MOSCOW (MRC) -- Kronos Worldwide reported on Wednesday a year-on-year decline in Q4 net income as revenue fell faster than costs, said the company.
The following shows the company's Q4 financial performance. Figures are in millions of dollars. The company noted higher production costs, including for raw materials and energy, and lower sales volumes, and higher selling prices for titanium dioxide (TiO2).
The following table shows the company's sales volumes and production volumes. Figures are in thousands of tonnes.
The company experienced higher production and other costs in its European facilities that it was unable to absorb in the quarter after lowering production because of reduced demand from its European and export markets.
TiO2 sales volumes were down by 40% compared with the same quarter a year ago, impacted by weaker consumer demand that began to emerge late in Q3. Utilisation rates in the quarter were 89%. The company also cited headwinds from currency exchange rates.
For Kronos, the demand weakness it saw at the end of Q3 and throughout Q4 was compounded by rapidly rising costs, especially in Europe, over the second half of the year. The company said it began to see pockets of improving demand in Europe and certain export markets, bolstered by restocking after experiencing significant destocking in Q4.
The company sees weak demand in North America so far in 2023, but said it expects to see demand gradually return during the first half of the year, especially in Europe and export markets.
We remind, Kronos Worldwide Inc announced that its board of directors has declared a regular quarterly dividend of $0.19/share on its common stock, payable on 16 Mar 2023 to stockholders of record at the close of business on 7 Mar 2023. Kronos Worldwide Inc is a major international producer of titanium dioxide products.