VALHI REPORTS THIRD QUARTER 2024 RESULTS

Core Viewpoint - Valhi, Inc. reported a significant turnaround in financial performance for the third quarter and first nine months of 2024, with net income attributable to stockholders rising to $57.5 million and $85.2 million respectively, compared to net losses in the same periods of 2023, primarily driven by improved results in the Chemicals Segment and a non-cash gain from an acquisition [1][2]. Financial Performance - The net income attributable to Valhi stockholders for Q3 2024 was $57.5 million ($2.01 per share), a recovery from a net loss of $5.8 million ($0.21 per share) in Q3 2023 [1]. - For the first nine months of 2024, net income was $85.2 million ($2.99 per share), compared to a net loss of $14.8 million ($0.52 per share) in the same period of 2023 [1]. Chemicals Segment - The Chemicals Segment's net sales reached $484.7 million in Q3 2024, up $87.8 million (22%) from Q3 2023, and $1.5 billion for the first nine months of 2024, an increase of $197.6 million (16%) compared to the same period in 2023 [3]. - The increase in net sales was attributed to higher sales volumes driven by strong demand for TiO2, despite lower average selling prices [3][4]. - TiO2 sales volumes were 21% higher in Q3 2024 and 26% higher in the first nine months of 2024 compared to the same periods in 2023 [3][4]. - The Chemicals Segment's operating income improved to $42.6 million in Q3 2024 from an operating loss of $21.8 million in Q3 2023, and $105.9 million for the first nine months of 2024 compared to a loss of $39.5 million in the same period of 2023 [4][5]. Acquisition Impact - The Chemicals Segment acquired the remaining 50% interest in Louisiana Pigment Company, L.P., resulting in a non-cash gain of $64.5 million recognized in Q3 2024 [2]. - The acquisition allowed LPC to become a wholly-owned subsidiary, with its operational results included from the acquisition date [2]. Component Products Segment - The Component Products Segment reported net sales of $33.6 million in Q3 2024, down from $40.3 million in Q3 2023, and $107.5 million for the first nine months of 2024 compared to $118.1 million in the same period of 2023 [6]. - The decline was primarily due to lower sales of security products and marine components [6]. Real Estate Management and Development Segment - The Real Estate Management and Development Segment's sales decreased to $15.3 million in Q3 2024 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 [7]. - The decrease was attributed to a slower pace of development activities and delays in obtaining necessary permits [7]. Corporate Expenses and Interest - Corporate expenses remained stable compared to the same periods in 2023, while interest income increased due to higher average interest rates [8]. - Interest expense rose significantly due to debt refinancing and financing for the LPC acquisition [8].