Core Insights - Kronos Worldwide, Inc. reported a net income of $18.1 million, or $0.16 per share, for Q1 2025, a significant increase from $8.1 million, or $0.07 per share, in Q1 2024, primarily driven by higher sales and production volumes, increased TiO2 selling prices, and reduced production costs [1][11] Financial Performance - Net sales for Q1 2025 reached $489.8 million, reflecting a $11.0 million, or 2%, increase compared to Q1 2024, attributed to higher sales volumes in North America and Europe, despite lower export sales [2] - The TiO2 segment profit for Q1 2025 was $41.6 million, up from $23.4 million in Q1 2024, driven by increased sales and production volumes, higher TiO2 prices, and lower production costs [3][10] - EBITDA for Q1 2025 was reported at $51.2 million, compared to $31.7 million in Q1 2024, indicating improved operational efficiency [4][14] Production and Sales Metrics - TiO2 production volumes increased by 18% in Q1 2025 compared to Q1 2024, with production facilities operating at average capacities of 93% in 2025 versus 87% in 2024 [3][10] - Average TiO2 selling prices were 2% higher at the start of 2025 compared to the beginning of 2024, although they declined by 3% during Q1 2025 due to market pressures [2][15] Currency Impact - Currency exchange rate fluctuations, particularly with the euro, negatively impacted net sales by approximately $11 million and segment profit by about $5 million in Q1 2025 compared to Q1 2024 [2][3]

Dallas, Texas, April 15, 2025 (GLOBE NEWSWIRE) -- Kronos Worldwide, Inc. (NYSE: KRO) announced today that, subject to the completion of quarter-end closing procedures, it expects to report first quarter 2025 earnings in a press release after market close on Wednesday, May 7, 2025. Kronos Worldwide, Inc. is a major international producer of titanium dioxide products. * * * * * Investor Relations Contact Bryan A. HanleySenior Vice President and TreasurerTel. 972-233-1700 ...

Core Insights - Kronos Worldwide, Inc. (KRO) reported a fourth-quarter 2024 loss of 12 cents per share, which is wider than the loss of 5 cents per share from the previous year, and significantly below the Zacks Consensus Estimate of earnings of 11 cents per share [1] - The company's net sales increased approximately 6% year over year to $423.1 million, driven by higher sales volumes and stronger demand for titanium dioxide (TiO2), although it missed the Zacks Consensus Estimate of $463.9 million [2] - TiO2 production volumes rose about 30% year over year to 136 thousand metric tons, while sales volumes increased 4% to 110 thousand metric tons, with average selling prices up 2% year over year [3] Financial Performance - TiO2 segment profit was $33.1 million in the reported quarter, a significant improvement from a segment loss of $1.3 million a year ago, attributed to increased sales and production volumes, lower production costs, and higher selling prices [4] - For the full year 2024, KRO reported earnings of 75 cents per share, compared to a loss of 43 cents the previous year, with sales rising around 13% year over year to $1,887.1 million [5] - At the end of 2024, KRO had cash and cash equivalents of $106.7 million, down roughly 45% year over year, while long-term debt decreased about 3% to $429.1 million [6] Market Outlook - KRO anticipates improved demand in 2025, particularly in Europe, but expects overall demand to remain below historical levels due to ongoing global economic uncertainty and potential tariffs [7] - The company expects pricing pressures to be somewhat moderated in 2025, especially in Europe, due to duties on low-cost imports from China [7] - Based on improved demand, KRO expects to report higher operating results in 2025 compared to 2024 [8] Stock Performance - KRO shares have declined 15.2% over the past year, contrasting with a 9% decline in the Zacks Chemicals Diversified industry [9] - KRO currently holds a Zacks Rank 3 (Hold), while other better-ranked stocks in the Basic Materials sector include Gold Royalty Corp. (GROY), Orla Mining Ltd. (ORLA), and i-80 Gold Corp. (IAUX), each with a Zacks Rank 2 (Buy) [10]

Financial Performance - Kronos Worldwide reported a net loss of $13.2 million, or $0.12 per share, in Q4 2024, compared to a net loss of $5.3 million, or $0.05 per share, in Q4 2023[1]. - For the full year 2024, net income was $86.2 million, or $0.75 per share, compared to a net loss of $49.1 million, or $0.43 per share, in 2023[1]. - EBITDA for Q4 2024 was $41.7 million, up from $6.9 million in Q4 2023; full year EBITDA was $252.9 million compared to a loss of $7.2 million in 2023[3]. - EBITDA for the year ended December 31, 2024, was $252.9 million, a substantial recovery from a loss of $7.2 million in 2023[13]. Sales and Revenue - Net sales in Q4 2024 were $423.1 million, a 6% increase from $400.1 million in Q4 2023; full year net sales reached $1.9 billion, up 13% from $1.68 billion in 2023[1]. - Total net sales for the year ended December 31, 2024, reached $1,887.1 million, up 13% from $1,666.5 million in 2023[11]. - Currency exchange rate fluctuations positively impacted net sales by approximately $5 million for the full year 2024 compared to 2023[1]. TiO2 Segment Performance - TiO2 sales volumes increased by 4% in Q4 2024 and 20% for the full year compared to the same periods in 2023[1]. - The TiO2 segment profit for Q4 2024 was $33.1 million, compared to a segment loss of $1.3 million in Q4 2023; for the full year, segment profit was $141.0 million compared to a loss of $39.8 million in 2023[2]. - The company reported a gain on remeasurement of investment in TiO2 manufacturing joint venture of $64.5 million for the year ended December 31, 2024[11]. Production and Operational Efficiency - Production rates increased to 96% of practical capacity utilization in 2024, compared to 72% in 2023, significantly reducing unabsorbed fixed production costs from $96 million to $12 million[2]. - Gross margin improved significantly to $86.4 million in Q4 2024 from $55.6 million in Q4 2023, indicating a strong operational performance[11]. Pricing Trends - Average TiO2 selling prices were 2% higher in Q4 2024 but 5% lower for the full year compared to 2023[1]. - The company experienced a 2% increase in TiO2 product pricing in Q4 2024, while the annual pricing decreased by 5%[14]. Share Information - The weighted average shares used in the calculation of net income per share remained stable at approximately 115 million shares for both Q4 2023 and Q4 2024[11].

Sales and Market Conditions - In 2024, approximately 90% of the company's sales were attributable to TiO2 products, which are linked to global economic conditions and discretionary spending [77]. - Approximately 44% of the company's sales volumes were sold into European markets during 2023 and 2024, exposing it to currency exchange rate risks [90]. - Increased competition from China is impacting the company, with lower operating costs and the dumping of lower-cost TiO2 into the market [101]. - The U.S. government has implemented a 25% tariff on imports from Canada, which could increase costs and reduce demand for products manufactured in Canada [102]. Financial Condition and Debt - The company's total consolidated debt as of December 31, 2024, was approximately $507.4 million, which may impair financial condition and operational flexibility [85]. - The company is committed to pay approximately $701 million in 2025 under various lease and supply agreements, impacting liquidity [88]. - At December 31, 2024, the company had $443.7 million in fixed-rate indebtedness with an average interest rate of 8.49% [215]. - The company is exposed to currency exchange rate risks, particularly with $365.4 million in euro-denominated Senior Secured Notes due 2029 [220]. - A hypothetical 10% adverse change in exchange rates could increase the U.S. dollar equivalent of euro-denominated indebtedness by approximately $45 million [220]. Operational Risks - The company experienced increases in feedstock costs in 2023 and 2024, which affected profit margins and operating results [82]. - The company faces significant risks from economic sanctions and supply disruptions, which could adversely affect operations and financial condition [100]. - The company faces risks related to potential litigation that could materially affect financial results [91]. - Cybersecurity breaches pose a risk to operations, with increasing difficulty in obtaining insurance coverage for such risks [103]. Regulatory and Environmental Factors - Changes in global climate change laws and regulations could negatively impact production costs and operational capabilities [98]. - Climate change may increase operational costs and risks due to extreme weather conditions and rising sea levels [104]. Market Competition - The top five TiO2 producers account for approximately 51% of the world's production capacity, indicating a highly competitive market [79]. - The company enters into long-term supply agreements for raw materials, with pricing generally negotiated quarterly or semi-annually [221].

Core Viewpoint Kronos Worldwide, Inc. reported a net loss in Q4 2024, but achieved a significant turnaround for the full year with a net income, driven by increased sales volumes and improved production efficiency, despite challenges from tax expenses and lower average selling prices for TiO2. Financial Performance - The company reported a net loss of $13.2 million in Q4 2024, compared to a loss of $5.3 million in Q4 2023 [1] - For the full year 2024, net income was $86.2 million, a recovery from a net loss of $49.1 million in 2023 [1] - EBITDA for Q4 2024 was $41.7 million, up from $6.9 million in Q4 2023, while full year EBITDA was $252.9 million compared to a loss of $7.2 million in 2023 [5][17] Sales and Revenue - Net sales in Q4 2024 were $423.1 million, a 6% increase from $400.1 million in Q4 2023 [2] - Full year net sales reached $1.9 billion, a 13% increase from $1.67 billion in 2023 [2] - TiO2 sales volumes increased by 4% in Q4 2024 and 20% for the full year compared to the previous year [2][19] Production and Costs - The TiO2 segment profit for Q4 2024 was $33.1 million, compared to a loss of $1.3 million in Q4 2023 [3] - Full year segment profit was $141.0 million, a significant improvement from a loss of $39.8 million in 2023 [3] - Production rates increased to 96% of practical capacity utilization in 2024, compared to 72% in 2023 [4] Tax and Other Expenses - The increase in net loss for Q4 2024 was primarily due to a non-cash deferred income tax expense of $16.5 million and a valuation allowance of $8.2 million related to deferred tax assets [1] - Selling, general, and administrative expenses for the full year included $2.2 million in transaction costs related to the LPC acquisition [4] Acquisition Impact - The acquisition of the 50% interest in Louisiana Pigment Company, which became a wholly-owned subsidiary, contributed to the financial results starting from July 16, 2024 [1] - The acquisition resulted in a non-cash gain of $64.5 million recognized in the full year 2024 [1]

Core Points - Kronos Worldwide, Inc. has declared a regular quarterly dividend of five cents ($0.05) per share on its common stock [1] - The dividend is payable on March 20, 2025, to stockholders of record at the close of business on March 11, 2025 [1] - Kronos Worldwide, Inc. is a major international producer of titanium dioxide products [1]

Core Viewpoint - Kronos Worldwide, Inc. (KRO) reported a significant improvement in earnings for the third quarter of 2024, with earnings per share (EPS) of 62 cents, compared to a loss of 18 cents in the same quarter last year, exceeding the Zacks Consensus Estimate of 34 cents [1][2]. Financial Performance - Net sales increased approximately 22% year over year to $484.7 million, driven by higher sales volumes due to stronger demand for titanium dioxide (TiO2), although this was partially offset by lower average TiO2 selling prices. However, the sales figure fell short of the Zacks Consensus Estimate of $588.6 million [2]. - TiO2 production volumes rose 37% year over year to 141 thousand metric tons, while TiO2 sales volumes increased 21% to 130 thousand metric tons. The average selling prices for TiO2 decreased by 1% year over year [3]. - The TiO2 segment profit was $43.4 million, a turnaround from a segment loss of $21.4 million in the previous year, primarily due to improved operational income from increased sales and production volumes, alongside lower production costs [4]. Financial Position - At the end of the quarter, the company had cash and cash equivalents of $94.8 million, reflecting a decrease of approximately 29% sequentially. Long-term debt rose by 11% sequentially to $470.4 million [5]. Market Outlook - Customer demand moderated during the third quarter compared to the first half of the year across all major markets, with expectations of further weakening in demand for the fourth quarter. However, the company anticipates that sales volumes for 2024 will exceed those of 2023, based on improved demand observed in the first nine months of the year [6]. - KRO expects higher year-over-year operating results for 2024, considering improved demand, modest increases in selling prices, and lower production costs [7]. Stock Performance - Shares of Kronos have increased by 76.1% over the past year, significantly outperforming the Zacks Chemicals Diversified industry's rise of 9.9% [8].

Financial Performance - Net income for Q3 2024 was $71.8 million, or $0.62 per share, compared to a net loss of $20.4 million, or $0.18 per share, in Q3 2023[1] - Net sales in Q3 2024 were $484.7 million, an increase of $87.8 million, or 22%, compared to Q3 2023; for the first nine months of 2024, net sales reached $1.5 billion, up $197.6 million, or 16%[2] - EBITDA for Q3 2024 was $123.3 million, compared to an EBITDA loss of $12.7 million in Q3 2023; for the first nine months of 2024, EBITDA was $211.2 million compared to a loss of $14.1 million in the same period of 2023[5] - Net sales for the three months ended September 30, 2024, were $484.7 million, a 22% increase compared to $396.9 million in the same period of 2023[15] - Net income for the three months ended September 30, 2024, was $71.8 million, compared to a net loss of $20.4 million in the same period of 2023[11] - EBITDA for the nine months ended September 30, 2024, was $211.2 million, up from a loss of $14.1 million in the same period of 2023[14] - The net income per diluted share for the three months ended September 30, 2024, was $0.62, compared to a loss of $0.18 per share in the same period of 2023[11] Sales and Production - TiO2 sales volumes increased by 21% in Q3 2024 and 26% in the first nine months of 2024 compared to the same periods in 2023[2] - TiO2 sales volumes increased by 21% for the three months ended September 30, 2024, compared to the same period in 2023[15] - Production rates increased to 93% of practical capacity utilization in the first nine months of 2024, compared to 71% in the same period of 2023[4] Segment Performance - TiO2 segment profit for Q3 2024 was $43.4 million, a significant improvement from a segment loss of $21.4 million in Q3 2023; for the first nine months of 2024, segment profit was $107.9 million compared to a loss of $38.5 million in the same period of 2023[3] - The company reported a segment profit of $43.4 million for the three months ended September 30, 2024, compared to a loss of $21.4 million in the same period of 2023[13] Costs and Expenses - Unabsorbed fixed production costs in the first nine months of 2024 were $12 million, significantly lower than $74 million in the same period of 2023[4] - The cost of sales for the nine months ended September 30, 2024, was $1,191.1 million, compared to $1,157.1 million for the same period in 2023[11] Other Factors - The acquisition of the 50% joint venture interest in Louisiana Pigment Company resulted in a non-cash gain of $64.5 million recognized in Q3 2024[1] - Currency exchange rate fluctuations increased net sales by approximately $5 million in the first nine months of 2024 compared to the same period in 2023[2] - The company completed the closure of its sulfate process line in Canada, incurring non-cash charges of approximately $4 million in Q3 2024 related to accelerated depreciation[4] - The company experienced a 1% decrease in TiO2 product pricing for the three months ended September 30, 2024, compared to the same period in 2023[15]

Financial Performance - For the first nine months of 2024, the company reported net income of $99.4 million, or $0.86 per share, compared to a net loss of $43.8 million, or $0.38 per share, in the same period of 2023[73]. - The company experienced a net income of $71.8 million, or $0.62 per share, in the third quarter of 2024, compared to a net loss of $20.4 million, or $0.18 per share, in the third quarter of 2023[73]. - Net sales in Q3 2024 increased by 22%, or $87.8 million, compared to Q3 2023, driven by a 21% increase in sales volumes[87]. - Net sales for the first nine months of 2024 increased by 16%, or $197.6 million, compared to the same period in 2023, primarily due to a 26% increase in sales volumes[97]. - Income from operations was $38.9 million in Q3 2024, compared to a loss of $25.3 million in Q3 2023, aided by favorable currency exchange rates[93]. Sales and Production - The average TiO2 selling prices increased by 4% during the first nine months of 2024, although they were still 7% lower than the average prices during the first nine months of 2023[80]. - Sales volumes of TiO2 increased by 21% in the third quarter of 2024 compared to the same period in 2023, reaching 130 thousand metric tons[86]. - Sales volumes increased by 21% in Q3 2024 due to higher overall demand across all major markets[88]. - Cost of sales increased by $21.0 million, or 6%, in Q3 2024, with a significant contribution from a 21% increase in sales volumes[89]. - The company operated at 93% of practical capacity utilization in the first nine months of 2024, a significant increase from 71% in the same period of 2023[81]. Cost Management - The cost of sales per metric ton of TiO2 sold in the first nine months of 2024 was significantly lower compared to the same period in 2023, primarily due to decreases in production costs[83]. - Cost of sales as a percentage of net sales decreased to 81% in the first nine months of 2024 from 91% in the same period of 2023[99]. - Gross margin as a percentage of net sales improved to 21% in Q3 2024 from 9% in Q3 2023, primarily due to higher sales and production volumes[91]. - Gross margin as a percentage of net sales increased to 19% in the first nine months of 2024 from 9% in the same period of 2023[100]. - The company implemented cost reduction initiatives throughout 2023, which began to positively impact gross margins in 2024[114]. Investments and Acquisitions - The company acquired the remaining 50% interest in Louisiana Pigment Company for $185 million, with an additional potential earn-out payment of up to $15 million based on EBITDA for 2025 and 2026[72]. - The company recognized a non-cash, pre-tax gain of $64.5 million from the measurement of its investment in LPC in the first nine months of 2024[74]. - The company recognized a gain of $64.5 million on the remeasurement of its investment in LPC in Q3 2024 due to the acquisition[94]. - The LPC acquisition was financed through borrowings of $132.1 million under the Global Revolver, with the remaining amount paid in cash[126]. Cash Flow and Debt Management - Cash provided by operating activities was $23.2 million in the first nine months of 2024, a significant increase of $82.1 million compared to cash used of $58.9 million in the same period of 2023[118]. - As of September 30, 2024, the company's consolidated debt included €351.174 million on 9.50% Senior Secured Notes due March 2029 and $53.7 million on a subordinated term loan from Contran[125]. - The quarterly dividend rate was reduced from $0.19 per share to $0.05 per share to manage increased debt service costs and working capital needs[115]. - The company is in compliance with all debt covenants as of September 30, 2024, and expects to maintain compliance through the maturity of its credit facility[127]. Market Outlook - The company anticipates long-term demand growth for TiO2 of 2% to 3% per year, consistent with GDP growth expectations[69]. - The company expects sales volumes in 2024 to exceed those of 2023, despite a moderation in customer demand during the third quarter[113]. - The TiO2 industry is cyclical, and changes in pricing, production volumes, and customer demand could significantly affect the company's liquidity[131]. Operational Metrics - The average days sales outstanding (DSO) increased to 68 days as of September 30, 2024, while days sales in inventory (DSI) decreased to 60 days[122]. - As of September 30, 2024, approximately $268 million was available for borrowings under the Global Revolver, which was amended to increase the maximum borrowing amount from $225 million to $300 million and extend the maturity date to July 2029[126]. - The company intends to invest approximately $42 million in capital expenditures during 2024, including $17.2 million spent through September 30, 2024[134]. - The company has 1,017,518 shares available for repurchase under its stock repurchase program as of September 30, 2024[135].