Loading...
•
Mar 31, 2024
Kronos Q4 2024 Earnings Report
Kronos Worldwide, Inc. reported a net loss in Q4 2024, primarily due to increased income tax expense, despite higher income from operations.
Key Takeaways
Kronos Worldwide, Inc. reported a net loss of $13.2 million, or $0.12 per share, in the fourth quarter of 2024. This was primarily due to increased income tax expense, including non-cash deferred income tax expenses related to currency translation gains and losses and a valuation allowance on Belgian net deferred tax assets. Despite the net loss, income from operations increased significantly due to higher sales and production volumes and lower production costs.
Net loss in Q4 2024 was $13.2 million, or $0.12 per share, compared to a net loss of $5.3 million, or $0.05 per share, in Q4 2023.
Income before income taxes increased by $24.9 million in Q4 2024 compared to Q4 2023, driven by higher income from operations.
Net sales increased by $23.0 million, or 6%, in Q4 2024 compared to Q4 2023, primarily due to higher sales volumes and average TiO2 selling prices.
TiO2 sales volumes were 4% higher in Q4 2024 compared to Q4 2023, and average TiO2 selling prices were 2% higher.
Kronos
Kronos
Forward Guidance
The company's forward-looking statements indicate a focus on managing supply and demand, realizing cost savings, and integrating acquisitions, while acknowledging various market and operational risks.
Positive Outlook
- Ability to realize expected cost savings from strategic and operational initiatives.
- Ability to integrate acquisitions, including LPC, and realize expected synergies and innovations.
- Potential for improved future supply and demand for products.
- Potential for competitive technology positions.
- Ability to renew or refinance credit facilities or other debt instruments.
Challenges Ahead
- Uncertainty regarding future supply and demand for products.
- Risks related to unexpected or earlier-than-expected industry capacity expansion.
- Potential for changes in raw material and other operating costs (energy and ore costs).
- Impact of general global economic and political conditions, including disruptions to supply chain and increased material/energy costs.
- Risks from operating interruptions, technology disruptions, and competitive pressures from Chinese suppliers with less stringent regulations.