Loading...
•
Sep 30, 2020
Tronox Q3 2020 Earnings Report
Reported strong TiO2 volume recovery and raised the acquisition synergy target.
Key Takeaways
Tronox's third quarter results showed sequential growth driven by improved market conditions. TiO2 volumes increased 16 percent quarter over quarter, while pricing remained level. The company delivered Adjusted EBITDA of $148 million and an Adjusted EBITDA margin of 22 percent.
Revenue of $675 million increased 17 percent sequentially on improved market demand
Net income of $902 million primarily due to the reversal of a portion of U.S. valuation allowance relating to net operating loss carryforwards resulting in a non-cash benefit of $895 million
Adjusted EBITDA of $148 million with Adjusted EBITDA margin of 22 percent
Total year-to-date acquisition synergies of $183 million, raising total synergy target for FY 2020 to $235 million
Revenue by Segment
Forward Guidance
Tronox anticipates a favorable deviation from normal fourth quarter seasonality, resulting in strong fourth quarter TiO2 sales volumes at or above third quarter 2020 and fourth quarter 2019 levels. Adjusted EBITDA in the fourth quarter is expected to be in the range of $155 to $170 million with an Adjusted EBITDA margin improvement back to first half 2020 levels.
Positive Outlook
- Strong sales trends reflect a favorable deviation from typical fourth quarter seasonality
- Anticipate TiO2 sales volumes at or above Q3 2020 and Q4 2019
- Q4 zircon sales volume to be the strongest quarter of the year
- Zircon sales expected to increase in the range of 25 percent sequentially
- Adjusted EBITDA margin to recover to first half of 2020 levels
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...