Kronos Worldwide's Earnings Surpass Estimates in Q3, Sales Lag

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Kronos Worldwide, Inc. KRO reported third-quarter 2024 earnings of 62 cents per share. This compares favorably with a loss of 18 cents recorded in the year-ago quarter. The figure topped the Zacks Consensus Estimate of 34 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales increased around 22% year over year to $484.7 million due to higher sales volumes as a result of stronger demand for titanium dioxide (TiO2) in all of KRO’s major markets, which was somewhat offset by lower average TiO2 selling prices. The top line missed the Zacks Consensus Estimate of $588.6 million.

Kronos Worldwide Inc Price, Consensus and EPS Surprise

Kronos Worldwide Inc Price, Consensus and EPS Surprise
Kronos Worldwide Inc Price, Consensus and EPS Surprise

Kronos Worldwide Inc price-consensus-eps-surprise-chart | Kronos Worldwide Inc Quote

KRO’s Volumes and Pricing

TiO2 production volumes (thousand metric tons) were up 37% year over year to 141 in the third quarter. TiO2 sales volumes (thousand metric tons) rose 21% to 130 in the quarter. Average TiO2 selling prices were down 1% year over year.

TiO2 segment profit was $43.4 million in the reported quarter against a segment loss of $21.4 million a year ago. The upside is driven primarily by improved income from operations as a result of increased sales and production volumes and lower production costs, offset by lower average TiO2 selling prices.

Kronos Worldwide’s Financials

Kronos ended the quarter with cash and cash equivalents of $94.8 million, down roughly 29% sequentially. Long-term debt increased 11% sequentially to $470.4 million.

KRO’s Outlook

Per KRO, customer demand moderated during the third quarter compared with the first half of the year across all major markets. Kronos predicts demand to further weaken in the fourth quarter. The company expects sales volumes for 2024 to exceed 2023 levels based on the improved demand experienced through the first nine months, along with the significant demand contraction it saw during most of 2023. 

KRO anticipates higher year-over-year operating results for 2024 factoring in improved demand, modest increases in selling prices and lower production costs.

KRO Stock’s Price Performance

Shares of Kronos have rallied 76.1% in the past year against the Zacks Chemicals Diversified industry’s 9.9% rise.

 

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KRO’s Zacks Rank & Other Chemicals Releases

KRO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DuPont de Nemours, Inc. DD logged adjusted earnings of $1.18 per share in the third quarter, topping the Zacks Consensus Estimate of $1.04. DD raised its full-year 2024 projections for operating EBITDA and adjusted earnings per share. 

The Chemours Company CC recorded adjusted earnings of 40 cents for the third quarter, topping the Zacks Consensus Estimate of 32 cents. CC expects consolidated net sales to decline in the mid to high-single digits sequentially in the fourth quarter. Consolidated adjusted EBITDA is forecast to be down in the high teens to low 20% range compared with third-quarter 2024 results. 

PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for full-year 2024.