- Tronox ( NYSE: TROX ) on Wednesday posted results where it warned of lower production levels for the current quarter as customer demand for its titanium products slumped across markets.
- Shares of the company are trading 4.5% lower.
- TROX reported Q3 revenue that was in-line at $895M and Non-GAAP EPS of $0.69 which came short of analyst expectations by 6 cents.
- "Looking to the remainder of the year, we expect fourth quarter pigment demand to decline 25% to 30% sequentially, driven by customer destocking, continued weakness in Europe, Middle East, Africa, and Asia Pacific, and seasonal weakness in North America." -Co-CEO John D. Romano
- However, TROX does not expect to see customer destocking of similar levels to continue into 2023.
- FY2022 guidance: expects Adj EBITDA $902-932M, Adj diluted EPS $2.29-2.42, FCF of >$150M
- Other metrics: Q3 FCF $25M (-87% Y/Y), Adj EBITDA margin of 27.6% down 140 bps from a year ago.
- Stock has lost nearly half of its value YTD as of last close.
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Tronox sees weak titanium products demand for rest of year, shares fall