Kronos Q3 2020 Earnings Report
Key Takeaways
Kronos Worldwide reported a decrease in net income for Q3 2020, with net income at $8.1 million, or $0.07 per share, compared to $17.9 million, or $0.16 per share, in Q3 2019. The decrease was primarily due to lower sales volumes and lower average TiO2 selling prices, partially offset by lower production costs.
Net income decreased to $8.1 million, or $0.07 per share, compared to $17.9 million, or $0.16 per share, in the third quarter 2019.
Net sales were $416.9 million, a decrease of 5% compared to Q3 2019.
TiO2 sales volumes decreased by 6% compared to the same quarter last year.
Average TiO2 selling prices were 4% lower compared to Q3 2019.
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Kronos Revenue by Segment
Forward Guidance
The extent of the COVID-19 impact on our future operations will depend on the time period and degree to which the COVID-19 pandemic persists in the global economy thereby reducing customer demand for certain of our products, including the timing and extent to which our customers’ operations continue to be impacted, our customers’ perception as to when consumer demand for their products will return to pre-pandemic levels and on any future disruptions in our operations or our suppliers’ operations, all of which are difficult to predict.
Challenges Ahead
- Future supply and demand for our products
- 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