Overview

• U.S. component products and chemicals maker's Q1 net income attributable to stockholders rose sharply yr/yr

• CompX segment sales and profit increased, driven by higher marine component sales and improved margins

• Kronos net sales rose 4%, but income from operations declined due to lower TiO2 prices and volumes

Outlook

• Company did not provide specific guidance or outlook for the current or future periods

Result Drivers

• UNREALIZED GAINS - Results benefited from a $2.7 mln unrealized gain on marketable equity securities, compared to an $8.5 mln loss a year ago

• COMPX SEGMENT PROFIT - CompX profit rose due to higher marine component sales and improved gross margin at Security Products from a more favorable customer and product mix

• KRONOS OPERATING DECLINE - Kronos income from operations fell due to lower average TiO2 selling prices, lower production volumes, and unfavorable currency exchange rates, partly offset by higher sales volumes and lower production costs

Company press release: ID:nGNX3Q7nJP

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$40.6 mln
Q1 Net Income		$5.1 mln
Q1 Operating Income		$4.1 mln
Q1 Pretax Profit		$6.6 mln

Analyst Coverage

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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