Tronox swung to a Q4 net loss and warned that Q1 earnings could fall sharply year on year, the US-based pigment producer said.
The following table shows the company's Q4 financial performance. Income fell because sales fell faster than costs.
During the second half of 2022, Tronox said a significant market pullback started in China and then spread to the rest of the Asia-Pacific region as well as Europe, the Middle East and Africa (EMEA) and the Americas.
For the first quarter, Tronox expects to report USD120m-130m in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). That is down from USD240m in adjusted EBITDA that Tronox reported in Q1 2022.
First quarter sales volumes for TiO2 should rise versus the fourth quarter by the low- to mid-teens percent, Tronox said. Year on year, they should decline. The company will continue to contend with the aftermath of a fire at its KZN mineral separation plant in South Africa and floods at its Gingko and Atlas Campaspe mines in Australia.
The fire and floods should affect the amount of zircon that is available for sale and the cost of ore produced from the new mine in Australia. Zircon production and ore costs should improve during the first quarter.
In South Africa, Tronox's KwaZulu-Natal (KZN) Sands operations include the Fairbreeze mine, a concentration plant, a mineral separation plant and two smelting furnaces that produce titanium slag.
We remind, Tronox reported an increase in third-quarter net income on increased sales and a tax benefit, said the company. The following table shows the company’s financial performance. Figures are in millions of dollars. The company said revenue was up year on year driven by higher prices for titanium dioxide (TiO2), zircon and pig iron and on higher pig iron volumes. John D Romano, co-CEO, said the results were despite a significant reduction in demand in Europe, Middle East, Africa, and Asia Pacific.
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