12 March 2013 22:30 [Source: ICIS news]
HOUSTON (ICIS)--US-based Kronos reported on Tuesday a $103.9m (€80.0m) drop in net income for Q4 2012 on lower titanium dioxide (TiO2) prices, higher raw materials costs and lower production volumes.
The TiO2 producer posted a net loss of $18.1m for the quarter that ended on 31 December 2012, compared to a net profit of $85.8m during the same period in 2011.
Net sales decreased to $396.8m in Q4 2012 from $437.4m in Q4 2011, while cost of sales increased to $347.2m in Q4 2012 from $243.3m in 2011.
For the year, Kronos had a net income of $218.5m in 2012, a nearly 32% decease from $321.0m in 2011.
"We operated our production facilities at reduced rates for the majority of 2012 in response to weaker customer demand and global economic uncertainties,” CEO Steven Watson said.
“If economic conditions improve in the various regions of the world during 2013, we expect demand for our TiO2 products will increase, and our sales volumes would be expected to be higher in 2013 as compared to 2012,” he added.
Watson said the company expects to increase the selling prices for its products during 2013 to compensate for higher costs of raw materials.
($1 = €0.77)
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