Form 8-K - Current report - Item 5.07 Item 7.01 Item 9.01

Valhi, Inc.

Announcement: VHI 8-K Special Filing

Form 8-K - Current report - Item 1.01 Item 2.03 Item 9.01

Valhi, Inc. (NYSE: VHI) reported a net loss of $4.9 million, or $0.17 per share, in the first quarter of 2023, compared to a net income of $45.4 million, or $1.59 per share, in the same quarter of 2022. This decline in net income is primarily due to lower operating results from its Chemicals Segment. The Chemicals Segment's net sales decreased from $562.9 million in the first quarter of 2022 to $426.3 million in the first quarter of 2023, impacted by lower sales volumes in all major markets, partially offset by higher TiO2 selling prices. Lower demand and higher production costs resulted in an operating loss of $15.1 million for the Chemicals Segment in the first quarter of 2023 compared to an operating income of $86.4 million in the first quarter of 2022.

The Component Products Segment had net sales of $41.2 million in the first quarter of 2023, a slight decrease from $42.1 million in the same quarter of 2022. The decrease was primarily due to lower security product sales to government security and healthcare industry markets, partially offset by higher marine component sales predominantly in the industrial market. The Real Estate Management and Development Segment had sales of $25.2 million, including $24.9 million in revenue on sales of land held for development, in the first quarter of 2023 compared to sales of $24 million in the same quarter of 2022.

Valhi's corporate expenses and interest expense in the first quarter of 2023 were comparable to the first quarter of 2022. Interest income and other increased to $4.9 million in the first quarter of 2023 compared to $0.9 million in the first quarter of 2022. Valhi faces many risks and uncertainties, and actual future results could differ materially from those predicted. Investors should exercise caution and stay informed of Valhi's future developments.

Form 8-K - Current report - Item 2.02 Item 9.01

$VHI reports net loss in Q1 2023 due to lower operating results from its Chemicals Segment.

Performance Analysis:

Based on the financial results for the first quarter of 2023, Valhi reported a net loss attributable to Valhi stockholders of $4.9 million or $.17 per diluted share, compared to net income of $45.4 million or $1.59 per diluted share in the first quarter of 2022. The decrease in net income is primarily due to lower operating income from its Chemicals Segment in 2023 as the favorable impact of higher expected average TiO2 selling prices is not expected to offset the negative impact of higher manufacturing costs and weak demand. The Component Products Segment is also expected to report lower operating income in 2023 due to the normalization of marine components sales below 2022 record levels. 

Forward-Looking Analysis:

Valhi expects consolidated operating income for 2023 to be lower compared to 2022. The company cites several factors including lower operating income from its Chemicals Segment due to weak demand and higher manufacturing costs offsetting the favorable impact of higher expected average TiO2 selling prices. Additionally, the normalization of marine components sales is expected to result in lower operating income from the Component Products Segment. It should be noted that Valhi operations have been affected by the COVID-19 pandemic and the ultimate impact of the pandemic on the company's financial performance is uncertain.

Furthermore, Valhi’s competitive position could be impacted by changing demands in its market and industry trends. The company operates in the chemicals, component products and real estate industries, which are susceptible to changes in supply and demand, as well as changes in the political and economic climate. If Valhi is unable to adapt to changing market conditions, its ability to maintain its competitive position may be adversely affected. 

In conclusion, while Valhi's Chemicals Segment is experiencing lower operating income due to weak demand and higher manufacturing costs, the normalization of marine component sales is also expected to affect the Component Products Segment. Investors should closely monitor the company's ability to adapt to changing market conditions and the potential impact of the COVID-19 pandemic on its financial performance.

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Valhi Expects Lower Operating Income for 2023.

Analyst Summary:

Valhi, Inc. reported a decline in net income attributable to its stockholders in the fourth quarter and full year of 2022 compared to the same periods in 2021 primarily due to lower operating results from its Chemicals Segment and Real Estate Management and Development Segment. The TiO2 segment's net sales comparisons in both periods were impacted by lower sales volumes in all markets, partially offset by higher average selling prices. Weakening customer demand in its European and export markets in the fourth quarter and full year of 2022 impacted TiO2 sales volumes. On the other hand, the component products segment's net sales increased in fourth quarter and full year of 2022 mainly due to higher marine components sales. Real Estate Management and Development Segment sales of land held for development decreased in the same periods due to the relative timing of when new land parcel sales are closed. 

Quotes: 

“Overall, our operating results in the fourth quarter and full year of 2022 were impacted by a variety of factors including lower sales volumes, higher input cost inflation, higher energy costs, and operational impacts in our Chemicals Segment related to inventories and curtailments related to weaker demand from certain markets,” said Robert M. Patterson, Chairman, and Chief Executive Officer. 

Forward-Looking Statement:

While the company believes the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that these expectations will be correct. Valhi continues to face many risks and uncertainties, and should one or more of these risks materialize, actual results could differ materially from those currently forecasted or expected.

$VHI reports decline in net income for Q4 and Full year 2022

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Error: Cannot read properties of null (reading '1')

Announcement: VHI 8-K Special Filing

Announcement: VHI 8-K Special Filing

Announcement: VHI 8-K Special Filing

Announcement: VHI 8-K Special Filing

$VHI reports net loss in Q1 2023 due to lower operating results from its Chemicals Segment.

$VHI reports net loss in Q1 2023 due to lower operating results from its Chemicals Segment.

Valhi Expects Lower Operating Income for 2023.

Valhi Expects Lower Operating Income for 2023.

$VHI reports decline in net income for Q4 and Full year 2022

$VHI reports decline in net income for Q4 and Full year 2022

Announcement: VHI 10-K Annual Report

Announcement: VHI 10-K Annual Report