Overview

• US titanium dioxide producer's Q1 revenue rose 4% yr/yr on higher sales volumes, currency gains

• Company posted Q1 net loss vs prior-year profit, citing lower TiO2 prices and production volumes

• Lower production costs and cost reduction initiatives partially offset profit decline

Outlook

• Kronos Worldwide did not provide specific financial guidance for the current or future periods

Result Drivers

• LOWER TiO2 PRICES AND PRODUCTION - Co said lower average TiO2 selling prices and reduced production volumes were main factors behind profit decline

• COST REDUCTION INITIATIVES - Lower production costs from cost reduction measures partially offset profit decline

• CURRENCY FLUCTUATIONS - Changes in currency exchange rates increased revenue but reduced segment profit

Company press release: ID:nGNE4F6mF4

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$509.80 mln	$505.10 mln (2 Analysts)
Q1 EPS		-$0.04
Q1 Net Income		-$4.80 mln
Q1 Operating Income		$12.60 mln
Q1 Pretax Profit		-$2 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Kronos Worldwide Inc is $5.50, about 29.5% below its May 5 closing price of $7.80

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