Tronox reported a strong first quarter in 2021, with record revenue driven by double-digit growth in TiO2 and zircon volumes and higher TiO2 average selling prices. The company's performance exceeded expectations due to exceptional demand across all regions and end markets.
Record revenue of $891 million increased 14 percent sequentially, driven primarily by double-digit growth in both TiO2 and zircon volumes and 3 percent higher TiO2 average selling prices.
Adjusted EBITDA of $225 million, ahead of guidance; Adjusted EBITDA margin of 25 percent.
TiO2 sales volumes increased 15 percent sequentially, driven by global demand strength led by growth in Europe and Asia Pacific; TiO2 average selling prices increased 3 percent sequentially, with price increases implemented in all regions.
Zircon sales volumes increased 30 percent sequentially as a result of stronger than expected market growth, particularly in China, while selling prices remained level.
Tronox anticipates TiO2 sales volumes will increase in the low- to mid-single digit percent range, zircon sales volumes are expected to remain elevated, and TiO2 and zircon prices are expected to increase. Adjusted EBITDA is expected to be $225-$240 million.
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