US Kronos Q2 net income soars on TiO2 pricing, sales

03 August 2010 23:22  [Source: ICIS news]

HOUSTON (ICIS)--US titanium dioxide (TiO2) producer Kronos Worldwide reported on Tuesday a second-quarter net income of $19.3m (€14.7m), up substantially because of a 35% increase in sales.

For the same time last year, Kronos reported a net loss of $19.3m.

Higher sales drove most of the increase, the company said.

Kronos reported second-quarter net sales of $380.1m, up from $282.0m reported for the same time last year.

The increase in revenue more than offset a 10% increase in cost of sales. Second-quarter gross margins were $85.2m, up from $14.1m reported for the same time last year.

Kronos increased both sales prices and volumes for TiO2 during the second quarter, the company said.

TiO2 sales volumes were 148,000 tonnes, up 30% year over year, and setting a record for that period, the company said.

Kronos said TiO2 demand increased for all markets.

Average TiO2 prices rose by 6% year over year and 4% over the first quarter, Kronos said.

Second-quarter TiO2 production volumes rose 54% year over year, Kronos said.

For the first half of the year, Kronos ran its plants near full capacity, compared with a 58% rate for the first half of 2009, the company said.

"We believe demand will continue to remain strong in all key market segments during the remainder of 2010," according to a statement by Steven Watson, Kronos chief executive.

"As a result of such strong demand, we believe we will continue to report improved operating and financial performance for the remainder of 2010, and therefore achieve a more acceptable rate of return on invested capital, from continued higher sales and production volumes and higher average selling prices," Watson said.

($1 = €0.76)

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By: Al Greenwood
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