NYSE$KRO

Kronos Worldwide Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Kronos Worldwide reported a net loss due to lower sales volumes and average TiO2 selling prices.

Kronos Worldwide, Inc. reported a net loss of $20.4 million, or $.18 per share, in the third quarter of 2023, compared to a net income of $21.0 million, or $.18 per share, in the third quarter of 2022. The decrease in net income was primarily due to lower income from operations, resulting from lower sales volumes and average TiO2 selling prices.

  • Net sales decreased by 14% compared to the third quarter of 2022, totaling $396.9 million.
  • TiO2 sales volumes were 6% lower than in the third quarter of 2022.
  • Average TiO2 selling prices were 8% lower than in the third quarter of 2022.
  • The TiO2 segment experienced a loss of $21.4 million, compared to a profit of $34.6 million in the third quarter of 2022.

Headline financials

Total Revenue

$397M

Previous: $460M-13.6%
EPS (adj)

-$0.18

Previous: $0.18-200.0%
Capital Expenditures

-$42.1M

Previous: -$44.4M+5.2%
Free Cash Flow

-$62.5M

Previous: -$23.4M-167.1%
Net Income

-$20.4M

Previous: $21M-197.1%
Operating Income

-$25.3M

Previous: $30.8M-182.1%
Gross Profit

$34.4M

Previous: $84M-59.0%
Cash & Equivalents

$155M

Previous: $339M-54.1%
Total Assets

$1.72B

Previous: $1.94B-11.7%

Revenue & EPS history

Kronos · Revenue · Quarterly

$397M

Q3 2023-13.6%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Kronos · -$14.8M total across 1 segment · Q1 2023

  • TiO2
    -$14.8M

Forward guidance

The company is focused on preserving liquidity by operating plants at reduced rates and implementing cost-saving measures. Improved demand is beginning to be seen in certain markets.

Tailwinds

  • Process improvements and manufacturing efficiencies have reduced the impact of unabsorbed fixed costs.
  • Cost savings measures should result in improved margins.
  • Decisive steps taken to preserve liquidity, improve manufacturing flexibility, and reduce costs will continue to drive value in 2024 and beyond.
  • The company is beginning to see improved demand in certain markets.
  • Low customer inventories and reduced capacity in the industry will fuel a return to profitability when demand returns to normal levels.

Headwinds

  • Future supply and demand for our products
  • The extent of the dependence of certain of our businesses on certain market sectors
  • The cyclicality of our business
  • Customer and producer inventory levels
  • Unexpected or earlier-than-expected industry capacity expansion

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+4.7%

Avg return

30 days after

44%

27 / 62 earnings

Positive

+19.7%

Q3 2016

Best reaction

-19.8%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-5.9%-17.6%
Q4 2025-3.3%-4.8%+20.3%
Q3 2025-7.0%+2.5%+0.2%
Q1 2025-2.0%+4.0%-10.1%
Q3 2024+4.6%-1.9%-12.9%
Q2 2024+0.5%+2.4%+2.7%
Q1 2024+4.1%+2.5%+9.4%
Q4 2023+15.7%+26.3%+38.9%
Q3 2023+14.5%+7.0%+31.5%
Q2 2023-6.9%-1.9%-10.1%
Q1 2023-8.9%-8.0%-3.5%
Q4 2022-13.2%-17.8%-18.1%
Q3 2022-7.9%-0.5%-3.3%
Q2 2022-6.2%-12.1%-27.4%
Q1 2022+1.2%-0.8%+21.6%
Q4 2021+8.6%+11.2%+11.6%
Q3 2021+4.3%+2.8%+3.2%
Q2 2021-6.3%-5.3%-6.7%
Q1 2021-0.1%-1.5%-7.1%
Q4 2020+1.1%-2.8%+4.9%
Q3 2020-0.4%+1.1%+8.1%
Q2 2020+5.4%+10.8%+11.9%
Q1 2020-5.6%+2.4%+20.5%
Q4 2019-12.6%-7.6%+16.0%
Q3 2019+7.6%+8.7%+2.3%
Q2 2019-5.8%-11.3%-4.8%
Q1 2019+2.4%+1.0%+8.5%
Q4 2018-4.8%-5.9%-2.9%
Q3 2018-15.2%-16.2%-26.6%
Q2 2018-0.3%-4.9%-11.8%
Q1 2018-6.0%-1.8%+4.5%
Q4 2017+0.0%-1.7%-3.9%
Q3 2017+0.5%+3.2%-3.0%
Q2 2017-11.5%-7.9%-0.9%
Q1 2017+7.8%+12.7%+8.4%
Q4 2016+7.1%+10.2%+16.7%
Q3 2016+19.7%+38.0%+57.0%
Q2 2016+12.5%+15.4%+51.0%
Q1 2016-3.0%
Q4 2015-2.3%
Q3 2015-14.4%
Q2 2015-19.8%
Q1 2015-9.4%
Q4 2014+7.8%
Q3 2014-0.9%
Q2 2014-0.7%
Q1 2014-4.7%
Q4 2013+8.0%
Q3 2013+2.1%
Q2 2013-2.5%
Q1 2013-3.0%
Q4 2012-2.1%
Q3 2012+2.1%
Q2 2012+4.4%
Q1 2012-11.1%
Q4 2011+0.8%
Q3 2011+2.7%
Q2 2011-19.2%
Q1 2011-4.7%
Q4 2010+3.6%
Q2 2010+7.8%
Q1 2010-5.2%

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