30 January 2014 14:29 [Source: ICIS news]
HOUSTON (ICIS)--Kronos expects to report a 62% year-over-year decline in fourth-quarter segment profit, mainly because of lower titanium dioxide (TiO2) prices and the cost of settling a labour dispute at its plant near Montreal, Canada, the US-based TiO2 producer said in a preliminary results release on Thursday.
Kronos' segment profit for the three months ended 31 December is expected at $1.8m, down from $4.7m in the 2012 fourth quarter, on sales of $368.6m, down from $396.8m.
Kronos said that TiO2 sales volumes for the fourth quarter were down 1% year over year to about 101,000 tonnes, with average prices down by about 10%.
Volumes were impacted by the lockout of unionised workers at the Canadian TiO2 facility. During the lockout, which began in June, Kronos’ non-unionised management staff ran the plant at about 15% of capacity.
Following a labour settlement costing Kronos $9m, full production at the plant is expected to resume within the current first quarter, the company said.
For the full year of 2013, Kronos expects to report a segment loss of $83.6m, compared with a profit of $373.8m in 2012.
The year-over-year decrease is primarily due to a 19% decline in average TiO2 selling prices, higher raw materials costs, a third-quarter 2013 litigation settlement charge of $35m, and the cost of settling the Canadian labour dispute, the company said.
Full-year TiO2 sales volumes are expected to be about 498,000 tonnes, up 6% from 2012.
Kronos added that it was currently "exploring the possibility" of accessing debt capital markets.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections