VNTR - Venator Materials surges on sale of iron ore business after wider Q3 loss

Venator Materials ( NYSE: VNTR ) +4.4% pre-market on Monday despite posting a larger than expected Q3 adjusted loss , as it agreed to sell its iron oxide business to Cathay Industries for an enterprise value of $140M.

Venator ( VNTR ) said adjusted EBITDA for the iron oxide business in 2020-21 totaled $16M.

The company said its Q3 net loss widened to $50M, or $0.46/share, from a loss of $47M, or $0.44/share, in the year-earlier quarter, while revenues fell 9.2% Y/Y to $506M.

Q3 revenues in Venator's ( VNTR ) Titanium Dioxide segment fell 16% Y/Y to $361M, mostly due to a 29% decline in sales volumes driven by reduced demand in Europe and APAC, and a 7% unfavorable impact from foreign currency translation, partially offset by a 19% increase in average local currency selling prices, which were implemented to recover higher costs of energy, raw materials and shipping.

"Weak demand has continued into the fourth quarter, and we are starting to see softening in North America. As visibility into future periods remains limited, we have implemented a range of actions, including moderation of production at our manufacturing facilities," CEO Simon Turner said.

Venator Materials' ( VNTR ) stock price return shows a 74% YTD loss and an 80% decline during the past year .

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