05 November 2012 23:11 [Source: ICIS news]
HOUSTON (ICIS)--US-based titanium dioxide (TiO2) producer Kronos reported on Monday a net income of $35.2m (€27.5m), down 59% from $85.9m reported for the same time last year because of lower sales and higher costs.
Net sales were $472.9m, down 13.7% from $548.0m reported from the same time last year, the company said.
Kronos attributed the drop to lower volumes and unfavourable exchange rates, partially offset by higher prices.
Cost of sales was $386.9m, up 14.8% from $337.1m reported for the same time last year.
TiO2 sales volumes were 116,000 tonnes, compared with 136,000 tonnes for the same time last year. Production tonnes were 98,000 tonnes, down from 134,000 tonnes from the same time last year.
Chief executive Steven Watson said, "The decrease in sales and production volumes have been experienced throughout the TiO2 industry, as the majority of TiO2 producers and consumers have been undertaking inventory correction initiatives in response to continued global economic weakness and uncertainty, and to align production and inventories with current and anticipated near-term demand levels for TiO2 products."
Meanwhile, prices for feedstock ore have begun to stabilise and decline, Watson said in a statement.
Customers' inventories are depleted, while those of producers are declining, he said. Ultimately, demand for TiO2 should increase once customers begin to restock and the global economy begins to improve.
($1 = €0.78)
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