SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 18, 2000
NL INDUSTRIES, INC.
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(Exact name of registrant as specified in charter)
New Jersey 1-640 13-5267260
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(State or other (Commission File No.) (Employer ID No.)
jurisdiction of
incorporation)
16825 Northchase Dr., Suite 1200, Houston, Texas 77060
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (281) 423-3300
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Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events.
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On April 18, 2000, the Registrant issued the press release attached
hereto as Exhibit 99.1 and incorporated herein in its entirety by this
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits
(i) Exhibit 99.1. Press Release dated April 18, 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NL INDUSTRIES, INC.
(Registrant)
/s/Robert D. Hardy
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Robert D. Hardy
Vice President & Controller
Dated: April 20, 2000
Susan E. Alderton
(281) 423-3332
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
NL REPORTS STRONG FIRST QUARTER RESULTS
ON RECORD FIRST QUARTER SALES VOLUME
HOUSTON, TEXAS -- April 18, 2000 -- NL Industries, Inc. (NYSE:NL) reported net
income for the first quarter of 2000 of $23.7 million, or $.46 per diluted
share, compared to net income in the first quarter of 1999 of $13.9 million, or
$.27 per diluted share.
Operating income of Kronos' titanium dioxide pigments ("TiO2") business in the
first quarter of 2000 increased 49% to $46.2 million compared to $31.0 million
in the first quarter of 1999. The improved operating income is primarily due to
record first-quarter sales volume and strong production volume. Kronos'
first-quarter sales volume increased 24% from the first quarter of 1999 and was
even with the fourth quarter of 1999, reflecting sustained strong demand in all
major regions. The Company's first-quarter 2000 production volume was 16% higher
than the comparable 1999 period with operating rates near full capacity versus
86% capacity utilization in the first quarter of 1999. Kronos' average selling
prices during the first quarter of 2000 were even with the first quarter of 1999
and were 3% higher than the fourth quarter of 1999.
J. Landis Martin, President and Chief Executive Officer, stated, "The Company's
first-quarter operating rates continued to be high to support the strong demand
for TiO2 which reduced our per unit cost from the year-earlier period and
resulted in an outstanding quarter for NL, our best first quarter since 1990.
During the quarter, we were able to increase prices and we announced new price
increases in Europe, effective in the second quarter 2000. As we go into our
seasonally strong second quarter, TiO2 industry fundamentals are good and we
believe that demand for TiO2 will remain strong in the near-term resulting in
continued upward pressure on selling prices."
Interest expense in the first quarter of 2000 was $1.9 million less than in the
first quarter of 1999 due to reduced levels of outstanding debt and lower
European borrowing rates.
The Company's net debt at March 31, 2000 was $148 million (total debt of $299
million less cash of $151 million).
A conference call for the investment community is scheduled for April 18, 2000
at 11:30 a.m., (EDT). Mr. J. Landis Martin will host the call. Participants can
access the call by dialing 800-230- 1951 (domestic) and 612-288-0337
(international). The passcode is NL Earnings. A taped replay of the call will be
available after 2:30 p.m., (EDT), the day of the call through April 25, 2000 by
calling 800-475-6701 (domestic) and 320-365-3844 (international), and using
access code 511843.
The call will also be broadcast live on the Internet at StreetEvents.com and an
online replay will be available approximately one hour after the call.
NL Industries, Inc. is a major international producer of titanium dioxide
pigments.
The statements in this release (and statements made in the call with the
investment community referred to above) relating to matters that are not
historical facts are forward-looking statements that are based on management's
beliefs and assumptions based on currently available information.
Forward-looking statements can be identified by the use of words such as
"believes," "intends," "may," "will," "should," "anticipates" or comparable
terminology or by discussions of strategy. Although the Company believes that
the expectations reflected in such forward-looking statements are reasonable, it
cannot assure that these expectations will prove to be correct. Such statements
involve substantial risks and uncertainties, including, but not limited to,
future global economic and political conditions, global TiO2 production capacity
and the amount and timing of capacity changes, competitive products and prices,
and other risks and uncertainties detailed in the Company's Securities and
Exchange Commission filings. Should one or more of these risks materialize, or
should the underlying assumptions prove incorrect, actual results could differ
materially from those forecasted or expected. The Company assumes no duty to
update any forward-looking statements.
NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Quarters ended
March 31,
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1999 2000
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Revenues and other income:
Net sales $201.6 $231.0
Other income, excluding corporate 3.7 1.7
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205.3 232.7
Cost of sales 147.0 159.3
Selling, general and administrative, excluding corporate 27.3 27.2
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Operating income 31.0 46.2
Corporate income (expense):
Securities earnings 1.6 1.7
Expenses, net (4.2) (5.0)
Interest expense (9.8) (7.9)
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Income before income taxes and minority interest 18.6 35.0
Income tax expense 4.7 11.2
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Income before minority interest 13.9 23.8
Minority interest - .1
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Net income $ 13.9 $ 23.7
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Earnings per share - net income:
Basic $ .27 $ .47
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Diluted $ .27 $ .46
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Shares used in the calculation of earnings per share:
Basic shares 51.8 50.9
Dilutive impact of stock options .1 .3
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Diluted shares 51.9 51.2
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