DALLAS, Aug 8, 2003 /PRNewswire-FirstCall via COMTEX/ -- NL Industries, Inc. (NYSE: NL) today announced that its Board of Directors has approved a plan to distribute to its shareholders one share of common stock of Kronos, Inc., its wholly- owned subsidiary, for every two shares of NL common stock outstanding. Approximately 23.85 million shares of Kronos' common stock will be distributed representing approximately 48.9% of the common stock of Kronos. The plan will also involve a recapitalization of Kronos through the distribution of a $200 million promissory note payable by Kronos to NL. Kronos has filed a Form 10 registration statement with the Securities and Exchange Commission relating to the distribution of its common stock. Kronos intends to apply for listing of its common stock on the New York Stock Exchange. NL currently expects the distribution will occur in the fourth quarter of 2003.
Kronos is the world's fifth largest producer of titanium dioxide pigments, or TiO2, with an estimated 12% share of worldwide TiO2 sales volume in 2002. Approximately one-half of Kronos' 2002 sales volume was in Europe, where Kronos is the second largest producer of TiO2. TiO2 is a pigment used to whiten, brighten and add opacity to thousands of commonly used products, such as paints, plastics and paper, as well as fibers, rubbers, ceramics, inks and cosmetics.
The statements in this 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. Forward-looking statements can be identified by the use of words such as "believes," "intends," "may," "will," "should," "could," "anticipates," "expects," or comparable terminology or by discussions of strategy or trends. Although NL believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve risks and uncertainties, including, but not limited to, the cyclicality of the titanium dioxide industry, global economic and political conditions, changes in global productive capacity, changes in customer inventory levels, changes in product pricing, changes in product costing, changes in foreign currency exchange rates, competitive technology positions, operating interruptions (including, but not limited to, labor disputes, leaks, fires, explosions, unscheduled downtime, transportation interruptions, war and terrorist activities), the ultimate resolution of pending or possible future lead pigment litigation and legislative developments related to the lead paint litigation, the outcome of other litigation, and other risks and uncertainties detailed in the NL's Securities and Exchange Commission filings. Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. NL disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
SOURCE NL Industries, Inc.
Gregory M. Swalwell, Vice President, Finance of NL Industries, Inc., +1-972-233-1700 (NL)