Tronox reports Q1 adjusted EPS (5c), consensus 1c

Reports Q1 revenue $774M, consensus $754.02M. Chief Executive Officer John Romano commented, “As we stated in the release of our preliminary first quarter results, Tronox delivered a stronger first quarter than anticipated. This was driven by lower production costs across our operations, destocking having largely run its course through the supply chain paired with demand trajectory outpacing normal seasonal levels, and our ability to respond to that demand through the strength of our global footprint. Our revenue increased 13% compared to the prior quarter, or 20% on TiO2 and zircon revenue alone, excluding other product sales which saw a decrease due to non-repeating sales of ilmenite and a portion of our rare earth tailings deposit in South Africa. The 18% increase in TiO2 volumes from the fourth quarter exceeded the growth that would be more typical for this time of year. However, this type of rebound is indicative of what we would expect to see on the front end of a recovery. Demand improved across all regions, and outperformed even more so in Europe, Middle East, Africa and Latin America where volumes declined more significantly over the past six quarters. Zircon continued to recover from the trough volumes seen in July 2023, driven by strong underlying demand, despite the market in China remaining fairly muted. Pricing for both TiO2 and zircon was in line with our expectations.