Net sales decreased
Kronos' net sales of
Kronos' income from operations declined by
Changes in currency rates have positively affected Kronos' gross margin
and income (loss) from operations by approximately
Corporate expenses were higher in the first quarter of 2009 as compared to the first quarter of 2008 primarily due to higher defined benefit pension expense, partially offset by lower litigation and related costs in 2009.
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 NL believes that the expectations reflected in such forward-looking statements are reasonable, we 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, we continue to face many risks and uncertainties. Among the factors that could cause actual future results to differ materially include, but are not limited to:
-- Future supply and demand for the Company's products,
-- The extent of the dependence of the Company's businesses on certain
market sectors,
-- The cyclicality of certain of the Company's businesses,
-- The impact of certain long-term contracts on certain of the Company's
businesses,
-- Customer inventory levels,
-- Changes in raw material and other operating costs,
-- General global economic and political conditions,
-- Competitive products and substitute products,
-- Possible disruption of business or increases in the cost of doing
business resulting from terrorist activities or global conflicts,
-- Customer and competitor strategies,
-- Potential consolidation or solvency of competitors,
-- The impact of pricing and production decisions,
-- Competitive technology positions,
-- Service industry employment levels,
-- Demand for high performance marine components,
-- The introduction of trade barriers,
-- Fluctuations in currency exchange rates,
-- Operating interruptions (including, but not limited to, labor
disputes, leaks, natural disasters, fires, explosions, unscheduled or
unplanned downtime and transportation interruptions),
-- The timing and amount of insurance recoveries,
-- The ability of the Company to renew or refinance credit facilities,
-- The ability of the Company to maintain sufficient liquidity,
-- The extent to which the Company's subsidiaries were to become unable
to pay dividends to the Company,
-- Uncertainties associated with new product development,
-- The ultimate outcome of income tax audits, tax settlement initiatives
or other tax matters,
-- The ultimate ability to utilize income tax attributes or changes in
income tax rates related to such attributes, the benefit of which has
been recognized under the more-likely-than-not recognition criteria,
-- Potential difficulties in integrating completed or future
acquisitions,
-- Decisions to sell operating assets other than in the ordinary course
of business,
-- Environmental matters,
-- Government laws and regulations and possible changes therein,
-- 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 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.
NL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except earnings per share)
(Unaudited)
Three months ended
March 31,
2008 2009
Net sales $40.5 $28.5
Cost of sales 31.1 23.7
Gross margin 9.4 4.8
Selling, general and administrative expense 6.4 5.7
Other operating income (expense):
Insurance recoveries .1 .7
General corporate expenses, net (3.8) (4.4)
Loss from operations (.7) (4.6)
Equity in net loss of Kronos Worldwide, Inc. (.1) (9.5)
General corporate items:
Interest and dividends 1.0 .7
Interest expense (.8) (.3)
Loss before income taxes (.6) (13.7)
Income tax benefit (.5) (1.8)
Net loss (.1) (11.9)
Noncontrolling interest in net income (loss)
of subsidiary .2 (.1)
Net loss attributable to NL stockholders $(.3) $(11.8)
Basic and diluted net loss per share $(.01) $(.24)
Basic and diluted average shares outstanding 48.6 48.6
NL INDUSTRIES, INC.
COMPONENTS OF LOSS FROM OPERATIONS
(In millions)
(Unaudited)
Three months ended
March 31,
2008 2009
CompX - component products $3.0 $(.9)
Insurance recoveries .1 .7
Corporate expense (3.8) (4.4)
Loss from operations $(.7) $(4.6)
CHANGE IN KRONOS' TiO2 SALES
(Unaudited)
Three months ended
March 31,
2009 vs. 2008
Percentage change in sales:
TiO2 product pricing 5%
TiO2 sales volume (24)
TiO2 product mix (2)
Changes in currency exchange rates (4)
Total (25)%
SOURCENL Industries, Inc. -0-05/06/2009 /CONTACT:Gregory M. Swalwell , Vice President, Finance and Chief Financial Officer ofNL Industries, Inc. , +1-972-233-1700/ /Web Site: http://www.nl-ind.com / (NL) CO:NL Industries, Inc. ;CompX International Inc. ;Kronos Worldwide, Inc. ;CompX ; Kronos ST:Texas IN: CPR ECP MNG SU: ERN PR -- DA12609 -- 970905/06/2009 18:13 EDT http://www.prnewswire.com