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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Valhi Inc | NYSE:VHI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.42 | -2.76% | 14.77 | 15.06 | 14.69 | 15.06 | 2,233 | 01:00:00 |
The Chemicals Segment’s net sales were $562.9 million in the first quarter of 2022 compared to $465.0 million in the first quarter of 2021. The Chemicals Segment’s net sales increased in the first quarter of 2022 compared to the same period in 2021 primarily due to higher average TiO2 selling prices and higher sales volumes. The Chemicals Segment’s TiO2 sales volumes were 2% higher in the first quarter of 2022 as compared to the first quarter of 2021 due to the effects of continuing high demand and improvements in its delivery and distribution networks in 2022. The Chemicals Segment’s average TiO2 selling prices were 24% higher in the first quarter of 2022 as compared to the first quarter of 2021 and were 7% higher at the end of the first quarter of 2022 than at the end of 2021. Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, decreasing our Chemicals Segment’s net sales by approximately $22 million in the first quarter of 2022 as compared to the same period of 2021. The table at the end of this press release shows how each of these items impacted our Chemical Segment’s net sales.
The Chemicals Segment’s operating income in the first quarter of 2022 was $86.4 million as compared to $37.7 million in the first quarter of 2021. The Chemicals Segment’s operating income increased in the first quarter of 2022 compared to the first quarter of 2021 primarily due to higher average TiO2 selling prices and higher sales volumes, partially offset by higher production costs, including raw material and energy costs. The Chemicals Segment’s TiO2 production volumes were 6% higher in the first quarter of 2022 compared to the same period of 2021. The Chemicals Segment operated its production facilities at full practical capacity in the first quarter of 2022 compared to 97% in the first quarter of 2021. Fluctuations in currency exchange rates (primarily the euro) decreased operating income approximately $5 million in the first quarter of 2022 as compared to the first quarter of 2021.
The Component Products Segment’s net sales were $42.1 million in the first quarter of 2022 compared to $35.9 million in the first quarter of 2021. The Component Products Segment’s net sales in the first quarter of 2022 increased over the 2021 comparable period primarily due to higher security products sales across a variety of markets and, to a lesser extent, higher marine component sales primarily to the towboat market. Operating income attributable to the Component Products Segment was $6.3 million in the first quarter of 2022 compared to $5.8 million in the first quarter of 2021. The Component Products Segment’s operating income increased in the first quarter of 2022 compared to the first quarter of 2021 due to the higher sales offset by increased production costs including increased raw material costs, higher shipping costs, and increased labor costs due to higher wages, overtime and increased headcount.
The Real Estate Management and Development Segment had sales of $24.0 million in the first quarter of 2022, including $22.2 million in revenue on sales of land held for development, compared to sales of $8.1 million in the first quarter of 2021, including $6.6 million in revenue on sales of land held for development. Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities. Land sales revenues are also impacted by the relative timing of when new land parcel sales are closed. Land sales revenues increased in the first quarter of 2022 as compared to the same period in 2021 primarily due to an increase in development activity in 2022 compared to the same period of 2021. Recognition of tax increment reimbursement note receivables of $6.2 million ($3.2 million, or $.11 per share, net of income taxes and noncontrolling interest) in 2021 is also included in the determination of operating income.
Corporate expenses in the first quarter of 2022 were comparable to the same period of 2021. Interest expense of $6.9 million in the first quarter of 2022 decreased $1.7 million compared to the same prior year period primarily due to lower average balances on variable-rate indebtedness in 2022.
The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management’s beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause our actual future results to differ materially include, but are not limited to, the following:
Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.
Valhi, Inc. is engaged in the chemicals (TiO2), component products (security products and recreational marine components) and real estate management and development industries.
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VALHI, INC. AND SUBSIDIARIESCONDENSED SUMMARY OF INCOME(In millions, except earnings per share)
Three months ended | ||||||
March 31, | ||||||
2021 | 2022 | |||||
(unaudited) | ||||||
Net sales | ||||||
Chemicals | $ | 465.0 | $ | 562.9 | ||
Component products | 35.9 | 42.1 | ||||
Real estate management and development | 8.1 | 24.0 | ||||
Total net sales | $ | 509.0 | $ | 629.0 | ||
Operating income | ||||||
Chemicals | $ | 37.7 | $ | 86.4 | ||
Component products | 5.8 | 6.3 | ||||
Real estate management and development | 7.8 | 8.0 | ||||
Total operating income | 51.3 | 100.7 | ||||
General corporate items: | ||||||
Interest income and other | .9 | .9 | ||||
Changes in market value of Valhi common stock held by subsidiaries | 1.3 | .1 | ||||
Other components of net periodic pension and OPEB expense | (4.3) | (3.3) | ||||
General expenses, net | (8.1) | (8.2) | ||||
Interest expense | (8.6) | (6.9) | ||||
Income before income taxes | 32.5 | 83.3 | ||||
Income tax expense | 8.0 | 19.9 | ||||
Net income | 24.5 | 63.4 | ||||
Noncontrolling interest in net income of subsidiaries | 9.7 | 18.0 | ||||
Net income attributable to Valhi stockholders | $ | 14.8 | $ | 45.4 | ||
Amounts attributable to Valhi stockholders: | ||||||
Basic and diluted net income per share | $ | .52 | $ | 1.59 | ||
Basic and diluted weighted average shares outstanding | 28.5 | 28.5 |
VALHI, INC. AND SUBSIDIARIES IMPACT OF PERCENTAGE CHANGE IN CHEMICAL SEGMENT'S NET SALES (unaudited)
Three months ended | |||
March 31, | |||
2022 vs. 2021 | |||
Percentage change in TiO2 net sales: | |||
TiO2 product pricing | 24 | % | |
TiO2 sales volumes | 2 | ||
TiO2 product mix/other | — | ||
Changes in currency exchange rates | (5) | ||
Total | 21 | % |
SOURCE: Valhi, Inc. CONTACT: Janet G. Keckeisen, Vice President - Investor Relations, 972.233.1700
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