Investment in Kronos Worldwide, Inc.

6 Months Ended

Jun. 30, 2025

Investment in Kronos Worldwide, Inc.

Investment in Kronos Worldwide, Inc.

Note 6 – Investment in Kronos Worldwide, Inc.:

At December 31, 2024 and June 30, 2025, we owned approximately 35.2 million shares of Kronos common stock. At June 30, 2025, the quoted market price of Kronos’ common stock was $6.20 per share, or an aggregate market value of $218.4 million. At December 31, 2024, the quoted market price was $9.75 per share, or an aggregate market value of $343.4 million.

The change in the carrying value of our investment in Kronos during the first six months of 2025 is summarized below.


		Amount
		(In millions)
Balance at the beginning of the period		$	250.3
Equity in earnings of Kronos			2.7
Dividends received from Kronos			(3.5)
Equity in Kronos' other comprehensive income:
Currency translation			9.6
Defined benefit pension plans			.3
Balance at the end of the period		$	259.4

Selected financial information of Kronos is summarized below:


		December 31,			June 30,
		2024			2025

		(In millions)
Current assets		$	1,105.3		$	1,087.6
Property and equipment, net			694.1			731.2
Other noncurrent assets			114.1			121.6
Total assets		$	1,913.5		$	1,940.4

Current liabilities		$	476.6		$	390.2
Long-term debt			429.1			501.4
Accrued pension costs			117.5			127.1
Other noncurrent liabilities			73.3			74.9
Stockholders’ equity			817.0			846.8
Total liabilities and stockholders’ equity		$	1,913.5		$	1,940.4

Three months ended

Six months ended

June 30,

June 30,

2024

2025

2024

2025

(In millions)

Net sales

$

500.5

$

494.4

$

979.3

$

984.2

Cost of sales

400.3

431.6

807.6

814.5

Income from operations

35.9

7.4

55.4

45.8

Income tax expense

8.5

3.5

12.0

11.1

Net income (loss)

19.5

(9.2)

27.6

8.9

Effective July 16, 2024 (“Acquisition Date”), Kronos acquired the 50% joint venture interest in Louisiana Pigment Company, L.P. (“LPC”) previously held by Venator Investments, Ltd. (“Venator”). Prior to the acquisition, Kronos held a 50% joint venture interest in LPC and LPC was operated as a manufacturing joint venture between Kronos and Venator. Kronos acquired the 50% joint venture interest in LPC for consideration of $185 million less a working capital adjustment. An additional earn-out payment of up to $15 million may be required if Kronos’ aggregate consolidated net income before interest expense, income taxes and depreciation and amortization expense, or EBITDA, during a two-year period comprising calendar years 2025 and 2026 exceed certain thresholds. Kronos accounted for the acquisition of the interest in LPC as a business combination and, as a result of obtaining full control, LPC became a wholly-owned subsidiary of Kronos. The estimated fair value of the earn-out at the Acquisition Date was $4.2 million and was determined using a weighted probability of potential outcomes based on estimated future EBITDA and volatility factors, among other variables and estimates. Kronos recognized a pre-tax gain of approximately $64.5 million in the third quarter of 2024, representing the difference between the $178.2 million estimated fair value of its existing ownership interest in LPC at the Acquisition Date and its aggregate $113.7 million carrying value at the Acquisition Date.