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Mar 31, 2021
Tronox Q1 2021 Earnings Report
Tronox achieved record TiO2 and Zircon sales volumes driven by robust market strength and Adjusted EBITDA ahead of management's guidance.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
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.
Positive Outlook
- TiO2 sales volumes expected to increase in the low- to mid-single digit percent range over record-breaking first quarter levels
- Zircon sales volumes expected to remain elevated above 2019 and 2020 quarterly volume levels, though off of first quarter peak
- TiO2 and zircon prices expected to increase as regional price initiatives progress
Challenges Ahead
- Sequential headwinds from unfavorable foreign exchange rates
- Inflation
- Planned maintenance shutdown of our Australian Northern Operations synthetic rutile production facility
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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