Valhi(US:VHI)2024-08-08 20:18Financial Performance - Valhi reported net income attributable to stockholders of $19.9 million, or $0.70 per share, in Q2 2024, compared to a net loss of $3.2 million, or $0.11 per share, in Q2 2023[1]. - Total net sales for the three months ended June 30, 2024, were $559.7 million, compared to $507.1 million for the same period in 2023, representing a 10.5% increase[12]. - Basic and diluted net income per share for Q2 2024 was $0.70, compared to a loss of $0.11 per share in Q2 2023[12]. - Total operating income for the six months ended June 30, 2024, was $86.3 million, compared to $14.5 million for the same period in 2023[12]. Chemicals Segment Performance - The Chemicals Segment's net sales were $500.5 million in Q2 2024, an increase of $57.3 million, or 13%, compared to Q2 2023, driven by higher sales volumes of TiO2[2]. - Chemicals segment net sales increased from $443.2 million in Q2 2023 to $500.5 million in Q2 2024, a growth of 12.9%[12]. - TiO2 sales volumes increased by 29% in Q2 2024 compared to Q2 2023, and by 28% in the first six months of 2024 compared to the same period in 2023[2]. - Operating income for the chemicals segment improved significantly from a loss of $2.6 million in Q2 2023 to a profit of $40.5 million in Q2 2024[12]. - The Chemicals Segment's operating income was $40.5 million in Q2 2024, a significant improvement from an operating loss of $2.6 million in Q2 2023[3]. - The overall percentage change in TiO2 net sales was 13% for both the three and six months ended June 30, 2024, compared to 2023[13]. - The Chemicals Segment's production rates increased to 93% of practical capacity utilization in the first six months of 2024, up from 70% in the same period of 2023[3]. Other Segments Performance - The Component Products Segment's net sales decreased to $35.9 million in Q2 2024 from $36.6 million in Q2 2023, primarily due to lower marine components sales[5]. - The Real Estate Management and Development Segment reported sales of $23.3 million in Q2 2024, down from $27.3 million in Q2 2023, attributed to delays in obtaining city permits[6]. - The real estate management and development segment reported net sales of $23.3 million for Q2 2024, up from $27.3 million in Q2 2023, indicating a decrease of 14.7%[12]. Expenses and Financial Risks - Corporate expenses increased by 9% in Q2 2024 compared to Q2 2023, mainly due to higher environmental remediation costs[7]. - Interest expense rose by $4.7 million in Q2 2024 compared to Q2 2023, primarily due to higher interest rates following the Chemicals Segment's debt refinancing[7]. - Interest expense decreased from $11.9 million in Q2 2023 to $7.2 million in Q2 2024, reflecting a reduction of 39.5%[12]. - Valhi faces risks including fluctuations in raw material costs, changes in demand for products, and potential disruptions from global economic conditions[9].