{"id":523477,"date":"2021-08-04T16:19:16","date_gmt":"2021-08-04T20:19:16","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/kronos-worldwide-reports-second-quarter-2021-results\/"},"modified":"2021-08-04T16:19:16","modified_gmt":"2021-08-04T20:19:16","slug":"kronos-worldwide-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/kronos-worldwide-reports-second-quarter-2021-results\/","title":{"rendered":"Kronos Worldwide Reports Second Quarter 2021 Results"},"content":{"rendered":"
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Dallas, Texas, Aug. 04, 2021 (GLOBE NEWSWIRE) — Kronos Worldwide, Inc. (NYSE:KRO) today reported net income of $25.7 million, or $.22 per share, in the second quarter of 2021 compared to net income of $18.6 million, or $.16 per share, in the second quarter of 2020. For the first six months of 2021, Kronos Worldwide reported net income of $45.3 million, or $.39 per share, compared to net income of $45.6 million, or $.39 per share in the first six months of 2020.\u00a0\u00a0 Net income in the second quarter of 2021 was higher than in the second quarter of 2020 primarily due to higher income from operations resulting from the effects of higher sales volumes and higher average TiO2<\/sub> selling prices, partially offset by higher manufacturing and other production costs, as discussed below.\u00a0\u00a0 Net income for the first six months of 2021 was comparable to net income for the first six months of 2020 as higher net sales resulting from higher sales volumes and average TiO2<\/sub> selling prices were offset by higher manufacturing and other production costs, including higher costs for raw materials and energy.<\/p>\n

Net sales of $478.6 million in the second quarter of 2021 were $92.6 million, or 24% higher than in the second quarter of 2020. Net sales of $943.6 million in the first six months of 2021 were $136.6 million, or 17%, higher than in the first six months of 2020. Net sales increased in the 2021 periods primarily due to higher sales volumes and higher average TiO2<\/sub> selling prices.\u00a0\u00a0 TiO2 <\/sub>sales volumes were 16% higher in the second quarter of 2021 as compared to the second quarter of 2020 and 9% higher in the first six months of 2021 as compared to the same prior year period due to higher demand in all major markets resulting from overall improvements in global economic activity in the 2021 periods compared to the same periods in 2020 due to the negative economic effects from the COVID-19 pandemic in the second quarter of 2020. Average TiO2<\/sub> selling prices were 3% higher in the second quarter of 2021 as compared to the second quarter of 2020 and 1% higher in the first six months of 2021 as compared to the first six months of 2020. Average TiO2<\/sub> selling prices at the end of the second quarter of 2021 were 4% higher than our average TiO2<\/sub> selling prices at the end of 2020.\u00a0\u00a0 Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, increasing net sales by approximately $22 million in the second quarter of 2021 and increasing net sales by approximately $42 million in the first six months of 2021, as compared to the same periods in 2020. The table at the end of this press release shows how each of these items impacted net sales.<\/p>\n

Our TiO2<\/sub> segment profit (see description of non-GAAP information below) in the second quarter of 2021 was $47.7 million as compared to $37.0 million in the second quarter of 2020. For the year-to-date period, the Company\u2019s segment profit was $85.8 million as compared to $84.2 million in the first six months of 2020. Segment profit increased in the 2021 periods primarily due to higher sales volumes and higher average TiO2<\/sub> selling prices, partially offset by higher manufacturing and other production costs, including higher costs for raw materials and energy. TiO2<\/sub> production volumes were 2% higher in the second quarter of 2021 as compared to the second quarter of 2020 and 1% higher in the year-to-date period due to adjustments to reduce production levels in 2020 as a result of the COVID-19 pandemic. We operated our production facilities at overall average capacity utilization rates of 99% in the first six months of 2021 (97% and 100% in the first and second quarters of 2021, respectively) compared to 95% in 2020 (95% and 96% in the first and second quarters of 2020, respectively). Fluctuations in currency exchange rates also affected the year-to-date segment profit comparison, which decreased segment profit by approximately $17 million in the year-to-date 2021 period as compared to the same period of 2020. Fluctuations in currency exchange rates had a nominal effect on the second quarter segment profit comparison.<\/p>\n

Our net income before interest expense, income taxes and depreciation and amortization expense (EBITDA) (see description of non-GAAP information below) in the second quarter of 2021 was $52.9 million compared to EBITDA of $42.9 million in the second quarter of 2020. For the first six months of 2021, the Company\u2019s EBITDA was $96.2 million compared to $97.8 million in the first six months of 2020.<\/p>\n

Other income (expense) in the first six months of 2020 includes a pre-tax insurance settlement gain of $1.5 million related to a property damage claim.<\/p>\n

The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following:<\/p>\n