Shares of Tronox Holdings plc (NYSE: TROX), a leading producer of titanium dioxide pigment, plunged nearly 7% in after-hours trading on Tuesday after the company reported disappointing third-quarter results and provided a lackluster outlook for the fourth quarter.
According to the company's earnings release, Tronox reported revenue of $804 million for the third quarter, which beat analysts' estimates of $790.66 million. However, the company's adjusted earnings per share of $0.13 missed the consensus estimate of $0.16 by a wide margin.
The company's CEO, John Romano, attributed the weaker-than-expected results to softer-than-anticipated market conditions and a slowdown in the pace of demand recovery toward the end of the quarter, particularly in Europe and Asia Pacific. Tronox's TiO2 volumes declined 7% sequentially, while zircon volumes fell 12%, both below the company's guidance.
Looking ahead to the fourth quarter, Tronox expects TiO2 volumes to decline by 10-15% compared to the third quarter, with zircon volumes flat to slightly down. The company also expects a more muted pricing improvement in the fourth quarter due to current demand and competitive dynamics. As a result, Tronox anticipates adjusted EBITDA for the fourth quarter to be in the range of $120 million to $135 million, with an adjusted EBITDA margin in the high-teens range.
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