Posted on the 11-12-2019
Titanium dioxide (TiO2) producer Tronox (Stamford, Connecticut) has reported a third-quarter net loss from continuing operations of $12 million, down from profit of $15 million in the year-ago period, mainly on costs related to the April 2019 acquisition of Cristal TiO2, but also reflecting lower zircon sales volumes, lower TiO2 selling prices, and currency exchange effects. Revenue totaled $768 million, down 8% year-over-year (YOY) on a pro-forma basis from $822 million. Adjusted earnings per share came to $0.21, up from $0.17 in the year-ago period and ahead of the average analyst estimate of $0.15 as compiled by Refinitiv (New York).
"Our third quarter performance clearly demonstrated the inherent stability and resilience of our vertically integrated global footprint in a challenging global macro-economic environment,” says Jeffry Quinn, chairman and CEO.
TiO2 pigment sales declined 4% YOY to $603 million, says Tronox; sales volumes increased 3%, but selling prices declined 7% on a US dollar basis. Zircon sales declined 35% YOY to $68 million. Selling prices dropped 4%, and sales volumes dropped 32% on softer market conditions, primarily in China. Feedstock and other products sales increased 9% YOY to $97 million on higher chloride-process slag sales.
Adjusted EBITDA declined 14% YOY to $184 million on lower zircon sales volumes, lower TiO2 selling prices, unfavorable translation of the Euro, and higher operating costs due to production downtime.
"Through the end of the third quarter, we have delivered total synergies of $45 million since closing the Cristal TiO2 acquisition,” says Quinn. “We are raising our target for total synergies in 2019 to $65 million. Our Adjusted EBITDA margin of...(Article continues on link below)
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