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Kronos reports Q2 2017 results

August 09/2017

MOSCOW (MRC) -- Kronos Worldwide, Inc. reported net income of USD196.5 million, or USD1.70 per share, in the second quarter of 2017 compared to net income of USD1.7 million, or USD.01 per share, in the second quarter of 2016, as per Euroinvestor

For the first six months of 2017, Kronos Worldwide reported net income of USD233.3 million, or USD2.01 per share, compared to a net loss of USD2.1 million, or USD.02 per share in the first six months of 2016.  We reported higher net income in the 2017 periods as compared to the 2016 periods in part due to higher income from operations in 2017 resulting from the favorable effects of higher average selling prices, higher sales and production volumes and lower raw materials and other production costs.   In addition, our results in the 2017 periods include the recognition of a non-cash deferred income tax benefit as a result of a net decrease in our deferred income tax asset valuation allowance related to our German and Belgian operations, as discussed below.

Net sales of USD441.4 million in the second quarter of 2017 were USD85.3 million, or 24%, higher than in the second quarter of 2016.  Net sales of USD811.2 million in the first six months of 2017 were USD136.7 million, or 20%, higher than in the first six months of 2016.  Net sales increased in 2017 due to higher average TiO2 selling prices and higher sales volumes.  The Company's average TiO2 selling prices were 20% higher in the second quarter of 2017 as compared to the second quarter of 2016 and were 19% higher in the first six months of the year as compared to the same prior year period.  The Company's average selling prices at the end of the second quarter of 2017 were 8% higher than at the end of the first quarter of 2017, and were 12% higher than at the end of 2016, with higher prices in all major markets.  TiO2 sales volumes in the second quarter of 2017 were 6% higher as compared to the same period in 2016 due to higher sales in the North American and European markets, partially offset by lower sales in the Latin American market. TiO2 sales volumes in the first six months of 2017 were 5% higher than the same period in 2016 due to higher sales in the North American and export markets, partially offset by lower sales in the Latin American market.  Kronos' sales volumes in the second quarter and first six months of 2017 set a new overall record for a second quarter and first-six-month period.  Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, decreasing net sales by approximately USD8 million in the second quarter 2017 and approximately USD15 million in the first six months of 2017 as compared to the same periods in 2016.  The table at the end of this press release shows how each of these items impacted the overall increase in sales.

The Company's TiO2 segment profit (see description of non-GAAP information below) in the second quarter of 2017 was USD73.7 million as compared to USD13.4 million in the second quarter of 2016.  For the year-to-date period, the Company's segment profit was USD130.2 million as compared to USD17.2 million in the first six months of 2016.  Segment profit increased in the 2017 periods primarily due to higher average TiO2 selling prices, higher sales and production volumes and lower raw materials and other production costs.  Kronos' TiO2 production volumes were 8% higher in the second quarter and 9% higher in the first six months of 2017 as compared to the same periods in 2016.  We operated our production facilities at an overall average capacity utilization rates of 100% in the first six months of 2017 (approximately 100% of practical capacity in the first and second quarters) compared to approximately 96% in the first six months of 2016 (97% and 95% in the first and second quarters of 2016, respectively).  Fluctuations in currency exchange rates also affected segment profit comparisons, which decreased segment profit by approximately USD5 million in the second quarter and by approximately USD13 million in the year-to-date period.

Kronos Worldwide, Inc. is a major international producer of titanium dioxide products.


mrcplast.com
Author:Anna Larionova
Tags:dioksid titana, Kronos.
Category:General News
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