Venator Materials (VNTRF) 21 Feb 202019 Q4 Earnings call transcript

Good day and welcome to the Venator Materials Fourth Quarter Earnings Call. [Operator Instructions] Please note this event is being recorded. I would like to turn the conference over to your host today, Jeffrey Schnell, Please go ahead.

Thank you Keith, and good morning everybody. I am Jeffrey Schnell, Director of Investor Relations for Venator Materials. Quarter Call. Fourth Venator’s to XXXX Earnings Welcome

Joining President Executive and the call Vice Simon Turner, today are CEO and us CFO. on President and Kurt Ogden,

full for This the posted accompanying website fourth our we’ve our and via earnings to venatorcorp.com. morning quarter release released release and at year slides and XXXX press the

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

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

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

posted in financial You release which can comparable directly find been GAAP our most the to earnings our the to website. measures reconciliations has

It to is Simon. turn over to now the call my pleasure

everyone. good Thanks, Jeff and morning

Let’s to on our Slide differentiate X. and TiOX including to delivered and year. prioritize led of EBITDA our uncertainty space, withstanding strategic of in our price position XXXX earnings customer TiOX on volatility. in specialty visibility and diluted approach those control share. We million progress strengthening tailored a within items reduce and and per improving significant our on our our margin was adjusted not $XXX cost macroeconomics advancing headwinds limited This these $X.XX challenging adjusted made Venator XXXX delivered begin

of the fourth in generated quarter quarter. currency on compared our basis to Titanium on segment segment. the third local prior quarter but adjusted price the in our million sequential XXXX. X% the of average fourth EBITDA year dioxide Titanium million consecutive The TiOX compared declined slide the to In stable $XX $XX remained to X, selling for Turning dioxide

customer a Europe of quarter with for commitments network approach exited products in Europe marginal fourth We that matching below to reduce stable on basis. in relatively regions basis. our in prices TiOX ongoing and to of Sequentially on volatility. local Prices average our year-over-year the softest supplying North XXXX price impacted functional Asia were our reflects of the currency despite This prices most American dollar U.S. three quarter stable in more historically a were the demand. for main region and

period. same TiOX of improved demand and which declined of to America certain a Titanium impacted Europe, dioxide increased availability a The to products, normal with in high volumes primarily the compared year seasonality. customer new the which was volumes differentiated X% line products sequential sales increased On of reductions. basis was period North compared by in last inventory year was prior increase result

disputes. in industry to We the the textiles. for for impact of our the for our the highlight we This than Prices regional textiles products including soft in for remained within adjusting Asia demand tend in In Notwithstanding relatively Before demand products Asia specialty these demand TiOX TiOX TiOX of like I supply for I'd TiOX China. in the prices position stable specialty specialty strengthen These portfolio mix. products the and namely more to was trade experienced you trends be resilient the investment higher primarily these differentiated our fourth sell. the due quarter which to precipitated applications in value China cycle to on industry we of underscore across in and dynamics applications. in into our chain and update and by estimate in textile global of recent trends specialty result the impacting destocking was demand US-China applications part elsewhere more three-quarters TiOX. certain soft specialty

we said differentiated for us products and XXXX. early the assessment chain. viruses That evolving. expect the too the impact having remains for on situation the as to impact specialty We an supply and monitor our It demand progressively is still throughout the continue provide demand to to Corona of improve ultimate

business and at increased in to a our demand quarter regionally, sequentially. North fourth in flat weaker prior was the compared America Looking quarter

Our average in in approach. stabilized TiOX a on our America price basis sequential was stable in selling in both and stable quarter. customer reflecting customer Asia fourth tailored year-over-year our more the North Demand and mix pricing

new XXXX increased when of differentiated the modestly Corona mentioned higher products their market for Asia. customers is benefiting as reply quarter growth the too from demand is Europe fourth of in improved the to inventory compared impact it reduced previously I to TiOX, to volumes fourth Europe and our sales virus compared XXXX However, in on of largest early quarter on of levels the

ores. with improvement Our line prior price modestly were quarter from a were which quarter business partially million average In in in TiOX local currency our by the offset to year compared Europe stable in These material declined our basis. headwinds grade was from fourth program. and a sequential the moved primarily cost higher high $X expectations on benefit raw

XXXX, comments improve my to In we to improve volumes term to normal subject challenges outlook volumes patterns. expect Specialty and on seasonal sequentially for expected expected to earlier throughout near the macroeconomic are the to China. Turning TiOX the are follow progressively XXXX. remain year in

are the competitiveness We pressures our increases actively more our our price remain approach raw customer favorable. implement TiOX remain material modest enhancing on customers cycle. differentiated business. to tailored industry fundamentals regions our engaged TiOX inflation on and term XXXX all and throughout Longer TiOX to the of expect specialty cost and focused improving We in cost inflationary portfolio

period performance impact by in and a year X% X, compared volumes prior declined Additives. to from X% on a Revenues driven translation. the currency unfavorable decline X% to Turning foreign slide

will benefits impacted within the and the demand we in Compared by quarter is businesses comments provide primarily were Our optimization some impacted lower main our average the portfolio of to low due for exited North price was primarily the I of products selling year volumes impact improvement related America Additives. margin activity. some and as Timber adverse flat quarter an and construction prior to period The compared operational lower price lower selling color additional XXXX pigments volumes lower and applications margins costs with costs The of volumes on offset compared were business. by treatment fourth construction of three the performance raw XXXX. to from declined partially fourth by average into initiatives. material sales. mix

material raw was other offset expected were lower by volumes for plastics. costs. it weaker demand However, by impacted and additive Functional coatings automotive than and

profitability and as business our steps this of meaningful program these improve to of business. taking the are improvement offset part market We challenges

generated impacted in EBITDA the up the of benefits expect quarter, to additional from in million significant additive forces segment especially $X million plastics In our self-help In construction segment The capture is initiatives. XXXX, we prior $X quarter. adjusted of automotive performance coatings, market the by performance year applications. XXXX the to compared and

continue we commentary questions business, matter. providing in the potential taking timeline. a benefit the $XX EBITDA color in and targeted color of from We ongoing color explore The an process or XXXX pigments we in of we process the but set pigments of business explore cost potential to generated This we aggressive on and additional sale have pigments business. involved initiatives sale the our because to expect are not actively is million our XXXX adjusted will a be

to double actions on the our We million original to slide highlighted deliver and XX program cash deliver our full intensely rate is our This X, accelerated we business on be an to $XX XXXX. target $XX continue quarter not in improvement million our at and our XXXX, Turning strengthening by color business pigments basis On necessary this XXXX absolute the year the improving part full fourth million run delivered the of expected expect as review. focused does which include benefits exiting to in the end benefits $X full of all I of to the target, program we in XXXX the flow. of benefit level. complete year million including

deliver and benefits pleased We to the in to confident are today our target execution as the ability promised. are

over Kurt will discuss to call financials. additional to I the to return provide pass now our will some comments. Kurt? I then

Thanks Simon.

higher the year. turn prior mix total the decline. in the and Slide price inventories TiOX fixed transfer the contribution as from of the our primarily to XXXX contributor and and from absorption quarter to and largest attributable the compared to differentiated We the offset were business declined adverse sequential declined total TiOX of volumes million performance and in In $XX headwind benefit the by the business our TiOX built a Compared is cost fourth mix $XX to specialty adjusted X. to third to decline a performance lower partially due million. EBITDA improve was by quarter our products sales business assist the program. business volumes improvement in quarter lower EBITDA The TiOX Let's in benefited adjusted to TiOX. certain specialty of also Price Pori. in Additives of we and Additives Seasonally

and was Turning until year asset the lending was resources, the Total $XXX at and consisting We any of availability do X.X maturities our EBITDA. leverage quarter not million undrawn of facility. $XXX the fourth approximately of approximately net debt our to in end XX-month have million at the of revolving end million $XX $XXX based net cash under totaled significant trailing XXXX. slide and adjusted our X capital times debt liquidity million ratio our

continue connection $XXX the is deferred allowance enjoy assets. we In taxes. recorded and recognizing is countries relatively to expense generated primarily the tax with operating income which a We losses low function net in This certain full the a we valuation cash benefit. where tax against quarter net million of from

prevent cash future able not to periods in be being to XX%. enjoying utilize to and NOLs a which rate XX% the does this low Importantly from expect associated tax we us

capital expenditures from $XX including is CapEx in Pori. transfer to million outlook Our business for $XX million XXXX

market budget vigilant reduce this with further conditions We remain warrant. will outflow our should and CapEx could

rate to current reflect consistent expect a XXXX average applicable the tax XXXX expect to we apply tax million be approximately in In our interest we be operate. rate to in between $XX as jurisdictions adjusted effective XX% which $XX rate weighted adjusted We the we under cash million. with normalized various to XXXX better

business million. a to program, color our payments the XXXX pigments ongoing in to We to restructuring expected and rate improvement cost primarily $XX [indiscernible] XX%. are to includes million XX% continue business. to be savings effective Cash $XX total expect our to related term adjusted tax This long

venture to be is approximately market of $XX in cash source change conditions This expected XXXX. joint in in capital be expect legal pension obligations, consisting net working million fees. to usage cash are primarily factors. Other of subject the other the XXXX capital preliminarily expenditures and to and a modest We

to are down to outflow million $XX total expenses $XX expected in Pori-related an million $XX XXXX, from our XXXX. of Finally million in

intensely remain from cash and on flow cash free to CapEx positive reducing including to transfer returning our focused Pori. business of importance the recognize We uses

We specialty considerable continue the existing to on network. our make the and differentiated progress into of of many transfer products

As exploring outlay and lower economic a Pori. estimated lower than our result environment current capital We economic EBITDA if optimize total return. to the include from ways the of resources we with will and expected business not higher are remaining financial this benefit a transfer originally a believe a associated of similar

uses We cash necessary XXXX expect update to calls. earnings our all material on quarterly of our elements as

that With back over to it turn I'll Simon.

expect our TiOX you in follow we term normal Additives. remain was items pattern more both a executing within we near to a but and In challenging XXXX the control. performance on focused year Kurt. Thank seasonal those on volumes

costs pricing from pressures. and offset TiOX improvement benefits the We our operational improvement in partially inflationary initiatives of expect to an

our Additionally, continue network with aligning manufacturing to manage we commitments. production expect customer to

be We our along production approach customer effect The our tailored range which network to reduces following. value a committed we of by manage agreements. inventories maximizing customer more in with net Evidence to pricing price We're more XXXX can volatility. the through on are the stable profile. of implementation focused our our and shareholders actively diverse seen

applications. the differentiated by on customers made We partner and portfolio and are ability strengthening high-growth Venator our with our our specialty mix TiOX position focused provides differentiated higher TiOX assets, and to in unique in specialty leadership value possible of

products in our volume of invest contributed is slate which diversifying to strengthening continue most applications these and in XXXX. We and our it growth X%

our of We our of enhancing XXXX million. business and versus of delivery $XX delivered remain the competitive million original businesses. our focused improvements in improvement target position in all We $XX EBITDA program on accelerated the

as We incremental expect color business. related efficiencies benefits to and promised operational deliver cost pigments including to remaining our the the

optimize our our cost to improve Additionally we profitability. are evaluating actively opportunities capabilities base and manufacturing further to

our We on remain meaningful our cash intensely and and XXXX. focused are flow reducing steps uses in free improving taking cash

spend I'll our CapEx expect Kurt million to is related expected approximately $XX As $XX approximately compared decrease to XXXX. spend million reduce we by to that the mentioned and closure Pori by

In includes the shareholder near potential ongoing. committed We is active our value sale this business through color to term maximizing the which of are portfolio pigments fully optimization. exploring

TiOX are well long believe will line remain Longer that with improved on priorities lower and TiOX shareholders. fundamentals levels the executing interest create competitiveness I than continued for industry growth and time last term term you call thank We are With XXXX our this favorable. we Capacity additions questions. were in for enhance they strategic industry for to We understood our industry believe now normalized and in rates. year. inventory like would open value in Venator. your

you. thank Yes,

question the from We session. Duffy question comes Barclays. Fischer will begin now answer the And Instructions] first with and [Operator

Yes. Good morning guys.

missed about the but that different old from that you do would you're to changes CapEx plan I is Pori will you spend much can question, endgame new how EBITDA as be drive quantify First plan the maybe the talking for think and it as we far the that? you're thinking then CapEx about for the need

Yes.

So months back. on be will which announced Duffy. It's our was you September XX Look, I let Pori think for help Simon that XXXX about that here. program me

and I We we of course half can growth pretty see and level all XX have very XX second challenging. of we further as XXXX, in Corona think those see industry now modest in year, a the forth. with destock months significant uncertainty pretty we the enter been at the so virus had

the Pori point by away that far out changed. wind has $XXX million. 'around expect we spent on at in cash of part said. us down be us we $XXX So of we'd here to run got have the XXXX the the here largest full Kurt would would in to leave as us the million the $XXX we like to spent and $XX is of million announced that I costs closure spent behind million year a circumstances most That

like So lion of sort that's the cash. of share the

exploring CapEx the the been in which to the and the we've On ways higher we your side to that of at return. to expect economic is come of a transfer optimize ledger business question here remaining

return. entail CapEx looking look we're and little as lower in would with to our run that EBITDA remaining bit We in We're that that still $XX are So regard. of is products to spend the for similar but economic We million ways through a number a Duffy. spent we said at We've the got point of higher a with XXXX. I I to more working don't a course portion lower share prepared still hopefully a but a us. that out in that or have complete some would of for behind many transfer ‘XX yet

anticipate those do then XXXX? for if through you markets just walk was Thank you growth Okay. of And then consumption end could would you. XXXX for how your and fast maybe large and in what end think you TiOX markets

Okay.

industry with So like our positive it the or is view, growth for about of I new what Thanks sort slower. outpaced at that from half our was industry second a view by look Nominal us. overall. from we of as mainly XXXX to in XXXX advanced year-on-year There I about terrible sort I unit positive growth more think But of products think if faster contracted XXXX a level. the said demand point the some early X%. XXXX

level in that the think two than I tiers effect to the in level. of geographic answer probably is rather at applications

automotive parts of and we not saw we aggregate Additives of is would think world the exposed around definitely second coatings was So coatings about were your between what lower pick from I the out let's to the of that don't first. were plastics which in growth on TiOX dissimilar tier course can see and while persisting. in still level in we're business and that interest big in that that we but think applications XXXX what at it

which be functional slightly the the soft way tier. would that and Predominantly second even specialties think So markets. XXXX a coming end saw previous out for second at expected through our the other think inks to demand call, larger as in call. we was had we or example we of I above in an a on sort application textiles year our on to as call very We this we call we called I tier and that would it a again of

that would lower like again So be sort of rate.

center some and we if we'd have we'd question and automotive and notice similarly think I to by the seen coatings electronics in have So application autos plastics on which market is textile world extent you're coats depending where in. the to did that in analysis in the TiOX in and on difference

So and for the of geography second course softness question lens a that applications’ it that lens in the what and put of a hope is I was on out explains point half on course us Chinese responsive the by basis. that geography geographic we if it saw I the think stood of that of we to obviously view the XXXX. in

aggregate expectations don't in that off virus the much start the has started the XXXX, not that off and in we as is too first virus coming the going degree we thinking our started it and the year we does the to do sales the Corona effect -- year. past plus years call six, we that question ordinarily back would we I'm of year line let's The virus the say first rebound expect in contracted to for that of net what be look Corona don't answer really industry really XXXX. our you Corona would years a the two we but represent GDP we last or on our of weeks have to] can't X%, seven of to closed delay [here with absence than that off these other

The some of heard hope more in this the supply region that concern as received do comment that a Corona first to is that ability around make little that in and a helps. Asia only notable felt out was have the heightened for think virus. China and I broader bit that a I TiOX could that we there I result the start of And year.

Great. Thank guys. you

Duffy. Thanks

question with Thank you Begleiter and from the David comes Deutsche Bank. next

seeing in Thank support that been these that you to the Chinese focus your operations issues while was how and China into might issue you do my that imports in some announced? you. have impact been any Simon Europe supply think constraints Are Europe. and on that pricing yet out have of

There Yes. out themes of number little in is a we it question. a that like Can there. bit break

little we a of Chinese seeking importer technical of into are product largest think be that course We are and China. bit products to on Reminder about differentiated into China. well focus Let's point. the aware everyone I the to people specialty not take

importers. smaller One of the

don't we within Chinese kind of more price second noticed the softness China, the we local Western producer prices gap and direct the see and wider year within is noted develop in have of half We've So China. competition in kind between last of although head-to-head what the prices.

development We've and put noted price smaller out majority would producers China have and producers latest the more them fact even in pressure point that under I the in were pressure. under will Chinese virus already Corona announced of this with that increases

We're put to hearing cautious ability our sort customers of tangible on that China being around as saw while export. like any very yet be there. concerns to it. from That's evidence what So We I certainly the we of said. might calling we're hearing

in export repeat of what say what you the of a exports sort like was tons point of I China. saw out of broader is would performance XXXX Regarding we this to million

lion the and because continue that to economies went We emerging and was loaded disputes trade those exports that share of so forth. second of the half to notably see

and from America though combined China exports into markets Importantly on Europe by the declined aggregate of XX%. North around

help So hopefully answer points can question. those calibration your

what's and on play] And [the expectation what just or XXXX helpful. for cost Simon your feedstock and Very were XXXX? up the

million we'd and out area So clarity I we where three-quarters have of XXXX. it feedstock be board XXXX, in of all there on expect that around played $XX that's to rows XXXX in we inflationary took pressure said how would some early on which think on basically over in in if we feedstock the pretty and

in didn't inflationary justification You previous XXXX. our same said recall may of that in type see the we case kind pressures we similar for call in

Of course that's our view.

that within think we giving say we Without to modest that I we predominantly fair and pattern expect, that feedstock. in pressures XXXX. high-grade inflationary a expect it's think from still remains more I the can number say feedstock

clear. continue with are patterns costs. eventual the say around the hard suppliers we quite fair inflation our also to to So negotiate It's

you. Thank

the Goldman next with comes question Bob And you. Sachs. Thank Koort from

Good morning. on This Bob. is [indiscernible] for

improve I is raw stabilization I So of that situation with tightening recent and that could get inventory your your demand guess into price we levels if to where some of increase background you when inflation the back kind efforts cover second of the announcement? on lower peers? kind guess done a material on Was does again. material to provide by conditions inflation now considering starts the price some TiOX raw value increase sensitivity of and

Yes.

clear about be stabilization. Let’s

be tailored advocates We some of to approach customer stabilization. continue proponents our through

boarded We have quarters. the for Unfortunately, raw stabilized we on last some have our cost. material three price

happened reasons yet restore to adjusting at date as XXXX we as is looking upwards go in and to prices customers to what why out happen So margins. will what be we are has to we

saw quarter-on-quarter with the course in of stabilization Of movement as process prices and relatively adjustment was the we rates small.

we're negotiating with degree consumers So cover [rolls] go and if we grateful. could of what I last course you of still question would [indiscernible] me part and to remind be do of because the our into

of increase expect price that's raw covering and kind Yes. what see? and whether material inflation to you The

lowered my we'd and ordinarily after had earlier this years we industry had growth to above GDP see in we TiOX to two expect a after progressively and Yes. contraction net said Look answer as mean, I I earlier where we would inventories. year-end year

the of go this these the we seen increase initiatives outpace to decision as forward out the So virus what course to XXXX because to I tightness will would stabilization that part on conditions remains think for the margin tackle of to it we're lack of and basis price it we've XXXX. in taken would we of for Corona happen be course provide expect well rest and we've go around with want of and near-term clarity got GDP ordinarily said pressures better because that but

That's Got And mix guess you like into on was it. I whether helpful. we [indiscernible] trends expect there that for sales Can look some can provide specifically. basis. year-over-year color similar XXXX and X% it down

Yes.

relates that we [well] China into think as specialty a think aware predominantly I the Asia specialty centered soft segments and year predominantly you're application. our centered last segment with in I and closed textiles

it. Got Thank you.

And you. with Citi. Juvekar question Thank comes from the next P.J.

Eric Good morning Simon. for featuring on It's P.J.

Eric. Hey

at a virus Do we're margins or at do you half and fourth and alike? with in you risks quarter attributed least first think TiOX still there's Corona EBITDA to think trough

certainly Well, yes. is risk, there

heard is risk was like advance various I of that's here. play and it think point I've but quite there's where sort but what reasons of to could course out people course say positive hard quarter view would in fourth our quarter. it we of a season of could various unexpected that a predict net soft be from ways in

XXXX had the we see of our you heard of typically some issues increases. to absorption there. cross course XXXX in pricing from some year of but we softness and earlier as specialty you've comments about have So We expect into price course stability

same that dynamics the at announced talk Could and [indiscernible]? could do end or and close competitor Duisburg at about a next. year in the this EU you they capacity the of and competitive [indiscernible] Thanks secondly

decisions path become older up think have of past look asset. many mean I sub-economic. and of you Yes. could difficult you have over go to this years closing down and we Yes course plants I faced the those when could

So yes you could of course.

to view to net those in opportunities optimization have running in life found to within our and our our is will and see as of continue of improvement each both for the and stream as $XX prepared expect share our business efficiency of I look this that at XXXX included broader look plants think with for we will and you is Our the end identify we alluded base we we a those go revenue the fact earlier reflecting competitiveness further the currently we in opportunities in though way to remarks TiOX those of We've further it's color call the circuit, that of million and will VIP. you. back, look in plant

you. Thank

the Markets. And next from John Capital McNulty question BMO you. comes Thank with

for a the Thanks to Can and what kind at as of bit as least relative question. where to to season for levels us Yes. insights taking give kind my they stand inventory have you of little time customer normal color this? a you of

into characterized I as don't said think anything lower you by I've to any we do inventories exports United we, it see at earlier if I Europe seen I evidence than I say time those at ordinary and had the our they but see closing we is least we'd think at inventories region don't that the in at back and States. it's combined the in go suggest were through this at net year-end in the of fair of industry not XXXX. Chinese in on XXXX and that XX% out where end lower estimates year normal. a Similarly Venator basis level Europe to the think I United that level the States the industry stood calculations

give we as can about So you. I metric think a that's good

XXXX? point the of some looking that's just there where And program asset how us progressing give kind this and then that's Can to the as is and the as with what out how I through helpful. at sale. comment to kind business then pigments of working Great, and you on know can't you cost-cutting color color pulled regard you've you're

a running don't the of Yes. TiOX in I area a of mean projects. look multiple instance loaded CapEx program. of smaller site. around we identified several [indiscernible]. projects a A to not front-end Similar it's It's mixture require the which

not to it's attempt phasing of its think about want way. you fragmentation dissimilar of by that and So kind way it larger cousin to if TiOX

much Great. color. very the for Thanks

Josh UBS. next question And comes you. from Thank Spector with the

Yes. Hey guys.

in of and ultimately sales that of in impacts XQ, much up can in of much understand rest Just and goes directly in potential China? think us terms of you thinking you China into end your kind demand how China how into products Europe about go of help Asia

decorative Yes. the pretty well final into ourselves larger I particularly North you mean the and into second A). well Europe one sort about the America associate plastics coatings of and of travel established with tough very generally liquid product. if is a think don't like Coatings, applications bigger lots having like because coating

coatings make in is does part world. minimal. aside there commoditized of the to specialty China rest plastics that I the out a there's to into see So you it. the tend sense the answer Did of the tend that more guess more flowing plastics of some so probably you special see plastics

think Western So really point part second view sold not much of our China. the is we the to consumers there's being that sell in from ends markets into of that I question that up

some will We be not but much.

surprised In of into question it will the all is sales one we XX% part I the I terms the of is the the the smaller of be of way of imports if fraction exporters of than are imports. and our first think China about that greater

differentiated in predominantly. So again applications to specialize go they

you of Okay. by volume Thanks your in new year-over-year being led that and just growth products. talked terms about

where volumes. I where that kind you're you're into about what loss and those you're I'm markets those some end trying think of new products last the year same assume getting not traction? maybe selling of filling So are volume additional guess I to dynamic

launched well about have products products another diversification certainly a three to from we The took little industrial been about of was that types the that taken bit business again that for about you'll way came about to point laminates and think talk think in plastics year-on-year type buckets. that of way year which we've view play us is coatings that bulk X% segments up grades but in It's I'm I is absent a think increase. extremely diversification and and new which functional sales. to recall play a and prior from Well, from of on is new happy that

think about products new way the we that's those So sales.

Thanks. Okay.

America. Bank with you. next comes Thank the And Steve from question Byrne of

Middle wanted East any Europe I the products you bottleneck and question. the coming to talk thanks from Middle about Steve, [indiscernible] of the projects? from my for projects. these see East hitting for Do taking

not that that haven't but of comment anything on a are in we We position type. to seen

And manufacturers TiOX by there developments from TiOX? sure. of products a conversely any increased new global benefit R&D in are regarding and seeing further reductions you paint or are more think you could just little any content that applications Okay high-level, your

years are We're think fundamental back I answer to It's regard stable. now we turbulence any. had as almost first some that fundamentally, the question no. some is not but quite stable see driver. and prior Prices your we a don't XX no in that being seeing

never On the near-term radical near-term say never second lead our part material that in would in but some of issue. that really your question consumption. improvements applications we overall sort to want of even to there's that wouldn't years TiOX can that embryonic a there of to any course could That's nothing see not I lead be that's

Sure. Thank you.

Alexander Laurence from comes question Jeffries. last the And with you. Thank

the in for half versus the as is you've before recent back rate change downturn? run sort and seasonality sales current seen been significant business compared has of potential the there of what divestiture what to first benchmark the half mix assets was most rate under you change your any run the could Hi,

can Simon, to question performance this point is those question. of the just business? of your parts Laurence Both I of clarify the relates the Additive

any one just shifted your has of sort [indiscernible] is the just to want seasonality you've No, entire second mix. the way portfolio. normal across structural that not changed clear be as portfolio so in

Yes.

is your part second That's necessary the our seasonality business. seen do though then sales fundamental say spots couple had or we've years not back talked we've performance clear Additive We I that the to automotive these segment but be XXXX. TiOX course of because of in past shift earlier any about the not as to soft seasonality. cases see across So all where over have mimicked and textiles end in question at

part there apparently has the base can but the second reasons So seasonality of be don't it that we like doesn't seasonality question. course changed. think look That's the

repeat part Could you about the first Sorry. color?

run And then you sales that just looking gave. you're today be rate that

to the like? sales want double the EBITDA run is mentioned check You rate just what looking

haven't was right with is we provide follow Happy sales around sense what this me you contribution a EBITDA. sales We now. business have follow because to the that for pigments the that want on We the you the don't from Laurence, We'll greater with to did later. had broken Kurt. but up color with up transparency out number. I

Okay. you. Thank

with Capital the next and Markets. you Thank Arun from Viswanathan question RBC comes

EBITDA I morning. Good China Thanks. the could in China you you issue. in Hey. to just kind what share generated wanted go a to in XXXX? back sales Is there of in way

prepared be to I Broadly don't that think share no. information. we'd

share details commented as then export into benign. of and Okay. China also And situation the potentially Thanks. more being you Could that? more you on Europe out on

may Yes. actually potentially didn't more well benign, I I that. inferred say have

about look these supply is build up over I Let be can even prior clear in past about that we for I been the to China been China as what saying said me last slowing. we trajectory back or is rate be period back year this, as instance of and and what have if

concerned to specifically issues faced by quality while there's markets exclusively in we been a smaller last by extremely that of consistency exports fact to America actually customers the and reliability saw net the with setbacks producers supply that year Western but are coupled get grown have and environmental effect Chinese course predominantly Of that inspection, number Western meant year. of the of prior lower North Europe they than has were Chinese and not

relates America that and this been that and upwards North Chinese believe mentioned consistency. into reliability to products two quality notion I factors would had and supply Europe there the onwards whatever not So for reason fundamentally that I happened. has and go

characterize your what on guess kind contextualize success the price you raw maybe may, and you announcements that would if And your drive just there what increased success with I Thanks. for would outlook of I chances increase just then lastly well? can announcements. of these as as I'm just material

Yes.

So look these price at to we're increases. convicted a high-level basis

their have closely to our have pricing around, we us. customers they to for We worked listen and very have predictability managing done,

think bit in compressed. got to we're inflationary of major all to we're how that so to be a margins material more those It prices out regions. there's and We plays I offset certainly we that support going raw to our it seen to like convicted aiming remain are Our be looks but as going our pressures. to move

Thanks.

comes Thank with you. Andrews question Stanley. And Vincent from the next Morgan

Vincent. segment I just Hi margin this come to to is for wanted TiOX. back the discussion Steve in on

the about and probably troughs So getting that to of XX% frame XXXX expectation if that to you with year this being us year, XX%, to guys this you're and did kind what help of call of XXXX and level then clearly we're more and but mid in is if not that's going kind the kind kind the kind range? you of bottom back top ends what can the the in of

Yes that. this take happy I'm is to Kurt.

a difficult will think where those number think the even us predicated range and wait price how we outline along to early that XXXX serve also was the negotiations XXXX largely that see in we've our but heard are so how on material come in margins out those think thing in are we'll to initiatives or as put sales that be raw cost you to I have. that we're pass aggressively prudent and in. our tackling a for with it success inflation would you seen our there do still to successful price we the have We I which we and improve

Kurt. Thanks Okay.

Thank you. your question Ahmed from next Global. And Hassan comes with Alembic

also offset going the it side wanted ore of and about you high-grade to higher hearing meaning tight, supply demand ore, I've of to what back guys talked wanting things be pricing, some go ore the high-grade to just Simon the ore Kurt. on pricing to very be wise. questionable to Morning obviously the availability from seems seems seems high-grade I ore dynamics TiOX been of --

sort situation and the than to really and from tighter costs leveraged through high-grade sort is ore titanium guys enter of dynamics? struggles where [indiscernible] XXXX we is with ore those those higher of dioxide actually could being So more my you benefit maybe question industry a pass far

thanks this are grade course continuation ore point about over Hassan. you're multiple markets that I think question vendor have that and grade seen more choices sort of has market a high for to in out of lower developed less is chloride high right mean I downs of extent of some a years grade point to and particularly slags it has I theme Well, the that of the that buckets those and of in rutile these become sort ups tighter. true operational in that in grade some we and higher is think

prices come before part this type half of our see back in try way said can I the we bolt requirements sort typically through think to six-month negotiation. then the we've second we with typically front of would like and and sort near down XXXX as half

low grade. that sure the the yet which not So we're would I'm high inflationary seen have on also there they pressures level. on you we've low imply. just are still grade the pattern in stage at that I at a that the say eventuated It's a despite grade fact not

impact And supply a Helpful. out What bit virus? are seeing supply on Corona what Corona for you of figure of that visible. as sort guys demand appreciate it tends terms to side the China to the obviously completely TiOX a just curtailment be of follow-up virus Understood. fact the may the back ongoing have more in but in

here TiOX world not as have take the take we appropriately comments I that on because big the think the window the our of of I amount for in I world limited China in. the sense said sign in probably

from over holidays We've have supply see The not to seen anything got know. part broader Park that of and we New saw continue whether that. the time like heard that the that that's type and So different affected of is and does dynamics Year. infrastructure, interrupted. and geography of the do were and meant and we window where is that over were The beyond we've app New rumble disruption question fundamentally CEM Lunar Lunar There curtailment yet and extended part impacts workforce, Year on seen course. the the more limited logistics, somewhat

Very Thanks much. helpful Simon. so

Jim and the Sheehan SunTrust. question next from you Thank comes with

decision-making? affect would CapEx for What and Simon. Pori monetize and options Morning for so the to exploring your that assets there are the forth any Is site? there ultimate how plans your of opportunity remaining

transfer as specialty a transferred Well, committed of to some here look those we're important still point an think I already we've it's specialty notice products further of business.

very imperative be a is strategic within clear that. us That about Venator. Let's for

our deeply be CapEx for and with including every reasons we're prudent in. course have and to well of want cash what to usage is cash. and of current very-very-very us believe prudency bill That's we we're anticipated of no in So still commitment forces parts reflection be doing about part I examine to and the cash clear It's each understood all here not something about our with we that. It's doing. especially that's what that

the there sites there the Yes, Yes exploring? of we Are opportunities sell are. potentially are. or we sites? part to Are

no site. an unturned leave alternative to we will there So see there's if usage stone for that

successful We on those in turn our sites closed have and into been several for opportunities various as occasions past we've others.

that's So I a will path continually. we think

from the lot focus transfers course our a option We that you and and best we're being business to going optimizing other of that you and with number we'll have don't give cache today. our will specialty that point. update XXXX of that through return here We when get in to prudent on we for work

XXXX? TiOX growth your in outgrow volume XXXX production realistic improvements level your made you've also new business of is specialty what in network again expect the products. in you the Okay. given Thank Do and you and market on to

goes it think comment about virus. Corona other to I Jim my back

that Unfortunately are of on where near-term. less the clear more industry one think are less we or the where times is things those there profile clear. periods this when in I demand are demand latter

that we XXXX ordinarily in really you of our diversifying factor point plays and that the broadening, All you slate into how our is in expect and also that manage products plus will the strengthening So fact of course to and course our on to happens still is to depend we evolving rebound, does week-by-week. like heavily GDP and day-by-day, it and we'd think we evolves industry would can volumes. ability that have

Thank you.

America. question Thank you. Spitz And with next Bank of the from comes Roger

Thank you. Good morning.

was the the price producer TiOX XXXX TiOX of but chloride large another X% ‘XX. year sulfate for TiOX comment was versus bifurcated year has on only what and price can movement process TiOX full who the full Your its process reported was you process XXXX down X% price for between for ‘XX down chloride instance only

Yes.

happened XX% is this some a at price a That than is our would not to stable. driver the foremost on in our footprint because discussion speaking price having Europe being XXXX specialty greater North and America first that situation is se the what sulfate revenues a those regional plays think generally of your the TiOX not just that is more selling application. are be which of and year is decline. all. per into course us I a European plus This with dollar What exclusively $XXX I say chloride in prices sulfate

a I So they was technology. in did any sulfate pricing drop chloride and a of the that mixture it functional would way period was function not What businesses more we've material size say evolved the of of those in customer into sales sense. about of than got remainder our business and our

that the see. for declined industry that if X% believe said I TiOX early I a you in demand global call correctly. heard by I

that took Would market volumes up imply Your XXXX. were X% you share? of in that

industry that What X% X% stroke the estimate I'm I over that and let said and amount ‘XX over grew saying call modest by me in is that XXXX we ‘XX by backtracking X%. it a let's ‘XX by

here. assessment the a period that number it's prior to straightforward X% back that related But over coming year. So your X% to very

diversified grew and extra pro laminate the line products the you in If forma specific introductions new market. of we out with the acquisition

very much. you Thank it. Got

And Simon for Thank comments. our closing any this answer the to I question Turner conference to session. turn would and concludes you. like

the to interest the again meeting weekend. Thank forward call great for Jeff of issues for throughout with do questions. you reach have your a if any in the a to to quarter. additional you We you have please out interim you. many Thanks with look speaking Venator. you Thank joining In and

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

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