Valhi(US:VHI)2025-03-06 21:40Financial Performance - Valhi reported net income of $22.8 million ($0.80 per share) in Q4 2024, a significant increase from $4.9 million ($0.17 per share) in Q4 2023[1]. - For the full year 2024, net income attributable to Valhi stockholders was $108.0 million ($3.79 per share), compared to a net loss of $9.9 million ($0.35 per share) in 2023[1]. - Total net sales for the three months ended December 31, 2024, increased to $480.9 million, up from $453.0 million in the same period of 2023, representing a growth of 6%[17]. - The company reported a total operating income of $56.7 million for the three months ended December 31, 2024, compared to $17.2 million in the same period of 2023[17]. - Basic and diluted net income per share increased to $0.80 for the three months ended December 31, 2024, compared to $0.17 in the same period of 2023[17]. Chemicals Segment Performance - The Chemicals Segment's net sales reached $423.1 million in Q4 2024, up $23.0 million (6%) from Q4 2023, and $1.9 billion for the full year 2024, an increase of $220.6 million (13%) compared to 2023[3]. - TiO2 sales volumes increased by 4% in Q4 2024 and 20% for the full year 2024 compared to the same periods in 2023[3]. - The Chemicals Segment's operating income was $32.6 million in Q4 2024, compared to an operating loss of $1.6 million in Q4 2023, and $138.5 million for the full year 2024, compared to a loss of $41.1 million in 2023[5]. - The chemicals segment reported net sales of $423.1 million for the three months ended December 31, 2024, compared to $400.1 million in 2023, reflecting a 6% increase[17]. - The overall percentage change in TiO2 net sales for the year ended December 31, 2024, was 13%, driven by a 2% increase in product pricing[18]. - The Chemicals Segment's production rates increased to 96% of practical capacity utilization in 2024, compared to 72% in 2023, leading to a significant reduction in unabsorbed fixed production costs[5]. Component Products Segment Performance - The Component Products Segment's net sales were $38.4 million in Q4 2024, down from $43.2 million in Q4 2023, and $145.9 million for the full year 2024, compared to $161.3 million in 2023[7]. Real Estate Management and Development Segment Performance - The Real Estate Management and Development Segment reported net sales of $19.4 million in Q4 2024, up from $9.7 million in Q4 2023, but full year sales decreased to $71.8 million from $93.9 million in 2023[8]. - Real estate management and development segment net sales rose to $19.4 million in Q4 2024, compared to $9.7 million in Q4 2023, marking a 100% increase[17]. Interest Expense - Interest expense increased by $6.4 million in Q4 2024 and $21.6 million for the full year compared to 2023, primarily due to higher interest rates and increased debt from the LPC acquisition[10]. - Interest expense decreased to $13.3 million in Q4 2024 from $6.9 million in Q4 2023, indicating improved financial management[17]. Acquisition Impact - The acquisition of the 50% joint venture interest in Louisiana Pigment Company resulted in a non-cash gain of $64.5 million ($33.6 million, or $1.18 per share) recognized in Q3 2024[2].