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KRO NYSE· Kronos Worldwide Inc.
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KRO NYSE· Kronos Worldwide Inc.
Earnings report Q3 2023

KRO Reports Decrease in Net Sales for the Latest Quarter

Segments of revenue

In the latest quarter, KRO reported net sales of $396.9 million, representing a decrease of $62.7 million or 14% compared to the same quarter last year. This decline in net sales can be attributed to a decrease in demand for their products.

Strengths

Despite the decrease in net sales, KRO was able to maintain a gross margin of $34.4 million, which accounted for 9% of their net sales. This indicates that the company was able to effectively manage their cost of sales and maintain profitability. Management comments suggest that they implemented cost-saving measures to mitigate the impact of lower sales.

Challenges

The decrease in net sales highlights the challenge KRO faces in a competitive market. The company needs to address the declining demand for their products and find ways to attract new customers or expand their market share. Additionally, the increase in selling, general, and administrative expenses from $59.0 million to $53.6 million indicates that the company may be facing higher operating costs.

Noteworthy

It is worth noting that KRO recognized a $6 million charge in the fourth quarter of 2023 related to workforce reductions. This charge is expected to be classified in selling, general, and administrative expenses. The majority of cash payments for these reductions are expected to be completed by the first quarter of 2024. This indicates that the company is taking proactive steps to optimize their workforce and reduce costs.

Summary

KRO experienced a decrease in net sales for the latest quarter, primarily due to lower demand for their products. However, the company was able to maintain a healthy gross margin and implemented cost-saving measures to mitigate the impact of lower sales. KRO faces challenges in a competitive market and needs to address the declining demand for their products. The company's proactive steps towards workforce reductions demonstrate their commitment to optimizing costs.

Source documents

Form 10-Q  filed on Nov 02, 2023
82 pages scanned

Reference data

Company financials Q3 revenue 400M
Analyst estimates Q3 EPS missed by -9.09%
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