Venator Materials (VNTRF) 13 May 192019 Q1 Earnings call transcript

Good day and welcome to the Venator First Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jeffrey Schnell, Director, Investor Relations. Please go ahead.

Thank you, Andrew. everyone. morning, Good Schnell, Jeffrey Investor for Relations I Director Materials. Venator am of earnings first Venator’s to call. quarter Welcome XXXX

Joining us President website to call the and and morning, on posted the released at first Kurt and Turner, we and via Ogden, venatorcorp.com. CEO quarter President the of Executive press earnings release our Vice our and XXXX This today CFO. for are release Simon slides accompanying

statements the are make statements and about projections future. During All our call, for such and are reflect involve we may they future not this they guarantees risks forward-looking, uncertainties or while our expectations, of expectations current performance. and

You could or do quarter. not should more that cause for actual or SEC plan on results expectations. We publicly materially with any the review projections during our updating forward-looking to statements the these factors information regarding revising the differ filings from

free net refer and net We EBITDA, adjusted will measures, adjusted EBITDA, also such cash flow as to income, non-GAAP debt.

to comparable to and turn posted Venator. over can It’s of pleasure to my the been You Simon Turner, now to most our has measures reconciliations GAAP in the earnings which directly CEO find website. release, our President financial call

everyone. our pleasure It’s good welcome you to to Thanks, and Jeff earnings morning call. my

modest offset of TiOX weakness segment. of due The in Let’s tough the prior quarter in XXXX volumes mostly the America, Performance these and operational and Notwithstanding first demand TiOX Europe adjusted industry year-over-year was stable a versus a average our Asia delivered begin quarter gain and China. in as to challenges, challenging, EBITDA, on convergence TiOX Venator growth X. Additives prices and global comparisons North $XX in performance of $XX selling Slide million higher million improved weakness economic environment in in characterized by

excluding Dioxide proceeds. quarter of X, the quarter, Slide in after Titanium the of $XXX EBITDA to generated first million compared which adjusted our from was Finland our $XX our million insurance Pori, Dioxide in through XXXX Titanium the facility, segment lost first EBITDA to segment, Turning reimbursed

selling and annual impacted declined X% X% selling Excluding American most line to in North the average our products TiOX the XXXX, highest was Europe, lower currency, fourth was declined region. stable the functional in the which average with compared year for foreign in price expectations. compared the prior of period Pricing prices price quarter to region converged prior year as

also prices driven by demand Asia lower lower in moved China.

more demand to the increased America, specialty but where China. into compared with TiOX we stable in continue to TiOX by the by We prior of to for And sites in in augmented stable. to Brexit network, in increased higher we products is appears and market, weakness functional these Pori impact TiOX. advanced commitment pricing applications. strengthening differences our mainly of driven a to North region, and Asian our of production pigment our Brexit, hard applications, of period, grew the X% and to compared specialty in year ahead of non-slurry Europe, to saw volumes In XX% primarily clear dioxide introduction Titanium higher our higher-value modest growth volumes sales to largest which specialty smaller expectations line demand customers year-over-year, purchases TiOX fragmented and availability be market, position in underscoring new other differentiated due demand. value see potential sluggish, sell dynamics products Specialty large leadership mostly By In products. our products. of higher from remains our the transferring was and

of view of customer the third began XXXX, largely its with customers, impact conversations and that our book quarter run order has in course. our by encouraged which are de-stocking, We supports the

to a better inflation, seasonal including energy volumes the second which into quarter, patterns. incurred look variable the by offset for slags, first In we and action $X continue Business Program. As to grade reflect of and costs, rutile material we we cost high mitigate our expect will from historical costs. TiOX raw benefit are XXXX partially half were and we these Improvement in million particularly inflationary higher XXXX, We pressures taking envisage these

stable Turning and the stability characterized modest regional in influenced near-term, weak pricing Asia. largely TiOX to and and price America, stable in the volume be outlook, performance demand Europe demand North be price in dynamics in by will and and by

partially Business production expect soft in benefit favorable. specialty industry Notwithstanding raw our We efficiency longer-term part Program, apparent XXXX, material TiOX which offset cost to higher inflation. backdrop TiOX and fundamentals Improvement our of from an as of remain products actions economic

customers continue to including and implement our margin our customer controls agreements, reduce that with align to plans tailored our volatility, with commitments. production and measures price We customer inventory

that X% were XX% X prior compared and plant pigments in in construction-related weather delayed demand Slide a adverse quarter. X% Improvement decline in and a selling impacted to average strong softer conditions volumes year the Performance closures driven to XXXX Turning as foreign Sales broadly businesses season. part year by Program the prior prior to currency. Business part to by in North Color have a of compared applications headwind on across our America a due volumes XX% decline revenues Additives, in from declined primarily declined prices volumes, period all

We of but restructuring basis Pricing quarter compared prior were expect treatment, currency timber some excluding down after functional of local volume volumes to all quarters. this a third third in the electronics-related year was as customer second In period. on lower we due larger saw In year sales in actions. flat the not a roughly to XXXX. compared treatment timber prior recover a the to additives, was the Performance Additives the million and to in flat $XX continuation adjusted tender the prior auto due in segment in a due indirect headwinds. businesses to The prior volumes of of down and but quarter Pricing of XXXX. items. large business. attributable demand to result declined a decline costs improvement to these generated Pricing of of direct aforementioned business in due began quarter, year The adverse and single $XX functional is which a year-over-year in the the to primarily million improvement applications, within our to from in in the $XX fourth offset additives all million. sequential low EBITDA mix partially quarter EBITDA programs low digits Lower

Additives the of ongoing. expect We in structure streamline these still Performance have taken Performance cost is to steps EBITDA yet transformation our the significant we XXXX. exceed to challenges, continue Notwithstanding that Additives in will XXXX segment

strengthening the as We actions delivered target a captured from the and improving necessary XXXX in on commenced million part programs, by business complete EBITDA of the building XXXX all our our EBITDA deliver improvement X $X of the Slide business focused quarter. million in of flow. prior We Business first to million of Program program ending We we $XX of quarter Business intend cash to rate the at the to on on This Moving our program. our is an year XXXX, on we generate Program our additional designed benefit XXXX. improvements, $XX end in to are Improvement intensely our level. the fourth run full Improvement

on program I subsequent build call Kurt to in and to pass the quarters. now from our will report the continue to over to expect the financials. We benefits this discuss

Simon. Thanks,

offset the compared credits #X. more the period quarter Higher declined than first $XX XXXX. decline lower TiOX the of and to of excluding to Performance majority were segment. to of Titanium the Dioxide prices turn volumes volumes and adjusted attributable ahead go our sales sold in selling by The is EBITDA in prior year after in segment. Total million the Pori we impact Slide Let’s carbon our Additives lower

Additionally, X% Program improvement. Business fourth adjusted material selling to our the the Higher down Compared Program the aggregate EBITDA foreign offset the Performance Improvement contributor foreign sales increased partially Average currency. and in the prices $XX partially TiOX from Titanium Additives in approximately were and expected Contribution flat. XXXX pressures offset quarter, to Performance and our and total Business cost prior largest were material to volumes Improvement both currency. Additives average of was Dioxide cost price raw quarter raw million. pressures compared

have had first of the to an million. X, attractive end continues financial we $XXX the Venator Turning at to Slide quarter, liquidity position. At

balance continue generated, under asset-based our revolving $XXX facility and the tax of XX-month to a where into translating we million, valuation cash attractive million $XXX relatively leverage billion trailing is the Structurally, we from only EBITDA. operating in availability function was and was ended allowances. Venator the quarter an $XX is debt which This income debt of million. rates. net losses undrawn the net lending tax Our of primarily net benefit our Xx $X.X with enjoy countries low

due quarter-to-quarter higher quarterly tax the valuation be will Our the of and countries. from allowance the in income in term effective near vary mix rate earned to

with our forecast near-term cash adjusted However, to will we to be effective rate rate between XX%, long-term the tax XX%. of to continue XX% tax XX%

to seasonal typical of Pori-related Turning with of quarter flow working use cash in expenses, the which This cash a $XX in were free X first capital bridge, expectations. the used by was Slide in significantly and total was timing our impacted our line million. both

expected range to we remains of is expect $XX million, within cash the Program. XX% cash to and million, specialty $XX XXXX related approximately expected follows: for of $XX be $XX expenditures cash transfer. which million be taxes are to Cash are XX%. restructuring million, is which unchanged includes uses to $XX Business capital for be includes interest as total expected outlook expenses long-term XXXX to Our Restructuring our technology CapEx and million of to of to million approximately Improvement $XXX our

of to will This million for in was of of use expect year. $XX to inventories. be million in was XXXX. compared said, being the Working the second expenses $XX an occurred in Actions as we on taking of are significantly additional pension million approximately $XX XXXX quarter We XX provide cash initially seasonality this expected TiOX. build of capital are reduction first which in the capital closing be laminates to year use due million. the deliver and half $XX a working we April other to normal will to designed a That the to business, weighted capital of European working and XXXX

to which will we try We be in million to XXXX, million offset. to $X expect $XX the impact

$XX closure million costs. million, $XX down million approximately project Finally, are expected total of as of $XX wind to our million $XX and to Pori-related to $XX well other costs be expenses as of including a operational million

it pursuing costs. turn With for We reduce to Simon these that, measures additional are I’ll back over to further remarks. concluding

you, Kurt. Thank

million an moving European On Ashtabula. regarding the our April paper to on acquisition laminates paid update acquisition to Tronox XX, and split exclusive for resulting provide and with from fee laminates consideration second our the of business and dates, €X the completed final €X Tronox remaining business I’d Before upfront first from break like paper the of we agreement anniversary slide, the the the million, on total of evenly respectively. European key

million during XX, the now a times all payable in than the of in pay and the XXXX. Ashtabula necessary. fee acted its closing full is break agreement laminates fee the break good to With if of to at from compel exclusivity the transaction, to due seek this relief Tronox agreement Tronox purchase reach later faith no will $XX under a to efforts Venator and May comply site with judicial to definitive obligation

not will your appreciate commenting time understanding this and matter. be the at in We further

first quarter Asia. North modest America, by demand growth challenging, XX, was in in Slide XXXX stable the characterized Europe weakness to and Moving in of

which market is our second our with TiOX, in assets largely price XXXX. the and operate of committed measures tailored that utilization warrant. deliver customers our de-stocking impacted to when we conditions increase implement that rates and those seasonal margin XXXX, that significantly second production corresponding to of more to in our the the ability volatility normal with expect limit volumes to half to complete patterns continue at return and half Customer We

TiOX business, quarter specialty this Our closure intended the performing our business in increased performance the the half and dynamics first volumes the applications. and technology will preparation very pricing of well our more Venator’s is are specialty functional for transfer of advancing in position throughout XXXX strategic with and the and strengthen leading the TiOX TiOX higher priority facility. These than we our to stable commitment underscores specialty second and of TiOX and high-value with The actions Pori products. of

measures to have designed made cost Business pursue on improve reduce further our progress and We of Program structure, capital range our strengthen good flow generation. working Improvement all our a that cash

expect to coming deliver continue targets on in We to our the quarters.

on now now of the are for implementing shareholder its better will for the portfolio. interest like to to targets by value. open your encouraged industry Venator. are medium in We that, position across continued Venator long-term We and and fundamentals would call With execute thank The our measures we range questions. you we deliver

comes [Operator Instructions] go ahead. question Juvekar first Please P.J. The of Citi. from

is Hi, P.J. This good morning. for Eric Petrie on

morning. Good

Good morning.

Pori So costs I wanted purchases you are remind us volume you of term of you mine taking actions and raw much and you to could us following are are a purchases energy actions? those longer you ask reduce do how make that of to or give transition JV to the said your sense or chloride contracts a Could extending that in you looking materials. you inflationary or

majority and the we ilmenites sulfate Clearly, chloride buy through before, times a of and I than run Yes, ores. either the are high-grade is have feedstock, slag our Simon competitors chloride here. of slag. sulfate think This materials of number rutile and mix our we less

around at that we and mining said for types. our this time, of broad We to your have slate currently wide As have a into don’t some time regards plans, integrate feedstock plans operations. questions very any we

it’s We our in the to have term a area. suppliers, feedstock very broad the relative areas, contracts which And get interest purchasing to in continues pricing sulfate our to up others. we shorter of we those to show possible and in o a continue some have best results think range lot of

situation what time. materials. dynamics would a of to time, contract see price in some around around little while, grade at and alert typical the are we that has for a the regarding I that’s been we’re there been, this higher market. to chloride Clearly, changing for and obviously in the little contracts, you X-month sulfate But some this materials negotiations than level As to is that’s say very tighter continue bit where something lengths been making a

bit modeling. more you little for your just Eric, to a give detail

and relates consume, to XXX purchase approximately tonnage kilotons XXX it’s the consume. annually As we it and/or that that we to purchase

that in has content. is TiOX nearly that a of only half mind keep XX% Now ilmenite, about which

so ore And add I in set the of would indicated feedstocks. $XX volumetric from range on pretty million, a have inflationary a past, we XXXX to over the we see purchase pressure high. million that’s ore We actual the as or to consumption our looks standpoint that, that of in $XX broad also XXXX. think

chain stabilizing, improvement? like are thoughts your then TiOX end-markets wanted major TiOX restocking are modest the to secondly, you what your I Pori’s expecting in And Helpful. and seeing seems for first, are you second Thanks. it So functional are half ask, in on restoring capacity?

we as kind in think saw large we second I nutshell, about the ourselves second year. Clearly, ‘XX. the optimistic Yes, half that a of of of always cautiously in the position de-stock half

not As of to functional have Pori, from it anything our products transfer different time, to around the on current altered relates on products. focusing have plan our Pori we at specialty our no and stance this do

Thank you.

The next from ahead. go Bank. Deutsche Begleiter comes of question Please David

increase was price in successful? X, North to fair not May say increase did it first is that’s that, guys a America Good question. my you have that morning. in implementation And Simon, with

Yes.

the partial think push will to and in that of we America, I in the remind it’s quite correct, I in way the timber stable success quarter facility. later we would only with we the I you, that is be a – potentially are some would are I see production producers is So that. North you We America, North demand pretty in for guess regard what that have hoped had I one price, smaller and response, so smallest think in respond in

of imports due your lack on a aggressive just Chinese of of more And some perhaps – gained competitors stance? little any have being your either their good. or share to you contract one Very

the I part... Sorry, am – clarify second second first understand could the part half the you of question? I note the sure but

I more you on in from lack perhaps their you competitors, given wondering because they want put a up contract to one if any are been understand due competitors a your strict here who of of imports of stance and little your share contract one of have gained Chinese place to their share some or implementation? have have

Yes. I different range the divergent clearly think I mean amongst some there is look, data points and it’s producers. quite of

what would situation say we following. the is about I the think

We ways, and scale a scale large have different many other the for least producers. we the have chloride than producers position like large market very In certainly, volumetric the producers. other the

we example, are For more specialized.

have We application mix. broader got a

We are much decorative lower large exposed coatings. to

have headwinds clearly real a has we limited We there to have where automotive in very and presence no some China. exposure coatings, been

call position would So I you a comments Venator footprint, think couple its that geographic of if I out. market at its look of and

is by pleased up year-on-year, specialty are volumes Our that XX% we’re about. clearly so something

focus more stable We higher, to on prices. continue

North If you small. and position America, in think smaller sell In generally pretty America about to North customers. our Asia, we we’re

by pretty to, We’re plant that well Malaysia fragmented wanted weak out, so the not comment We’ve for you in to, we’re there’s no Asia despite situation, much agitate can there even specialty It’s leaves sold North not slurry, volumes. we price our in would producers a market. we in question off take that as TK Europe. Chinese And so able supplemented just America. and be fairly gain which share if of in highly really seen

if various quantify largely loss the would in is kind Europe effect are an and new customers from of We from to would in destocking more these around a is product of, hard we And each share drivers, is full of participants, forward it while sales. end. some which very specialty it’s XQ. we been received introductions the the did feedback well see so saw way with some into of numbers pretty you in first look disentangle have these Brexit like, pull XQ have And the math that probably it’s out demand the that forward bit at true quarter, there

year-on-year. in with sales Our pretty were for were expectation. Pro forma line Brexit flat

So, a compared that like, if account that kind talking other of, to have frankly, thousand for gained of the any of we players. tons. you couple we’re to And small is Europe, very at the of kind to really, share number these in look numbers of about a some deltas

So, running shore of of, position that further just add up kind XX%. the are to is this high you would we in the to to articulated like, to kind our mid assets what I’ve I

slightly our high We’ve it we’ve the are on not planned rational our a normal, commitments production the to and got matching going made into to have focusing We inventory our probably second we and inventory. focused in quarter, customers way.

you. Thank very much. Very Thank helpful. you

question comes of from Capital next ahead. The BMO Please McNulty John Markets. go

Yes, my question. taking good morning. Thanks for

and pricing So, with cost, kind you as year material next look increased guess a XXXX? back to of half the raw better of the regard need in the into market for shape, being do and I rising see to you

You year this mean back the of half or...

looking offset energy then XXXX basically and half Back as that some material well, cost to this and raw of of Yes. escalations those year highlighting. to you’re

I certainly. way. in these and margins for mean scope improve to got We’ve responsible headwinds. we see a Yes, a us that there’s would since focused

offsetting we involve half destock and partially I recovery of to would have from price And But these high headwinds. of some through midterm year. are first the believe We fundamentals the get points. in that said, this better we period through year as last this

it I should it that just Got how the flat? I pricing for down think Was more up when a about was pricing or between the about to in of X% pricing, business? And kind specialty total you it. specialty guess couple how off the was compared the then percent? quarter the of we your guess generic and think deviation

movement the largely we in think slightly the for place sequentially, peers, been they’re it’s because those we time run have for longer is prices, it’s and we markets. desire. against functional way it which those out flat is It because Typically, some stability elevated have in was less we up there’s but the situation that we set about contracts quarter-on-quarter,

last the just regarding question, just then And Asia. it. Got

any we has European or the big your would I was do an impact way in how kind volumes be making a weak demand. you, on way weak overall are disconnect some thinking see guess be my Asian risk between demand I we how of pricing volumes their you and indicated past the that you when commentary, I price concern stability And pricing? and those that? Europe there of the thinking How to in they weak pricing? should about of think expected guess have about

see tell Well, how comment the should but it. happy way would obviously, can’t think it, quite you I to about how we

that So, Asia. half that a would price the in we because last got Europe typical, particularly of and year ago, saw of most We higher weaker XX% see the you’ll our And than for year-on-year prices year. price in European destock dollar recall difference be And in this prices demand convergence. and accounts convergence. second on as significantly basis was a mix you U.S. down get we’ve

more across we is there’s in been as North pretty you we’re we’ve conditions not have as of evidence export saying to producers by Europe in of price piece And being the that is out risk. that of And But behavior XXXX so I’m China not us, there’s that situation Europe. Venator see the a into more Chinese putting quarter more and guess, quarter China continued higher into of pricing. any a America rational Now evidence are to floor responsible both what and would of in and in in weak are kind North Chinese that some saying believe at the Chinese of first levels much in meaningful previous and I stable see about at actions producers and, we cycles than weak are of looking to rationality. we rational taking in kind have seen America. of And second due we we demand XQ, And this shipping of rationality into the in far putting kind is been a into I we’re we’re market out look pricing calling the a disciplined here the well. that they’re how time environment the under even Asian declines for increases, way the even falls out in terms of in

the Great thanks very color. much for

comes The go Instinet. Aleksey next Please from question ahead. Yefremov Nomura of

Matt is morning. Good on for Skowronski This Aleksey.

that meaningful customers of forward accelerating impact your Brexit you the volumes XQ? first purchases this on ahead demand mentioned have Do to pull You expect in were of quarter. a in

some in do There difference. in will has about Europe year-on-year pull way XQ have our a It think be the it here. of been out component all think bit its pulled Look, dominant XQ. impact it a account to doesn’t The will is of I for it of volumetric probably forward. relatively small but forward

while would seasonal you wish. in would the level we you over expect it. I’d not uplift XQ, Europe we’ve to it could so, And historically be way in say That’s seen quite or a characterize that the volumes may

And and bridge as to XQ the then volume, XQ my raw between materials respect you and follow-up, Kurt, other? quantify with price, can

speaking, other for to cost consume inflationary board headwinds for to in of to going feedstocks. Corporate flat materials may is for TiOX. sold some surprising Boy, and is additives expect think be and as other we if that So, right? into business. giving basis we generally pressure some that, I bucket quarter, and on continue lift did the the guidance the some on tell I’d I most performance, pretty Price we’ll we uplift will EBITDA. will that pretty then and part of our sequential as some be goods be the flattish about on second higher-priced specific going And you volume raw these second a quarter, see the we

you I of other how buckets at that, a So, you shaping give least don’t than gives clarity know those directionally to are just that lot up.

helpful That’s thank you.

Please Duffy of ahead. Barclays. comes question next The from Fischer go

out you on TiOX effect the think, been, was mix guys. me the bit break Yes, should specialty, With on quite little positive just good I that. in if price. more I morning could wondering help a would have

down specialty. a down something So, to up you’re on XX% if X% quite lot get volume was there in

just of price like said was mid-teens Could for those numbers kind those specialty functional pricing was flat. lines. something break along or out That you how You fit the means down together? it looks all

prices, Yes. it’s is Look, volumes will is Duffy, the of I types you say the there you not relatively difference numbers that don’t the we in of the break the out and specialty small. is that to quoted scale because but

but your weighted depends what you in So, it kind relatively mix, it’s on include of small.

optically, the cut their for to is you big which you good what Okay. you competitor look did And volume, run the I the numbers when maybe like the for Because your like price look I mean argue volume. risk at would at run is numbers, business when model, breaking just what look looks what I industry. on mean, is you it of

I you some fight kind some to bigger that same think take, can a back? do having the but run and little risk maybe thing So – the these to the just you you of there’s mean take obviously put back and of you provoking at share market bit, addressed looking in numbers, do the to player space

some or tried clearly I’ll reiterate I just we actions with that. Because our and that for think we have see don’t I about go own like have it time now Look, Duffy, to another Yes. earlier, on it, we speak manufacturing spoken situation the behalf speak footprint. can but clearly, about And others for of ourselves. is can’t for of industry, the our we’ve which talk out details opposite primarily, you regional we and laid

So, the out. been our plants we flat running have not

like large at with market whereby to out we broader of a the situation mainly speaking, the go a applications, you America constrained smaller If positions. are We of North range do coatings. competing losses, and in Asia that for less math in talking competitor, towards broadly a set I’ve kind XXX,XXX we’re exposed look you number tons. let’s say, and volumetric about about one to

in are We China. big not

it’s Venator jumping into why less you high-volume with market manufacturing hope and see footprint I can that So, is of likely it’s it has. kind sales this than that

of come effect we has into Brexit. if there forward some Now pull Europe, been

way trying earlier, focusing been there said our manage gain we operating our they We’ve our very we I on have honor of that manufacturing, and bargain to rates we on As share account the numbers. of neither have customers and these our our the and focusing to that commitments large-scale a with side. would we side have their inventories, been like anything we insisting for out and been disciplined not kind and honor

seen I here. one about doing want other be for are spokesmen some data at others not would don’t there’s industries. get I have I Now there very makes been our Venator I mean for for we is want into tell have be are first that and the least careful of any can could size to a share. suggest industry discussion what point And that. that beneficiary of good what’s to the that to been that so I believe manufacturing you not good for is the way degree and any do we market our quarter sense we But in prosecuting business footprint. forth. we’re that

guess I all to sit. a together picture there’s with it see makes fits And yourselves it but the as arrangements full will and are in that we people our to our emerges, less be sure that customers and with sense that’s to for need we’ll where like we to how volatility Venator. in make monetary way agitating our rational business So, pricing decide

is the to I getting Duffy, think that’s represent really don’t that the our But and feel what’s comfortable I for that’s it industry into, so business. say. probably, good forth. how can So, trying I best for

you’ve say maybe, allow equation, tempting an Just U.S. that the price hundreds that to that price the would hangs to the turning of to have volume for and market. European months dollars to it was got the in together the conclusion fact while is XX jump to back than exposure the what to price, I dollars higher is as selling Europe what we you significant

the the refute guess, fall XX% quarter, second would I we’ve successful putting a have come the in been into price half. as we’ve actions that under cycles, previous in how, fact, second argue we falls. that XX than we would further I our in destock in so to the that be successful environment So, been in to more And stop position. in

fourth quarter to of Europe above in me to Simon our sales North exited let where We of half said. just approximately than in prices XX%, are what functional So, already Duffy, America. XXXX selling the has in were average Europe. that volumes, More add fact, underscore

European our for converging North convergence prices. have been In we’re first a price been coming what the prices, that we respective now first quarter, prices speaking about at have We American effect now and down some quarter. have time And but talking in point we convergence of as in towards I believe here been that’s results those the where to. saw has regional Simon

Terrific. answer. very guys. you That’s Thank helpful

comes John Please of question next go ahead. The UBS. from Roberts

Josh Hi for Spector guys. Good is This on John. morning.

I at mix question, is mix what understand a but does mix the on you side the things, on last and as this thoughts look so follow-up still the Pori year just if the between like to grows, specialty were look versus small, year, of X relatively So ex years? your

‘XX sales going volume second increase So, an overall factor. there’s half in in be because to XXXX clearly the over of

look in we – ‘XX as reenter up in So, functional kind those specialty the to going pretty clearly, if to a would because back sales you our and there’ll increase pro sales And a prepare cells. all large and ‘XX, nice start and see in, that in expect at markets. volume. higher our of jump distorts peel XXXX our forecast you’re rata nevertheless, be build we a position But in likelihood, the pictures process of of and specialty somewhat

you rebuild guess those the into that separate next year markets, some programs? in those with that, you’ve as or along totally to $XX Does incremental bite million on this of what I your I presence Okay. pretty clear as for getting year. mean, about thinking you start lines been the you’re are same

they’re be slight Well, only speed up, words, it’s by a it’s amount, a other So, in not it’ll it’s if Venator, programs, a right? but small buildup. I separate think not

guys. Thanks alright. Okay,

Please next of from comes go Morgan Steven question ahead. Stanley. The Haynes

guys, question. Hi, thanks for taking my

You talked curious guys is about any regulatory some a China Thanks. environmental a explosions? being also this kind bit there was just driven by bit rational. of little kind more changes I of following plant recent if being

predominantly issues push in Chinese great the taken we increases Asia to participants those pains Chinese that’s is lead Yes, that that and between are which play that I sense price and the China, dynamic in in China. think to through the the in many And structures, the explain increased leveling to producers cost that here. believe field that’s driving I and playing think the we’ve increased larger environmental quality-based multi-nationals in situation cost structures

rate, capacity cost at we’d course, are like that expect are will really, Chinese they to and in lower China grow accordingly. structures pricing to see managing We a stress but basically into of going up their that

you. thank Yes,

of Please go Jim next The from ahead. question SunTrust. comes Sheehan

industry please currently inventories on Thank in you you. Good the normal? TiOX where Could morning. see versus comment you

Yes, Jim.

ran and certainly plants second pretty think it the quarter, in to as that said going higher higher hard, inventories into I we quarter industry. think we’d behalf the speak And than mid-to-high-XXs to that than of bit bit us we they’re a a feels little as our like are the little earlier, first level. at industry on I our it’s

were around view into if the industry quarter, daymark. So, say, coming I’d the I XX that to on levels second take a

in your Terrific. And of you terms talk business about also you’re could about how portfolio options? thinking strategic

a no I the think improve is We into and there Yes, to default as Program there. new that I opportunities comes optionality and businesses We timeout. plan out be Improvement further we them the will like look, Business now our from see it last there’s mean, have. change

be shareholders always we’d always that should Of course, we course, to opportunistic. And we better , deliver those. situations at and arise look will value of

what that normalized And as in for Performance EBITDA Additives, do level look you a business? at

up these year and fourth million this in previous EBITDA covered our of past I internal look, triple-digit couple our this that XQ XQ to have for goal. $X kind say We from into to had XQ. from targets We rebound think get reached mark, a the pretty to fair yet million in did of last quite a Yes, setback business call. on it’s year, in so, quarter we not in of we $XX XQ see going healthy years, a

and it’s in of the Additives, that little bit and Jim, the weakness fair electronics automotive Functional delayed a fed of season to our think some has say, a through to destock I little pigments. color

that is the we’d get of year light be. million So, $XX going to the certainly, there’s And of couple of prior. to still were $XX million a to where we not million – like

the think seasonality look heavy some in $XXX business. it’s is not million. So, I There

mark, have last get million on were where up I say above with advance that we you’d to our to which last on the expect an $XX think represent year. would year, comment we’d

Thanks, Simon.

The next question comes from Steve go Byrne of Please Bank of ahead. America.

would driving volume product characterize On end-market? pull specialty as is what what pull you. opposed increase And were you year-over-year your relative And if volumes would XX% to how from thank organic overall gaining the to you QX? inventory in that? you that volume growth was your you Are so, say the Yes, TiOX, that think share? do

clarifying to just those the sales? the Does that question – I’m relate to relates relate second first So, all specialty. question questions

Simon. specialty, in really was It

Okay.

So, in specialties, lot specialty, higher We see it’s a had for of underlying as as that see that strong We in we pretty don’t demand those pull-forward. production straightforward demand. products. that

gaining you from you’ve competitors rates? are production as And increased share your your

be it but demand than share. say could I Look, our it’s to would base. of underlying small gains, it’s some nominal related fairly share a part more

expense, currency going one up last on year-over-year. one there than effect? corporate other on your there just anything else then And Is in

track pound. the the dollar the real to Steve, primarily and it’s and movements off relative – U.S. FX, it’s the currency – key to keep as and euro are No, so

of long rates we of less pound. expense expect wouldn’t volatility the have that the moving those we through normal corporate FX in the euro, short forward, extent to We’re And, so outside remainder the year. anything

on So, approximately to $XX $XX basis annual million we annually. an think as about million corporate

you. thank Okay,

Alexander question Jefferies. comes go ahead. next of from Please The Laurence

Bubes Hi, just today. Alexander. had Laurence everyone, here one quick for I on Adam question

wondering, You’ve order think of patterns, about does Europe customer Asia? support end it talked you potential or TiOX. in shoots in about the overall destocking But was I when unexpected any green you. Thank

– finished question the was sorry, – or I Look

No, that’s it.

is view and Europe any what Asia? in shoots green a does question it the support of So,

Correct.

Yes, with hard talk shoots. green it of like look, finding to what Europe we about see in I’m kind

I that demand some there first think the into forward was pull- quarter.

to going I it Year, things sluggish. had we things pretty on a a as quarter. stop the the up The in in more growth. modest. mean, Europe Asia, got picked same subdued challenging. of There and We just I I of still think side the look I still ledger. low; pretty start the then slow And Asia. it’s very pretty see would the – recently, is year. very Chinese as to describe start down again. a other bit a been and in second say we’re macros bit New slowed there, It’s It’s would still through but similarly And or it’s muted

hard green characterize it’s as shoots. I yet to think So,

Okay, thank you.

comes question Please next of Alembic Hassan The go from ahead. Global. Ahmed

and Kurt. Simon Good morning,

Good morning, Hassan.

Good morning.

sort this talked of trying global if losing moving sort of the of you but year? about demand know a But the truly sense of share. trends to what obviously, guys apologies demand just looked and seen underlying this, I bit a fair share, I’m far underlying out mean, have we’ve get a like. has repeating gaining thus there companies I like parts, in some bunch some

some pointed You to with issues but issues some of sort guys, the some rightly not the out Brexit, obviously of specific like. end-market with you the and auto

what thing lingers remainder year? the well trade look war environment, year as like demand resolution like, expectation growth for what’s is, this in war question growth look the this trade the And whole of if globally, demand has So, well? underlying as your as on a

there’s I question Hassan. a Yes, there, lot in look, mean, that

what my So, I to don’t speculative kind want remarks of to than and what we be see. confine see might I’d rather we

lot broadly we we particularly, in we year. areas hold be come said mind, some It’s we volume us destocking more about of still But to more. back the to than would are recover China. year-on-year as particularly a we Asia we think world, just phase. about we cautiously last the sell half terms did might I this We the massive optimistic and expect not second to around to in would in going we hear that increases, medium-term just was what but were going to say certainly you from see just grow say, around like

XX% we of We China. – imports less are into represent than only

and automotive. in We are direct quite our participate not a different we’re do – some this we large is and exposure, of don’t peers, have neither we where from

that TiOX. and is the on are world we – our meaningful so segment a window And in

have And – can’t in what’s than on we what going market. on what’s so tell hear, we going that other

what be seems by that see think continued to in is I sluggishness we Asia So, driven China.

tapped that’s our Asia. generally pretty America, of stable, the market seeing both I by though specialty we’re encouraged North It’s Certainly, rational the better strategic business are covered. responses our solid, and In to we’re expect Europe Asia, and we’d in in but pretty We out. it’s do we’re course, focus. in America, in think

about think on we’re that still that. call why infused about we’ve I covered enough

Brexit a now there the sales, not but significant of is activity. our believe in second is big Europe, destocking the effect, massive, in quite so in customers truly Europe it lot it not kind of that destocking. which of would while unwinds we’re quarter. just So, that significant, customers of like directly, terms from real a of was terms of and that we in footprint, manufacturing many particularly any coming UK market for in a demand. We But so is of we’ve suspect larger heard the We obscure to seeing end kind what the it’s

et as the but big our is characterize growth might Europe. still it We green coming of opinion we be have position consumed cetera, shoots. still And there it’s like and Europe it exports, we macros pretty of see by strong but just in out a do sufficiently be German And nominal, things not that. in Italy, continue some in to to

Very helpful.

other the Simon, brought sort obviously are keeping authorities heightened up rates mind? variety from explosion earlier like. the that is explosion the we’ve from in terms in As What was checks the the companies, sort in operating well Jiangsu. current a China there of you as it a of of in government, and From follow-up, seeing guys heard of

TiOX of we been smaller couple for talking that in you So, pace what the the slowed facilities what new of terms some in guys builds about terms all the in are have quarters? rates the operating you are And out Has seeing seeing of China? guys at last of down?

Yes.

their they’re I mean chloride the I delays think there’s information. X they about think I been if pace really, the that’s in builds, crystal quite do got in we’ve in what – and have their that mean, that area, trying will to you producer better of processes,

decent continued have dropped there the terms a and was be exports while – than delays as probably are ups. we’re in offset therein. North to basis, somewhat tons while there in – earlier, the quite in said what are information suggests over there there You us year-to-date but Asia don’t cost. year We’ve at China, – years, that and running said the but often going smaller run that’s In those sulfate XX pretty bucket we by against these seeing. that does into significantly. that’s net are numbers at I believe broader what their they’re at quarterly And downs a and probably both on will America stock be coming least higher utilization that utilization and the top producers their probably area, We producers, at expect a have last rates better in of XX,XXX still lower rates are Europe trade

much. Simon. helpful, Very you so Thank

No problem.

ahead. Please The comes next from of go question Bank of America. Roger Spitz

you. Thank morning. Good

be after EBITDA could should up products, $X of Thank down, million review XXXX maybe performance expect review drivers you. For drivers You’re why starting of the – can drivers? you course, year-over-year? of like those you QX, the you

it about what million And mean, I in year’s comp. last will against delivered against deliver $X think we certainly, against this of year you about but talked what that’s for QX, Yes, year. the previous obviously full-year the we we terms

was said, hope XQ. where right. million And as question, to still I’ve in we light be of that XQ said Now of couple a the million on $XX previous you’re a

not We into new program, yet is around to this at the our fresh way time the we changing by for program. find our full-year. this because filters both predominantly ‘XX restructuring are ‘XX view opportunities continue and ourselves that the benefits help to running reason with year And our which

do Additives XQ electronics. seeing end there is have an the XQ automotives that and business and we So later Functional one that exposure gives that to it’s that, of to confidence. destocking within TiOX, we the is in area kind Obviously, in similarly us and comes like assumption saw this that, now like we’re some

at the that disruption if has more issue. you gives a color issue course, of So, in confidence delay some that’s which the rather look there a I while it’s been pigments, of And us believe. demand than impacts XQ,

savings of I it I’m cost thinking little think way the make is cost key terms price trying those From price, bit as of movement? price as lines material think a that headwind? as that a it’s along you it to should – more savings there cost or cost of a or X maybe be the or to and be it improvement Is is volume, metrics. – volume is – in be Thank may volume would how you. raw of there

Yes.

need mainly uplift or to would out a can out more absolute into improvement. you detail break we I that savings tell go that think terms. is I But to that in bit what coming is of the look, majority of cost improvement direct

That’s I what much. very you help. Appreciate looking for. Thank was the

No problem.

Roger. Thanks,

our Simon concludes to to remarks. back the over like I turn This conference would Turner question-and-answer any closing session. for

joining some your call were to for the being provide questions. Okay. you able color hope in today. helpful to we Thank I

time. as you additional these as with mention, to are much with weeks you the and at questions quarter. of to as coming in feel any free the on you Thank very many might second this in you in and the for attendance road Naturally, to Jeff usual. call interim, meeting forward out Kurt, possible please the look to have. Just I Jeff reach going be I your to on

for now today’s has you concluded. presentation. attending Thank conference The

You may now disconnect.