Tronix announces Q2 charges
Tronox Inc. (NYSE: TRX) today said production difficulties at one of its titanium dioxide plants, an environmental provision and a tax charge would adversely affect its results for the second quarter ended June 30.
The announcement sent its shares lower by 4.9%, or $0.71, to $13.77 in mid-day trading Wednesday.
The global producer and marketer of titanium dioxide pigment reported its titanium dioxide plant in Botlek, Netherlands, experienced production difficulties during the second quarter that Tronox expects will result in increased pretax costs of approximately $3 million for the quarter. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. Although the Botlek plant encountered production difficulties in the second quarter, the company reported that the plant has returned to normal levels after the completion of necessary repairs.
The Oklahoma City, Okla.-based company said it also expects to record a pretax non-cash environmental provision, net of expected insurance reimbursements, of approximately $2 million in the second quarter for costs associated with an ongoing environmental assessment at its Henderson, Nev., site.
Tronox also expects to record non-cash tax charges of approximately $4 million on account of additional discussions with German tax authorities pertaining to the company's ongoing income tax audit for the years 1998 through 2001.
Macro economics did not assist Tronix’s bottom lines either. The company reported that market dynamics continued to be a challenge during the quarter, as the U.S. housing market continued to wane.
Four analysts polled by Thomson Financial expect a second quarter loss of $0.15 per share.
Tronox will disclose its second quarter 2007 financial results Aug. 1.
