Dallas, Texas, March 10, 2021 (GLOBE NEWSWIRE) — NL Industries, Inc. (NYSE: NL) at present reported internet earnings attributable to NL stockholders of $4.3 million, or $.09 per share, within the fourth quarter of 2020 in comparison with internet earnings attributable to NL stockholders of $6.3 million, or $.13 per share, within the fourth quarter of 2019.  For the total 12 months of 2020, NL reported internet earnings attributable to NL stockholders of $14.7 million, or $.30 per share, in comparison with internet earnings attributable to NL stockholders of $25.8 million, or $.53 per share in 2019.  NL outcomes embody an unrealized lack of $8.7 million within the full 12 months of 2020 associated to the change in worth of marketable fairness securities in comparison with a $.9 million unrealized loss in 2019.  NL additionally acknowledged a pre-tax litigation settlement expense of $19.3 million ($.31 per share, internet of earnings tax profit) primarily within the second quarter of 2019.

CompX internet gross sales had been $30.0 million within the fourth quarter of 2020 in comparison with $29.6 million within the fourth quarter of 2019 and $114.5 million for the 12 months ended December 31, 2020 in comparison with $124.2 million for the total 12 months of 2019.  CompX internet gross sales elevated within the fourth quarter of 2020 in comparison with the identical interval in 2019 as decrease Safety Merchandise gross sales had been greater than offset by elevated Marine Elements gross sales, with the towboat market representing a lot of the improve in marine gross sales.  CompX internet gross sales decreased within the full 12 months of 2020 in comparison with the total 12 months of 2019 resulting from decrease Safety Merchandise gross sales primarily ensuing from buyer disruptions brought on by the COVID-19 pandemic, considerably offset by greater Marine Elements gross sales.

Earnings from operations attributable to CompX was $2.3 million within the fourth quarter of 2020 in comparison with $3.5 million within the fourth quarter of 2019 and $11.8 million within the full 12 months of 2020 in comparison with $17.7 million within the full 12 months of 2019.  Working earnings decreased within the fourth quarter of 2020 in comparison with the fourth quarter of 2019 as the development in Marine Elements working earnings was offset by the decline of Safety Merchandise working earnings.  Safety Merchandise working earnings for the interval declined primarily as a result of greater price of gross sales famous beneath, in addition to elevated medical prices. Working earnings within the full 12 months of 2020 in comparison with the total 12 months of 2019 was negatively impacted by greater mounted price per unit of manufacturing as the results of decrease manufacturing volumes within the second and third quarters which elevated the price of stock produced in these quarters and offered within the second half of 2020.  Moreover, working earnings within the full 12 months of 2020 in comparison with prior 12 months was negatively impacted by elevated employer paid medical prices unrelated to the pandemic.  Within the second half of 2020, CompX gross sales started to get better from the traditionally low ranges it skilled throughout the second quarter, with gross sales steadily enhancing for the rest of the 12 months. Within the second half of the 12 months, CompX’s manufacturing operations returned to extra regular manufacturing charges as demand from its clients started to return, though Safety Merchandise operations didn’t get better to pre-pandemic ranges.

NL acknowledged fairness in earnings of Kronos of $3.1 million within the fourth quarter of 2020 in comparison with $2.9 million in the identical interval of 2019 and $19.4 million within the full 12 months of 2020 in comparison with $26.5 million within the full 12 months of 2019.  Kronos’ internet gross sales of $414.9 million within the fourth quarter of 2020 had been $42.2 million, or 11%, greater than within the fourth quarter of 2019.  Kronos’ internet gross sales of $1.6 billion within the full 12 months of 2020 had been $92.3 million, or 5%, decrease than within the full 12 months of 2019.  Kronos’ internet gross sales elevated within the fourth quarter of 2020 in comparison with the identical interval in 2019 primarily resulting from greater gross sales volumes partially offset by decrease common TiO2 promoting costs.  Kronos’ internet gross sales decreased within the full 12 months of 2020 in comparison with the total 12 months of 2019 primarily resulting from decrease gross sales volumes and decrease common TiO2 promoting costs.  Kronos’ TiO2 gross sales volumes had been 12% greater within the fourth quarter of 2020 as in comparison with the fourth quarter of 2019 primarily resulting from greater demand in its European and North American markets. Kronos’ TiO2 gross sales volumes had been 6% decrease within the full 12 months of 2020 as in comparison with the total 12 months of 2019 resulting from decrease gross sales volumes in all main markets, primarily ensuing from demand contraction associated to the COVID-19 pandemic, which primarily impacted the second and third quarters. Kronos’ common TiO2 promoting costs had been 3% decrease within the fourth quarter of 2020 as in comparison with the fourth quarter of 2019 and a pair of% decrease within the full 12 months of 2020 as in comparison with the total 12 months of 2019.  Kronos’ common TiO2 promoting costs on the finish of 2020 had been similar to its common TiO2 promoting costs on the finish of the third quarter of 2020 and three% decrease than the start of the 12 months.  Fluctuations in foreign money alternate charges (primarily the euro) additionally affected Kronos’ internet gross sales comparisons, rising internet gross sales by roughly $13 million within the fourth quarter of 2020 and rising internet gross sales by roughly $9 million within the full 12 months of 2020 as in comparison with the identical intervals in 2019. 

Kronos’ earnings from operations within the fourth quarter of 2020 was $20.4 million as in comparison with $17.2 million within the fourth quarter of 2019. For the total 12 months of 2020, Kronos’ earnings from operations was $116.2 million as in comparison with $145.8 million in 2019.   Kronos’ earnings from operations elevated within the fourth quarter of 2020 as in comparison with the fourth quarter of 2019 primarily resulting from greater gross sales volumes and decrease manufacturing prices, partially offset by decrease common TiO2 promoting costs.  Kronos’ earnings from operations decreased for the total 12 months of 2020 in comparison with the total 12 months of 2019 primarily as a result of results of decrease gross sales volumes, decrease common TiO2 promoting costs and better uncooked supplies and different manufacturing prices.  Kronos’ TiO2 manufacturing volumes had been 8% decrease within the fourth quarter of 2020 and 5% decrease within the full 12 months of 2020 as in comparison with the identical intervals in 2019.  Kronos operated its manufacturing services at general common capability utilization charges of 92% within the full 12 months of 2020 (95%, 96%, 86% and 92% within the first, second, third and fourth quarters of 2020, respectively) in comparison with 98% in 2019 (97% within the first, second and third quarters and at full sensible capability within the fourth quarter of 2019).  Early within the third quarter of 2020, Kronos decreased manufacturing ranges to correspond with a short lived decline in market demand, then elevated manufacturing ranges later within the third quarter and into the fourth quarter to align with improved demand and its market expectations for the close to time period. Fluctuations in foreign money alternate charges elevated earnings from operations by roughly $6 million within the full 12 months of 2020 as in comparison with the total 12 months of 2019, whereas fluctuations in foreign money alternate charges had solely a nominal impact on the fourth quarter earnings from operations comparability. 

Company bills decreased $1.3 million within the fourth quarter of 2020 in comparison with the fourth quarter of 2019 primarily resulting from decrease litigation charges and associated prices and decrease administrative bills.  Company bills decreased $3.0 million within the full 12 months of 2020 in comparison with the total 12 months of 2019 primarily resulting from decrease litigation charges and associated prices and decrease administrative bills partially offset by greater environmental remediation and associated prices. We acknowledged a $19.3 million pre-tax litigation settlement expense in 2019 for a settlement settlement that was permitted by the courtroom in July 2019. 

Insurance coverage recoveries characterize quantities we obtain from sure of our former insurance coverage carriers and customarily relate to the restoration of previous lead pigment and asbestos litigation protection prices we’ve incurred.  Considerably all the insurance coverage recoveries we acknowledged in 2019 relate to a settlement we reached with a single insurance coverage service that agreed to reimburse us for a portion of our previous and future litigation protection prices.  Such insurance coverage recoveries aggregated $5.1 million ($.08 per share, internet of earnings tax expense) in 2019. 

Different earnings, internet in 2019 features a achieve of $4.4 million ($.07 per share, internet of earnings tax expense) associated to a sale of extra property within the third quarter and a achieve of $3.0 million ($.05 per share, internet of earnings tax expense) associated to the sale of our insurance coverage and threat administration enterprise within the fourth quarter.

Curiosity and dividend earnings decreased $1.0 million within the fourth quarter and $4.1 million within the full 12 months of 2020 in comparison with the prior 12 months intervals primarily resulting from decrease common balances and decrease rates of interest on CompX’s revolving promissory be aware receivable from Valhi in addition to decrease common rates of interest on invested balances partially offset by greater money and money equivalents accessible for funding.  Marketable fairness securities characterize the change in unrealized positive aspects (losses) on our portfolio of marketable fairness securities throughout the intervals.

Our outcomes of operations for 2020 had been considerably impacted by the COVID-19 pandemic, primarily within the second and third quarters, resulting from authorities mandated closures and diminished demand for a lot of of CompX’s and Kronos’ merchandise ensuing from the speedy contraction of huge areas of the worldwide financial system. The extent of the influence of the COVID-19 pandemic on our future operations will rely upon the time interval and diploma to which the COVID-19 pandemic persists within the world financial system, together with the timing and extent to which CompX’s and Kronos’ clients’ operations proceed to be impacted, their clients’ notion as to when shopper demand for his or her merchandise will return to pre-pandemic ranges and on any future disruptions of their operations or their suppliers’ operations, all of that are tough to foretell.

The statements on this launch regarding issues that aren’t historic info are forward-looking statements that characterize administration’s beliefs and assumptions based mostly on presently accessible info.  Though we imagine that the expectations mirrored in such forward-looking statements are cheap, we can’t give any assurances that these expectations will show to be right.  Such statements by their nature contain substantial dangers and uncertainties that might considerably influence anticipated outcomes, and precise future outcomes might differ materially from these described in such forward-looking statements.  Whereas it isn’t doable to determine all components, we proceed to face many dangers and uncertainties.  Components that might trigger precise future outcomes to vary materially embody, however aren’t restricted to:

  • Future provide and demand for our merchandise
  • The extent of the dependence of sure of our companies on sure market sectors
  • The cyclicality of our companies (corresponding to Kronos’ TiO2 operations)
  • Buyer and producer stock ranges
  • Surprising or earlier-than-expected trade capability enlargement (such because the TiO2 trade)
  • Adjustments in uncooked materials and different working prices (corresponding to vitality, ore, zinc, aluminum, metal and brass prices) and our capacity to cross these prices on to our clients or offset them with reductions in different working prices
  • Adjustments within the availability of uncooked materials (corresponding to ore)
  • Normal world financial and political circumstances that hurt the worldwide financial system, disrupt our provide chain, improve materials prices or cut back demand or perceived demand for Kronos’ TiO2 and our merchandise or impair our capacity to function our services (together with adjustments within the stage of gross home product in numerous areas of the world, pure disasters, terrorist acts, world conflicts and public well being crises corresponding to COVID-19)
  • Aggressive merchandise and substitute merchandise
  • Value and product competitors from low-cost manufacturing sources (corresponding to China)
  • Buyer and competitor methods
  • Potential consolidation of Kronos’ rivals
  • Potential consolidation of Kronos’ clients
  • The influence of pricing and manufacturing choices
  • Aggressive expertise positions
  • Our capacity to guard or defend mental property rights
  • Potential difficulties in integrating future acquisitions
  • Potential difficulties in upgrading or implementing accounting and manufacturing software program techniques
  • The introduction of commerce obstacles or commerce disputes
  • The influence of present or future authorities laws (together with worker healthcare profit associated laws)
  • Fluctuations in foreign money alternate charges (corresponding to adjustments within the alternate fee between the U.S. greenback and every of the euro, the Norwegian krone and the Canadian greenback and between the euro and the Norwegian krone), or doable disruptions to our enterprise ensuing from uncertainties related to the euro or different currencies
  • Working interruptions (together with, however not restricted to, labor disputes, leaks, pure disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, cyber-attacks and public well being crises corresponding to COVID-19)
  • Choices to promote working property aside from within the odd course of enterprise
  • Kronos’ capacity to resume or refinance credit score services
  • Our capacity to keep up enough liquidity
  • The timing and quantities of insurance coverage recoveries
  • The power of our subsidiaries or associates to pay us dividends
  • Uncertainties related to CompX’s improvement of latest merchandise and product options
  • The final word final result of earnings tax audits, tax settlement initiatives or different tax issues, together with future tax reform
  • Our capacity to make the most of earnings tax attributes or adjustments in earnings tax charges associated to such attributes, the advantages of which can or might not have been acknowledged beneath the more-likely-than-not recognition standards
  • Environmental issues (corresponding to these requiring compliance with emission and discharge requirements for current and new services or new developments concerning environmental remediation at websites associated to our former operations)
  • Authorities legal guidelines and laws and doable adjustments therein (corresponding to adjustments in authorities laws which could impose numerous obligations on former producers of lead pigment and lead-based paint, together with us, with respect to asserted well being considerations related to the usage of such merchandise), together with new environmental well being and security laws corresponding to these in search of to restrict or classify TiO2 or its use
  • The final word decision of pending litigation (corresponding to our lead pigment and environmental issues)
  • Potential future litigation. 

Ought to a number of of those dangers materialize (or the implications of such a improvement worsen), or ought to the underlying assumptions show incorrect, precise outcomes might differ materially from these presently forecasted or anticipated.  We disclaim any intention or obligation to replace or revise any forward-looking assertion whether or not on account of adjustments in info, future occasions or in any other case. 

NL Industries, Inc. is engaged within the part merchandise (safety merchandise and leisure marine elements), chemical substances (TiO2) and different companies.

NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In tens of millions, besides earnings per share)

  Three months ended     12 months ended  
  December 31,     December 31,  
  2019     2020     2019     2020  
  (unaudited)                  
Web gross sales $ 29.6     $ 30.0     $ 124.2     $ 114.5  
Value of gross sales   20.6       22.3       85.2       81.7  
                               
     Gross margin   9.0       7.7       39.0       32.8  
                               
Promoting, common and administrative expense   5.5       5.4       21.3       21.0  
Different working earnings (expense):                              
     Insurance coverage recoveries   (.1 )           5.1       .1  
     Different earnings, internet   3.0             7.4        
     Litigation settlement expense, internet               (19.3 )      
     Company expense   (3.4 )     (2.1 )     (12.5 )     (9.5 )
                               
         Earnings (loss) from operations   3.0       .2       (1.6 )     2.4  
                               
Fairness in earnings of Kronos Worldwide, Inc.   2.9       3.1       26.5       19.4  
                               
Different earnings (expense):                              
     Curiosity and dividend earnings   1.5       .5       6.7       2.6  
     Marketable fairness securities   (.5 )     2.4       (.9 )     (8.7 )
     Different elements of internet periodic pension
       and OPEB price
  (.1 )     (.2 )     (1.4 )     (.8 )
     Curiosity expense   (.4 )     (.3 )     (.7 )     (1.3 )
                               
         Earnings earlier than earnings taxes   6.4       5.7       28.6       13.6  
                               
Earnings tax expense (profit)   (.3 )     1.1       .6       (2.5 )
                               
         Web earnings   6.7       4.6       28.0       16.1  
                               
Noncontrolling curiosity in internet earnings of subsidiary   .4       .3       2.2       1.4  
                               
Web earnings attributable to NL stockholders $ 6.3     $ 4.3     $ 25.8     $ 14.7  
                               
Web earnings per share attributable to
   NL stockholders
$ .13     $ .09     $ .53     $ .30  
                               
Weighted common shares used within the calculation                              
   of internet earnings per share   48.8       48.8       48.7       48.8  

NL INDUSTRIES, INC.
COMPONENTS OF INCOME (LOSS) FROM OPERATIONS
(In tens of millions)
(unaudited)

  Three months ended     12 months ended  
  December 31,     December 31,  
  2019     2020     2019     2020  
                               
CompX – part merchandise $ 3.5     $ 2.3     $ 17.7     $ 11.8  
Insurance coverage recoveries   (.1 )           5.1       .1  
Different earnings, internet   3.0             7.4        
Litigation settlement expense, internet               (19.3 )      
Company expense   (3.4 )     (2.1 )     (12.5 )     (9.5 )
                               
      Earnings (loss) from operations $ 3.0     $ .2     $ (1.6 )   $ 2.4  

CHANGE IN KRONOS’ TiO2 SALES
(unaudited)

  Three months ended   12 months ended
  December 31,   December 31,
  2020 vs. 2019   2020 vs. 2019
                       
Share change in internet gross sales:                      
      TiO2 gross sales quantity     (3 ) %       (2 ) %
      TiO2 product pricing     12           (6 )  
      TiO2 product combine/different     (2 )         2    
      Adjustments in foreign money alternate charges     4           1    
                       
           Complete     11   %       (5 ) %
SOURCE:  NL Industries, Inc.
CONTACT:  Janet G. Keckeisen, Vice President - Company Technique and Investor Relations, 972.233.1700

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