US Kronos resumes quarterly dividend on bullish TiO2 demand outlook

07 October 2010 23:26  [Source: ICIS news]

HOUSTON (ICIS)--Kronos Worldwide will resume its regular quarterly dividend with payments in late December amid higher titanium dioxide (TiO2) demand, the US producer said on Thursday.

The company’s board of directors declared a cash dividend of 25 cents/share on the company’s common stock, payable 23 December.

“Late in the second quarter of 2009, customer demand for our TiO2 products began to accelerate across all geographic regions and market segments, and we increased our production rates to near full capacity,” Steven L Watson, vice chairman and CEO, said in a press release.

“We believe customer demand will continue to remain strong in all key markets during the remainder of 2010 and into 2011,” he said. “As a result, we believe we will report significantly improved operating and financial performance for the remainder of 2010 and continuing in 2011.”

The company suspended its quarterly dividend at the end of 2008 to maintain liquidity and pursue potential acquisitions, it said.

In early 2009, recessionary pressures intensified, stifling demand from most TiO2 end markets. That prompted the idling of more than 400,000 tonnes of capacity and the depleting of supply-side inventory as producers contended with economic malaise that slashed year-over-year demand by as much as 20%.

By August 2010, however, Kronos swung to a second-quarter net income of $19.3m (€13.9m), up primarily because of a 35% increase in sales. The company had reported a net loss of $19.3m during the same period of 2009.

Other North American TiO2 producers include Tronox, Cristal, DuPont and Huntsman.

($1 = €0.72)

For more on TiO2 visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Larry Terry
1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly