Tronox reported an increase in third-quarter net income on increased sales and a tax benefit, said the company.
The following table shows the company’s financial performance. Figures are in millions of dollars. The company said revenue was up year on year driven by higher prices for titanium dioxide (TiO2), zircon and pig iron and on higher pig iron volumes.
John D Romano, co-CEO, said the results were despite a significant reduction in demand in Europe, Middle East, Africa, and Asia Pacific.
Romano said the company expects TiO2 demand to plunge by 25-30% in Q4 because of customer destocking, continued weakness in Europe, Middle East, Africa, and Asia Pacific, and seasonal weakness in North America.
“We believe customer inventory levels remain low relative to previous periods of economic weakness, so we do not believe we will see similar levels of destocking as we move into 2023," Romano said.
The company said it expects Q4 adjusted EBITDA to be USD140m-170m, assuming the decrease in TiO2 volumes and one-time cost impacts from reduced production as a result of lower customer demand. Full year adjusted EBITDA is expected to be USD902m-932m.
The company said it has implemented plans to significantly reduce its annual capital expenditures (Capex) to below USD275m in 2023 to adapt to the macroeconomic environment as it unfolds.
Tronox plans to reduce production of titanium dioxide (TiO2) in the fourth quarter amid falling demand in Europe, Middle East, Africa, and Asia Pacific.
Tronox Holdings plc is one of the world’s leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals; and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals.
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