01 August 2012 13:19 [Source: ICIS news]
LONDON (ICIS)--Tronox’s second quarter net income climbed to $1.71bn, including a $1.06bn gain, from $66.2m in the equivalent 2011 quarter, the recently re-listed US titanium dioxide (Ti02) mineral sands and pigment producer said on Wednesday.
Revenues for the quarter were flat at $428.9m (€347.4m) and include $30.5m in mineral ore sales following the completion of the acquisition of Exxaro Mineral Sands on 15 June 2012.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were $146.2m, including $23.3m from acquired businesses, up 22% on the prior-year quarter.
Tronox’s pigments sales were up 3% year-on-year in the quarter on higher prices but lower volumes and down 6% on the first quarter of 2012 due to adverse currency exchange movements.
"In the first half of 2012, we saw a softening of sales volumes in our pigments segment compared to very strong volumes a year ago due to simultaneous market weakness in China, Europe and North America,” CEO Tom Casey said.
“While we are encouraged by signs of recovery in US housing and increasingly stimulative national policy in China, we are conservatively forecasting pigment sales volumes to be level and modestly lower global average pigment selling prices in the second half 2012 as compared to the first half 2012.”
Tronox said that as a newly integrated producer it expects to benefit from rising TiO2 ore prices that non-integrated producers face. It expects second half mineral sands sales volumes to remain strong.
“We believe that we are built to optimize market swings on either side of the supply chain and are well positioned to thrive in changing market conditions," Casey said.
($1 = €0.81)
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