Venator Materials (VNTRF) 9 Aug 202020 Q2 Earnings call transcript

Good morning, and welcome to the Venator Second Quarter 2020 Earnings Call. All participants are will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Jeffrey Schnell, Director of Investor Relations. Please go ahead.

Chris. you, Thank everyone. morning, And good I'm Jeffrey for Materials. Investor Director of Relations Venator Schnell, XXXX Venator's to second earnings Welcome quarter call.

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

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

the comparable pleasure to posted call to It my to now reconciliations been find to Simon. is over most our has measures can GAAP in turn earnings which directly You website. release, our financial the

Thanks, everyone. Jeff. And morning, good

I'd my behalf Venator efforts corporate manufacturing our continue and gratitude and safety the running while to we are of well, months. collective like to over our improve. customers, of activities individual these on and these performance associates efforts, our our Before to our reliably past begin, of express continues Because to business serve functions

Company-wide, volumes XX% the Venator primarily prior headwinds the mitigate the we demand. challenges EBITDA the as the pandemic, notwithstanding in result initiatives, helped on sales year to significant Slide on adjusted declined of X. COVID-XX. by which a second deliver Let's our lower $XX delivered continue from to period, of cost million begin and compared caused quarter, our

in plastics some namely As treatment our and in businesses. insulate color resilience timber impact contribution against and applications the our exposure COVID-XX, quarter, in I packaging we last the advantages the quarter, which higher mentioned our structural and had of helps pigments food

$XX free delivered flow also in million cash We of the quarter.

sites office-based from manufacturing the and enacted X. the At our of We instructed the Slide We most manage our measures critical steering transparency to health of facets at range a our of work assets. of group safety and COVID-XX we reliability of meaningfully home. and to people immediately Turning on a employees of and onset the and enhanced protecting our all focused organization. business throughout our communication created safety to COVID-XX,

our towards took steps returning liquidity improve progress We cash of and our free also made to meaningful target positive to flow.

bolstered Specifically, And year. cash million the towards our expenditures quarter, and flow $X positive at incremental improvement management, the careful million. quarter and excess reported due of stood liquidity, million our consisting reducing we our we to business cost $XXX end $XX for capital our of approximately compared which million controls. to strict of with working from we benefit approximately benefits our We million $XX delivered capital COVID-XX working our of inventory of aggressive $XXX reduced $XX We million XXXX free $X initiative managing maintained to of expected million an program. including uses, cost capital cash the stance last in an in

and cautiously of collaboration the have economy. response, pace the delivering We an the and to costs we reopening to clear presented. respond close unique objectives. cadence robust remain on challenges experienced believe withstand has supply and production the optimistic strategy the multi-line COVID-XX We us modular globe the on prolonged recovery quarter. will and I are chain our and the believe suppliers stance, associates improving network will be economies the that said, phased sales our our gives operational encouraged in customers and our we by with committed to That remain the the across flexibility uneven. uncertainty committed and throughout our of path of and From trends

cost which impact in of of identified thirds our for million our second our the benefit to financial have of target and programs. priority competitiveness. Slide cash $X XXXX, our to Strengthening two business cost our from cost within We X We the million delivered full cost million initiative COVID-XX Improvement track $XX color the benefits and of top priority improving is improving our our to of delivered from in $XX approximately our operational than to XXXX flow $X the first Turning annual the million from half are we of helping mitigate quarter Program on continue of XXXX business, pandemic. compared our deliver We our incremental pigments Program. savings Improvement remain and of cost of $XX Business expect our and more XXXX. to year with to Venator. million and efficiencies And Business

While the I execution focus we cost an on far, am have competitiveness. unrelenting our thus improving with pleased

improve as initiatives other associated our XXXX with our expect complete which to Business Improvement we currently we cost announce the initiatives to profile, are Program. We developing and implement

to volumes our X prior the TiOX XX% compared we earnings to Turning range XX% first to the by XX% prior Dioxide period. Slide declined on quarter volumes provided call. Dioxide segment. declined Titanium quarter, our by compared to year Titanium the and XX% within

price one customer-tailored Our benefits sequentially approach. the highlighting consecutive remains of stable of quarter, average TiOX our the for sixth

our for the basis, result most is Looking impacted generally was policy by pandemic, were relative to responses was largest at the Europe, Asia On therefore, and quarter, regions Europe America expected. a most our restrictive and North the the resilient business TiOX. which the in market by regionally. also followed

largest on our reduction was in of decrease in million $XX partially by COVID-XX price prior million compared in second the TiOX and and all 'XX the stable to demand the $XX in remained sequential driver generated the XQ basis on segment In initiatives. Our adjusted year-over-year impact cost Titanium and average was The a from quarter, million $XX Dioxide quarter. EBITDA our of we offset a regions.

second encouraged Turning volumes third create to continues volumes order sales we the to we XXXX of modestly COVID-XX demand, a our through demand quarter, stable. Though expect the Yet improved, applications see by for has our cadence were remain better on July volume. many textile uncertainty. In book. be and than and the we our specialty sales to outlook. to prices quarter impact the significant impacting in has business. total of continue This to relatively limited weakness TiOX

our in quarter. the margin than However, impact the earnings functional will contribution adversely and TiOX third is therefore, higher and, differentiated

inventory network taken demand In operating with with action third have we associated to our with and a reduced with our quarter, inventories. align control further Additionally, to albeit better will the contend we production pressures reduction. corresponding rates, manage margin

The to position in for the expect favorable headwinds quarter. from taking the offset with second the Venator actions our We for COVID-XX recovery fundamentals and uncertain. had incremental are long-term on trajectory the cost what partially benefit impact to from of benefit products our now remains a will demand these better TiOX. timing initiatives. are significant we we The believe

color and period. to price favorable businesses. product to compared declined Additives. to and the the pigments year XX% due modestly Turning our average related and period treatment mix XX% in sequentially, year COVID-XX. in demand prior to to Slide lower timber volumes XX% primarily to Sales quarter The compared due rose Revenues declined Performance prior X the

our million period. result compared the in down adjusted COVID-XX the lower second first an construction of coatings automotive Performance low trends color end-use relative cost plastics of improved of measures. DIY $XX for in in COVID-XX and and pigments initiatives, compared we XXXX, higher pigments segment in demand impact our color in our to as in primarily due half led $X due as to to and segment from construction. a Pricing functional quarter, resilient. products Softer The Notwithstanding businesses. and end-use business remained to Additives specialty self-help Performance self-help This Additives partially favorable the our America applications saw the saw we our compared the applications generated price demand our mix, North in by for demand in EBITDA to coatings, additives used year delivered volumes was improved for treatment XXXX, EBITDA prior offset improvement on and lower We mix. to million nonresidential primarily and strength timber demand

the meaningful We are Performance steps of taking in segment. our profitability improve to Additives the segment

previously which announced, we efficiencies operational million have I identified incremental are our of XXXX As business, from cost and pigments $XX our savings color Business Improvement. to within

uncertain. and differences of our application. timing the As remains expect recovery the we by segment TiOX the compared pricing quarter for to and in demand the trajectory, third stable and remain prior to Performance quarter, In our Additives ultimate with product pace business,

as I business then we our reduced call Kurt operating now Additionally, production over I inventories. margin we manage our comments. the in will to additives from our and additional rates, will discuss to functional adjust particularly some Kurt? our financials. provide pass to pressure return expect

Thanks, Simon.

Let's to decline COVID-XX lower demand offset costs attributable primarily effects and COVID-XX compared quarter to million the Slide the Improvement quarter, Business XXXX. a first total prior and to was and benefits volumes $XX million adjusted lower to lower by EBITDA compared partially periods X. Program the $XX turn due compared our declined second period to as year from In our to and the of of The the of initiatives. both result

on of million of position. quarter, have senior demand offering not $XXX million. totaled aggregate notes of bridge. On and free the XX, due was under under ABL XXXX. a In used we our asset-based enhancing principal revolving quarter, amount $XXX X our debt second network with were flow. any positive to availability to liquidity primarily meet generated strict quarter, liquidity to At end This We flow secured cash end completed for the Turning facility and we million of total debt the facility. the offering cash the aligned due capital to The consisting efficient of long-term and At Slide $XXX XXXX. second $XXX million proceeds successfully second our was $XX May net an of in lending production until cash million, our as repay the significant $XXX million management do undrawn maturities working in borrowings inventories. in our of we of focus

our has As a flow for top improving cash is Venator. priority stressed, Simon

provided Let me the line individual items address the slide. on

adjusted to $XX is million the focused managing source source pension million. we less to second legal to taxes in on million in venture highly $XX to in are spent modest This we million, cash from other XXXX be a capital capital million, expect the XXXX. for uses Cash $XX first our is In tax to capital This rate expected $XX in nearly our of restructuring remains XX% of modest We a outlook cash our XXXX. reduction $XX and is XXXX the consisting unchanged expenditures of estimate in prior to for XXXX. the inventory approximately was but subject $X market than quarter are fees. be factors, XX% cash which XXXX half working year term. a Our be and of full generated million, obligations, expenditures levels. compared Other and and conditions versus primarily effective XX% long joint cash XXXX, expect of at in to of

million. interest cash $XX be to expected million Additionally, $XX to is

our our Our in our reducing recognize down from outflow expenses cash $XX in approximately costs uses. and remain total and $XX improving are Pori-related flow million the of importance of and XXXX expected focused minimizing million to We intensely on cash XXXX. an

deliver We COVID-XX cash have address and weather turn as flow. assess back that, our business the continue of to Simon. I'll pandemic and it position cash impact With We further continue liquidity appropriate. we'll sustainable to to uses we liquidity, ample on to to believe our over free Venator and the

you, Kurt. Thank

Turning to Slide XX.

results the and quarter execution our measures. our self-help customer-tailored of second value Our approach on demonstrate

the global expect unprecedented In third be quarter, price we notwithstanding well, volumes to stable. and performed business modestly Our conditions. better to remain economic

contribution We our business. to our benefits cost expect by specialty TiOX offset initiatives from absorption be from further lower cost and lower fixed

remains has our of Irrespective and as initiatives volatility approach customer-tailored our we servicing executing assets. follows: closely our of managing our committed our for the capital, reducing on anticipated customers. safety TiOX in margin employees balance us both effect improving network COVID-XX, is and working strategy and are our of visibility our Performance segments. on and focus This our our Our the production protecting and X-pronged cost to customers, Additives and

differentiated our and our focused in are in well Performance improving the strengthening We segment. as on leadership specialty position TiOX Additives mix as

in our We the actions are latter currently with competitive self-help XXXX our unwavering which COVID-XX enhancing at aimed decisive took in delivering our with actions, businesses. on We are and our Improvement stages initiatives are our all position Program. Business of

assess to on enhance initiatives this expect the further have for this more front continuously year. to need to competitiveness, our later cost we will and We discuss

reducing and We continue on have cash focus to free uses cash a our relentless improving flow. our

we significantly below As cash free flow in Kurt and be that XXXX XXXX. the second our mentioned, will cash uses expected positive delivered quarter in of

further target year We a beyond. continue this reduction uses in to and cash

We portfolio potential of are pigments We fully shareholder a sale maximizing value plan to optimization. exploring continue the through committed business. active to color

uneven will predict by timing strategic process executing However, by priorities. or on encouraged I'm the COVID-XX. interim, committed and this COVID-XX recovery our has by economies. expect remains resolve be the application. it reopening to remain our created us from the phased due of We the business. on the tested profitability shape In has regionally cannot of we not pause enhancing but but to the deterred The of uncertainty

is our the needs meet open shareholders. of pandemic focus interest for position long-term mitigate to for Venator the now Venator create we your to call would customer on actions continued our questions. and and cost in impact delivering you like value better thank the With and Our for that, to

very from is Our Bob Koort Sachs. Goldman Please of much. question first [Operator go ahead. Thank you Instructions]

This everyone. Hi, for Glinski you. Thank is on Tom Bob.

question, demand did Asian European markets? American, quarter? that TiOX the into do the you first trending across how you North and could touch And third quarter? see the and I on what demand July across guess like through look second So just

with that, I on XQ, will up per as question. your start and pick I'll Sure.

that in I think that compression. forecasted resilient came like call, XX% fairly time, Firstly, to on previous in lockdown, bit we Europe, clear we XX% had some weaker In in XX%. at with We and make to point the mixed was something at the our that of I'd in And a much for We Asia, visibility plastics. quarter. And continue in plastics to with quarter, demand. in back more recovery see a holding we the somewhat domestic weak saw is the up better. we US, quarter. very fairly we that's China, in And saw signs I'll of across some demand to second second of but challenging coatings quarter. architectural third and recovery which uneven the But coatings which the saw lower was of come that. paper sort in little second

segmentary calls So which I think sort we slate product XX% embodied gives of that like quarter made result. negative in the second point mix our us some we diverse on our and that prior protection, saw in the

we July quarter. month quarter that, tell see we that say in upon So I think And best further that sales cadence comments, about quarter. was improving the the did June will of could well, you June. the first third in second I has the improved off, the would be

traditionally, the month, cautious although Europe, quarter. this course, where the of We issues different are uncertainty And a the in traditional our about which biggest macro August, third we and year. some market will see of holiday a around us dip bit little likely the September for is period somewhat pattern, that are, a, be remainder is the in

will addition, -- stressed better or a incrementally us, continue in think textile the you to in quarter, some as that on a In saying segment than we see headwind about rather our rapid will bounce for third are why specialty sales while it back. take business. it we we And modest of volume that's should better our

mainly that are true shouldn't results, third quite say there basis significantly few on we but China. a see I recovery, the recovery quite color we be of there by that in the obviously, not significantly It's are we comments in Maybe within that other hole. a but the in forget, should think driven And China, forget we the do quarter. Prices dropped gradual quarter. that seeing we a to is did start volume destocking. course, of will or stock to year-on-year both seeing sequential bit further are in system, our we some second dip recovery, quite of

In quarter, to to the is earlier the although, the in will be stronger expect largest Venator to coatings, recovery recovery third see in my there and to United we we as States, not some attempts evidenced rebuild architectural demand them. to America, in we So July, in construction architectural see In North and expect to resilient. as restarts. Europe, improving see further we expect remain coating expect plastics and point, see

material And or inflation more second then conditions from Thank you see seen months recent stable? in seeing you great. less or standpoint a what the you out into Thank business question, half? TiOX you. how the you. that playing remained second any That's have raw across regions? And in the are do Have

Yes.

TiOX the local second dynamics we in to continue up in reflects can that I ilmenite material. rather see question We buy get also sulfur like global feedstocks, China. driven standpoint confirm from But there any I sulfuric increases some continue sort that my isn't now the That think and need categories of neither has caustic non-ore been China. tailwinds prices regional out acid we by for in expect to that have that stimulated the that don't and regions, in and up answer through and we more geographic within further pick we prices do predominantly will a comments within firstly, in would China, but energy, we our we is and of aside, to continuing, half. seen other acknowledge ilmenite, to tick although the that material outside have TiOX than China, specifics. manufacture the ilmenite-based That

over a point's feedstock months TiOX, to lag of in depending the by the the is seen made years We ores, to big there seen industry that when times feedstock back between demand this the on back downdraft of a TiOX the And in industry now, think XXXX. certainly to X this 'XX, somewhat TiOX. I anything X it for been as the this tends 'XX. relates downturn in we've family, we've demand saw for half number of

see would downward to families expect in. pressures So we material raw on type gradually come

current stock of have subject hand course, has raw those on to we materials. been Of headwinds

this our to customers But our and doubt as around customers why our structures. over ones and to price than our in come So next that off there's off prices the the no feedstocks are low-grade low-grade we pricing come expect is period. And high-grade we're agitating to less - talking aligned expect gradually Venator see we'd ores feedstocks feedstocks, see that's with more for with.

hopefully, a around picture material. that's So the raw

Awesome. Appreciate it.

problem. No

Thank you. The next ahead. go Deutsche of Please David from Begleiter question is Bank.

is for half guess, cost first, and the this Huang pricing think incremental I 'XX David and expecting, Hey, how we Dave. given about here stable as recovers? in you're these just margins demand actions second should

'XX Well, in world, way that a let's feels say I moment, at long think first the off. our

really clearly, our don't time of I So this year. towards midyear it's through XXXX. addressing to at we've point this be think commentary appropriate gone But the

seen in XX% downdraft it, call XXXX half second the XX%, sort We of second and in 'XX. let's a destock a the of have quarter of

destruction, So a in short very TiOX demand world events the time. of pretty big of in there's period

managed with around controlling And being we good what they bring stable stability and for in any to that bring would quarters. that is to quarter prepared spoke uptick. the and that, us, third in X strictly only and very in have position these now. And point, clear our able manufacturing in state customers a products from our about that because kept of price quarters, inventory to take and X this we remarks quarter have at keep to sure We us to always we down been stability pricing past have that's retain holding the what are we we likelihood and inventories second inventories, make expect our them our

So quarter that, the I think third that's outlook the price. in for

price You more expect can stability.

some I've to start at they're of off, relates items the to feedstock As certainly, come it non-feedstock but we coming that raws, expect different to And rates. down. said

one Venator, think the specialty this the forget, we've pro-rata do got we've sort in weakness is of period, within contribution of got because course, two positive. quarter. business we for third shouldn't that One it's margin that, But if see contend us, of textiles. factors impact our a to in on you the outsized So the about next fact in

We fulsome second part and continue only inventories trim of quarter. in We in moderated be to the the the will our more that in quarter will third quarter, the quarter. third

as absorption So our there some will trim fixed inventories issues the in and be - we cost further we quarter. third can

the So other the pressures looks near have as term, that some to do on positive that we margin, hold well. fact but contribution

still year? this Okay. you the normal in And then of do both businesses expect seasonality the

been this seasonal I it's years, other pattern that mean, pretty sort has been Look, XQ, the say been seasonal, a than that segment, bear is the has year than you X than of better has on our It better more Additives how even seasonality, XQ, question. mean which years? XQ pattern can Yes. plays traditional which does In XQ most over greater that's great against TiOX. we out. than and better than has like, in if slightly well-known X. how half TiOX, years I and is been the a that that it half

the So patterns. been those have

in But that in TiOX, to think we're see going in where third second volume pattern could to and question of the expect heart an see I would quarter. the second Performance quarter for volumes some Additives as I prices the in is, see half, the the time we -- increased that third the expect to time, think we stable against your for in quarter. some first

the would it this trend. seasonal very point, on the that is to hard At quarter. buck comment fourth So

such the any picture. an and in or choppiness area localized regional or COVID lockdowns is So but distort flare-up lockdowns because I doing unusual should from so refrain it in could

to the those think be might comments So volunteer. prepared I'm I

you. Thank

Barclays. next Thank Please you Leithead from Mike question The of much. is ahead. go very

Thanks, guys. Good morning.

Morning, Mike.

Good morning.

First TiOX. question on

these the some XQ I textiles, I calling in up guess, as be headwinds out from terms of when mean, about today? here add TiOX and second down the color sequentially quarter volumes, modestly kind of should your of you sit I better so we - versus helpful than kind think or talking up, mix very you would do think of XQ flat

the At earnings level?

Yes. yes. EBITDA,

mean, I efforts volumetric I think hope with think further course, it up. our look, delivery be increase, despite cost some further that ordinary, initiatives, of the Yes. good cost a of initiatives outweigh combined should the we'd the realistically, and - impact I on absorption modest the to combined the say, I that bit going for got existing autos But the of cost really sort because impact we've margin that of softness issue specialty in of textiles, with of are down. segment, and to and our with Additives pull fixed

enough. clarify. want it. Got Fair just I then And to

I margins. think higher prepared the Is will fixed will that that fixed in - absorption operating remarks correct? be that cost lower there or rates hit sequentially you said

And clear, That's P&L. the of it's be costs correct. cost through Yes. let's lower flowing absorption, So fixed the more right?

Yes.

pain in have bit a would by because would of thought have utilization point the guess confused max that XQ I terms just been I Sorry. rates.

I inventory was the that me? of some you So can or kind help triangulate for just mismatch in second there quarter mean

two Sure. I really drive factors mean, that that. there is

is the and didn't all same and at lockdowns in occur the first you the forth all pandemic that, as know, overnight The geographies so point.

like be planned assets evolved. with a we -- that very notice. that heavy situation prepared big, industrial need be And don't moderated. short sort on this So We to of and can't a to are these do

the all for the asset there's means in not the second So within of setup months phase, circuit or of sort which quarter than that the did in our sort occurred of moderation More quarter. occur the instance. it period, in April of for May a June period did

and fact - our for for specialty result. the full being as our additives, inventories the specialty of and more trim auto got cope of in think we've bit the also impact ongoing our to we further ongoing given segment we've got more we've the in a with that moderation a Given you weakness plus third should this about weakness moderation challenge, textile like the functional as quarter a will extension quarter's had

position of we and we will on will of the we but well. So the side on will side lose cash SG&A the gain well as the ledger, ledger, ourselves

us I forget dipped the little taken your improvement expect levels. understand wholly quarter a while the and up we to characterize. that the And It's quite way that point. back third significantly, those that's improvement quarter, counterintuitive. So don't isn't in bit - second I third quarter hasn't

rates them be. are than lower utilization still we'd So like to

you. it. Thank Got

Pleasure.

next you. from ahead. of The Thank Laurence question is go Alexander Jefferies. Please

is This Laurence today. Hi. on Bubes Alexander Adam for

the savings. So cost my around pigments just million a the in and and quite target few first question savings color the improvement place: initiatives. There's $XX program, improvement then coronavirus-related

If you could provide into any more here? color cuts have what targeted the sustainable cost

the your - to around initiatives. point, the Look, Sure. range of

which called buckets distinct in and about. X the talked have We materials published out that we we've

past and have Let's run of million XXXX, in start every XXXX. give us will with the we back continue rate will close we sustainable that the and activities the $XX this that months Business quarter on Improvement XX Program, been reporting XXXX full BIP, close benefits B-I-P. as The

run $XX full million the expect rate we So in XXXX.

Those color those, pigments will about business achieving But the kick XXXX. business, benefits. we from XXXX. terms not spoke we In million $XX in the sustainable we in be see of will

million think materials. the plus sustainable So million the benefits, as about as on described the than COVID the million think $XX ongoing business $XX about greater savings, we've $XX which chart

the that $X in will quarter. have second noted of delivered we million You that

quite $XX as of have to shared about to it when of it million onetime type benefit. think with you a careful sort We been position we first this

that will there the as the at sustainable into from we year. much many we and will And other of ongoing companies, line next into of $XX forward that how that a repeatable we of near see believe sort benefit. onetime million be effect can $XX and with will an in convert and benefit look pandemic, an be amount carry million far, we both However, are of to trying

improve not we then the to we prepared announcements our in at But have with this sort and structures our to what time. that further on will later dimension activities Now when this assessments like that at time. is we're cost this look or our of said come year company back we

how of broader much an confirm fits into end and sustainable is will this going that to year. our coming of the million the of XXXX sort recognizing that end to that program, programs $XX be We how at

helps So of through that that you sort hopefully, like question.

helpful. is so what second pricing. raws and very to think pricing? timing raw cycle, question the around materials are, on then tailwind example, that's interaction there if Wondering expect to and impact is No, pricing for is between a when proper -- all in the my what they current materials, raw else keep question you the prices equal? about do way the So that? in of sort And And

Yes.

So to be speculation remarks bit in second prices with for about the careful in quarter, keeping the can specifics, I some I third spoken raws look, to we've but half, we've mean, got about that. TiOX. give about stable a

We expect some further tailwinds.

So and into be past plan we onboarded to to in contribution the two our of would the these up customers on in with shouldn't eat price. that right, because the expect quarter. inventories, net But you to that cost will quite quarter third have there years hope forget opening absorption margin But headwinds of shouldn't, our that which third our communications over and fixed challenges, you're course, will be into our we to some any with specialty one we within level, course, of and significant opening our earnings. margin margin forget directionally, we these for have hold customers rewarded dialogue

that's which question points your So the at. of dynamic, nature the

much. you Okay. Thank very

problem. No

Capital Market. is next from you. McNulty Thank John The of question BMO

taking Yeah. Thanks question. for my

little get So and color us I regions bit in side some to other in give the as Can down. you the and in you you inventories think in lofty to spoke how Asia being inventory US? the to the major call, two see a needing the worked earlier on Europe

China, sort Yes. do I we're been point China. in focused in Outside dialogue in where than stock because differentiated in been But - the clearly, position that's of our China fact, geographies I I nominal through those of positioned more U.S. thousands so has mean, from point Venator. But China and have carrying some and look lot look, And in always inventories customers, see course, our know and our are mean from We of be quarter. our where very, a would much any of think demand only be specialty improvement we behalf can we freely of we that of there got destocking focus of eventuate, in very tens a inventory we levels I own to is in as should Europe of in which excess that believe important the there we of on have weakness been sort with tens stock ensuring on larger America, Europe calibration of the lot, North point. meaningful talk to they and view, a a would though, at perspective, third not available. inventory. collectively materials. and not better expect think send we've built, on we in demand has only we There

are both and sort for in from of heard level, actually are in coatings Europe, expected is reason of encouragement I and by the have third fairway. like carefully product we that different have of the more a we in of we've they're which comments if the But probably here carrying they somewhat in needing customers high normalized think undercarrying the some inventories Europe, to middle in level the China. to quarter North made stocks and cases, than listen anecdotal, early America some United any us. than in fact, inventory, some larger And enterprises, that at within of a to more down a at bit sort States

year-to-date? million rate program, hugely $XX the you And because benefit have much of pigments, how the incremental of sounds XXXX. like to -- color then No, the -- it. kind savings of in on gotten helpful. get that's Like expect the Got you it bulk run and

you point? how So are much at actually this seeing

Yeah.

about So that. the there be let's clear XXXX of none results, is million the $XX in to and

it's color was activities, nominal of amount. were Program, a there the the very number nominal some pigment-based Business in part XX Improvement a that but However,

that - it - the really And seem through? starting Is line the kind to should million that? it it you flip when How does on roll not and about or in because yet. and thinking be just crossing it. actually get switch $XX XXXX, the of the like of do finish starts January - thing it's Got guess, X you we type it's kind but I it's come, actually

how curious just So and kick in? when that we to really start see

a Yes, big it of It's there goes. a one X. project that's of initiatives. smaller It's sort of going after to be type gradually build going up in January the to number XX flick-switch not months

will to out about doing that view - see have been up, a at turn that. we been to have building and going past think since every cost the you with would our you clear fruits of initiative sure ever make I we've we public, each break that. But share that's way of You're and that as the labors and these

the Got color. very it. much Thanks for

America. Thank Please Steve ahead. Bank next from go The is you. of Byrne question of

the about seeing This has is the bit exports market Steve. for was Chinese kind to some see I on Luke to of TiOX about I we demand of similar talked Hi. where wanted you Washer in prices. weak and into a improved quarter know talk Europe. of kind started you're product. second domestic But to the and

where that's exports of was your European slows curious just to how as China I So Europe improves? kind the into if from China demand Or going going bit TiOX a impact that market? down and

first think quite have that the in seen mean, quarter there on on which exports first But tick very, increase considerably exports more demand significantly we very China come that unsurprisingly, quarter, weak. the question And base, of I over I something year been fact in from this no number that now have based second I -- saw in Look, up means is Yes. it's is local conditions the we the that off like year-to-date a think quarter. in the XX% XX%. has like

The economies, broader it's cetera. for Asia, in seen now amounts et same time, i.e., some East, Europe largely more come products into North pattern as has second emerging been both exports the has down those been into significantly limited quarter. the we've flowing of pattern America. of and the the of Middle So those Latin some And America, parts

we a little or certainly been we've into point with America, the fundamental Yes, this more exports. X there getting years. don't exports manageable. X entirely difference So see and We're there's Europe past and Yes, bit really at not a managing them. It's are chloride subside North these overrun we'd going in a to now. but mark. out probably There's still X more little see demand in, million that China recovers be kick to But more of around - into and Asia exports normalize as lockdown as pressure bit. ton expect broadly in recoveries China, the with

regions? fairly TiXX XQ, remain you And your looking into this stable. that prices looking volumes volume improve to across is on and there, will both disparity side? a there mentioned Thank you. and sequentially consistent are Is the Or price

of third real I of mean, on think, no say the starting we think the like the as US, recoveries mean, generated better in I pricing quarter. that. sort US some Certainly in to sort I Yeah. remarks, I there's let's side, we're the in on disparity. That's our real the see -- volumetric side, said being prepared

United in are we the one States. smaller is of - So positions the

some US as benefit we won't our competitors. larger of from that much as So

the see be to Europe, the to expect that. we in beneficiaries recovery encouraging of continuing us However,

in can emerging bit China, having architectural and So countries I in a We and and because in local way spoke we coating going feel flare-ups little sort slower resilience some the recovery see that encouraged back of definitely, think I we or - of We in some what America. recovery think definitely out is that there that by quite China. about be spotty. Asia North see more lockdown recovery And plastics. we see

not as geographically strong. - as pick quite I'd see So it we being don't that one maybe out

you Got very Thank it. much.

is Josh Please next UBS. go The from Spector question ahead. you. of Thank

Matt on in recovery? Skowronski talk these meaningful Josh. Additives, you Can would It's And Performance demand kind the was supply inventories about if for inventories be there? morning. there chains Good for recovery, the a of

is of functional I would pick business, and two in situation, out in significant in think And as inventories different should which within Performance are normalized. you additives, of one the differences. sort broad There that our about Additives, is amount our a segments one think goes the automotive. and or as sub-businesses Europe I a parts most into made

We part the - that in quarter. program moderation is third the of will

- normalized. where more. will trim and that rest, So one But do about a we I the bit as think to need be should

kind to for to to bottom that Thank be then you would return meaningful textile we notice a of demand you. patterns, Or would as were mentioned demand And normal things it? headwind line? not mix. If how

years. question range great best We've a inventory thing that's lower the think We've about highly past It's for now Look, the of speculative. say customers, can with this unswerving industry normal? our this. through is levels. approach this, what Well, this these or X in All we seen is and challenges. we've I on had absolutely stable stable X tailored and been more as that pricing

range and positions We capital forth. working and a of a capital navigated rapidly that so reductions for good whole our thing on So any our that expenditure the by pandemic us of cash challenge the well uptick. focus, is temporary measures our actions,

and one's to No Others, debate we it course, capacity. fundamentals leverage would controlling of did all proper we intact. strengthen and significantly the the at new inventories and a that navigate the But I business to through the So remain right moderating of building that, first well. through normal are there any this, things believe, and what upside industry stand guess, can means, recovery, inventories, we from sign bring. demand we benefit position

Thank you.

you, Thank sir.

Citi. from Juvekar is go question Please Next PJ of ahead.

for Simon, PJ. on Petrie Hey, Eric it's

Hi.

How line grades? quarter-over-quarter. guide, split between Your does were that XX% specialty plastics in your coatings, down TiOX volumes and with

Yes.

won't that that. think we're - not probably we be you can So we bit color break prepared give out - I a on numerically, we but to look, of could

have made some in continue we I point I in with business, this seeing we already our headwinds textiles, in a and quarter our to that think for the going specialty been standpoint, that's us. notably second think from the specialty

it, in that think third I a that call was say think the coatings right in are most quarter, third more in architectural stages back. terms we seen I difference Certainly, we're much is there's buckets So been it's probably bit in that's And not two. in I down decorative quarter, we of those what saw of quarter fair - But one let's the all now, earlier sure year-to-date, that North speaking, first the we challenging. been have Europe. in aggregate and America difference resilient. plastics, broadly between plastics between coming the coatings you now coatings and the would where really say the to that's I'm seeing and And second the mentioned, think more I

that Helpful. costs believe million to And the specialty $XX of spent, transfer Of have I Pori. $XXX year. CapEx of spent much project this few the then being of products? to you differentiated secondly, and And million related on questions roughly how is secondly, a closure be after

about spend? the should how cadence we of So think

Yeah. Eric, Kurt. this is

remaining there. you $XXX to As million the for And have that ways of or know, transfer optimize tackling and out look the to that Pori. remaining continue business try of the transfer we the out includes specialty we

forward. those as continue to spend is well look have we a And portion of And - that that. to so ability move down, we'll mix to business as that this we the of a costs. optimize and have that it hopefully, at we we'll But the whittle here the of aggregate we down begin total good for pretty both transfer as year, wind include ways cost as of the look does

Kurt. Thanks,

is Thank of next RBC ahead. Please Markets. go you. Capital Arun from Viswanathan The question

question. my taking for Thanks Great.

elevated wanted in raw as Just maybe the put your supply, get that that to slightly. Thanks. any you there later thoughts, you're level demand, in guess, is can material maybe And well. pricing seeing context on of the potential of for outlook that also, the year? I inventories If given in Asia

inventories think through destocking see to in the we mean, build. third see do do we China, that Yes. Look, I quarter. We I said

with within broader is need Asia. the around some outside So even during third already been there in discussions stock gets Prices potentially, customers down dialoguing that fallen And price higher have And prices. drawn significantly China. for there has quite some quarter. there the

in brave right this tough at the as as to earlier said XQ of now view I of the normal counter-seasonal against sort be around. of call, And of way have because other swapped the you'd the on question confident it. fourth around person definitive we to sort point, think frankly, times pretty a a on have way the sort quarter, all it's we're XQ. It's

for think you our materials, for So higher are inventories. on of onboarded back well but little this poised down I point relief prices of we're very still we going discussing need and to we've Yes, the raw to with a bit with we're - years, get X our it customers.

sensible the really demand down that this at recovery most about like price the That's we it of So of we first comes to probably sustainable point say sort that are discussion. at back point. could on

too I think frankly. the speculative, is rest

Thanks.

we Chris, can the move to next please. question,

I'm sorry. Sir, my line just disconnected. now. reconnected I'm

Please question of from Vincent Morgan Andrews go ahead. Stanley. Next is

Vincent. Haynes question. Steve Thanks for is This Hi. my for taking on

million I a ask to EBITDA the wanted on a benefit, one from $XX There's cost bridge. think, of Just sold. year-over-year goods quick

how may any there color much of that just out, raws? additional You be be would is that helpful. Just bucket

This Kurt. is Sure.

the So the that to quarter. initiative to $X million had both good prior you in had in stack that the well that compares of we also prior and really see year, million portion as Simon $XX savings COVID SG&A. as a the quarter, but of And manifest compares that as in COGS mentioned, of

manifests itself a of places really bridge. different it couple So on the

up it and materials Simon of that energy, as some is certainly other raws other to traditionally have beyond that earlier. of stack out can with you -- showing or We as the we that detail broken and alluded in benefits raw COGS haven't that ores movements. imagine well lower these as But

Okay. Thank you.

You’re welcome.

is next The Ahmed Global. much. Hassan very Please of Alembic you go from Thank question ahead.

Morning, Simon and Kurt.

Good morning, Hassan.

Hassan. Morning,

by reported volumes, I regionally, figure obviously, market? sort volume any of about consistent region sequentially, by of you or shifts, it Overall, being around seems be which volumes. did figure to competitors you pretty end guys XX%, your sort even markets, share that by at look like see material be what TiOX I'm trying What I guys out as volumes talked market as is end down some of it with Question well. and said, global that

course, of in that on that of would as I we can sort Venator. price I has our anything. or stabilizing if share and you Those position speaks stability mean, this want it lose Hassan, managing happen But see or markets, our gaining sort of numbers of moving been our more than you're not don't obviously, there to look, Yes. definitely, priority inventories. losing And like unswerving out to think really around.

focused benefits. our we've on been customer-tailored really marketing So the plan, to really deliver from approach our our there standpoint, on

at say, I the it the of of what We say to went be we we clearly in we difference our first didn't though would very textiles What our we by second of like quarter see were some would the clearly, disappointed thought call would because think much second the for that's out. end I sort the one quarter. specialty quarter is, only in say I that thing volumes geography. with

back up up held sectors is other well. but certainly, held better So Plastics more. in coatings the beginning, now coming

think really, position importantly mix our been more very Venator's sure So disciplined I but very sort that inventory making we've we well and that pricing on struck. holding just standpoint, from is our balanced, is of our

even mean it to, variety pricing the maybe January, coming things, environment guess, with I a clearly, clearly follow-up, XXXX it, seemed even the And ore issue. seems the talking as as environment TiOX, side that was availability, relative And momentum The to of into it down the period. was sort And time lockdowns of to it course and a players, the that February be lag now on on seems gaining quite side like. you again, of of effect the the seems an different Understood. lockdown, very, I high-end of on to like of of in through XXXX, sort sort run-up ore COVID particularly a the volumes very industry the mentioned different. well. Understood.

destock is all So a actually levels puts assume I quite question of takes, inventory we mean, there? with and over that those is and actually it that, be to mean, may see the bloated, I for fair fairly meaningful may ore

steam out you picture very in paint of the price front on there, level, is in about spot XXXX. because moves are Hassan, think of these end of running high already aggregate, I the sort Look, the

the of lift as drops demand demand destruction. those historical course, and of don't like we materials vendor of a As or of would, sort and the like volumes ourselves, operators the of underlift supply that downdraft experiences that then, feedstock in moderate assets

Of that course, in moderate or shed to we in minerals enterprises industry. find same difficult chemical do quite our fixed it the way costs

for So think we I this start as that, they result in lag of occurs. negotiation months. to off do relates sometime after prices a X TiOX those sort contract face X And tend pressures. to softening to the drop after And typically discussion of see demand that then -- where

family there's ilmenite course, somewhat picture that around. would I China. think this different feedstock is localized this is, We've say think only - I I push don't The pricing here much somewhat different. of seen time the in thing per on for

a of And lower-grade there's that of products So we still range have be to purchased we'd broad still I made. course, and choices. mean, those out. a But need fairly narrow high-grade of array relatively pick choices.

And we slightly will is groups. what different point play so what it your I be made. see. might That's That's different in the think feedstock well out, but to expect

so Thanks Very much. helpful, Simon.

question-and-answer gentlemen, for session. of to and hand conference Simon any back closing Ladies have reached we like the would remarks. the end our I Turner to

we'll everyone We And for out Okay. normal again, your there. in In look reach please meet forward you as might needs interest to to Thank we throughout as way any speaking the many your of responsive additional to be you Jeff interim, once Thank you. thank questions operator. quarter. a everyone. in with to you the and Thank Venator. have, can to you, you

you. Thank

disconnect. and sir. presentation. for today's joining this you conclude you may conference And did Thank call. that very Thank you now much, gentlemen, Ladies