NL REPORTS SECOND QUARTER 2024 RESULTS
2024年8月8日 - 5:18AM
NL Industries, Inc. (NYSE: NL) today reported net income
attributable to NL stockholders of $7.9 million, or $.16 per share,
in the second quarter of 2024 compared to a net loss attributable
to NL stockholders of $3.1 million, or $.06 per share, in the
second quarter of 2023. NL results include an unrealized gain of
$.8 million in the second quarter of 2024 related to the change in
value of marketable equity securities compared to an unrealized
loss of $5.4 million in the second quarter of 2023. For the first
six months of 2024, NL reported net income attributable to NL
stockholders of $14.7 million, or $.30 per share, compared to a net
loss attributable to NL stockholders of $9.8 million, or $.20 per
share for the first six months of 2023. NL results include an
unrealized gain of $3.2 million in the first six months of 2024
related to the change in value of marketable equity securities
compared to a $10.9 million unrealized loss in the first six months
of 2023.
CompX net sales were $35.9 million for the
second quarter of 2024 compared to $36.6 million in the second
quarter of 2023 and $73.9 million for the six months of 2023,
compared to $77.8 million for the same prior year period. The
decrease in sales for both periods is due to lower Marine
Components sales primarily to the towboat market, partially offset
by higher Security Products sales primarily to the government
security market. Income from operations attributable to CompX was
$5.1 million for the second quarter of 2024 compared to $4.4
million for the second quarter of 2023 and $8.8 million for the
first six months of 2024 compared to $11.4 million for the same
prior year period. Income from operations attributable to CompX
increased in the second quarter of 2024 compared to the same period
in 2023 due to the effects of higher Security Products sales and
gross margin which more than offset lower Marine Components sales
and gross margin. Income from operations attributable to CompX
decreased for the first six months of 2024 compared to the same
period in 2023 due to lower Marine Components sales and gross
margin partially offset by higher Security Products sales and
higher Security Products gross margin in the second quarter of 2024
compared to the second quarter of 2023.
NL recognized equity in earnings of Kronos of
$6.0 million in the second quarter of 2024 compared to equity in
losses of $2.6 million in the second quarter of 2023. NL recognized
equity in earnings of $8.5 million in the first six months of 2024
compared to equity in losses of $7.2 million in the same period of
2023. Kronos’ net sales of $500.5 million in the second quarter of
2024 were $57.3 million, or 13%, higher than in the second quarter
of 2023. Kronos’ net sales of $979.3 million in the first six
months of 2024 were $109.8 million, or 13%, higher than in the
first six months of 2023. Kronos’ net sales increased in the 2024
periods compared to the same periods in 2023 due to the effects of
higher sales volumes due to strengthening demand for TiO2 in all
its major markets, partially offset by lower average TiO2 selling
prices. Kronos’ TiO2 sales volumes were 29% higher in the second
quarter of 2024 as compared to the second quarter of 2023 and 28%
higher in the first six months of 2024 as compared to the first six
months of 2023. Kronos started 2024 with average TiO2 selling
prices 13% lower than at the beginning of 2023 and average TiO2
selling prices remained stable during the first six months of 2024.
Kronos’ average TiO2 selling prices were 8% lower in the second
quarter of 2024 as compared to the second quarter of 2023 and 9%
lower in the first six months of 2024 as compared to the first six
months of 2023. Kronos estimates that changes in currency exchange
rates (primarily the euro) increased its net sales by approximately
$2 million in the second quarter of 2024 as compared to the second
quarter of 2023, and approximately $6 million in the first six
months of 2024 as compared to the first six months of 2023. The
table at the end of this press release shows how each of these
items impacted net sales.
Kronos’ income from operations in the second
quarter of 2024 was $35.9 million as compared to a loss from
operations of $6.7 million in the second quarter of 2023. For the
year-to-date period, Kronos’ income from operations was $55.4
million as compared to a loss from operations of $25.0 million in
the first six months of 2023. Kronos’ income from operations
increased in the 2024 periods compared to the same periods in 2023
primarily due to the net effects of higher sales and production
volumes, lower production costs (primarily energy and raw material
costs) and lower average TiO2 selling prices. Kronos’ TiO2
production volumes were 54% higher in the second quarter of 2024
compared to the second quarter of 2023 and 33% higher in the first
six months of 2024 compared to the same period of 2023. Due to
improved overall demand and a more favorable production cost
environment, Kronos increased its production rates to 93% of
practical capacity utilization in the first six months of 2024 (87%
and 99% in the first and second quarters of 2024, respectively)
compared to 70% in the first six months of 2023 (76% and 64% in the
first and second quarters of 2023, respectively). As a result,
Kronos’ unabsorbed fixed production costs in the first six months
of 2024 were $12 million (incurred in the first quarter) compared
to $54 million in the first six months of 2023 related to
curtailments in 2023 and continuing into the first quarter of 2024.
Kronos’ income from operations in both the second quarter and first
six months of 2024 includes a charge of approximately $2 million
related to workforce reductions and approximately $10 million in
non-cash charges primarily related to accelerated depreciation in
connection with the closure of Kronos’ sulfate process line in
Canada. Kronos estimates that changes in currency exchange rates
decreased its income from operations by approximately $3 million in
both the second quarters of 2024 and 2023 comparisons, and the
first six months of 2024 and 2023 comparisons.
Corporate expenses increased $1.3 million in the
second quarter of 2024 compared to the second quarter of 2023
primarily due to higher environmental remediation and related
costs. Corporate expenses increased $.9 million in the first six
months of 2024 compared to the same period of 2023 primarily due to
higher environmental remediation and related costs, somewhat offset
by lower litigation and related costs. Interest and dividend income
increased in the second quarter and for the first six months of
2024 compared to the same periods of 2023 primarily due to higher
average interest rates and higher average investment balances,
somewhat offset by lower average balances on CompX’s revolving
promissory note receivable from Valhi. Marketable equity securities
represent the change in unrealized gains (losses) on our portfolio
of marketable equity securities during the periods.
Net income attributable to NL stockholders for
the first six months of 2024 includes a loss of $.3 million ($.3
million, or $.01 per share, net of tax) due to Kronos’ recognition
of an aggregate charge related to a write-off of deferred financing
costs.
Net loss attributable to NL stockholders for the
second quarter and for the first six months 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.
Additionally, net loss attributable to NL stockholders for the
first six months of 2023 includes income of $.5 million ($.4
million, or $.01 per share, net of tax) due to Kronos’ recognition
of a pre-tax insurance settlement gain related to a business
interruption insurance claim arising from Hurricane Laura in
2020.
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:
- Future supply
and demand for our products;
- Kronos’ ability
to realize expected cost savings from strategic and operational
initiatives;
- Kronos’ ability
to integrate acquisitions, including Louisiana Pigment Company,
L.P. (“LPC”) into its operations and realize expected synergies and
innovations;
- The extent of
the dependence of certain of our businesses on certain market
sectors;
- The cyclicality
of our businesses (such as Kronos’ TiO2 operations);
- Customer and
producer inventory levels;
- Unexpected or
earlier-than-expected industry capacity expansion (such as the TiO2
industry);
- Changes in raw
material and other operating costs (such as energy, ore, zinc,
aluminum, steel and brass costs) and our ability to pass those
costs on to our customers or offset them with reductions in other
operating costs;
- Changes in the
availability of raw materials (such as ore);
- General global
economic and political conditions that harm the worldwide economy,
disrupt our supply chain, increase material and energy costs or
reduce demand or perceived demand for Kronos’ TiO2 and our products
or impair our ability to operate our facilities (including changes
in the level of gross domestic product in various regions of the
world, natural disasters, terrorist acts, global conflicts and
public health crises);
- Operating
interruptions (including, but not limited to, labor disputes,
leaks, natural disasters, fires, explosions, unscheduled or
unplanned downtime, transportation interruptions, certain regional
and world events or economic conditions and public health
crises);
- Technology
related disruptions (including, but not limited to, cyber-attacks;
software implementation, upgrades, or improvements; technology
processing failures; or other events) related to our technology
infrastructure that could impact our ability to continue
operations, or at key vendors which could impact our supply chain,
or at key customers which could impact their operations and cause
them to curtail or pause orders;
- Competitive
products and substitute products;
- Price and
product competition from low-cost manufacturing sources (such as
China);
- Customer and
competitor strategies;
- Potential
consolidation of Kronos’ competitors;
- Potential
consolidation of Kronos’ customers;
- The impact of
pricing and production decisions;
- Competitive
technology positions;
- Our ability to
protect or defend intellectual property rights;
- Potential
difficulties in integrating future acquisitions;
- Potential
difficulties in upgrading or implementing accounting and
manufacturing software systems;
- The introduction
of trade barriers or trade disputes;
- Fluctuations in
currency exchange rates (such as changes in the exchange rate
between the U.S. dollar and each of the euro, the Norwegian krone
and the Canadian dollar and between the euro and the Norwegian
krone), or possible disruptions to our business resulting from
uncertainties associated with the euro or other currencies;
- Decisions to
sell operating assets other than in the ordinary course of
business;
- Kronos’ ability
to renew or refinance credit facilities or other debt instruments
in the future;
- Changes in
interest rates;
- Our ability to
maintain sufficient liquidity;
- The timing and
amounts of insurance recoveries;
- The ability of
our subsidiaries or affiliates to pay us dividends;
- Uncertainties
associated with CompX’s development of new products and product
features;
- The ultimate
outcome of income tax audits, tax settlement initiatives or other
tax matters, including future tax reform;
- Our ability to
utilize income tax attributes or changes in income tax rates
related to such attributes, the benefits of which may or may not
have been recognized under the more-likely-than-not recognition
criteria;
- Environmental
matters (such as those requiring compliance with emission and
discharge standards for existing and new facilities or new
developments regarding environmental remediation or decommissioning
obligations at sites related to our former operations);
- Government laws
and regulations and possible changes therein (such as changes in
government regulations which might impose various obligations on
former manufacturers of lead pigment and lead-based paint,
including us, with respect to asserted health concerns associated
with the use of such products), including new environmental, health
and safety, sustainability or other regulations (such as those
seeking to limit or classify TiO2 or its use);
- The ultimate
resolution of pending litigation (such as our lead pigment and
environmental matters); and
- Pending or
possible future litigation or other actions.
Should one or more of these risks materialize
(or the consequences of such a development worsen), or should the
underlying assumptions prove incorrect, actual results could differ
materially from those currently forecasted or expected. We disclaim
any intention or obligation to update or revise any forward-looking
statement whether as a result of changes in information, future
events or otherwise.
NL Industries, Inc. is engaged in component
products (security products and recreational marine components) and
chemicals (TiO2) businesses.
Investor Relations Contact
Bryan A. HanleySenior Vice President and
Treasurer(972) 233-1700
NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except earnings per
share)
(unaudited)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2023 |
|
2024 |
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2023 |
|
2024 |
Net sales |
|
$ |
36.6 |
|
$ |
35.9 |
|
$ |
77.8 |
|
$ |
73.9 |
Cost of sales |
|
|
26.3 |
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|
24.8 |
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54.8 |
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53.1 |
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Gross margin |
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10.3 |
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11.1 |
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23.0 |
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20.8 |
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Selling, general and
administrative expense |
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5.9 |
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6.0 |
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11.6 |
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12.0 |
Corporate expense |
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3.0 |
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4.3 |
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5.8 |
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6.7 |
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Income from operations |
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1.4 |
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|
.8 |
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5.6 |
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2.1 |
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Equity in earnings (losses) of
Kronos Worldwide, Inc. |
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(2.6) |
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6.0 |
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(7.2) |
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8.5 |
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Other income (expense): |
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Interest and dividend income |
|
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2.1 |
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2.6 |
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4.1 |
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5.2 |
Marketable equity securities |
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(5.4) |
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|
.8 |
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(10.9) |
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3.2 |
Loss on pension plan termination |
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(4.9) |
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— |
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(4.9) |
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— |
Other components of net periodic pension and OPEB cost |
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(.3) |
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(.3) |
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(.7) |
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(.6) |
Interest expense |
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(.2) |
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(.1) |
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(.4) |
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(.3) |
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Income (loss) before income taxes |
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(9.9) |
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9.8 |
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(14.4) |
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18.1 |
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Income tax expense
(benefit) |
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(7.3) |
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1.3 |
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(5.9) |
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2.3 |
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Net income (loss) |
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(2.6) |
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8.5 |
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(8.5) |
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15.8 |
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Noncontrolling interest in net
income of subsidiary |
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|
.5 |
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.6 |
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1.3 |
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1.1 |
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Net income (loss) attributable
to NL stockholders |
|
$ |
(3.1) |
|
$ |
7.9 |
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$ |
(9.8) |
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$ |
14.7 |
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Net income (loss) per share
attributable to NL stockholders |
|
$ |
(.06) |
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$ |
.16 |
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$ |
(.20) |
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$ |
.30 |
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Weighted average shares used
in the calculation of net income (loss) per share |
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48.8 |
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48.8 |
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48.8 |
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48.8 |
NL INDUSTRIES, INC.
COMPONENTS OF INCOME FROM
OPERATIONS
(In millions)
(unaudited)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2023 |
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2024 |
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2023 |
|
2024 |
CompX - component
products |
$ |
4.4 |
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$ |
5.1 |
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$ |
11.4 |
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$ |
8.8 |
Corporate expense |
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(3.0) |
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(4.3) |
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(5.8) |
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(6.7) |
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Income from operations |
$ |
1.4 |
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$ |
.8 |
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$ |
5.6 |
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$ |
2.1 |
CHANGE IN KRONOS’ NET
SALES
(unaudited)
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
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2024 vs. 2023 |
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2024 vs 2023 |
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Percentage change in net
sales: |
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TiO2 sales volume |
29 |
% |
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28 |
% |
TiO2 product pricing |
(8) |
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(9) |
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TiO2 product mix/other |
(8) |
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(7) |
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Changes in currency exchange rates |
— |
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1 |
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Total |
13 |
% |
|
13 |
% |
NL Industries (NYSE:NL)
過去 株価チャート
から 11 2024 まで 12 2024
NL Industries (NYSE:NL)
過去 株価チャート
から 12 2023 まで 12 2024