US Tronox’s Q1 sales rise 34.4% to $374.7m on pigment prices, volumes

07 July 2011 14:33 Source:ICIS News

HOUSTON (ICIS)--Tronox’s first-quarter 2011 sales rose 34.4% year on year to $374.7m (€262.3m), driven by high prices and tight industry supplies in its core pigments business, the US-based titanium dioxide (TiO2) producer said on Thursday.

Tronox’s pigment sales for the three months ended 31 March were $337.1m, up 37.3% from $245.6m in the 2010 first quarter, as that business benefited from the global recovery.

The pigment business more than tripled operating profit of $45.9m, primarily due to higher price, Tronox said.

Meanwhile, Tronox’s electrolytic and other chemical products sales for the 2011 first quarter rose 20.2% year on year to $35.0m, driven by higher prices for electrolytic manganese dioxide and higher volumes on sodium chlorate.  

Operating profit for the electrolytic and other chemical products business fell 41% to $1.0m because of higher raw material and production costs.

Tronox, which emerged from bankruptcy on 14 February, reported overall first-quarter net income of $641.5m, compared with $59.0m in the 2010 first quarter, as it booked a $659.1m gain due to the discharge of debt and the revaluation of assets and liabilities.

Following its emergence from bankruptcy, Tronox applied “fresh start accounting” after 31 January. As such, US GAAP financial statements after January 31, 2011 are not comparable with the year-earlier period, the company said.

CEO Dennis Wanlass said going forward Tronox is well-positioned to benefit as the US economy stabilises and emerging markets continue to grow.

($1 = €0.70)

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By Stefan Baumgarten