In the second quarter of 2014 ending June 30, 2014, NYSE-listed Kronos Worldwide, Inc. a global manufacturer of titanium dioxide (TiO2) posted a positive net income, when compared with a net loss in the corresponding period of 2013.
Kronos Worldwide posted net income in second quarter ending June 30, 2014 of $33.1 million, or $.29 per share, compared to a net loss of $33.9 million in the second quarter of 2013.
Kronos attributed the improved results from operations in 2014, mainly to lower raw materials costs, partially offset by lower average TiO2 selling prices and sales volumes in 2014.
Net sales of $443.5 million in the second quarter of 2014 were $37.6 million, or 8%, lower than in the second quarter of 2013.
Kronos said its average TiO2 selling prices were 4% lower in the second quarter of 2014 as compared to the same prior year period.
It added that, TiO2 sales volumes in the second quarter were approximately 8% lower than in the comparable period of 2013, due to lower sales primarily in certain export and European markets.
Fluctuations in currency exchange rates also played a positive impact on net sales, increasing it by approximately $13 million in the second quarter of 2014.
Kronos reported that TiO2 segment profit improved to $47.1 million as compared to a segment loss of $44.1 million in the second quarter of 2013 from effects of lower raw materials and other production costs, lower average TiO2 selling prices and sales volumes and higher production volumes.
Kronos' TiO2 production volumes were 9% higher in the second quarter of 2014 as compared to the second quarter of 2013.
The income tax expense in the second quarter of 2014 includes an aggregate non-cash income tax benefit of $5.7 million or $.05 per share, related to a net reduction in its reserve for uncertain tax positions.
