Financial Performance - Net income from continuing operations attributable to Valhi stockholders decreased to $7.1 million or $0.02 per diluted share in Q2 2019, down from $11.3 million or $0.03 per diluted share in Q2 2018 [120]. - For the first six months of 2019, net income from continuing operations attributable to Valhi stockholders was $25.3 million or $0.07 per diluted share, compared to $63.0 million or $0.18 per diluted share in the same period of 2018 [121]. - The company expects lower consolidated operating income for 2019 compared to 2018 due to various factors including litigation expenses and market conditions [125]. - The company anticipates that its sales in 2019 will be higher than in 2018, primarily due to increased sales volumes, although operating income is expected to be lower due to lower average selling prices and higher raw material costs [154]. - Consolidated operating income was $126.3 million in the first six months of 2019, a decrease of $122.5 million compared to $248.8 million in the same period of 2018 [189]. Sales and Revenue - Net sales for Q2 2019 were $484.5 million, a 3% increase from $471.8 million in Q2 2018, while cost of sales rose by 25% to $375.4 million [129]. - Net sales in the second quarter of 2019 increased by 3%, or $12.7 million, driven by a 15% increase in sales volumes, which added approximately $71 million to net sales [133]. - Component Products Segment's net sales increased by $1.3 million (4%) in Q2 2019 and $4.1 million (7%) for the first six months compared to the same periods in 2018, driven by higher marine component sales [159]. - The Real Estate Management and Development Segment's total net sales increased from $6.0 million in Q2 2018 to $10.4 million in Q2 2019, and from $13.2 million to $22.3 million for the first six months [164]. Costs and Expenses - The gross margin for Q2 2019 was $109.1 million, a decrease of 36% from $171.3 million in Q2 2018, reflecting a gross margin percentage drop from 36% to 23% [129]. - The cost of sales increased by 25% in the second quarter of 2019 compared to the same period in 2018, with cost of sales as a percentage of net sales rising to 77% from 64% [137]. - Operating income decreased by 59% in the second quarter of 2019 compared to the same period in 2018, with operating income as a percentage of net sales dropping to 10% from 26% [141]. - Cost of sales as a percentage of sales for the Component Products Segment increased by approximately 3% in Q2 2019 and 2% for the first six months compared to 2018, leading to a decrease in gross profit percentage [160]. Production and Capacity - TiO2 sales volumes increased by 15% in Q2 2019 compared to Q2 2018, with production volumes remaining stable [129]. - The Chemicals Segment operated at an average capacity utilization rate of 97% in the first half of 2019, up from 96% in the same period of 2018 [131]. - The Chemicals Segment expects production volumes in 2019 to be slightly higher compared to 2018, with anticipated sales volumes also expected to increase [151]. Litigation and Settlements - A pre-tax litigation settlement expense of $19.6 million was recognized in Q2 2019, compared to $62.0 million in Q2 2018 [123]. - Corporate expenses decreased by 4% in Q2 2019 and 24% in the first six months compared to the same periods in 2018, attributed to lower litigation and environmental remediation costs [175]. - The company anticipates that net general corporate expenses in 2019 will be lower than in 2018 due to reduced litigation and related costs [175]. Cash Flow and Capital Expenditures - Cash flows from operating activities decreased to $32.8 million in the first six months of 2019 from $159.7 million in the same period of 2018, a decrease of $126.9 million [189]. - The company spent $28.3 million in capital expenditures during the first six months of 2019 [193]. - The company expects capital expenditures for 2019 to be approximately $93 million, primarily funded through cash generated from operations and existing credit facilities [204]. Debt and Liquidity - Valhi's outstanding debt included $313.0 million on its $360 million credit facility with Contran, due no earlier than December 31, 2020 [195]. - The company has sufficient liquidity to meet short-term and long-term obligations, with expectations of compliance with financial covenants through the maturities of credit facilities [200]. - The company expects interest expense to continue to be lower in the remainder of 2019 compared to 2018 due to lower average balances of outstanding borrowings [181]. Shareholder Returns - Kronos' board authorized the repurchase of up to 2.0 million shares of common stock, with approximately 1,841,000 shares available for repurchase as of June 30, 2019 [209]. - Kronos paid a regular dividend of $0.17 per share in each quarter of 2018, which increased to $0.18 per share in February 2019, resulting in an expected annual dividend of $41.8 million based on shares held [211]. Currency Management - The company uses currency forward contracts to manage a nominal portion of currency exchange rate market risk associated with trade receivables [227]. - Some currency forward contracts meet the criteria for hedge accounting under GAAP and are designated as cash flow hedges [227].

SECURITIES AND EXCHANGE COMMISSION QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 VALHI, INC. (Exact name of registrant as specified in its charter) Washington, D.C. 20549 For the quarter ended March 31, 2019 FORM 10-Q Commission file number 1-5467 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒ | Non-accelerated filer | ☐ | Smaller reporting company ☐ | | --- | --- | --- | | Emerging growth company | ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934—For the fiscal year ended December 31, 2018 Commission file number 1-5467 VALHI, INC. (Exact name of Registrant as specified in its charter) Delaware 87-0110150 (State or other jurisdiction of Incorporation or organization) (IRS Employer Identification No.) 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240-2697 (Address of principal executive offices) (Zi ...