VNTR - Venator Materials says Q4 performance significantly below market expectations

• Venator Materials ( NYSE: VNTR ) said it expects Q4 performance to be significantly below current market expectations, with estimated adjusted EBITDA in the range of -$57M to -$62M.
• The company provided an update on its Q4 financial results and strategic review, in addition to the appointment of board directors.
• VNTR said it continued to experience challenging macro-economic conditions in Q4, including low consumer confidence, weak demand, record high energy prices and other inflationary costs.
• Q4 TiO ₂ sales volumes are expected to be ~28% lower Q/Q and ~44% Y/Y.
• The company's estimated total liquidity was ~$275M as of Dec. 31.
• It has taken actions that include implementing a $50M cost reduction program, closing a sale-leaseback transaction for a Color Pigments manufacturing site for $51M and entering into a definitive agreement to divest the iron oxide business from within the Color Pigments business to Cathay Industries for an enterprise value of $140M.
• Separately, Venator has appointed Moelis & Company and Kirkland & Ellis, along with the business and operational advisor Alvarez & Marsal, to assist with a strategic review and engagement with stakeholders.
• The company has appointed new independent directors, Stefan Selig and Jame Donath, after the resignation of Miguel Kohlmann.
• Selig will serve as the board chairman, replacing Barry Siadat who steps down as chairman and remains a board member.
• The company plans to engage with key stakeholders over its capital structure, commencing immediately.
• The company said it continues to evaluate all options to drive value for all its stakeholders.
• Source: Press Release

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