21 February 2013 00:20 [Source: ICIS news]
HOUSTON (ICIS)--Net income for Tronox in 2012 increased almost 367% to $1.13bn (€848m) from $242m in 2011, thanks to more than $1bn in gains attributed to the Q2 2012 acquisition of Exxaro’s South African mineral sands operation, the US company announced on Wednesday.
However, the titanium dioxide (TiO2) pigment and mineral sands producer reported a loss in net income of $96m for Q4 2012, compared to Q4 2011’s $67m profit.
"The fourth quarter remained challenging, but we may have seen the first glimpse of a recovery in the pigment market,” said Tronox CEO Tom Casey.
Revenue in Tronox’s pigment segment for 2012 was about $1.25bn, about 12% lower than the $1.42bn recorded in 2011. An 11% increase in average selling prices was more than offset by a 21% volume decline and unfavourable currency exchange, the company said.
Q4 2012 revenue in pigments was $256m, about 21% lower than the $325m reported in Q4 2011. A 15% decline in selling prices and 6% decline in sales volumes were blamed.
But Casey was upbeat about the fact that sales volumes in Q4 2012 were actually 2% higher than in the previous quarter.
“Though the sequential difference was modest, we view this increase in what is normally a seasonally lower quarter as a positive indication,” Casey said. ”We believe the fourth quarter represented the material conclusion of the destocking period by our pigment customers."
($1 = €0.75)
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