DALLAS, Dec. 23 /PRNewswire-FirstCall/ -- NL Industries, Inc. (NYSE: NL) reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 filed today, net income of $2.8 million, or $.06 per diluted share, in the third quarter of 2005. For the first nine months of 2005, the Company reported net income of $27.2 million, or $.56 per diluted share.
As disclosed in such Quarterly Report, the Company commenced to recognize deferred income taxes with respect to the excess of the financial reporting carrying amount over the income tax basis of its investment in Kronos beginning in December 2003 following the Company's pro-rata distribution of shares of Kronos common stock to NL's shareholders. As a result of the completion of the Company's review of its accounting for income taxes related principally to its investment in Kronos, the provision for income taxes presented herein differs from amounts previously reported. Such differences have no impact on the Company's previously reported results of operations and do not impact operating cash flows.
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. Although the Company 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 substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, the Company continues to face many risks and uncertainties. The factors that could cause actual future results to differ materially include, but are not limited to, the following:
* Future supply and demand for the Company's products,
* The extent of the dependence of certain of the Company's businesses on
certain market sectors,
* The cyclicality of certain of the Company's businesses,
* Customer inventory levels,
* Changes in raw material and other operating costs,
* The possibility of labor disruptions,
* General global economic and political conditions,
* Demand for office furniture,
* Competitive products and substitute products, including increased
competition from low-cost manufacturing sources,
* Customer and competitor strategies,
* The impact of pricing and production decisions,
* Competitive technology positions,
* The introduction of trade barriers,
* Service industry employment levels,
* Fluctuations in currency exchange rates,
* Operating interruptions,
* The timing and amounts of insurance recoveries,
* The ability of the Company to renew or refinance credit facilities,
* The ultimate outcome of income tax audits, tax settlement initiatives
or other tax matters,
* Potential difficulties in integrating completed or future
acquisitions,
* Decisions to sell operating assets other than in the ordinary course
of business,
* Uncertainties associated with new product development,
* The ultimate ability to utilize income tax attributes, the benefit of
which has been recognized under the "more-likely-than-not" recognition
criteria,
* Environmental matters,
* Government laws and regulations and possible changes therein,
* Completion of the Company's evaluation of misstatements to previously-
issued financial statements,
* The ultimate resolution of pending litigation, and
* Possible future litigation.
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. The Company disclaims any intention or obligation to update or revise any forward- looking statement whether as a result of changes in information, future events or otherwise.
NL Industries, Inc. is engaged in the component products (precision ball bearing slides, security products and ergonomic computer support systems), chemicals (titanium dioxide pigments) and other businesses.
NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except earnings per share)
(Unaudited)
Three months Nine months
ended ended
September 30, September 30,
2005 2005
Net sales - component products $47.1 $139.7
Segment profit - component products $4.9 $13.8
General corporate items:
Interest and dividend income from affiliates .6 1.9
Other interest income .8 2.4
Securities transactions, net (.1) 14.6
Insurance recoveries 1.2 2.4
Other income --- .3
General corporate expenses, net (3.8) (13.9)
Interest expense (.1) (.3)
3.5 21.2
Equity in earnings of Kronos Worldwide, Inc. 2.8 22.4
Income from continuing operations before
income taxes and minority interest 6.3 43.6
Provision for income tax 5.4 16.5
Minority interest in after-tax
earnings (losses) (1.9) (.4)
Income from continuing operations 2.8 27.5
Discontinued operations --- (.3)
Net income $2.8 $27.2
Earnings per share:
Basic net income per share $.06 $.56
Diluted net income per share $.06 $.56
Weighted-average shares used in the
calculation of earnings per share:
Basic shares 48.6 48.5
Dilutive impact of stock options --- .1
Diluted shares 48.6 48.6
SOURCE NL Industries, Inc.
-0- 12/23/2005
/CONTACT: Gregory M. Swalwell, Vice President, Finance and Chief
Financial Officer of NL Industries, Inc., +1-972-233-1700/
/Web site: http://www.nl-ind.com /
(NL)
CO: NL Industries, Inc.; Kronos
ST: Texas
IN: CHM
SU: ERN
AH-CT
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2392 12/23/2005 20:00 EST http://www.prnewswire.com