VALHI REPORTS SECOND QUARTER 2024 RESULTS
Valhi, Inc. (NYSE: VHI) reported net income of $19.9 million, or $.70 per share, in Q2 2024, compared to a net loss of $3.2 million in Q2 2023. For H1 2024, net income was $27.7 million, up from a $9.0 million loss in H1 2023. The improvement was primarily due to higher operating results from the Chemicals Segment.
The Chemicals Segment's net sales increased 13% to $500.5 million in Q2 2024, driven by 29% higher TiO2 sales volumes, partially offset by lower average selling prices. Operating income for the segment was $40.5 million in Q2 2024, compared to a $2.6 million loss in Q2 2023.
The Component Products Segment saw a slight decrease in net sales, while the Real Estate Management and Development Segment experienced lower sales due to delays in obtaining city permits.
Valhi, Inc. (NYSE: VHI) ha riportato un utile netto di 19,9 milioni di dollari, ovvero 0,70 dollari per azione, nel secondo trimestre del 2024, rispetto a una perdita netta di 3,2 milioni di dollari nel secondo trimestre del 2023. Per il primo semestre del 2024, l'utile netto è stato di 27,7 milioni di dollari, in aumento rispetto a una perdita di 9,0 milioni di dollari nel primo semestre del 2023. Il miglioramento è stato principalmente attribuito a risultati operativi più elevati dal segmento Chimici.
Le vendite nette del segmento Chimici sono aumentate del 13% a 500,5 milioni di dollari nel secondo trimestre del 2024, stimolate da volumi di vendita di TiO2 superiori del 29%, parzialmente compensate da prezzi di vendita medi più bassi. L'utile operativo per il segmento è stato di 40,5 milioni di dollari nel secondo trimestre del 2024, rispetto a una perdita di 2,6 milioni di dollari nel secondo trimestre del 2023.
Il segmento Prodotti Componenti ha registrato una leggera diminuzione delle vendite nette, mentre il segmento Gestione e Sviluppo Immobiliare ha affrontato una diminuzione delle vendite a causa dei ritardi nell'ottenere i permessi comunali.
Valhi, Inc. (NYSE: VHI) reportó un ingreso neto de 19,9 millones de dólares, o 0,70 dólares por acción, en el segundo trimestre de 2024, en comparación con una pérdida neta de 3,2 millones de dólares en el segundo trimestre de 2023. Para el primer semestre de 2024, el ingreso neto fue de 27,7 millones de dólares, en comparación con una pérdida de 9,0 millones de dólares en el primer semestre de 2023. La mejora se debió principalmente a mejores resultados operativos del Segmento Químico.
Las ventas netas del Segmento Químico aumentaron un 13% a 500,5 millones de dólares en el segundo trimestre de 2024, impulsadas por volúmenes de ventas de TiO2 un 29% más altos, parcialmente compensados por precios de venta promedio más bajos. El ingreso operativo para el segmento fue de 40,5 millones de dólares en el segundo trimestre de 2024, en comparación con una pérdida de 2,6 millones de dólares en el segundo trimestre de 2023.
El Segmento de Productos Componentes experimentó una ligera disminución en las ventas netas, mientras que el Segmento de Administración y Desarrollo Inmobiliario vio disminuir sus ventas debido a retrasos en la obtención de permisos municipales.
Valhi, Inc. (NYSE: VHI)는 2024년 2분기에 1,990만 달러의 순이익, 즉 주당 0.70달러를 보고하였고, 이는 2023년 2분기에 320만 달러의 순손실에 비해 개선된 수치입니다. 2024년 상반기 동안 순이익은 2,770만 달러로, 2023년 상반기에 900만 달러의 손실에서 증가했습니다. 이러한 개선은 주로 화학 부문의 운영 결과 향상에 기인합니다.
화학 부문의 순매출은 2024년 2분기에 13% 증가한 5억 5백만 달러에 달하며, 이는 29% 증가한 TiO2 판매량에 의해 주도되었으나, 평균 판매 가격 하락으로 일부 상쇄되었습니다. 이 부문의 운영 수익은 2024년 2분기에 4,050만 달러로, 2023년 2분기에 260만 달러의 손실에 비해 개선되었습니다.
부품 제품 부문은 순매출이 약간 감소했으며, 부동산 관리 및 개발 부문은 도시 허가를 받는 데 지연이 있어 매출이 줄어들었습니다.
Valhi, Inc. (NYSE: VHI) a annoncé un revenu net de 19,9 millions de dollars, soit 0,70 dollar par action, au 2e trimestre 2024, contre une perte nette de 3,2 millions de dollars au 2e trimestre 2023. Pour le premier semestre 2024, le revenu net s'élevait à 27,7 millions de dollars, en hausse par rapport à une perte de 9,0 millions de dollars au premier semestre 2023. Cette amélioration est principalement due à de meilleurs résultats opérationnels du segment Chimique.
Les ventes nettes du segment Chimique ont augmenté de 13 % pour atteindre 500,5 millions de dollars au 2e trimestre 2024, soutenues par des volumes de ventes de TiO2 en hausse de 29 %, partiellement compensés par des prix de vente moyens plus bas. Le revenu opérationnel du segment s'élevait à 40,5 millions de dollars au 2e trimestre 2024, contre une perte de 2,6 millions de dollars au 2e trimestre 2023.
Le segment Produits Composants a connu une légère diminution des ventes nettes, tandis que le segment Gestion et Développement Immobilier a enregistré des ventes plus faibles en raison de retards dans l'obtention des permis municipaux.
Valhi, Inc. (NYSE: VHI) berichtete über einen Nettoverlust von 19,9 Millionen US-Dollar, oder 0,70 US-Dollar pro Aktie, im 2. Quartal 2024, im Vergleich zu einem Nettoverlust von 3,2 Millionen US-Dollar im 2. Quartal 2023. Für das 1. Halbjahr 2024 betrug der Nettoertrag 27,7 Millionen US-Dollar, was eine Verbesserung im Vergleich zu einem Verlust von 9,0 Millionen US-Dollar im 1. Halbjahr 2023 darstellt. Die Verbesserung wurde hauptsächlich durch höhere Betriebsergebnisse des Chemiesegments erreicht.
Die Nettoverkäufe im Chemiesegment stiegen im 2. Quartal 2024 um 13 % auf 500,5 Millionen US-Dollar, angetrieben durch 29 % höhere TiO2-Verkaufsvolumen, die teilweise durch niedrigere Durchschnittspreise ausgeglichen wurden. Das Betriebsergebnis für das Segment betrug im 2. Quartal 2024 40,5 Millionen US-Dollar, im Vergleich zu einem Verlust von 2,6 Millionen US-Dollar im 2. Quartal 2023.
Das Segment Komponentenprodukte verzeichnete einen leichten Rückgang der Nettoverkäufe, während das Segment Immobilienverwaltung und -entwicklung aufgrund von Verzögerungen bei der Erlangung von städtischen Genehmigungen geringere Verkaufszahlen hatte.
- Net income increased to $19.9 million in Q2 2024 from a loss of $3.2 million in Q2 2023
- Chemicals Segment net sales grew 13% to $500.5 million in Q2 2024
- TiO2 sales volumes increased 29% in Q2 2024 compared to Q2 2023
- Chemicals Segment operating income improved to $40.5 million in Q2 2024 from a $2.6 million loss in Q2 2023
- Production rates increased to 93% of practical capacity utilization in H1 2024, up from 70% in H1 2023
- Average TiO2 selling prices were 8% lower in Q2 2024 compared to Q2 2023
- Component Products Segment net sales decreased slightly in Q2 2024
- Real Estate Management and Development Segment sales decreased due to delays in obtaining city permits
- Corporate expenses increased 9% in Q2 2024 compared to Q2 2023
- Interest expense increased $4.7 million in Q2 2024 due to higher interest rates from debt refinancing
Insights
Valhi's Q2 2024 results show a significant turnaround, with net income of
- A
29% increase in TiO2 sales volumes - Improved production efficiency, with capacity utilization reaching
99% in Q2 - Lower production costs, particularly in energy and raw materials
However, average TiO2 selling prices were
The TiO2 market shows signs of recovery, with Valhi reporting strengthening demand across all major markets. This aligns with broader economic indicators suggesting improved industrial activity. However, the persistent lower selling prices indicate ongoing competitive pressures in the industry. The
Valhi's closure of its sulfate process line in Canada, resulting in a
Dallas, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of
The Chemicals Segment’s net sales of
The Chemicals Segment’s operating income in the second quarter of 2024 was
The Chemicals Segment’s operating loss in the first six months of 2023 includes an insurance settlement gain related to a 2020 business interruption insurance claim of
The Component Products Segment’s net sales were
The Real Estate Management and Development Segment had sales of
Corporate expenses were
The net loss attributable to Valhi stockholders for the second quarter and the first six months of 2023 includes a non-cash loss of
The statements in this press 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 the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will 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 predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause our 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 Louisiana Pigment Company, L.P. (LPC) into Kronos’ operations and realize expected synergies and innovations;
- The extent of the dependence of certain of our businesses on certain market sectors;
- The cyclicality of certain of our businesses (such as Kronos’ TiO2 operations);
- Customer and producer inventory levels;
- Unexpected or earlier-than-expected industry capacity expansion (such as the TiO2 industry);
- Changes in raw material and other operating costs (such as ore, zinc, brass, aluminum, steel and energy 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, reduce demand or perceived demand for TiO2, component products and land held for development 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 difficulties in upgrading or implementing accounting and manufacturing software systems;
- Potential consolidation of our competitors;
- Potential consolidation of our customers;
- The impact of pricing and production decisions;
- Competitive technology positions;
- Our ability to protect or defend intellectual property rights;
- The introduction of trade barriers or trade disputes;
- The ability of our subsidiaries to pay us dividends;
- Uncertainties associated with new product development and the development of new product features;
- 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;
- Decisions to sell operating assets other than in the ordinary course of business;
- The timing and amounts of insurance recoveries;
- 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, or new developments regarding environmental remediation or decommissioning obligations at sites related to our former operations);
- Government laws and regulations and possible changes therein (such as changes in government regulations which might impose various obligations on former manufacturers of lead pigment and lead-based paint, including NL, with respect to asserted health concerns associated with the use of such products) including new environmental, health and safety, sustainability or other regulations (such as those seeking to limit or classify TiO2 or its use);
- The ultimate resolution of pending litigation (such as NL’s lead pigment and environmental matters);
- Our ability to comply with covenants contained in our revolving bank credit facilities;
- Our ability to complete and comply with the conditions of our licenses and permits;
- Changes in real estate values and construction costs in Henderson, Nevada; and
- Pending or possible future litigation or other actions.
Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
Valhi, Inc. is engaged in the chemicals (TiO2), component products (security products and recreational marine components) and real estate management and development industries.
*****
Investor Relations Contact
Bryan A. Hanley
Senior Vice President and Treasurer
Tel. 972-233-1700
VALHI, INC. AND SUBSIDIARIES
CONDENSED SUMMARY OF OPERATIONS
(In millions, except earnings per share)
Three months ended | Six months ended | |||||||||||
June 30, | June 30, | |||||||||||
2023 | 2024 | 2023 | 2024 | |||||||||
(unaudited) | ||||||||||||
Net sales | ||||||||||||
Chemicals | $ | 443.2 | $ | 500.5 | $ | 869.5 | $ | 979.3 | ||||
Component products | 36.6 | 35.9 | 77.8 | 73.9 | ||||||||
Real estate management and development | 27.3 | 23.3 | 52.5 | 37.1 | ||||||||
Total net sales | $ | 507.1 | $ | 559.7 | $ | 999.8 | $ | 1,090.3 | ||||
Operating income (loss) | ||||||||||||
Chemicals | $ | (2.6) | $ | 40.5 | $ | (17.7) | $ | 63.3 | ||||
Component products | 4.4 | 5.1 | 11.4 | 8.8 | ||||||||
Real estate management and development | 10.2 | 9.2 | 20.8 | 14.2 | ||||||||
Total operating income | 12.0 | 54.8 | 14.5 | 86.3 | ||||||||
General corporate items: | ||||||||||||
Interest income and other | 4.7 | 5.5 | 9.6 | 11.2 | ||||||||
Gain on land sales | 1.5 | — | 1.5 | — | ||||||||
Other components of net periodic pension and OPEB expense | (7.5) | (.6) | (8.7) | (1.2) | ||||||||
Changes in market value of Valhi common stock held by subsidiaries | (1.1) | .1 | (2.2) | .6 | ||||||||
General expenses, net | (9.5) | (10.3) | (17.4) | (18.1) | ||||||||
Interest expense | (7.2) | (11.9) | (14.2) | (23.2) | ||||||||
Income (loss) before income taxes | (7.1) | 37.6 | (16.9) | 55.6 | ||||||||
Income tax expense (benefit) | (6.8) | 7.9 | (12.0) | 12.3 | ||||||||
Net income (loss) | (.3) | 29.7 | (4.9) | 43.3 | ||||||||
Noncontrolling interest in net income of subsidiaries | 2.9 | 9.8 | 4.1 | 15.6 | ||||||||
Net income (loss) attributable to Valhi stockholders | $ | (3.2) | $ | 19.9 | $ | (9.0) | $ | 27.7 | ||||
Amounts attributable to Valhi stockholders: | ||||||||||||
Basic and diluted net income (loss) per share | $ | (.11) | $ | .70 | $ | (.31) | $ | .97 | ||||
Basic and diluted weighted average shares outstanding | 28.5 | 28.5 | 28.5 | 28.5 |
VALHI, INC. AND SUBSIDIARIES
IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES
(unaudited)
Three months ended | Six months ended | ||||||
June 30, | June 30, | ||||||
2024 vs. 2023 | 2024 vs. 2023 | ||||||
Percentage change in TiO2 net sales: | |||||||
TiO2 sales volumes | 29 | % | 28 | % | |||
TiO2 product pricing | (8) | (9) | |||||
TiO2 product mix/other | (8) | (7) | |||||
Changes in currency exchange rates | — | 1 | |||||
Total | 13 | % | 13 | % |
FAQ
What was Valhi's (VHI) net income for Q2 2024?
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How did Valhi's (VHI) Component Products Segment perform in Q2 2024?