VALHI REPORTS 78% FOURTH QUARTER EARNINGS INCREASE
DALLAS, TEXAS . . January 31, 1995 . . Valhi, Inc. (NYSE: VHI) reported
income from continuing operations of $8.2 million, or $.07 per share, for the
fourth quarter of 1994, up 78% from $4.6 million, or $.04 per share, in the 1993
period. The Company's full-year income from continuing operations totaled $19.7
million, or $.17 per share, compared to a 1993 loss of $59.3 million, or $.52
per share.
Improved results attributable to the Company's chemicals business,
conducted by NL Industries, Inc. (NYSE: NL), were a major factor in the higher
1994 earnings. Chemical operations improved through higher prices for titanium
dioxide ("TiO2") and higher sales and production volume. Year-end 1994 TiO2
prices were 10% above the low point reached in 1993, and NL expects to be
profitable in 1995. Higher volume and prices for medium density fiberboard, the
Company's principal building product, also aided earnings and margins in 1994
while refined sugar results were negatively impacted by higher costs.
Valhi has increased its ownership of NL from 49% to 52% and will
consolidate NL's results of operations and cash flows beginning in 1995. On a
pro forma basis, assuming full consolidation of NL for all of 1994, the
Company's 1994 sales were over $1.7 billion with operating income of $190
million and income from continuing operations of $10.7 million, or $.09 per
share.
Discontinued operations represent the Company's former interest in the
titanium metals business conducted by Tremont Corporation (NYSE: TRE), which
interest was distributed to Valhi common stockholders as a dividend declared in
December 1994. Extraordinary items in 1993 relate to prepayments of
indebtedness. Including these items, the Company's net income for the year
ended December 31, 1994 was $11.6 million, or $.10 per share, compared to a net
loss of $79.1 million, or $.69 per share, for 1993.
Valhi, Inc., headquartered in Dallas, Texas, is engaged in the chemicals,
refined sugar, building products and other industries.
* * * * *
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF CONTINUING OPERATIONS
(In millions, except earnings per share)
YEARS ENDED DECEMBER 31,
HISTORICAL PRO FORMA
1993 1994 1994*
Net sales
Chemicals $ - $ - $ 888.0
Refined sugar 430.8 457.3 457.3
Building products 174.3 189.9 189.9
Other 176.0 185.5 185.5
$ 781.1 $832.7 $1,720.7
Operating income
Chemicals $ - $ - $ 91.9
Refined sugar 37.5 31.6 31.6
Building products 26.3 36.4 36.4
Other 27.2 29.9 29.9
Total operating income 91.0 97.9 189.8
Equity in losses of NL Industries (**) (136.4) (25.1) -
General corporate items, net (3.1) (8.4) (49.3)
Interest expense (38.6) (35.3) (119.2)
Income before income taxes (87.1) 29.1 21.3
Income taxes (benefit) (27.8) 9.4 9.8
Minority interest - - .8
Income from continuing operations (loss) $ (59.3) $ 19.7 $ 10.7
Per common share $ (.52) $ .17 $ .09
[FN]
* Assumes NL was consolidated for all of 1994.
** 1993 loss includes $84 million charge for market value impairment of NL
common stock.
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF HISTORICAL OPERATIONS
(In millions, except earnings per share)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1993* 1994 1993* 1994
Net sales
Refined sugar $112.5 $103.4 $430.8 $457.3
Building products 42.6 46.9 174.3 189.9
Other 48.0 50.1 176.0 185.5
$203.1 $200.4 $781.1 $832.7
Operating income
Refined sugar $ 9.5 $ 6.6 $ 37.5 $ 31.6
Building products 6.7 8.9 26.3 36.4
Other 9.8 9.1 27.2 29.9
Total operating income 26.0 24.6 91.0 97.9
General corporate items, net (.9) (1.7) (3.1) (8.4)
Interest expense (8.2) (9.3) (38.6) (35.3)
16.9 13.6 49.3 54.2
Equity in losses of NL Industries (**) (9.1) (1.6) (136.4) (25.1)
Income before income taxes 7.8 12.0 (87.1) 29.1
Income taxes (benefit) 3.2 3.8 (27.8) 9.4
Income from continuing operations 4.6 8.2 (59.3) 19.7
Discontinued operations (2.5) (3.5) (4.8) (8.1)
Extraordinary items (12.2) - (15.4) -
Change in accounting principles .4 - .4 -
Net income (loss) $ (9.7) $ 4.7 $ (79.1) $ 11.6
Income (loss) per common share:
Continuing operations $ .04 $ .07 $ (.52) $ .17
Net income (loss) $ (.08) $ .04 $ (.69) $ .10
Weighted average common shares
outstanding 114.1 114.3 114.1 114.3
[FN]
* Reclassified for discontinued operations.
** 1993 loss includes $84 million charge for market value impairment of NL
common stock.