VALHI REPORTS THIRD QUARTER 2024 RESULTS
Valhi (NYSE: VHI) reported significant financial improvements in Q3 2024, with net income of $57.5 million ($2.01 per share) compared to a net loss of $5.8 million in Q3 2023. The Chemicals Segment's net sales increased 22% to $484.7 million, driven by higher sales volumes and strengthening TiO2 demand. A key highlight was the acquisition of Louisiana Pigment Company, resulting in a non-cash gain of $64.5 million. The company's TiO2 sales volumes increased 21% in Q3 2024, with production rates reaching 92% of capacity. However, Component Products Segment saw decreased performance with net sales declining to $33.6 million from $40.3 million in Q3 2023.
Valhi (NYSE: VHI) ha riportato significativi miglioramenti finanziari nel terzo trimestre del 2024, con un reddito netto di 57,5 milioni di dollari (2,01 dollari per azione) rispetto a una perdita netta di 5,8 milioni di dollari nel terzo trimestre del 2023. Le vendite nette del segmento Chimici sono aumentate del 22%, raggiungendo 484,7 milioni di dollari, grazie a maggiori volumi di vendita e a una domanda in crescita di TiO2. Un punto saliente è stata l'acquisizione della Louisiana Pigment Company, che ha comportato un guadagno non monetario di 64,5 milioni di dollari. I volumi di vendita di TiO2 dell'azienda sono aumentati del 21% nel terzo trimestre del 2024, con tassi di produzione che hanno raggiunto il 92% della capacità. Tuttavia, il segmento Prodotti Componenti ha mostrato un calo delle prestazioni, con vendite nette scese a 33,6 milioni di dollari rispetto ai 40,3 milioni di dollari nel terzo trimestre del 2023.
Valhi (NYSE: VHI) reportó importantes mejoras financieras en el tercer trimestre de 2024, con un ingreso neto de 57.5 millones de dólares (2.01 dólares por acción) en comparación con una pérdida neta de 5.8 millones de dólares en el tercer trimestre de 2023. Las ventas netas del segmento de Químicos aumentaron un 22%, alcanzando los 484.7 millones de dólares, impulsadas por mayores volúmenes de ventas y una demanda creciente de TiO2. Un aspecto destacado fue la adquisición de Louisiana Pigment Company, lo que resultó en una ganancia no monetaria de 64.5 millones de dólares. Los volúmenes de ventas de TiO2 de la compañía aumentaron un 21% en el tercer trimestre de 2024, con tasas de producción alcanzando el 92% de la capacidad. Sin embargo, el segmento de Productos de Componentes experimentó un rendimiento decreciente, con ventas netas cayendo a 33.6 millones de dólares desde los 40.3 millones de dólares en el tercer trimestre de 2023.
Valhi (NYSE: VHI)는 2024년 3분기에 5,780만 달러의 순손실에서 5,750만 달러(주당 2.01달러)의 순이익으로 상당한 재무 개선을 보고했습니다. 화학 부문의 순매출은 판매량 증가와 TiO2 수요 증가에 힘입어 22% 증가하여 4억 8,470만 달러에 달했습니다. 주요 하이라이트는 루이지애나 색소 회사 인수로, 비현금 이익이 6,450만 달러에 달했습니다. 회사의 TiO2 판매량은 2024년 3분기에 21% 증가했으며 생산 비율은 92%에 도달했습니다. 그러나 구성 요소 제품 부문에서는 성과가 감소하여 2023년 3분기 4,030만 달러에서 3,360만 달러로 순매출이 감소했습니다.
Valhi (NYSE: VHI) a rapporté des améliorations financières significatives au troisième trimestre de 2024, avec un revenu net de 57,5 millions de dollars (2,01 dollars par action) par rapport à une perte nette de 5,8 millions de dollars au troisième trimestre de 2023. Les ventes nettes du segment Chimie ont augmenté de 22% pour atteindre 484,7 millions de dollars, soutenues par des volumes de vente plus élevés et une demande croissante de TiO2. Un point marquant a été l'acquisition de Louisiana Pigment Company, entraînant un gain non monétaire de 64,5 millions de dollars. Les volumes de vente de TiO2 de l'entreprise ont augmenté de 21% au troisième trimestre de 2024, avec des taux de production atteignant 92% de la capacité. Cependant, le segment Produits Composants a affiché des performances en baisse, avec des ventes nettes passant de 40,3 millions de dollars au troisième trimestre de 2023 à 33,6 millions de dollars.
Valhi (NYSE: VHI) meldete erhebliche finanzielle Verbesserungen im 3. Quartal 2024, mit einem Nettogewinn von 57,5 Millionen US-Dollar (2,01 US-Dollar pro Aktie) im Vergleich zu einem Nettverlust von 5,8 Millionen US-Dollar im 3. Quartal 2023. Die Nettoumsätze im Chemiesegment stiegen um 22% auf 484,7 Millionen US-Dollar, angetrieben durch höhere Verkaufsvolumina und eine wachsende Nachfrage nach TiO2. Ein herausragendes Ereignis war die Übernahme der Louisiana Pigment Company, die einen nicht monetären Gewinn von 64,5 Millionen US-Dollar zur Folge hatte. Die Verkaufsvolumina von TiO2 des Unternehmens stiegen im 3. Quartal 2024 um 21%, wobei die Produktionsrate 92% der Kapazität erreichte. Allerdings verzeichnete das Segment Komponentenprodukte eine geringere Leistung, da die Nettoumsätze von 40,3 Millionen US-Dollar im 3. Quartal 2023 auf 33,6 Millionen US-Dollar sanken.
- Net income improved to $57.5 million in Q3 2024 from a loss of $5.8 million in Q3 2023
- Chemicals Segment net sales increased 22% to $484.7 million
- TiO2 sales volumes increased 21% in Q3 2024
- Production rates improved to 93% of practical capacity in first nine months of 2024
- Non-cash gain of $64.5 million from Louisiana Pigment Company acquisition
- Component Products Segment sales decreased to $33.6 million from $40.3 million in Q3 2023
- Average TiO2 selling prices were 1% lower in Q3 2024 vs Q3 2023
- Interest expense increased $6.2 million in Q3 2024 due to higher rates
- Real Estate Management sales declined to $15.3 million from $31.7 million in Q3 2023
Insights
The Q3 2024 results show significant improvement with
- Chemicals segment revenue up
22% to$484.7 million , driven by21% higher TiO2 sales volumes - Strategic acquisition of Louisiana Pigment Company resulted in
$64.5 million non-cash gain - Production capacity utilization increased to
93% in 2024 from71% in 2023 - Component Products segment saw decline with
$33.6 million sales vs$40.3 million in Q3 2023
The improved performance stems from higher chemical sales volumes, lower production costs and strategic acquisitions, though partially offset by lower TiO2 prices and increased interest expenses from recent debt financing.
The market dynamics reveal important trends in Valhi's core segments. The Chemicals division shows robust demand recovery across major markets, despite lower TiO2 pricing. Production efficiency gains and cost reductions have significantly improved profitability. However, the Component Products segment faces headwinds from reduced government contracts and slower towboat market demand. The Real Estate segment's performance is hampered by regulatory delays, highlighting the impact of external factors on revenue recognition timing. These mixed segment performances suggest a transitional period with chemicals leading the recovery while other divisions adjust to market challenges.
Dallas, Texas, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE: VHI) reported net income attributable to Valhi stockholders of
As previously reported, effective July 16, 2024, the Chemicals Segment acquired the
The Chemicals Segment’s net sales of
The Chemicals Segment’s operating income in the third quarter of 2024 was
The Chemicals Segment’s operating loss in the first nine 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 in the third quarter and first nine months of 2024 were comparable to the same periods in 2023. Interest income and other increased $.5 million in the third quarter of 2024 and
The net income attributable to Valhi stockholders for the first nine months of 2024 includes income 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 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 | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||
| (unaudited) | ||||||||||||
| Net sales | ||||||||||||
| Chemicals | $ | 396.9 | $ | 484.7 | $ | 1,266.4 | $ | 1,464.0 | ||||
| Component products | 40.3 | 33.6 | 118.1 | 107.5 | ||||||||
| Real estate management and development | 31.7 | 15.3 | 84.2 | 52.4 | ||||||||
| Total net sales | $ | 468.9 | $ | 533.6 | $ | 1,468.7 | $ | 1,623.9 | ||||
| Operating income (loss) | ||||||||||||
| Chemicals | $ | (21.8) | $ | 42.6 | $ | (39.5) | $ | 105.9 | ||||
| Component products | 6.6 | 3.3 | 18.0 | 12.1 | ||||||||
| Real estate management and development | 17.7 | 21.8 | 38.5 | 36.0 | ||||||||
| Total operating income | 2.5 | 67.7 | 17.0 | 154.0 | ||||||||
| General corporate items: | ||||||||||||
| Interest income and other | 4.9 | 5.4 | 14.5 | 16.6 | ||||||||
| Gain on remeasurement of investment in TiO2 manufacturing joint venture | — | 64.5 | — | 64.5 | ||||||||
| Insurance recoveries | .3 | 1.1 | .4 | 1.3 | ||||||||
| Gain on land sales | — | — | 1.5 | — | ||||||||
| Other components of net periodic pension and OPEB expense | (1.3) | (.6) | (10.0) | (1.8) | ||||||||
| Changes in market value of Valhi common stock held by subsidiaries | .1 | 3.7 | (2.1) | 4.3 | ||||||||
| General expenses, net | (8.8) | (8.5) | (26.3) | (26.8) | ||||||||
| Interest expense | (7.2) | (13.4) | (21.4) | (36.6) | ||||||||
| Income (loss) before income taxes | (9.5) | 119.9 | (26.4) | 175.5 | ||||||||
| Income tax expense (benefit) | (7.8) | 34.3 | (19.8) | 46.6 | ||||||||
| Net income (loss) | (1.7) | 85.6 | (6.6) | 128.9 | ||||||||
| Noncontrolling interest in net income of subsidiaries | 4.1 | 28.1 | 8.2 | 43.7 | ||||||||
| Net income (loss) attributable to Valhi stockholders | $ | (5.8) | $ | 57.5 | $ | (14.8) | $ | 85.2 | ||||
| Amounts attributable to Valhi stockholders: | ||||||||||||
| Basic and diluted net income (loss) per share | $ | (.21) | $ | 2.01 | $ | (.52) | $ | 2.99 | ||||
| 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 | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 vs. 2023 | 2024 vs. 2023 | ||||||
| Percentage change in TiO2 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 Valhi's (VHI) net income for Q3 2024?
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