Tronox Inc. Reports Preliminary Second-Quarter Earnings
August 4, 2008
Oklahoma City – Tronox Inc. has reported a preliminary loss from continuing operations for the 2008 second quarter of $29.9 million ($0.73 per diluted common share), compared with a loss from continuing operations for the 2007 second quarter of $20.0 million ($0.49 per diluted common share). The decrease in the 2008 second-quarter results compared to the prior-year period was primarily due to significant increases in process chemical, energy and transportation costs; unplanned production difficulties at the company’s Uerdingen, Germany, and Kwinana, Western Australia, titanium dioxide (TiO2) plants; a non-cash impairment charge related to goodwill of $13.5 million ($0.33 per share pretax); and a restructuring charge of $4.2 million ($0.10 per share pretax). These were partially offset by increased sales, lower SG&A and gain on land sales of $12.4 million ($0.30 per share pretax). In addition, the company recorded a tax benefit in the 2008 second quarter versus a tax provision in the prior-year period.