Valhi(VHI) - 2024 Q3 - Quarterly Results

Financial Performance - Valhi reported net income attributable to stockholders of $57.5 million, or$2.01 per share, in Q3 2024, compared to a net loss of $5.8 million, or$0.21 per share, in Q3 2023[1]. - Total net sales for the three months ended September 30, 2024, were $533.6 million, a 13.8$468.9 million in the same period of 2023[17]. - Total operating income for the nine months ended September 30, 2024, was $154.0 million, compared to$17.0 million in the same period of 2023[17]. - Interest income for the three months ended September 30, 2024, was $5.4 million, slightly up from$4.9 million in the same period of 2023[17]. Chemicals Segment Performance - The Chemicals Segment's net sales were $484.7 million in Q3 2024, an increase of$87.8 million, or 22%, compared to Q3 2023, and $1.5 billion for the first nine months of 2024, up$197.6 million, or 16%, from the same period in 2023[3]. - TiO2 sales volumes in the Chemicals Segment were 21% higher in Q3 2024 compared to Q3 2023 and 26% higher in the first nine months of 2024 compared to the same period in 2023[3]. - The Chemicals Segment's operating income in Q3 2024 was $42.6 million, compared to an operating loss of$21.8 million in Q3 2023, and $105.9 million for the first nine months of 2024, compared to an operating loss of$39.5 million in the same period of 2023[4]. - Chemicals segment net sales increased by 22% for the three months ended September 30, 2024, driven by a 21% increase in TiO2 sales volumes[18]. - The chemicals segment's net sales for the nine months ended September 30, 2024, totaled $1,464.0 million, reflecting a 15.6$1,266.4 million in the same period of 2023[17]. Segment Performance - The Component Products Segment's net sales decreased to $33.6 million in Q3 2024 from$40.3 million in Q3 2023, and $107.5 million in the first nine months of 2024 compared to$118.1 million in the same period of 2023[7]. - The Real Estate Management and Development Segment had sales of $15.3 million in Q3 2024, down from$31.7 million in Q3 2023, and $52.4 million for the first nine months of 2024 compared to$84.2 million in the same period of 2023[8]. - The real estate management and development segment reported net sales of $15.3 million for the three months ended September 30, 2024, up from$31.7 million in the same period of 2023[17]. Corporate Actions and Gains - The acquisition of Louisiana Pigment Company resulted in a non-cash gain of $64.5 million, or$1.18 per share, net of tax and noncontrolling interest, recognized in Q3 2024[2]. - The company reported a gain of $64.5 million on the remeasurement of its investment in a TiO2 manufacturing joint venture for the three months ended September 30, 2024[17]. Interest and Currency Impact - Corporate interest expense increased by$6.2 million in Q3 2024 and $15.2 million in the first nine months of 2024 compared to the respective periods in 2023, primarily due to higher interest rates[9]. - Fluctuations in currency exchange rates increased the Chemicals Segment's operating income by approximately$13 million in Q3 2024 and approximately $10 million in the first nine months of 2024 compared to the same prior year periods[5]. Capacity Utilization - The Chemicals Segment's 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[5].