Valhi Inc. (VHI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Valhi Inc. has a market cap of $3.05 billion; its shares were traded at around $26.88 with and P/S ratio of 2.4. The dividend yield of Valhi Inc. stocks is 1.6%.VHI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Our net loss attributable to Valhi stockholders in 2009 includes (i) a gain of $.07 per diluted share as a result of the gain on litigation settlement and (ii) a gain of $.04 per diluted share from the sale of a business.
Cost of Sales - Our Chemicals Segment s cost of sales percentage decreased significantly in the first three months of 2010 compared to the same period last year primarily due to the significantly higher production volumes in 2010, as we implemented temporary plant curtailments during the first half of 2009 in order to reduce our finished goods inventories to an appropriate level. Such temporary plant curtailments resulted in approximately $50 million of unabsorbed fixed production costs which were charged directly to cost of sales in the first quarter of 2009. As compared to the first quarter of 2009, cost of sales in the first three months of 2010 was also impacted by a 26% increase in sales volumes, a 94% increase in TiO2 production volumes, lower raw material costs of $8.1 million, lower utility costs of $9.4 million, an increase in maintenance costs of $4.7 million and currency fluctuations (primarily the euro). In addition, cost of sales in the first quarter of 2010 was negatively impacted by approximately $4 million as a result of a higher waste-to-ore ratio in the ore we produce at our ilmenite mines in Norway.
Our Chemicals Segment s operating income is net of amortization of purchase accounting adjustments made in conjunction with our acquisitions of interests in NL and Kronos. As a result, we recognize additional depreciation expense above the amounts Kronos reports separately, substantially all of which is included within cost of sales. We recognized an additional $.6 million and $.7 million of additional depreciation expense in the first three months of 2009 and 2010, respectively, which reduced our reported Chemicals Segment operating income as compared to amounts reported separately by Kronos.
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Valhi Inc. has a market cap of $3.05 billion; its shares were traded at around $26.88 with and P/S ratio of 2.4. The dividend yield of Valhi Inc. stocks is 1.6%.VHI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Net income attributable to Valhi stockholders was $13.6 million, or $.10 per diluted share, in the first quarter of 2010 compared to a net loss attributable to Valhi stockholders of $20.0 million, or $.18 per diluted share, in the first quarter of 2009. The net income attributable to Valhi stockholders in the first quarter of 2010 was primarily due to an income tax benefit recognized during the quarter discussed below. As more fully discussed below, our diluted income per share increased from 2009 to 2010 primarily due to the net effects of:Our net loss attributable to Valhi stockholders in 2009 includes (i) a gain of $.07 per diluted share as a result of the gain on litigation settlement and (ii) a gain of $.04 per diluted share from the sale of a business.
Cost of Sales - Our Chemicals Segment s cost of sales percentage decreased significantly in the first three months of 2010 compared to the same period last year primarily due to the significantly higher production volumes in 2010, as we implemented temporary plant curtailments during the first half of 2009 in order to reduce our finished goods inventories to an appropriate level. Such temporary plant curtailments resulted in approximately $50 million of unabsorbed fixed production costs which were charged directly to cost of sales in the first quarter of 2009. As compared to the first quarter of 2009, cost of sales in the first three months of 2010 was also impacted by a 26% increase in sales volumes, a 94% increase in TiO2 production volumes, lower raw material costs of $8.1 million, lower utility costs of $9.4 million, an increase in maintenance costs of $4.7 million and currency fluctuations (primarily the euro). In addition, cost of sales in the first quarter of 2010 was negatively impacted by approximately $4 million as a result of a higher waste-to-ore ratio in the ore we produce at our ilmenite mines in Norway.
Our Chemicals Segment s operating income is net of amortization of purchase accounting adjustments made in conjunction with our acquisitions of interests in NL and Kronos. As a result, we recognize additional depreciation expense above the amounts Kronos reports separately, substantially all of which is included within cost of sales. We recognized an additional $.6 million and $.7 million of additional depreciation expense in the first three months of 2009 and 2010, respectively, which reduced our reported Chemicals Segment operating income as compared to amounts reported separately by Kronos.
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