VALHI REPORTS FIRST QUARTER RESULTS
DALLAS, TEXAS . . . April 23, 1996. . . Valhi, Inc. (NYSE: VHI) reported a
net loss of $5.7 million, or $.05 per share, for the first quarter of 1996.
Excluding a previously-announced charge of approximately $15 million after-tax
to close its New Mexico medium density fiberboard (`MDF'') plant, net income
for the first quarter was $9.0 million, or $.08 per share, compared to net
income of $12.4 million, or $.11 per share, in the first quarter of 1995.
Chemicals earnings at 54%-owned NL Industries for the first quarter
approximated the year-ago period as lower operating income of NL's Kronos
titanium dioxide pigments (`TiO2'') business offset higher earnings of NL's
Rheox specialty chemicals business. First quarter TiO2 sales volumes declined
11% from the record volumes of the first quarter of 1995 as slow economic
activity in markets where Kronos sells TiO2 contributed to continued soft demand
for the quarter. While average TiO2 prices for the first quarter of 1996 were
5% higher than the first quarter of last year, average prices for the quarter
were 3% lower than the fourth quarter of 1995. Rheox's sales prices and volumes
improved and its earnings were also aided by a gain related to the reduction of
certain U.S. employee pension benefits.
Refined sugar sales and earnings improved 14% and 36%, respectively,
principally as a result of higher sales volumes. Sugar volumes in the 1995
period were hampered by government-imposed marketing allotments which expired
September 30, 1995. Building products results included Medite's $24 million
pre-tax plant closure charge and lower MDF selling prices. Industry capacity
additions, particularly in Europe, and slow economic conditions in markets where
Medite sells MDF contributed to the lower average MDF prices, which were down
approximately 17% from the first quarter of last year and down 5% from the
fourth quarter of 1995. In other operations, improved fast food earnings were
offset by lower hardware products earnings.
NL Industries resumed dividend payments in the first quarter of 1996 and
minority interest in the 1996 period consists principally of NL dividends paid
to NL stockholders other than Valhi.
Valhi, Inc. is a major producer of TiO2, refined sugar, MDF and other
products.
* * * * *
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(Unaudited)
Quarters ended March 31, 1995 and 1996
(In millions, except earnings per share)
1995 1996
---- ----
NET SALES
Chemicals $250.9 $240.4
Refined sugar 111.2 127.1
Building products 58.6 46.5
Other 46.9 48.8
------ ------
$467.6 $462.8
====== ======
OPERATING INCOME
Chemicals $36.9 $36.6
Refined sugar 6.4 8.7
Building products * 10.3 (22.5)
Other 6.6 6.0
------ ------
TOTAL OPERATING INCOME 60.2 28.8
Equity in Waste Control Specialists - (1.1)
General corporate items, net (3.5) (4.1)
Interest expense (32.8) (30.2)
------ ------
Income (loss) before income taxes 23.9 (6.6)
Income taxes (benefit) 11.2 (3.2)
Minority interest .3 2.3
------ ------
NET INCOME (LOSS) $ 12.4 $ (5.7)
====== ======
NET INCOME (LOSS) PER COMMON SHARE $.11 $(.05)
==== =====
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 114.4 114.6
===== =====
[FN]
* Building products operating income in 1996 includes a $24 million charge
related to the announced closure of Medite's New Mexico MDF plant.