US Tronox Q3 revenues up 5%; made $16.7m Q3 net loss

13 November 2012 02:52  [Source: ICIS news]

SINGAPORE (ICIS)--US-based titanium dioxide (TiO2) producer Tronox said on Monday its third-quarter revenue was up by 5% year on year at $487.3m (€385m) but reported a net loss of $16.7m in the third quarter.

Tom Casey, chairman and CEO of Tronox, said despite making good progress, the company was not able to earn desired profits.

“The third quarter of 2012 was our first full quarter of operating as a vertically integrated supplier of minerals sands and pigment. We made good progress on the integration during the quarter, but its advantages are not yet reflected in our financial performance as we continued to consume market-priced feedstock under legacy purchase contracts.

This resulted in a higher cost of goods sold for the company this quarter compared to coming quarters as we transition to consuming our own feedstock at cost of extraction and beneficiation and selling the long portion of feedstock at market prices. Our merger has uniquely positioned us to maximize margin and cash flow in ways that no other producers can," Casey said in a statement.

Sales revenue from pigments was $279.8m, 30% lower than the $399.4m earned in the third quarter of last year. The decline in earnings was the result of lower sales volumes in Asia and other regions and increased feedstock costs.

($1 = €0.79)

By: Muhamad Fadhil
+65 6780 4356

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