NL Industries Q2 net income rises on higher sales
NL•Outlook
The company did not provide specific guidance for the current quarter or full year.
Result drivers and key details
- Security products demand - Higher sales in Security Products across healthcare, transportation, tool storage and distributor markets lifted CompX results.
- Gross margin improvement - CompX segment profit rose due to higher sales and gross margin, mainly at Security Products.
- Kronos earnings - Equity in earnings from Kronos Worldwide improved as Kronos saw higher sales volumes, favorable currency impacts and lower production costs, partly offset by lower average TiO2 selling prices.
Key details from the company press release showed:
| Metric | Actual |
|---|---|
| Q2 net income | $9.9 million |
| Q2 operating income | $6.1 million |
| Q2 pretax profit | $12.4 million |
The stock recently traded at 7 times the next 12-month earnings, versus a P/E of 7 three months ago.
Q2 net income rises on higher sales
NL Industries said second-quarter net income rose sharply from a year earlier, helped by higher sales in its Security Products and Marine Components businesses and improved gross margin.
The company also said equity earnings from Kronos Worldwide boosted results as Kronos second-quarter net sales rose 13% year over year.
