Kronos Worldwide Inc. (NYSE:KRO) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.33%.
Kronos Worldwide Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.29 in the quarter versus EPS of $0.60 in the year-earlier quarter.
Revenue: Decreased 11.77% to $481.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kronos Worldwide Inc. reported adjusted EPS loss of $0.29 per share. By that measure, the company missed the mean analyst estimate of $-0.12. It beat the average revenue estimate of $464.79 million.
Quoting Management: Steven L. Watson, Vice Chairman and Chief Executive Officer, said “With the record sales volumes levels experienced in the first half of the year, we continue to see evidence of improvement in demand for our TiO2 products, which we believe will support implementation of additional selling price increases in the near term. We also continue to believe the intermediate and longer term prospects for the TiO2 industry generally, and Kronos specifically, are strong. Due to the constraints, high capital costs and extended lead time associated with adding significant new TiO2 production capacity, especially for premium grades of TiO2 products produced from the chloride process, we believe increased and sustained profit margins will be necessary to financially justify major expansions of TiO2 production capacity required to meet expected future growth in demand. As a result of customer decisions over the last year and the resulting adverse effect on global TiO2 pricing, industry projects to increase TiO2 production capacity have been cancelled or deferred indefinitely. Given the lead time required for such production capacity expansions, we expect a prolonged shortage of TiO2 products will occur as economic conditions improve and global demand levels for TiO2 continue to increase.”
Key Stats (on next page)…