Tronox (TROX) Posts Q1 Adj-Loss of $0.26/Share

Tronox (NYSE: TROX) reported Q1 EPS of ($0.26), which may note compare to the analyst estimate of ($0.02). Revenue for the quarter came in at $569 million versus the consensus estimate of $575.32 million.

Tom Casey, chairman and CEO of Tronox, said: "Our first quarter performance provided a very strong start to 2017 as our TiO2 and Alkali businesses combined to deliver $123 million of adjusted EBITDA and $132 million of free cash flow. Our TiO2 business exceeded the aggressive goals we set for first quarter performance with revenue growth of 33 percent and adjusted EBITDA growth of 286 percent compared to the year-ago quarter. Driving this strong performance in TiO2 were higher pigment selling prices, up 4 percent sequentially and 16 percent above prior year, higher sales volumes, including the highest single-month pigment sales volumes since June 2009 achieved in March, significantly higher titanium feedstock and zircon sales and continued cost savings from our Operational Excellence program. Alkali delivered adjusted EBITDA of $38 million and free cash flow of $41 million despite record severe winter weather conditions at our Wyoming production facility which impacted adjusted EBITDA by $4 million in the quarter. Our cash generation performance further strengthened our balance sheet, as we closed the quarter with $265 million of cash on hand and liquidity of $560 million.

\"We see the momentum in our TiO2 business continuing across the balance of this year and expect to benefit from additional pigment selling price increases, firming market conditions for titanium feedstock and co-products, continued margin expansion from top line growth in both pigment and historically higher margin feedstock as well as cost savings from our Operational Excellence program," said Casey.

Casey concluded, "The first quarter was a milestone one for Tronox, marked by the signing of a definitive agreement to acquire Cristal\'s TiO2 business. Our integration planning is underway so that we can from day one realize the substantial value creation enabled by our combination. We also began a process to market our Alkali business and have received strong initial expressions of interest from both strategic and financial parties. At the same time, we continue our laser-like focus on generating high performance from our current portfolio. We are confident that 2017 will be a year of strong performance and that 2018 will be a transformational one for Tronox."

For earnings history and earnings-related data on Tronox (TROX) click here.

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