14 February 2013 23:28 [Source: ICIS news]
HOUSTON (ICIS)--US titanium oxide (TiO2) producer Kronos Worldwide expects a net loss for Q4 2012 of $14.4m (€10.7m) owing to lower profits, a securities transaction loss and income tax expenses, the company announced on Tuesday.
Kronos expects Q4 2012 segment profit to decrease 96.1% to $5.7m from $145.9m in Q4 2011, the company said in a press release.
The estimated drop in segment profit is due to lower TiO2 selling prices, lower production volumes and higher raw material costs for feedstock ore and petroleum coke, Kronos said.
Net sales for Q4 2012 are estimated to have fallen 9.1% to $397.8m from $437.4m in Q4 2011.
The decrease in net sales was due to a 14% decrease in average TiO2 selling prices, though it was offset partially by a 6% increase in sales volumes, the company said.
Kronos expects to report a pre-tax securities transaction loss of about $3.9m in related to the sale of its shares of Titanium Metals Corp (TIMET) common stock pursuant to a tender offer for any and all of TIMET's outstanding shares.
Kronos said that while it has experienced some moderation in the cost of feedstock ore in 2013 as compared to 2012, its results in Q1 2013 will be damaged by the higher cost of feedstock ore procured in 2012 since a significant portion of the company's Q1 sales volumes will have been produced with ore purchased in 2012.
The company said it expects to increase TiO2 selling prices during 2013 in order to begin to adequately compensate for its raw material production costs.
A release date for the final report for Kronos’ Q4 and 2012 earnings has not been announced.
($1 = €0.74)
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