US’ Kronos expects Q3 profit to shrink to $30m-34m as sales fall

02 October 2012 04:15  [Source: ICIS news]

SINGAPORE (ICIS)--Kronos Worldwide Inc expects to report a third-quarter 2012 net profit of $30-34m (€23-27m), down from $85.9m recorded in the same period last year as sales volumes declined, the US titanium dioxide (TiO2) producer said late on Monday.

Net sales for July-September 2012 were projected at between $480m-495m, down by more than 10% from $548m in the same period last year, it said in a statement.

 “The expected decrease in net sales is due primarily to lower sales volumes, offset in part by higher average TiO2 selling prices,” Kronos said.

Its segment profit for the September quarter is expected to be between $30m-40m, sharply lower than the $159.2m reported in the third quarter of 2011, the company said.

“The expected decrease in segment profit is due primarily to the negative effects of lower sales and production volumes and higher feedstock ore costs, offset in part by higher TiO2 average selling prices,” it said.

“The expected decline in segment profit in the third quarter of 2012 reflects the adverse impact of an estimated $28m of unabsorbed fixed overhead costs charged directly to cost of sales as a result of lower production volumes,” it said.

Kronos added that it is looking at “opportunistically” tapping the debt capital markets, it said in a statement.

($1 = €0.78)

By: Pearl Bantillo
+65 6780 4359

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