Valhi Inc Q4 net loss widens on weak chemicals segment performance

Valhi, Inc. +1.00% Post

Valhi, Inc.

VHI

14.10

14.21

+1.00%

+0.78% Post


Overview

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

  • 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

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

$494.5 mln

Q4 EPS

-$1.86

Q4 Net Income

-$63.3 mln

Q4 Operating Income

-$30.9 mln

Q4 Pretax Profit

-$81.7 mln


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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