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Mar 31, 2020
Kronos Q1 2020 Earnings Report
Kronos Worldwide reported a decrease in net income and sales for Q1 2020 due to lower sales volumes and higher production costs.
Key Takeaways
Kronos Worldwide reported a decrease in net income to $27.0 million, or $.23 per share, compared to $30.3 million, or $.26 per share, in Q1 2019. Net sales also decreased to $421.0 million, a 4% decrease compared to Q1 2019, primarily due to lower sales volumes. The company noted that COVID-19 had limited impact on operations during the first quarter but expects lower sales and earnings for the remainder of 2020.
Net income decreased to $27.0 million, or $.23 per share, compared to $30.3 million, or $.26 per share in Q1 2019.
Net sales decreased by 4% to $421.0 million due to lower sales volumes.
TiO2 sales volumes were 5% lower due to decreased sales in North American, Latin American, and export markets.
The company anticipates lower sales and earnings for the remainder of 2020 due to the COVID-19 pandemic.
Kronos
Kronos
Forward Guidance
Kronos Worldwide anticipates lower sales and earnings for the remainder of 2020 due to the COVID-19 pandemic's impact on U.S. and worldwide gross domestic product and demand.
Challenges Ahead
- U.S. and worldwide gross domestic product will be significantly impacted.
- Demand for our products and those of our customers will be impacted.
- Lower sales are expected.
- Lower earnings are expected.
- The extent of the impact will depend on numerous factors and is uncertain.