to the shutdown of Ironton, the explosion at New River and the fire at
Neunkirchen. Including only those operations that were in place for the entire third quarters of 2000 and 1999,
sales for the third quarter of 2000 increased $5.7 million (3.5%) from the third quarter of 1999. New River,
Ironton and Neunkirchen are all in the ferrous-metals segment. Ferrous-metals segment sales were $139.2 million
and $179.7 million for the third quarters of 2000 and 1999, respectively. Excluding sales of New River, Ironton
and Neunkirchen, sales for the ferrous-metals segment increased $2.4 million (2.0%) from the third quarter of
1999. Light-metals segment sales increased $54.9 million (227.8%) for the three months ended September 30, 2000
versus those for the three months ended September 30, 1999. This increase is due to our acquisitions at the end
of 1999. Excluding these acquisitions, sales in the light-metals segment for the period increased $3.5 million
(14.4%). Other sales decreased slightly as compared to the same period last year.

Domestic salesduring the quarter ended September 30, 2000 were approximately $18.4 million (9.2%) greater than
the third quarter of 1999. This increase is due primarily to acquisitions at the end of 1999, but is offset by
the lost sales at New River and the closure of Ironton. For operations in place both periods sales increased 3.1%
or $5.0 million. European sales during the three months ended September 30, 2000, in local currency, decreased
3.8% from the same period in the prior year. This is due to the fire at Neunkirchen in May 2000. Had the fire
not occurred, we believe sales for the first nine months of 2000 would have exceeded sales for the same period in
1999, in local currency. The effect of changes in the exchange rates on consolidated European sales was an
unfavorable $3.3 million (13.8%) for the three-month period ended September 30, 2000 when compared using exchange
rates for the same period in 1999.

15



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##### Table of Contents



Gross profits for the quarter ended September 30, 2000 and 1999 were $28.2 million and $24.0 million,
respectively. Gross profit as a percentage of sales for the three months ended September 30, 2000 and 1999 was
11.8% and 10.6%, respectively. Excluding the results of Ironton, New River, Neunkirchen and the year-end
acquisitions, gross profit as a percentage of sales would have been 12.0% and 13.3% for the third quarters of
2000 and 1999, respectively. The resulting decreased gross profit percentage is a result of the added demand
shifted to our other plants stemming from the explosion at New River and, to a lesser extent, the fire at
Neunkirchen.

Operating expenses as a percentage of sales were 4.4% and 4.2% for the three months ended September 30, 2000 and
1999, respectively.

The effective income tax rate was 43.4% and 33.5% for the third quarter ended September 30, 2000 and 1999,
respectively. During 1999, the Company implemented various tax planning initiatives. Also during 1999, we
received a one time tax benefit related to a change in German tax law.

Material Changes in Results of Operations  Nine months ended September 30, 2000

INTERMETs total salesfor the first nine months of 2000 and 1999 were $828.9 million and $716.3 million,
respectively. Again, the increase relates primarily to our acquisitions of Ganton Technologies, Inc. and
Diversified Diemakers, Inc. at the end of 1999 and the increase in North American light-vehicle production. This
was offset by the shutdown of Ironton, the explosion at New River and, to a lesser degree, the fire at
Neunkirchen. Excluding sales for acquired operating units, New River, Ironton and Neunkirchen, total sales
increased as of September 30, 2000 year to date by $33.7 million (6.5%) over September 30,1999. Ferrous-metals
segment sales for the nine months ended September 30, 2000 and 1999 were $504.1 million and $578.3,
respectively. The decrease is as a result of the explosion at New River, the fire at Neunkirchen and the closing
of the Ironton plant, all of which are in the ferrous segment. Sales of the ferrous segment with operations in
place during the nine months ended September 30, 2000 and 1999 were $409.0 million and $381.5 million, respectively, representing a year
over year increase of $27.5 million (7.2%) from operations in place for both periods. Light-metals segment sales increased $184.7 million (251.0%) due to our acquisitions at the end of 1999. Excluding these acquisitions,
sales for the light-metals segment during the first nine months of 2000 increased 5.3% over 1999. Other sales
increased slightly over 1999 for the nine months ended September 30, 2000.

Domestic salesfor the nine-month periods ended September 30, 2000 and 1999 were $755.8 million and $634.9
million, respectively. The increase is due primarily to acquisitions at the end of 1999, but is offset by the
lost sales at New River and the closure of Ironton. Domestic sales for operations in place for both years were
$546.1 million and $513.7 million, respectively. European salesduring the nine months ended September 30, 2000,
in local currency, decreased 10.2% from the same period in the prior year. This is due primarily to the fire at
Neunkirchen. Sales for the period were expected to be up from prior year had the incident not occurred. The
effect of changes in the exchange rates on European sales was an unfavorable $10.2 million (12.2%) for the first
nine months of 2000 when compared using exchange rates for the same period in 1999.

16



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##### Table of Contents



Gross profit for the nine-month period ended September 30, 2000 was $16.2 million (17.8%) higher than the gross
profit for the first nine months of 1999. Gross profit as a percentage of sales for these same periods were
13.0% and 12.7%, respectively.

Operating expenses as a percentage of sales were 4.1% and 4.0% for both nine months ended September 30, 2000 and
1999, respectively.

The effective income tax rates for the first nine months of 2000 and 1999 were 43.1% and 31.6%, respectively.
During 1999, we were able to use a one-time tax benefit of $4.5 million related to a change of tax law in
Germany and implemented various tax initiatives. Excluding these items, the tax rates would have been approximately 41.9 % and 40.5% for the nine-month
periods ended September 30, 2000 and 1999, respectively.

Impact of Insurance Proceeds in 2000

As discussed above, two accidents resulted in insurance reimbursement to the Company during the nine months ended
September 30, 2000. Accordingly, the Company has received insurance proceeds for the replacement of property,
plant and equipment and for income attributable to lost sales due to temporary production line shutdowns. Due
to the replacement of depreciated fixed assets with new assets, the Company has recorded a gain in accordance
with generally accepted accounting principles relating to involuntary conversion of assets. The unaudited gain
has been included on the statements of operations for the year and quarter ended September 30, 2000. Net income
for the three months ended September 30, 2000 was $8.0 million, which included a $3.2 million gain (net of tax),
related to insurance proceeds. Thus the income from operations was $4.8 million down from $7.4 million as of
September 30, 1999. The decrease is largely related to the incidents at the plant locations and the burden the
Company has absorbed as a result of the transferring of work in order to continually meet customer demand.
Additionally, prior year net income also includes tax benefits which were greater in 1999 than in 2000.

For the nine months ended September 30, 2000, net income was $29.4 million. The gain on the involuntary
conversion of assets resulting from the explosion and the fire resulted in a year to date gain of $3.2 million
(net of tax) as of September 30, 2000. Accordingly, the income resulting from operations in place during both
periods was $26.2 million for the nine months ended September 30, 2000 as compared to $36.2 million in 1999. The
reasons for this decrease are the same as noted for the quarter.

Subsequent Event

On October 12, 2000 the Company sold its interest in Iowa Mold Tooling Co., Inc. (IMT), to an affiliate of
American Capital Strategies, Ltd. IMT was acquired by INTERMET in December of 1996 as a part of the acquisition
of Sudbury, Inc. IMT is a designer and manufacturer of specialized cranes, tire service vehicles, and
lubrication and field service vehicles. Though IMTs performance has been strong, it falls outside the Companys
core casting business. The sale has been closed but is subject to certain post closing adjustments based on
activity between month end September 30, 2000 and October 12, 2000, the closing date of the transaction.

Recently Issued Accounting Pronouncements

In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative Instruments and hedging Activities."
The Statement establishes accounting and reporting standards for derivative

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financial instruments. At this time
we have not yet completed its evaluation of the statement but believes it will not have a material impact on the
financial statements.

Year-2000 Readiness Disclosure

There has been no material change in our Year-2000 readiness since December 31, 1999.

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, 1999.

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, 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.

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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/ Ronald C. Ryninger, Jr.   
| |                      | Ronald C. Ryninger, Jr.       
| |                      | Corporate Controller          
| |                      | (Principal Accounting Officer)
|
| | Date:                | November 14, 2000             

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Exhibits Index

|        |  |                          |  |  |  | 
|------- |  | ------------------------ |  |  |  | 
|Exhibit
|Number  |  | Description of Exhibit  
|       
|27      |  | Financial Data Schedule.

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