Venator Materials (VNTRF) 3 Aug 212021 Q2 Earnings call transcript

Good morning, and welcome to the Venator Second Quarter 2021 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would like to turn the conference over to Kate Robertson. Please go ahead.

good and Francesca, you, morning, everyone. Thank Kate am Robertson, Investor Materials. Venator for Relations I second call. XXXX to quarter Welcome Venator's earnings

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

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

X-K revising more for We publicly that not actual results You other XXXX, should information XX-Q quarter for differ with could for the the expectations. our Form cause quarter or XX-K factors first forward-looking the our regarding the and these on XXXX, do or year to for SEC ended filings quarter. second our Form projections any Form December plan the statements XX, our from review during XXXX, materially the updating

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

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

quarter call. adjusted Beginning to a which in the delivered XXXX. this X, the XXXX by and in everyone. in since first $XX was We second the $XX quarter Slide Thanks, the XXXX $XX second second our million Welcome on across XXXX. environment second compared morning, in pandemic. saw impacted demand good Venator million earnings quarter economic our COVID-XX significantly Kate, year, and the of improved of million quarter, environment business to EBITDA of the of last time significantly strong has quarter

$XX low Dioxide prior-year and Chinese segment our mainly of encouraging. favorable marketplace costs, a to at pace million with was Dioxide quarter environment strong of and of energy, and automotive raw exports. to with our of the in industry our Rising price first the in the Turning second second TiOX XXXX. continues regions across and for quarter demand segment, sectors, albeit compared sectors, stabilization $XX are our fundamentals, and XXXX, entered selling all sales very the increases. quarter volumes material, quarterly product by X EBITDA along less created in constrained TiOX the underway, be with is Titanium and in products, and quarter to million Recovery limited in Titanium fundamentals inventory historically for than a supply slower products. from levels Slide specialty We million textile $XX positive Underlying differentiated have shipping production.

mid-July, partial During manufacturing we weeks. essential the aware necessitated of now operational. the facility maintenance need fully maintenance the a to This U.K. quarter, Greatham, facility. completed the some facility part of as The out and on became our a repairs closure several routine was for carry of inspection, is

due production sales and our third the this to lost However, part first outage in of the second quarter. impacted

to maintenance X% meaningful performed and also at joint facility pandemic Sales improved the quarter declined planned quarter compared Louisiana. in XX% first recovery. our We the venture volumes to in due second year-on-year,

product our Average increased our local adverse sequentially, quarter X% sequentially prices X% selling portfolio. increased currency. TiOX in selling functional specialty in with mix prices average Second TiOX total some for products

second the the and for with We raw business are far, thus the year. the offset of half capture pleased us inflation better and these price increases price to enabling are position material

demand for regions Turning demand see for demand products all continued and functional with applications. our coatings across and robust to to architectural TiOX high expect plastics, coating we the outlook for sectors for increasing TiOX, industrial and

extended on the in seasonally which Therefore, lower, year. all increase shipping the volume quarter sales that rising we includes inflation. our for of We manage costs maintenance see energy quarter material Energy margins, we in be the remains the feedstock expect pressure some recently expect inflationary and to remainder July. price as and raw TiOX to onboard shipping to into third for announced cost tight. regions the and We market third costs are

the successfully to exclude Slide million. water on Turning $X the for make Performance business. business treatment treatment to comparisons call the completed the and of we During second we this sale approximately All X Additives, water quarter, Feralco Additives Performance

adjusted has demand. segment and Additives improvement demand million DIY applications. a same In coatings deliver additives timber into results. construction which $X the strong million, started $XX strong following to Performance EBITDA pigments normalize, continues continues is Our compared for in into improvement functional products our of XXXX. million $X quarter, and to totaled electronics, year-on-year the markets strong and second period automotive, demand was demand coatings in high all to and Color regions, treatment a end

additives seasonality. favorable pigments in for the to continue and these near-term, functional expect trends We demand color with some

and increased increased term, expect softer to expect our offset near to by see products. In X%, energy, prices. to timber which the expect a raw environment treatment remaining we these Compared volumes costs. XXXX, selling X% the through average of first for logistics high material, and We selling costs increased was recover margin increased sales shipping, quarter demand prices partially and

of will delivered Improvement Program million XXXX and quarter programs, for quarter, with million. our from cost incremental on of temporary million over Program. second to quarter. quarter and $X the our giving quarter Program Turning savings the be $XX of is second in million to net expectations. from the him I our to onetime Slide future savings costs will reversal the Kurt Improvement a our higher comment reversed, benefit benefits to restructuring Improvement our pass In within than remain of the XXXX million delivering savings $XX XXXX call COVID XXXX, COVID-XX In the the range third cash line financials. the from benefits in Business Business $X Business $X third XXXX Estimated X of our of now we

Simon. Thanks,

to our Let's X turn and bridges. adjusted Slide EBITDA

adjusted was offset million, from Improvement Improvement approximately XXXX higher of EBITDA decreased cost were from by reversal the We maintenance selling from offset total Cost prior-year period, Programs downtime more improvement downtime of $X and $X the of to was at a costs by were associated Second the to absorption, impacted lower total sales, the our TiOX increased increase impact EBITDA from increased was primarily our the shipping maintenance increase million. and attributable costs COVID-XX to XXXX average volumes selling fixed sold saw COVID TiOX just costs by unfavorable and segments. recovery million benefits in second in an increase of year adjusted in facilities. the of Unfortunately, our Business Business in to we energy, our Program. combination from benefits quarter, with goods These quarter increased of The partially compared than raw price maintenance impact initiatives and lost EBITDA The pandemic. demand mentioned first higher savings. was the certain total temporary the prior period. sales quarter due costs $XX our XX%, increased as the Compared prices costs. and the which by material, estimate the TiOX both maintenance

facility. Turning under comprised Slide quarter the at considerations, our million X million, cash flow lending to our the at end $XXX million asset-based totaled liquidity available in cash of $XXX $XXX of and

in do have we reminder, cash $X flow maturities a As million. delivered not We significant of any until second the XXXX. quarter positive free debt

We included from water line within discipline as cash the item. continue business to are for XXXX relates uses extreme expenditures to other remains our pension and exercise and Sale uses. Guidance treatment our it unchanged. proceeds cash the capital other

projects with of in $XX we be price relates capital capital be $XX as approximately of expenditures and million. additional to we some expected expect maintenance inflation. expect in use million cash million, Approximately be discretionary modest to interest We in is million to CapEx, $XX $XX total modest to range plus that invest growth. future consistent XXXX, working support to a Cash the

which the the for for pension year. are triannual currently contributions plan, the determine the engaged in of We valuation will remainder largest our

optimistic reduce contributions the required that, XXXX of some the turn I'll are back outcome beyond for have concluding will that and to expect the discussions call the September. Simon With and to valuation in We in remarks. complete

of Thanks, Inventories we remain quarter our approximately improvement most our low, Kurt. continued selling increase in stabilized, activities. strong dampened $XX We maintenance have Europe encouraged price Demand by from Chinese essential the TiOX remain has are price initiatives. despite exports by applications. solid million results into and major capturing fundamentals, in industry increases being second been

chain supply other freights, We continue and successfully to navigate ore, challenges.

our third Looking healthy, in to to into products, negatively we quarter be quarter order estimate continues the is July, for initiated extended some the activities see though $X expect million. our will up we third EBITDA and by to demand book second seasonality. to robust impact this quarter, Maintenance and

production our increasing TiOX levels, rates initiatives implementing utilization capacity. to We current while our on are focusing of maximize

We in the year. production pre-pandemic second expect levels to reach the of half

initiatives customer-tailored customers our Our selling regions. all benefits further approach, price of experience and will our the across price improvement to continue bring

Our see construction, in plastics, EBITDA additional continues we well, particularly and segment for Performance long-term Additives and opportunities to perform coatings, improvement.

of to deliver good making benefits the Improvement XXXX. on Business the progress, is full remain Program by XXXX end Our we track and

steps track. reminder, In expect in cash program our of receive site and cost we annual flow this including we and to strategy pension remains continues attention, and TiOX deliver of savings. addressing and structure our funding further a on As million cash Free exit focus our strengthen $XX uses, further the to summary, [indiscernible]. our are optimization from reduce to maximum

business program, uses, optimizing from savings XXXX are portfolio. our our improvement We cash product and the generating across our reducing

continue our to Although feel chain of supply we we confident year, for remainder in them. to to manage the expect the challenges see ability

we'd to for and encouraged are this interest call operator. into in extends. to strong And thank for like limited you with expect environment open demand Venator, the your to opportunity XXXX that, continue as rebuild questions, the and to cycle inventories with the now by like we'd We

comes The Andrews from Vincent Morgan Instructions] Stanley. first with [Operator question

This on little channel given for ask XXXX might for just be the that wanted in a Vincent. a is Steve Haynes to inventories and tight. question I volume bit your on quick expectations

be how volumes XXXX? thinking should we So in about

in Along said this see it remarks, see and logistics, several look, so expect our our chain to there the forth. to know faces, mean, we in supply inventories of We are inventory -- in We we face difficult I balance think around freight, don't challenges of we way, I continue XXXX, any pattern the quite feedstocks, to certainly expect strong degree. see to rebuilt. customer industry through the be prepared demand we Yes. XXXX. channels

and supply themselves around also their quotient many We motivated us, interruption-type getting that recovery. you are can force because our customers from have of they strong this products necessary events tell during experienced or allocation extremely of sort majeure

into sit give We're the to here should That rest production increase available cycle XXXX year So And by say sort ourselves today, that to capability on over beyond. Clearly, of that of extending it digits. view the to we put our see would sort the a our setting continue. year-over-year we for and the XXXX number way not goal of XXXX you see backlog prepared as we're as we to a is is the see what -- except expect supply and we of up mid-single we market. XXXX. to our capacity extend

percentage that's clarify, to a basis. And up mid-single digits on just

Yes.

The is from UBS. next Spector question Josh with

was made second by square below half. could about XXXX Simon, I levels comments a the mean, of I you volume's the that if think second one quarter margin. still away I good wondering you

normal there with but to comment the made you you seasonality, declines with levels. sequential those moving on commented pieces? flat pre-pandemic get of different then do getting You How

call, again pre Yes. think second be XXXX running saying assets at pandemic the we that the expect level. this now be -- year, prior in way they on I the we mean, our will the of we're when look, half the said second to I we're and half

of sort clear the as sort second we the in that's statement. the pretty get compared that's to rate saw So rate think half XXXX, we average how so to I that in of to

Of there are some of course, moving in sort parts these volumes.

adjust we out, we for growth our lost -- numbers, is look outage pro and you others. then forma would sequential which had our at be line in with the quarter, in of sales we sort think sort called second the of If some

recovery the profile the so that some large XXXX, mind in bear different quarter others, a to a as have you course, in as of Of we year-on-year see we see year quarter second sales last over dip our volumes second as quarter first the didn't in well.

to have strong. So second that demand we the half that the will see think say -- being I suffice we --

You should And of XXXX we from to view we question production that give tried about there, our and said pre-COVID of the sort sort in able sort rate a along out what run earlier to extending the of how be levels. what we've figure at on, see trajectory. cycle

are Okay. And much higher that logistic I the And have I material you on half. cost you price. how costs with that made gap called to of price sequentially? out raw when see the that you comment to second you into think planning guess, visibility on increase you you recover Do timing the closing? expect costs

issue of the we a clearer quarter we We significant EBITDA be our are headwind. It's sort of But of see you've I that in increases clearly, of year, second we number half, XXXX got although, direct number are a vary this category. material I say, over on sort than to the expect think the increases not we And to second there sort fair the we'd we had margin the FCA. further clearly, by put increases through the quarter this But and those again, outran Does material a Yes. to Look, activities full raw parts. are margins, focus mean, moving cost said maintenance so see in we've confident on will if raw as price I second the think, that year. increases. of over half they XXXX. we're prepared through have that, what it, through step feeling next as

unfold, looking expect to those in would our as of So, that however part out margin. year, to raw recover we materials see play last they we in the be the

Begleiter Deutsche The Bank. from with is next question David

Griffin This is on Katherine for David.

sort price. a thoughts, your year. kind related if I'm bit could to I spoke of wanted dynamics of and that with kind get feedstock speak the of offsetting feedstock just things your suppliers to ore material with expectations of out But to first, on availability, about just rest of know supply raw curious of costs. little So kind the Simon, you for recent increases could the how and through some how terms play in tight disruptions that major ore are you

-- than that buy the feedstock I'm because a technology our to answer range going of question. last across number saw start but That's we We -- range wide Happy of products Yes. feedstocks, ore ore end the sulfate back feedstocks our the materials year. the to said on we raw rise a with times rather of other and platform. chloride and an of point, at important piece ilmenites

the to We further increases. through anything block earlier the I have had seen rutiles Chinese the this some on year, meaningful think really as seen pressures add there's don't really discussion.

bit very it's a Africa, little supply longer. in in think observers, lasting some people, nearer these South I term, clear and Africa what which to got points challenges, various have some are

what don't are. of plan each I So them to trail through

the think feedstock small that meaningful supply exposure South relatively say able well-known the And will least, is have for concluded to a to of Suffice ongoing Africa. in we of our supply and out way in that Bay. we pretty through by supply high-grade which Richards we that reductions Richards the case point at a navigate current be very chloride that's point clearly Bay, I have to observers. industry,

producers able some that's our with easy I and discussions, to for we we still challenge. we So But looking a I'm to vis-a-vis that very through it, each others, network, facilities, not disruption what an we requests buy we at chain our think that in manage outcomes; from it's the continue and continue. in don't we at seeing by looking And way so will ongoing anything high-grade expect, our not negotiate of price them. didn't important -- to saying that the and withstand feedstock we're manage into point. are have have supply cases,

down think in socioeconomic obviously, I difficult Africa, in -- South a some that, -- in I the think many tragic add that I there's been very lived play many South place Africa, happening So South block, years ways and parts for factors would I been and Africa, where so particularly see located. where it's some wife born to -- parts of those [indiscernible] my South in of what's and Africa, in continuing to some from disturbing of happen very in these are facilities feedstock northern

to information play will is to will it So our in We're will but assessment has able been be there coming getting but making for the this it. of assessment how we an continue coming challenges be months. planning in get challenges the months, challenging and through out,

just elevated, could kind -- market you -- of of feedstock color kind pricing any supportive second maybe appreciate to in sort fundamentals perhaps your ore and I more to are QX -- around could on just on see the would costs there years? curious And think that of if your kind enough raw could I'm remain color touch costs production, -- half expectations Great. on of getting ability to back is you helpful. of be that positive But I if chance pre-pandemic kind secondly, elevated, pricing TiOX pricing QX I of in to talk not the terms relative levels. in and a material for expectations there's prior for if

it's we the third capture whole We of range Yes. of second inflationary as recognize using price good their To pressures after their we address a very price We course believe customers. a for quarter the markets approaches with always said unwelcome on as of circumstances. the are a our they from an higher a passing for and specific price, of tailored to customers suppliers about all which managing We and the in our than see that course. first the first quarter. discussion in through pricing quarter, point, themselves talking range own saw quarter well. regions customers, in major We're capture

the in sort encouraged backdrop we've very by of on the quarter that's are were well. course what seen for half, the first we So that as and in we third

the I Now, and built the sees in sort on a this good. been seasonal say, has have to inflation, we're seeing as stock increases you're which occasion, I further it's of very the because always price with quarter quarter fourth are of fourth price generally. supply tightness in low historically there's most the quarter for not quarter, all increases seeing all we're the with third prospects the on think aware,

The next Bank of DeYoe with question is from Matthew America.

the Based have moves would TiOX your I ever exposures, in mean, magnitude of XX% for price full I the on little differential of seems guessed been pedestrian in would like price kind here. understand benchmark it so growth like no The over capture just up a kind captures what's regions year-over-year X% a driving one seems your have year-over-year. on wondering of market basis, I I'm moves.

functional Yes. course, of XQ price I price mean, X% before in sequentially. And look, grew a products if in we've -- increase that. our -- functional at XQ increases had the

further ourselves. with consequences large of customers general sort in our in destruction a about have unhappiness increases back phase go and contracts passed and increases reconciliation where how price be all the a [substitutory] to may through a and been in effects we price that, short very expect law XXXX, demand our We meant space 'XX, as that there of of This through remaining had some did between some were quarters. unintended time, managed aware, there you industry,

that far and a regard. we with certainly to speak contracts disparate to company own decided I upon of in perspective consciously stockpile. customers' made that And range from to manage fair more our not pass-through, fungible recognize, our customers say. going their recognize think that, chose up that's we just importantly amongst and a to need subsequent things, the their for products, I but seen these that other were to end they when our at embark as

you what's appear at a I look there's you the -- business, happening been low way amount. relatively like pros cons, we for this can look of has I shift. a helped sort been if it and go in quite short-term saying, successive provide stabilization some may that our of in you're price you if increases, at quarter hear So sort planning what as But one into if the think that then outweigh sprint. investment a the that

we're give the the not that if is So prices maybe product prices contract to would and or the lower, moves extent up Chinese well. Europe into as the more conceivably, thinking, but this wouldn't you Chinese what market move -- appreciably, the see

You and would keep correct? that more down reaction Is tapes. muted a

you've at think to onboarding have plus and thus far. been some why, for even you as a make be producers interesting Yes. logistics going up the look achieved picked these -- they than price inflationary Europe, right? a many higher that TiOX. increase ton we need end to here, year will the how same above I for you several year-over-year of hundred with mean can costs, dollars-per-ton they hundreds price it's at an going having Chinese because number a what's making, into see the on of about And prior, the were are would over -- in don't they -- dollars to on has issue China 'XX you of it's the and example 'XX freight year-on-year pretty if if significant increases through yet, But look that in

producers So for ones against that's Chinese netbacks sort pretty supply products wholesale why export And do and of Chinese arrival that agitate justify that not we're points. to high arrive, of seeing the into prices Europe. other the

So that sort adopt approach to reason to we make this thoughtful like another of we that's our pricing. sure want

And quick Okay. just guess more I one. one

in just as totally XQ. customers the in own your why the wouldn't I the that? you to your rebuilding pretty is if I mean, did that I seasonally and had time Or rebuild? channel are that? be end-market volumes missed a that using inventories or during be light, I If is think case, you correct, would that that's mentioned heard down inventory then,

rebuilding own I us inventories I XQ. in our mean, Yes. see don't

about clear be that. very Let's

going period. and We to over the going so to obviously metal, quarter. and we to second decline capability, shown third clear. be pedal are be are production we're out, fully Historically, sold our the quarter that a going very flat And maximize running during that's the to has seasonal optimize

assessment, seen there a has Now is X% that small, In This be as think we've of In allowing decline. the like, chain towards that been as and will range it of we've X%. described other for there factors you to course. years, it that lower supply our relatively digits. in decline. end -- seen the the seasonal be But some we a year, the nevertheless, will double it decline, years, the high

And our then, are I down our volumes goods what -- here have to you're so levels sales that we low to think point, is limited Matt, able by just produce. that we inventory drawn we're seeing are underscore what finished that limited

what market And we third right produce And to into is inventory will excess now. in the whatever that the that so, in that's quarter. quarter, can can we Certainly, seasonal there. sell market we the don't demand but have put impact leads third we the

next question Global. Hassan from Alembic The with Ahmed is

I seeing of of it curves. the are highlighted my inflationary of one overall, we we supply industry fairly over understanding dynamics on last low-grade that's of some out the it. ore cost we've of high-grade alongside that is, is Question I guys and now mean, rising with for months, or is saw guess, ore play the And the couple you if around seen inflationary obviously seems side Obviously, TiOX moves in moves of But the rapidly playing some other there catch chlorine. the that in price the this, up. correct, constraints

moves, as Will through to about of on cost-wise, ore, that, question issue. term? of you and in are versus it of sulfate-based the How sit near is TiOX positioning TiOX think cost the an one be relative the ore, high-grade the low-grade a over chloride-based advantaged, to curves the chlorine other. some majorly you thinking medium of these now availability inflationary there is my of sort you So be bit

Yes.

way think into divide the I the to Hassan, answer that, think about to two is parts. right

relates to The the There's in block. more relative inflation capacity the part probably non-Chinese disadvantage than over months, my suffered doubt their capacity Western the plus, as it Chinese first is the XX to past mind, Chinese in counterparts. no has

cases. a not I'm -- of that, there's hundreds comment. suspect, ton, not and ton on shifts hundreds to a seeing, general of Now some going of we but very a of dollars number I'm had And the a in multiple are really benefit probably the I put dollars energy, has important indirect block. the certainly capacity it's end Chinese lower while as point. And and freight, of the raw a costs, the far an that's on curve materials, of at

energy seen I think the in should of you've we Chinese within stress and seen a prices. But highest the there course, that Chinese you're lower. block, some rises producer, world-scale and some will higher greatly, be this if earliest rises ilmenite, you've

feedstocks, seeing the freight largely of and all plus sorts chloride, If you're in bringing logistics. chloride other dislocation high-grade you're inflationary ever-increasing you're pressures all producing

been big direct really cost So rate. it has a onto the loading

that think I backwards. gone has part So the of block

overtake, it get the whereby play full the to the curve, seen, be tell but in out. looks question. depends have plants to past resumption ore yet. of what to dynamic from some to the to you are, and places swapping and inflation of starting ago have where that feedstocks, As our It's different think attention part like, and see Western in to come will movements in don't low-grade we're a who we no sulfate remains the patterns I the in said course, it the we're chloride expected to. you you. of months to really are X we I -- materials relates assessment We started our be finally there high-grade turning claim block, that and perspective, just It against would the of something back that chlorine

has about But of frankly, hundreds some I'm of some seen there's multiple turns talking so of been chlorine in unless process that the dollars we're some [acid] be not pretty time, swapping. Hassan, large. there So increases, the course, will really ton a that. some something sure sulfate of And thing into

So Western very and capture in set I and the a the between backwards in me a curve of clear dynamic volumes own of we're the see block. -- price their I think unique Chinese and the have one on circumstances. comment as But seeing this -- sort to the gone like how is exports plants swapping and the

and sit disparity reliability Chinese Understood. between question majors, are that through volumes, shifts? So an around it Very guidance guidance, the heard industry, the will bit there what and the guidance volume market certain that the aggressive they having, as had in the share, Chinese to Europe, seeing players I historically, themselves a of there Now, seems the follow-up issue, terms seemed trade of flows you constraints a share meaningful, of And of that in the giving largest hear are right? versus QX particularly in fairly we and helpful. my Europe. share were majors And that of the of delivery, were a as terms Is sort question sequential guys market of gaining is, then, continue? the losing sort one you in in right? and supply that be about to Western getting from became

second competitors the in and But obviously, the seasonal forgo ourselves having the are I and look, quarter again that's do period. the to standpoint, to China We're for our peak don't as in tight, in But patterns it from is block being Hassan. clear. have of happy sales We reality mean, think clear it's others. we what thing. I willing we Chinese some we and not We'd of had that mean, Yes. other the to specific with the the gone maintenance benefited did right decisions take. sort the is, engage some forward, second speak in -- see not the more very like, only market we in But demand look quarter. I gone the trail in to was than -- cold. from

confirm whole a normalization decent sort of said, we've there, of of but what of to expect you up out We've seen pretty a to sort like course, that Of we still exports seen demand a Chinese demand, suck so bunch Chinese product. situation, some Europe. into there's

subsequent justify issue availability, going Europe to off, and able netback. with expensive on prices their reliability, really -- And pretty producers to the sell to -- to this wishing there have shipping First Chinese into high are now, cost. [indiscernible] be demand inflations to very was around

will we that's region. So continue won't will impact to We They flow. incursion going that's drop even may highly not We're the in bit. disappear. China to back mainly It into think I Asian big to a some look, but half. strong. reduction the manageable. trade going it's to But going little remain about continue Europe. to talking maybe, think pretty see export, not It's a

next The is with from Juvekar] Instructions] [Operator Citi. question [P.J.

uplift you Eric to it's kind pre-pandemic over specialty EBITDA expect coming with Petrie the What Simon, recovery in of P.J. levels? TiOX volumes do for the years on

Yes.

think So you of is if the a look, I that business, slower recovery at take the said on part look specialty track. a we our

going -- think to And I don't this are expect with I we juncture levels could We look of think earliest the to during things, see seeing the that to pre-pandemic to we're XXXX. not so pre-pandemic as back be back but the by year now levels. we're recovery,

so the business, it types see really said that to we're see can the I rather part can uplift. you than that earlier of meaningful, important we're in going think earnings the our that these part volumes, going a business it's then is functional believe our with of the that development you that going and of to cycle time getting pretty drives XXXX the significant, and be into earnings And price further that the about the We're same we're question year. through part the at to the part of but uplifts much in -- we in And we see cycle, and -- past isn't certainly the of cash -- very strengthen of that on business. specialty, largest profile we've usage. continue isn't our when -- in next working the to are it's our

So that's how mental model, our that Eric, helpful. seeing we're

How look you terms about that raw or second stable Could given in that down Greatham, Okay. of, just flat, that at the we that? it out at material you should of in pretty talked costs? XXX production higher points we basis And the break margins secondly, or TiOX about, sequentially. should slightly, declined do resumption half, see you think seasonality how

higher than going sort to quarter. to that have which down of have and us see XQ going the expect we're not further have in quarter, fact the the to first second temporarily to on I'd FCA Well, increases, took going we're price based -- effect, we're the

increases opened feel little earlier fourth that's would obviously, third and we remarks as quarter. the is think price too. the that well, out. quarter first then I quarter, against up my fourth I still the being be further likely it bit way to And said there's in quarter, about answers, in the a But strongly So

there. that you hopefully, can So help

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

and as we Well, you throughout as to upcoming the look can you, Venator, to at the continued in thank we conferences. of for interest call, joining forward everyone, speaking thank and you your for the many quarter

out please So, points you you much. reach want feel Thank to Kate any the that any first clarifications, free will on. to in questions with instance clarification very or

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

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