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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.

Total Revenue
$421M
Previous year: $437M
-3.6%
EPS
$0.23
Previous year: $0.26
-11.5%
TiO2 Segment Profit
$47.2M
Previous year: $53.3M
-11.4%
EBITDA
$54.9M
Previous year: $58.5M
-6.2%
TiO2 Sales Volume
136K
Previous year: 143K
-4.9%
Gross Profit
$88.1M

Kronos

Kronos

Kronos Revenue by Segment

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.