Tronox Limited Reports Flat Revenues in Q2
CHEMMONITOR.COM – For the second quarter ended June 30th Tronox registered revenue of USD 428.9 M against USD 428.3 M of Q2 2011. Adjusted EBITDA, however, increased by 22% and amounted USD 146.2 M supported by acquisition of South Africa mineral sands business, Tiwest mineral sands and pigments business. All these companies were Exxaro property before. Mineral sands integration will allow Tronox to become a fully vertically integrated supplier in the industry, giving a significant competitive advantage. Mineral sands are expected to show robust growth and price rise in the second half of 2012.
The first half of 2012 stated a slight slowdown in pigments market comparing to the same period of 2011. The second half is anticipated to deliver soft markets, either. US property market recovery and Chinese stimulative government policy add some optimism into the outlook.
Minerals Sands segment revenue in Q2 2012 equaled USD 89.2 M which is an over 100% growth over the corresponding period in 2011. Most of the revenues was contributed by newly acquired business. Pricing and are volumes were positive factors during the period, while zircon demand was weak.
Pigments segment added 3% to its current value and reached USD 348 M driven by higher sales price. Declining volumes and unfavorable exchange rates were depressing factors for the segment.
Corporate and Other segment sales amounted to USD 26.8 M which is a 15.2% decline comparing to the results of Q2 2011. The segment performance was affected by lower sales volumes and higher sales prices.
Founded in 1964 and headquartered in Oklahoma City, OK (USA), Tronox Incorporated is one of the largest TiO2 producers in the world. The company also engages in production of chloride, electrolytic and specialty chemicals. With annual pigment capacity of 425 thousand tons Tronox has over 1000 permanent customers in about 100 countries. The company trades on Pink OTC under the ticker TROX.