Venator Materials PLC (VNTR) Misses Q3 EPS by 5c, Revenues Beat

Venator Materials PLC (NYSE: VNTR) reported Q3 EPS of ($0.17), $0.05 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $474 million versus the consensus estimate of $451.81 million.

Third Quarter 2020 Highlights

• Net loss attributable to Venator of $42 million compared to net loss attributable to Venator of $19 million in the prior year period
• Adjusted EBITDA of $17 million compared to $50 million in the third quarter of 2019
• Net cash provided by operating activities of $20 million and free cash flow of $24 million
• Diluted loss per share of $0.39 and adjusted diluted loss per share of $0.17
• TiO2 sales volumes increased by 2% compared to the second quarter of 2020, indicating a gradual recovery
• Announces new $55 million 2020 Business Improvement Program

Simon Turner, President and CEO of Venator, commented:

"During the third quarter we carefully aligned our production network with market demand. Higher production costs from lower facility utilization were successfully offset by a reduction in inventories and we delivered $24 million of free cash flow.

"I am pleased by the gradual recovery in demand for most of our products. We saw broad improvement in sales volumes resulting in an increase of 3% compared to the second quarter, notwithstanding a seasonally weaker third quarter and the impact of Hurricane Laura on our TiO2 joint venture facility in Louisiana. Notably, our color pigments and timber treatment businesses continue to demonstrate resilience during the current challenging macro-economic environment.

"We continue to optimize our controllable cost structure and by year end will have completed the actions necessary to deliver the full benefits of our 2019 Business Improvement Program. In addition, we implemented non-recurring COVID-19 related cost saving initiatives of approximately $30 million in 2020. We have also identified cost saving and operational improvements from which we expect to deliver annual savings greater than $55 million in 2022 compared to 2019.

"I want to acknowledge the tremendous efforts of our associates over these past several months. Combined with future costs savings and the ongoing recovery in demand for our products, I am encouraged about the trajectory of our business."

For earnings history and earnings-related data on Venator Materials PLC (VNTR) click here.

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