Loading...
•
Sep 30, 2023
Kronos Q3 2023 Earnings Report
Kronos Worldwide reported a net loss due to lower sales volumes and average TiO2 selling prices.
Key Takeaways
Kronos Worldwide, Inc. reported a net loss of $20.4 million, or $.18 per share, in the third quarter of 2023, compared to a net income of $21.0 million, or $.18 per share, in the third quarter of 2022. The decrease in net income was primarily due to lower income from operations, resulting from lower sales volumes and average TiO2 selling prices.
Net sales decreased by 14% compared to the third quarter of 2022, totaling $396.9 million.
TiO2 sales volumes were 6% lower than in the third quarter of 2022.
Average TiO2 selling prices were 8% lower than in the third quarter of 2022.
The TiO2 segment experienced a loss of $21.4 million, compared to a profit of $34.6 million in the third quarter of 2022.
Kronos
Kronos
Forward Guidance
The company is focused on preserving liquidity by operating plants at reduced rates and implementing cost-saving measures. Improved demand is beginning to be seen in certain markets.
Positive Outlook
- Process improvements and manufacturing efficiencies have reduced the impact of unabsorbed fixed costs.
- Cost savings measures should result in improved margins.
- Decisive steps taken to preserve liquidity, improve manufacturing flexibility, and reduce costs will continue to drive value in 2024 and beyond.
- The company is beginning to see improved demand in certain markets.
- Low customer inventories and reduced capacity in the industry will fuel a return to profitability when demand returns to normal levels.
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