Core Points - Kronos Worldwide, Inc. has declared a regular quarterly dividend of five cents ($0.05) per share on its common stock [1] - The dividend is payable on March 20, 2025, to stockholders of record at the close of business on March 11, 2025 [1] - Kronos Worldwide, Inc. is a major international producer of titanium dioxide products [1]

Core Viewpoint - Kronos Worldwide, Inc. (KRO) reported a significant improvement in earnings for the third quarter of 2024, with earnings per share (EPS) of 62 cents, compared to a loss of 18 cents in the same quarter last year, exceeding the Zacks Consensus Estimate of 34 cents [1][2]. Financial Performance - Net sales increased approximately 22% year over year to $484.7 million, driven by higher sales volumes due to stronger demand for titanium dioxide (TiO2), although this was partially offset by lower average TiO2 selling prices. However, the sales figure fell short of the Zacks Consensus Estimate of $588.6 million [2]. - TiO2 production volumes rose 37% year over year to 141 thousand metric tons, while TiO2 sales volumes increased 21% to 130 thousand metric tons. The average selling prices for TiO2 decreased by 1% year over year [3]. - The TiO2 segment profit was $43.4 million, a turnaround from a segment loss of $21.4 million in the previous year, primarily due to improved operational income from increased sales and production volumes, alongside lower production costs [4]. Financial Position - At the end of the quarter, the company had cash and cash equivalents of $94.8 million, reflecting a decrease of approximately 29% sequentially. Long-term debt rose by 11% sequentially to $470.4 million [5]. Market Outlook - Customer demand moderated during the third quarter compared to the first half of the year across all major markets, with expectations of further weakening in demand for the fourth quarter. However, the company anticipates that sales volumes for 2024 will exceed those of 2023, based on improved demand observed in the first nine months of the year [6]. - KRO expects higher year-over-year operating results for 2024, considering improved demand, modest increases in selling prices, and lower production costs [7]. Stock Performance - Shares of Kronos have increased by 76.1% over the past year, significantly outperforming the Zacks Chemicals Diversified industry's rise of 9.9% [8].

Financial Performance - Net income for Q3 2024 was $71.8 million, or $0.62 per share, compared to a net loss of $20.4 million, or $0.18 per share, in Q3 2023[1] - Net sales in Q3 2024 were $484.7 million, an increase of $87.8 million, or 22%, compared to Q3 2023; for the first nine months of 2024, net sales reached $1.5 billion, up $197.6 million, or 16%[2] - EBITDA for Q3 2024 was $123.3 million, compared to an EBITDA loss of $12.7 million in Q3 2023; for the first nine months of 2024, EBITDA was $211.2 million compared to a loss of $14.1 million in the same period of 2023[5] - Net sales for the three months ended September 30, 2024, were $484.7 million, a 22% increase compared to $396.9 million in the same period of 2023[15] - Net income for the three months ended September 30, 2024, was $71.8 million, compared to a net loss of $20.4 million in the same period of 2023[11] - EBITDA for the nine months ended September 30, 2024, was $211.2 million, up from a loss of $14.1 million in the same period of 2023[14] - The net income per diluted share for the three months ended September 30, 2024, was $0.62, compared to a loss of $0.18 per share in the same period of 2023[11] Sales and Production - TiO2 sales volumes increased by 21% in Q3 2024 and 26% in the first nine months of 2024 compared to the same periods in 2023[2] - TiO2 sales volumes increased by 21% for the three months ended September 30, 2024, compared to the same period in 2023[15] - 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[4] Segment Performance - TiO2 segment profit for Q3 2024 was $43.4 million, a significant improvement from a segment loss of $21.4 million in Q3 2023; for the first nine months of 2024, segment profit was $107.9 million compared to a loss of $38.5 million in the same period of 2023[3] - The company reported a segment profit of $43.4 million for the three months ended September 30, 2024, compared to a loss of $21.4 million in the same period of 2023[13] Costs and Expenses - Unabsorbed fixed production costs in the first nine months of 2024 were $12 million, significantly lower than $74 million in the same period of 2023[4] - The cost of sales for the nine months ended September 30, 2024, was $1,191.1 million, compared to $1,157.1 million for the same period in 2023[11] Other Factors - The acquisition of the 50% joint venture interest in Louisiana Pigment Company resulted in a non-cash gain of $64.5 million recognized in Q3 2024[1] - Currency exchange rate fluctuations increased net sales by approximately $5 million in the first nine months of 2024 compared to the same period in 2023[2] - The company completed the closure of its sulfate process line in Canada, incurring non-cash charges of approximately $4 million in Q3 2024 related to accelerated depreciation[4] - The company experienced a 1% decrease in TiO2 product pricing for the three months ended September 30, 2024, compared to the same period in 2023[15]

Financial Performance - For the first nine months of 2024, the company reported net income of $99.4 million, or $0.86 per share, compared to a net loss of $43.8 million, or $0.38 per share, in the same period of 2023[73]. - The company experienced a net income of $71.8 million, or $0.62 per share, in the third quarter of 2024, compared to a net loss of $20.4 million, or $0.18 per share, in the third quarter of 2023[73]. - Net sales in Q3 2024 increased by 22%, or $87.8 million, compared to Q3 2023, driven by a 21% increase in sales volumes[87]. - Net sales for the first nine months of 2024 increased by 16%, or $197.6 million, compared to the same period in 2023, primarily due to a 26% increase in sales volumes[97]. - Income from operations was $38.9 million in Q3 2024, compared to a loss of $25.3 million in Q3 2023, aided by favorable currency exchange rates[93]. Sales and Production - The average TiO2 selling prices increased by 4% during the first nine months of 2024, although they were still 7% lower than the average prices during the first nine months of 2023[80]. - Sales volumes of TiO2 increased by 21% in the third quarter of 2024 compared to the same period in 2023, reaching 130 thousand metric tons[86]. - Sales volumes increased by 21% in Q3 2024 due to higher overall demand across all major markets[88]. - Cost of sales increased by $21.0 million, or 6%, in Q3 2024, with a significant contribution from a 21% increase in sales volumes[89]. - The company operated at 93% of practical capacity utilization in the first nine months of 2024, a significant increase from 71% in the same period of 2023[81]. Cost Management - The cost of sales per metric ton of TiO2 sold in the first nine months of 2024 was significantly lower compared to the same period in 2023, primarily due to decreases in production costs[83]. - Cost of sales as a percentage of net sales decreased to 81% in the first nine months of 2024 from 91% in the same period of 2023[99]. - Gross margin as a percentage of net sales improved to 21% in Q3 2024 from 9% in Q3 2023, primarily due to higher sales and production volumes[91]. - Gross margin as a percentage of net sales increased to 19% in the first nine months of 2024 from 9% in the same period of 2023[100]. - The company implemented cost reduction initiatives throughout 2023, which began to positively impact gross margins in 2024[114]. Investments and Acquisitions - The company acquired the remaining 50% interest in Louisiana Pigment Company for $185 million, with an additional potential earn-out payment of up to $15 million based on EBITDA for 2025 and 2026[72]. - The company recognized a non-cash, pre-tax gain of $64.5 million from the measurement of its investment in LPC in the first nine months of 2024[74]. - The company recognized a gain of $64.5 million on the remeasurement of its investment in LPC in Q3 2024 due to the acquisition[94]. - The LPC acquisition was financed through borrowings of $132.1 million under the Global Revolver, with the remaining amount paid in cash[126]. Cash Flow and Debt Management - Cash provided by operating activities was $23.2 million in the first nine months of 2024, a significant increase of $82.1 million compared to cash used of $58.9 million in the same period of 2023[118]. - As of September 30, 2024, the company's consolidated debt included €351.174 million on 9.50% Senior Secured Notes due March 2029 and $53.7 million on a subordinated term loan from Contran[125]. - The quarterly dividend rate was reduced from $0.19 per share to $0.05 per share to manage increased debt service costs and working capital needs[115]. - The company is in compliance with all debt covenants as of September 30, 2024, and expects to maintain compliance through the maturity of its credit facility[127]. Market Outlook - The company anticipates long-term demand growth for TiO2 of 2% to 3% per year, consistent with GDP growth expectations[69]. - The company expects sales volumes in 2024 to exceed those of 2023, despite a moderation in customer demand during the third quarter[113]. - The TiO2 industry is cyclical, and changes in pricing, production volumes, and customer demand could significantly affect the company's liquidity[131]. Operational Metrics - The average days sales outstanding (DSO) increased to 68 days as of September 30, 2024, while days sales in inventory (DSI) decreased to 60 days[122]. - As of September 30, 2024, approximately $268 million was available for borrowings under the Global Revolver, which was amended to increase the maximum borrowing amount from $225 million to $300 million and extend the maturity date to July 2029[126]. - The company intends to invest approximately $42 million in capital expenditures during 2024, including $17.2 million spent through September 30, 2024[134]. - The company has 1,017,518 shares available for repurchase under its stock repurchase program as of September 30, 2024[135].

Core Viewpoint - Kronos Worldwide, Inc. (KRO) is expected to benefit from increased demand for titanium dioxide (TiO2) and reduced pricing pressure, alongside cost-reduction initiatives that will support margins [1] Group 1: Stock Performance - KRO has outperformed its industry over the past year, with shares increasing by 32.8% compared to a 9.6% decline in the industry [2] - The Zacks Consensus Estimate for KRO's earnings in 2024 is projected at 88 cents, indicating a year-over-year growth of 304.7% [2] Group 2: Earnings Estimates - Earnings estimates for KRO have been revised upward over the past 60 days, with the 2024 estimate increasing by 3.5% and the third-quarter estimate rising by 9.7% [3] Group 3: Demand and Production - KRO is well-positioned to benefit from higher TiO2 demand, with consumption growing at a compound annual growth rate of approximately 2% since 2000 [4] - The company anticipates that sales volumes in 2024 will exceed those of 2023 due to improved demand [5] Group 4: Cost Management - KRO is implementing cost-reduction strategies and aligning production with expected demand, which is expected to enhance margins [6] - The company expects to report improved margins in 2024 due to reduced energy costs, cost-cutting initiatives, and sustained selling price increases [7]

Earnings Performance - Kronos Worldwide reported Q2 2024 earnings of 17 cents per share, compared to a loss of 7 cents per share in the same quarter last year, but missed the Zacks Consensus Estimate of 21 cents [2] - Net sales increased by approximately 12.9% year over year to $500.5 million, driven by higher sales volumes due to stronger demand for TiO2, although it missed the Zacks Consensus Estimate of $504.2 million [3] Production and Sales Volumes - TiO2 production volumes rose by 53.9% year over year to 137 thousand metric tons in Q2 [4] - TiO2 sales volumes increased by 28.8% to 134 thousand metric tons during the same period [4] - TiO2 segment profit was $41.1 million, a significant improvement from a segment loss of $2.3 million a year ago, primarily due to increased sales and production volumes [4] Financial Position - At the end of the quarter, Kronos had cash and cash equivalents of $133.8 million, a decrease of roughly 22% year over year [5] - Long-term debt decreased by 6% to $423.7 million [5] Future Outlook - The company anticipates continued improvement in demand for 2024, with expected sales volumes higher than in 2023 [6] - Kronos has increased production rates in response to current and anticipated demand, expecting these rates to remain elevated for the remainder of 2024 [6] - The company has implemented TiO2 price hikes that need to be sustained to achieve historical margin levels [6] Estimate Trends - In the past month, there has been a downward trend in fresh estimates for Kronos, with the consensus estimate shifting down by 6.8% [7] - Despite the downward estimate revisions, Kronos holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [10] Industry Comparison - Kronos Worldwide is part of the Zacks Chemical - Diversified industry, where Eastman Chemical has seen a 2.7% gain over the past month [11] - Eastman Chemical reported revenues of $2.36 billion for the last quarter, reflecting a year-over-year change of +1.7% [11]

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. Has Kronos Worldwide (KRO) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question. Kronos Worldwide is a member of the Basic Materials sector. This group includes 236 individual stocks and currently holds a Zacks Sector Rank of #15. The Zacks Sector Rank gau ...

Kronos Worldwide, Inc.'s (KRO) shares have shot up 31% over the past six months. The rally has resulted in the stock outperforming its industry's increase of 3.1% over the same time frame. KRO has also topped the S&P 500's roughly 8.9% rise over the same period. Let's dive into the factors behind this Zacks Rank #2 (Buy) stock's price appreciation. Image Source: Zacks Investment Research Higher TiO2 Demand, Cost Actions Drive KRO KRO is well-placed to benefit from higher demand for TiO2 in major markets. Pe ...

The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Kronos Worldwide (KRO) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Kronos Worldwide is one of 236 individual stocks in the Basic Materials sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuri ...

Kronos Worldwide, Inc. (KRO) reported second-quarter 2024 earnings of 17 cents per share against a loss of 7 cents incurred in the year-ago quarter. However, the figure missed the Zacks Consensus Estimate of 21 cents. Net sales increased around 12.9% year over year to $500.5 million due to higher sales volumes as a result of stronger demand for titanium dioxide (TiO2) in all of KRO's major markets, which was somewhat offset by lower average TiO2 selling prices. The top line, however, missed the Zacks Consen ...