Lower sales volume weigh on Tronox revenue

Connecticut-based titanium dioxide and chemicals producer Tronox saw revenues decline by 12pc in the first quarter of 2019, reflecting lower sales volumes partially offset by higher selling prices for pig iron and zircon.

Tronox's sales volume across pigment, zircon and pig iron declined in the quarter. Pigment sales volume saw a 10pc decrease compared to the year earlier period, while pig iron and zircon decreased by 10pc and 2pc, respectively.

There were no ilmenite sales, which compares to $5mn in the prior year period, as Tronox prepares for higher internal consumption once its acquisition of titanium dioxide business Cristal closed in April.

Quarterly revenue totaled $390mn, down from $442mn in the prior year period, driven by lower titanium dioxide pigment sales.

The company lost $34mn in the quarter, which compares to a $44mn loss in the year earlier period. Transaction costs related the Cristal acquisition.

Pigment sales declined to $286mn compared with $333mn in the year-ago quarter, owing to customer destocking in Asia and Europe and a decrease in selling prices.

Sales of titanium feedstock and co-products sales increased by 7pc to $104mn compared to the earlier year period, lifted by higher selling prices for zircon and pig iron.