CORRECTED-Valhi Inc swings to Q4 net loss on weak chemicals segment performance

Overview

• U.S. chemicals and real estate firm's Q4 revenue rose 3% yr/yr, swung to net loss

• Company posted Q4 operating loss, driven by lower TiO2 prices and reduced production rates

• Net loss includes non-cash tax expense and workforce reduction costs in Chemicals segment

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods in press release

Result Drivers

• LOWER TiO2 PRICES - Chemicals segment sales and operating income fell due to lower average TiO2 selling prices

• REDUCED PRODUCTION RATES - Higher unabsorbed fixed production costs from lower operating rates at Chemicals segment facilities weighed on results

• WORKFORCE REDUCTION COSTS - Chemicals segment incurred costs related to workforce reduction initiatives

Company press release: ID:nGNX5MsHSC

Key Details

Analyst Coverage

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

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