{"id":822863,"date":"2025-03-06T16:45:52","date_gmt":"2025-03-06T21:45:52","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/nl-reports-fourth-quarter-2024-results\/"},"modified":"2025-03-06T16:45:52","modified_gmt":"2025-03-06T21:45:52","slug":"nl-reports-fourth-quarter-2024-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/nl-reports-fourth-quarter-2024-results\/","title":{"rendered":"NL REPORTS FOURTH QUARTER 2024 RESULTS"},"content":{"rendered":"
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Dallas, Texas, March 06, 2025 (GLOBE NEWSWIRE) — \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n

NL Industries, Inc. (NYSE: NL) today reported net income attributable to NL stockholders of $16.5 million, or $.34 per share, in the fourth quarter of 2024 compared to net income attributable to NL stockholders of $7.6 million, or $.16 per share, in the fourth quarter of 2023. NL\u2019s results include an unrealized loss of $12.0 million in the fourth quarter of 2024 compared to a $2.4 million unrealized gain in the fourth quarter of 2023 related to the change in value of marketable equity securities. For the full year of 2024, NL reported net income attributable to NL stockholders of $67.2 million, or $1.38 per share, compared to a net loss attributable to NL stockholders of $2.3 million, or $.05 per share for the full year of 2023. NL\u2019s full year results include an unrealized gain of $9.8 million in 2024 compared to an unrealized loss of $8.1 million in 2023 related to the change in value of marketable equity securities. Net income per share attributable to NL stockholders for the fourth quarter and for the full year of 2024 includes aggregate income of $31.4 million ($24.8 million, $.51 per share, net of tax) related to an environmental remediation settlement, including income of $21.8 million related to the adjustment of an associated environmental accrual and $9.6 million received from former customers. \u00a0\u00a0<\/p>\n

CompX\u2019s net sales were $38.4 million for the fourth quarter of 2024 compared to $43.2 million in the fourth quarter of 2023 and $145.9 million for the year ended December 31, 2024 compared to $161.3 million for the full year of 2023. Net sales decreased in the fourth quarter of 2024 compared to the same period in 2023 predominantly due to lower Security Products sales to a government security customer, partially offset by higher Marine Components sales to the towboat and government markets. Security Products fourth quarter 2023 net sales include sales to a government security customer for a pilot project that did not continue in 2024. Net sales decreased for the full year of 2024 compared to the same period in 2023 primarily due to lower Marine Components sales to the towboat market and lower Security Products sales in the third and fourth quarters to a government security customer related to the pilot project noted above. CompX\u2019s segment profit (a non-GAAP measure defined as gross margin less selling, general and administrative expenses directly attributable to CompX) was $4.9 million for the fourth quarter of 2024 compared to $7.4 million for the fourth quarter of 2023 and $17.0 million for the full year of 2024 compared to $25.4 million for the same prior year period. CompX\u2019s segment profit decreased in the fourth quarter of 2024 compared to the same period in 2023 due to lower sales and a lower gross margin percentage at Security Products, partially offset by higher Marine Components sales and gross margin percentage. CompX\u2019s segment profit decreased for the full year of 2024 compared to 2023 primarily due to lower sales and gross margin at both Security Products and Marine Components.<\/p>\n

NL recognized equity in losses of Kronos of $4.0 million in the fourth quarter of 2024 compared to equity in losses of $1.6 million in the same period of 2023 and equity in earnings of Kronos of $26.4 million in the full year of 2024 compared to equity in losses of $15.0 million in the full year of 2023.<\/p>\n

As previously reported, effective July 16, 2024, Kronos acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. (\u201cLPC\u201d) previously held by Venator Investments, Ltd. Prior to the acquisition, Kronos held a 50% joint venture interest in LPC. Following the acquisition, LPC became a wholly-owned subsidiary of Kronos. The results of operations of LPC have been included in Kronos\u2019 results of operations beginning as of the acquisition date. Kronos\u2019 net income for the full year of 2024 includes the recognition of an aggregate non-cash gain of $64.5 million ($12.3 million or $.25 per share, net of tax, attributable to NL stockholders) associated with the remeasurement of its investment in LPC as a result of the acquisition.<\/p>\n

Kronos\u2019 net sales of $423.1 million in the fourth quarter of 2024 were $23.0 million, or 6%, higher than in the fourth quarter of 2023. Kronos\u2019 net sales of $1.9 billion for the full year of 2024 were $220.6 million, or 13%, higher than the full year of 2023. Kronos\u2019 net sales increased in the fourth quarter of 2024 compared to the fourth quarter of 2023 primarily due to the effects of higher sales volumes due to strengthening demand for TiO2<\/sub> in all its major markets and higher average TiO2 <\/sub>selling prices. Net sales increased for the full year of 2024 compared to the same period in 2023 primarily due to the net effects of higher sales volumes and lower average TiO2 <\/sub>selling prices. Kronos\u2019 TiO2 <\/sub>sales volumes were 4% higher in the fourth quarter of 2024 as compared to the fourth quarter of 2023 and 20% higher in the full year of 2024 as compared to the full year of 2023. Kronos\u2019 sales volumes resulting from the LPC acquisition did not materially impact prior period comparisons. Kronos\u2019 average TiO2<\/sub> selling prices were 2% higher in the fourth quarter of 2024 (primarily from its European and export markets) as compared to the fourth quarter of 2023 but 5% lower in the full year of 2024 as compared to the full year of 2023. For the full year, changes in product sales mix negatively affected net sales, primarily due to changes in product sales mix in export markets in 2024 as compared to 2023. Changes in currency exchange rates had a nominal effect on Kronos\u2019 net sales in the fourth quarter of 2024 as compared to the fourth quarter of 2023; however, changes in currency exchange rates (primarily the euro) increased its net sales by approximately $5 million in the full year of 2024 as compared to the full year of 2023. The table at the end of this press release shows how each of these items impacted Kronos\u2019 net sales.\u00a0\u00a0<\/p>\n

Kronos\u2019 income from operations in the fourth quarter of 2024 was $28.6 million as compared to a loss from operations of $5.7 million in the fourth quarter of 2023. For the full year of 2024, Kronos\u2019 income from operations was $122.9 million as compared to a loss from operations of $56.0 million in 2023. Kronos\u2019 income from operations increased in the fourth quarter of 2024 compared to the fourth quarter of 2023 primarily due to an increase in sales and production volumes, lower production costs (primarily energy and raw materials) and higher average TiO2 <\/sub>selling prices. Kronos\u2019 income from operations increased for the full year of 2024 compared to the same period in 2023 primarily due to the net effects of an increase in sales and production volumes, lower production costs (primarily energy and raw materials) and lower average TiO2<\/sub> selling prices. Due to improved overall demand and a more favorable production cost environment, Kronos increased its production rates to 96% of practical capacity utilization in the full year of 2024 (87%, 99%, 92% and 97% in the first, second, third and fourth quarters of 2024, respectively) compared to 72% in the full year of 2023 (76%, 64%, 73% and 75% in the first, second, third and fourth quarters of 2023, respectively). As a result, Kronos\u2019 unabsorbed fixed production costs in the full year of 2024 were $12 million (incurred in the first quarter) compared to $96 million in the full year of 2023. Kronos\u2019 sales and production volumes resulting from the LPC acquisition did not materially impact comparisons to the prior periods. During the third quarter of 2024, Kronos completed the closure of its sulfate process line in Canada and Kronos\u2019 income from operations for the full year of 2024 includes non-cash charges of approximately $14 million related to accelerated depreciation and a charge of approximately $2 million related to workforce reductions. Kronos\u2019 selling, general and administrative expense for the full year of 2024 includes $2.2 million of transaction costs incurred in connection with the LPC acquisition. Fluctuations in currency exchange rates (primarily the euro) increased Kronos\u2019 income from operations by approximately $10 million in the full year of 2024 as compared to 2023. Fluctuations in currency exchange rates had a nominal effect on Kronos\u2019 income from operations in the fourth quarter of 2024 as compared to the fourth quarter of 2023.\u00a0\u00a0<\/p>\n

NL\u2019s equity in losses of Kronos for the fourth quarter of 2024 and equity in earnings of Kronos for the full year of 2024 include a loss of $5.1 million ($4.0 million, or $.08 per share, net of tax) related to Kronos\u2019 increased tax expense resulting from final tax regulations on the treatment of certain currency translation gains and losses, which resulted in a non-cash deferred income tax expense and a loss of $2.5 million ($2.0 million, or $.04 per share, net of tax) related to Kronos\u2019 increased tax expense resulting from the recognition of a deferred income tax asset valuation allowance related to its Belgian net deferred tax assets, which resulted in a non-cash deferred income tax expense. Additionally, NL\u2019s equity in earnings of Kronos for the full year of 2024 includes a loss of $.3 million ($.3 million, or $.01 per share, net of tax) related to Kronos\u2019 write-off of deferred financing costs.<\/p>\n

NL\u2019s equity in earnings of Kronos for the full year of 2023 includes an insurance settlement gain related to a 2020 business interruption insurance claim of $.6 million ($.5 million, or $.01 per share, net of tax), a fixed asset impairment related to the write-off of certain costs resulting from a capital project termination of $.9 million ($.7 million, or $.01 per share, net of tax), and restructuring costs related to workforce reductions of $1.3 million ($1.0 million, or $.02 per share, net of tax).<\/p>\n

Excluding the effects of the environmental remediation settlement discussed above, corporate expenses in the fourth quarter and for the full year of 2024 were comparable to the same periods of 2023. Interest and dividend income in the fourth quarter of 2024 were comparable to the fourth quarter of 2023. Interest and dividend income for the full year of 2024 increased $1.4 million compared to the same period of 2023 primarily due to higher average interest rates on invested balances somewhat offset by lower average balances on CompX\u2019s revolving promissory note from Valhi. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the periods.<\/p>\n

Net income per share attributable to NL stockholders for the full year of 2024 includes income of $1.4 million ($1.1 million, or $.02 per share, net of tax) related to insurance recoveries. Net loss per share attributable to NL stockholders for the full year of 2023 includes a non-cash loss of $4.9 million ($3.9 million, or $.08 per share, net of tax) due to the termination of our U.K. pension plan recognized in the second quarter.<\/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 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. Factors that could cause actual future results to differ materially include, but are not limited to:<\/p>\n