KRONOS WORLDWIDE, INC. REPORTS THIRD QUARTER 2024 RESULTS
Kronos Worldwide reported significant financial improvements in Q3 2024, with net income of $71.8 million ($0.62 per share) compared to a net loss of $20.4 million in Q3 2023. Net sales increased 22% to $484.7 million, driven by 21% higher TiO2 sales volumes and improved demand across major markets. The company acquired the remaining 50% stake in Louisiana Pigment Company, recognizing a non-cash gain of $64.5 million. Production volumes increased 37% year-over-year, with capacity utilization reaching 93% in the first nine months of 2024. Despite these improvements, average TiO2 selling prices were 1% lower compared to Q3 2023.
Kronos Worldwide ha riportato notevoli miglioramenti finanziari nel terzo trimestre del 2024, con un utile netto di $71,8 milioni ($0,62 per azione), rispetto a una perdita netta di $20,4 milioni nel terzo trimestre del 2023. Le vendite nette sono aumentate del 22% a $484,7 milioni, grazie a un incremento del 21% nei volumi di vendita di TiO2 e a una domanda migliorata nei principali mercati. L'azienda ha acquisito il rimanente 50% della Louisiana Pigment Company, registrando un guadagno non monetario di $64,5 milioni. I volumi di produzione sono aumentati del 37% rispetto all'anno precedente, con un tasso di utilizzo della capacità che ha raggiunto il 93% nei primi nove mesi del 2024. Nonostante questi miglioramenti, i prezzi di vendita medi del TiO2 sono stati inferiori dell'1% rispetto al terzo trimestre del 2023.
Kronos Worldwide reportó mejoras financieras significativas en el tercer trimestre de 2024, con un ingreso neto de $71,8 millones ($0,62 por acción) en comparación con una pérdida neta de $20,4 millones en el tercer trimestre de 2023. Las ventas netas aumentaron un 22% a $484,7 millones, impulsadas por un aumento del 21% en los volúmenes de ventas de TiO2 y una demanda mejorada en los principales mercados. La empresa adquirió el restante 50% de Louisiana Pigment Company, reconociendo una ganancia no monetaria de $64,5 millones. Los volúmenes de producción aumentaron un 37% interanual, con una utilización de capacidad que alcanzó el 93% en los primeros nueve meses de 2024. A pesar de estas mejoras, los precios de venta promedio del TiO2 fueron un 1% más bajos en comparación con el tercer trimestre de 2023.
크로노스 월드와이드는 2024년 3분기 동안 큰 재무 개선을 보고했으며, 순이익이 7180만 달러($0.62 per share)로 2023년 3분기의 순손실 2040만 달러에 비해 개선되었습니다. 순매출은 22% 증가하여 4억 8470만 달러에 달하며, 이는 21% 높은 TiO2 판매량 및 주요 시장에서의 수요 개선에 의해 촉진되었습니다. 회사는 루이지애나 피그먼트 컴퍼니에서 남은 50%의 지분을 인수하며 6450만 달러의 비현금 이익을 인식했습니다. 생산량은 전년 대비 37% 증가했으며, 2024년 첫 9개월 동안 용량 가동률은 93%에 달했습니다. 이러한 개선에도 불구하고 평균 TiO2 판매 가격은 2023년 3분기 대비 1% 낮았습니다.
Kronos Worldwide a rapporté des améliorations financières significatives au troisième trimestre 2024, avec un bénéfice net de 71,8 millions de dollars (0,62 $ par action) par rapport à une perte nette de 20,4 millions de dollars au troisième trimestre 2023. Les ventes nettes ont augmenté de 22 % pour atteindre 484,7 millions de dollars, soutenues par une hausse de 21 % des volumes de vente de TiO2 et une demande améliorée dans les principaux marchés. L'entreprise a acquis les 50 % restants de Louisiana Pigment Company, reconnaissant un gain non monétaire de 64,5 millions de dollars. Les volumes de production ont augmenté de 37 % par rapport à l'année précédente, avec un taux d'utilisation de la capacité atteignant 93 % au cours des neuf premiers mois de 2024. Malgré ces améliorations, les prix de vente moyens du TiO2 étaient inférieurs de 1 % par rapport au troisième trimestre 2023.
Kronos Worldwide berichtete im dritten Quartal 2024 von erheblichen finanziellen Verbesserungen, mit einem Nettogewinn von 71,8 Millionen Dollar (0,62 Dollar pro Aktie) im Vergleich zu einem Nettverlust von 20,4 Millionen Dollar im dritten Quartal 2023. Die Nettoumsätze stiegen um 22% auf 484,7 Millionen Dollar, angetrieben von einem 21% höheren TiO2-Verkaufsvolumen und einer verbesserten Nachfrage in den wichtigsten Märkten. Das Unternehmen erwarb die verbleibenden 50% der Louisiana Pigment Company und erkannte einen nicht cash-wirksamen Gewinn von 64,5 Millionen Dollar an. Die Produktionsmengen stiegen im Jahresvergleich um 37%, während die Kapazitätsauslastung in den ersten neun Monaten des Jahres 2024 bei 93% lag. Trotz dieser Verbesserungen lagen die durchschnittlichen Verkaufspreise für TiO2 um 1% unter denen des dritten Quartals 2023.
- Net income improved to $71.8M in Q3 2024 from -$20.4M in Q3 2023
- Net sales increased 22% to $484.7M in Q3 2024
- TiO2 sales volumes increased 21% in Q3 2024
- Production volumes increased 37% year-over-year
- Capacity utilization improved to 93% in first nine months of 2024
- Lower production costs for energy and raw materials
- $64.5M non-cash gain from Louisiana Pigment Company acquisition
- Average TiO2 selling prices decreased 1% in Q3 2024 vs Q3 2023
- $4M non-cash charges for sulfate process line closure in Canada
- $2.2M transaction costs for LPC acquisition
- $1.5M charge for deferred financing costs write-off
Insights
The Q3 2024 results show a remarkable turnaround for Kronos Worldwide. Key highlights include: net income of
- TiO2 sales volumes increased
21% in Q3 2024 - Production utilization rose to
92% in Q3 2024 vs73% in Q3 2023 - Lower production costs, particularly in energy and raw materials
- Strategic acquisition of Louisiana Pigment Company, contributing a one-time gain of
$64.5 million
The strengthening demand across major markets and improved cost environment signal a positive trajectory, though average TiO2 selling prices remain slightly lower year-over-year. The company's operational efficiency improvements and strategic moves position it well for continued recovery.
The titanium dioxide market shows clear signs of recovery, evidenced by Kronos's volume growth across all major markets. The
The acquisition of LPC strengthens Kronos's market position and vertical integration. The closure of the sulfate process line in Canada, while incurring short-term charges, should improve long-term cost efficiency. The European market appears particularly strong, with favorable currency impacts contributing
Dallas, Texas, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE:KRO) today reported net income of
Net sales of
TiO2 segment profit (see description of non-GAAP information below) in the third quarter of 2024 was
Our net income (loss) before interest expense, income taxes and depreciation and amortization expense (EBITDA) (see description of non-GAAP information below) in the third quarter of 2024 was
Interest expense for the first nine months of 2024 includes a charge of
Our loss from operations in the first nine months of 2023 includes an insurance settlement gain related to a 2020 business interruption insurance claim of
The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following:
- Future supply and demand for our products;
- Our ability to realize expected cost savings from strategic and operational initiatives;
- Our ability to integrate acquisitions, including LPC, into our operations and realize expected synergies and innovations;
- The extent of the dependence of certain of our businesses on certain market sectors;
- The cyclicality of our business;
- Customer and producer inventory levels;
- Unexpected or earlier-than-expected industry capacity expansion;
- Changes in raw material and other operating costs (such as energy and ore costs);
- Changes in the availability of raw materials (such as ore);
- General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for our TiO2 products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises);
- Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
- Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders;
- Competitive products and substitute products;
- Customer and competitor strategies;
- Potential consolidation of our competitors;
- Potential consolidation of our customers;
- The impact of pricing and production decisions;
- Competitive technology positions;
- Potential difficulties in upgrading or implementing accounting and manufacturing software systems;
- The introduction of trade barriers or trade disputes;
- Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone and the Canadian dollar and between the euro and the Norwegian krone), or possible disruptions to our business resulting from uncertainties associated with the euro or other currencies;
- Our ability to renew or refinance credit facilities or other debt instruments in the future;
- Changes in interest rates;
- Our ability to maintain sufficient liquidity;
- The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;
- Our ability to utilize income tax attributes, the benefits of which may or may not have been recognized under the more-likely-than-not recognition criteria;
- Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities);
- Government laws and regulations and possible changes therein including new environmental, health and safety, sustainability or other regulations (such as those seeking to limit or classify TiO2 or its use); and
- Pending or possible future litigation or other actions.
Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. The Company disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
In an effort to provide investors with additional information regarding the Company's results of operations as determined by accounting principles generally accepted in the United States of America (GAAP), the Company has disclosed certain non-GAAP information which the Company believes provides useful information to investors:
- The Company discloses segment profit, which is used by the Company’s management to assess the performance of the Company’s TiO2 operations. The Company believes disclosure of segment profit provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO2 operations in the same way that the Company’s management assesses performance. The Company defines segment profit as net income before income tax expense and certain general corporate items. These general corporate items include corporate expense and the components of other income (expense) except for trade interest income; and
- The Company discloses EBITDA, which is also used by the Company’s management to assess the performance of the Company’s TiO2 operations. The Company believes disclosure of EBITDA provides useful information to investors because it allows investors to analyze the performance of the Company’s TiO2 operations in the same way that the Company’s management assesses performance. The Company defines EBITDA as net income before interest expense, income taxes and depreciation and amortization expense.
Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.
Investor Relations Contact:
Bryan A. Hanley
Senior Vice President & Treasurer
Tel: (972) 233-1700
KRONOS WORLDWIDE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share and metric ton data)
| Three months ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||
| (unaudited) | ||||||||||||
| Net sales | $ | 396.9 | $ | 484.7 | $ | 1,266.4 | $ | 1,464.0 | ||||
| Cost of sales | 362.5 | 383.5 | 1,157.1 | 1,191.1 | ||||||||
| Gross margin | 34.4 | 101.2 | 109.3 | 272.9 | ||||||||
| Selling, general and administrative expense | 53.6 | 62.3 | 156.9 | 174.4 | ||||||||
| Other operating income (expense): | ||||||||||||
| Currency transactions, net | (3.9) | 2.9 | 4.6 | 4.9 | ||||||||
| Other income, net | 1.4 | .8 | 3.5 | 1.8 | ||||||||
| Corporate expense | (3.6) | (3.7) | (10.8) | (10.9) | ||||||||
| Income (loss) from operations | (25.3) | 38.9 | (50.3) | 94.3 | ||||||||
| Other income (expense): | ||||||||||||
| Gain on remeasurement of investment in TiO2 manufacturing joint venture | - | 64.5 | - | 64.5 | ||||||||
| Trade interest income | .3 | .8 | 1.0 | 2.7 | ||||||||
| Other interest and dividend income | 1.2 | .3 | 4.0 | 1.8 | ||||||||
| Marketable equity securities | - | 2.2 | (1.3) | 2.6 | ||||||||
| Other components of net periodic pension and OPEB cost | (1.0) | (.4) | (4.1) | (1.0) | ||||||||
| Interest expense | (4.3) | (11.8) | (12.8) | (30.8) | ||||||||
| Income (loss) before income taxes | (29.1) | 94.5 | (63.5) | 134.1 | ||||||||
| Income tax expense (benefit) | (8.7) | 22.7 | (19.7) | 34.7 | ||||||||
| Net income (loss) | $ | (20.4) | $ | 71.8 | $ | (43.8) | $ | 99.4 | ||||
| Net income (loss) per basic and diluted share | $ | (.18) | $ | .62 | $ | (.38) | $ | .86 | ||||
| Weighted average shares used in the calculation of net income (loss) per share | 115.0 | 115.0 | 115.1 | 115.0 | ||||||||
| TiO2 data - metric tons in thousands: | ||||||||||||
| Sales volumes | 107 | 130 | 313 | 394 | ||||||||
| Production volumes | 102 | 141 | 296 | 399 | ||||||||
KRONOS WORLDWIDE, INC.
RECONCILIATION OF INCOME (LOSS) FROM
OPERATIONS TO SEGMENT PROFIT (LOSS)
(In millions)
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||
| (unaudited) | |||||||||||||||
| Income (loss) from operations | $ | (25.3) | $ | 38.9 | $ | (50.3) | $ | 94.3 | |||||||
| Adjustments: | |||||||||||||||
| Trade interest income | .3 | .8 | 1.0 | 2.7 | |||||||||||
| Corporate expense | 3.6 | 3.7 | 10.8 | 10.9 | |||||||||||
| Segment profit (loss) | $ | (21.4) | $ | 43.4 | $ | (38.5) | $ | 107.9 | |||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA
(In millions)
| Three months ended | Nine months ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||
| (unaudited) | |||||||||||||
| Net income (loss) | $ | (20.4) | $ | 71.8 | $ | (43.8) | $ | 99.4 | |||||
| Adjustments: | |||||||||||||
| Depreciation expense | 12.1 | 17.0 | 36.6 | 46.3 | |||||||||
| Interest expense | 4.3 | 11.8 | 12.8 | 30.8 | |||||||||
| Income tax expense (benefit) | (8.7) | 22.7 | (19.7) | 34.7 | |||||||||
| EBITDA | $ | (12.7) | $ | 123.3 | $ | (14.1) | $ | 211.2 | |||||
IMPACT OF PERCENTAGE CHANGE IN NET SALES
| Three months ended | Nine months ended | ||||
| September 30, | September 30, | ||||
| 2024 vs. 2023 | 2024 vs. 2023 | ||||
| (unaudited) | |||||
| Percentage change in net sales: | |||||
| TiO2 sales volumes | 21 | % | 26 | % | |
| TiO2 product pricing | (1) | (7) | |||
| TiO2 product mix/other | 2 | (3) | |||
| Changes in currency exchange rates | - | - | |||
| Total | 22 | % | 16 | % | |
FAQ
What was Kronos Worldwide (KRO) earnings per share in Q3 2024?
How much did Kronos Worldwide (KRO) sales increase in Q3 2024?
What was KRO's production capacity utilization in Q3 2024?
How did TiO2 sales volumes perform for KRO in Q3 2024?
