Kronos Worldwide Inc · Q2 2020 earnings

Briefing

Kronos Worldwide reported lower earnings due to decreased sales volumes and prices, and increased production costs.

Kronos Worldwide, Inc. reported a decrease in net income for the second quarter of 2020, with net income at $18.6 million, or $.16 per share, compared to $29.5 million, or $.25 per share, in the second quarter of 2019. The results were impacted by lower sales volumes, lower average TiO2 selling prices, and higher raw materials and production costs, compounded by the COVID-19 pandemic's effect on global demand.

• Net income decreased to $18.6 million, or $0.16 per share, compared to $29.5 million, or $0.25 per share, in Q2 2019.
• Net sales declined by 20% to $386.0 million compared to Q2 2019.
• TiO2 sales volumes were 22% lower than in Q2 2019 due to reduced demand from the COVID-19 pandemic.
• EBITDA decreased to $42.9 million compared to $57.5 million in Q2 2019.

Headline financials

Revenue & EPS history

The extent of the COVID-19 impact on our future operations will depend on the time period and degree to which the COVID-19 pandemic persists in the global economy thereby reducing customer demand for certain of our products, including the timing and extent to which our customers’ operations continue to be impacted, our customers’ perception as to when consumer demand for their products will return to pre-pandemic levels and on any future disruptions in our operations or our suppliers’ operations, all of which are difficult to predict.