Dallas, Texas, May 08, 2024 (GLOBE NEWSWIRE) -- NL Industries, Inc. (NYSE:NL) today reported net income attributable to NL stockholders of $6.8 million, or $.14 per share, in the first quarter of 2024 compared to a net loss attributable to NL stockholders of $6.7 million, or $.14 per share, in the first quarter of 2023. NL results include an unrealized gain of $2.4 million in the first quarter of 2024 related to the change in value of marketable equity securities compared to an unrealized loss of $5.5 million in the first quarter of 2023. CompX net sales were $38.0 million in the first quarter of 2024 compared to $41.2 million in the first quarter of 2023. CompX net sales decreased due to lower Marine Components sales primarily to the towboat market, partially offset by higher Security Products to the government security market. Income from operations attributable to CompX decreased to $3.7 million in the first quarter of 2024 compared to $7.0 million in the first quarter of 2023 predominantly due to lower Marine Components sales and gross margin. NL recognized equity in earnings of Kronos of $2.5 million in the first quarter of 2024 compared to equity in losses of Kronos of $4.6 million in the first quarter of 2023. Kronos' net sales of $478.8 million in the first quarter of 2024 were $52.5 million, or 12%, higher than in the first quarter of 2023. Kronos' net sales increased in the first quarter of 2024 compared to the first quarter of 2023 due to the net effects of higher sales volumes due to strengthening demand for TiO2 in all its major markets and lower average TiO2 selling prices. TiO2 sales volumes were 28% higher in the first quarter of 2024 as compared to the first quarter of 2023. Kronos started 2024 with average TiO2 selling prices 13% lower than at the beginning of 2023 and its average TiO2 selling prices declined 2% during the first quarter of 2024. Average TiO2 selling prices were 11% lower in the first quarter of 2024 as compared to the first quarter of 2023. Fluctuations in currency exchange rates (primarily the euro) also affected net sales comparisons, increasing Kronos' net sales by approximately $4 million in first quarter of 2024 as compared to the first quarter of 2023. The table at the end of this press release shows how each of these items impacted Kronos' net sales. Kronos' income from operations in the first quarter of 2024 was $19.5 million as compared to a loss from operations of $18.3 million in the first quarter of 2023. Kronos' income from operations increased in the first quarter of 2024 compared to the first quarter of 2023 primarily due to the net effects of higher sales and production volumes, lower production costs (primarily energy and raw material costs) and lower average TiO2 selling prices. TiO2 production volumes were 15% higher in the first quarter of 2024 compared to the first quarter of 2023. Kronos operated its production facilities at 76% of practical capacity utilization in the first three months of 2023 due to decreased demand and a higher production cost environment. Due to improved overall demand and a more favorable production cost environment, Kronos increased its production rates to 87% of practical capacity utilization in the first three months of 2024. As a result, Kronos' unabsorbed fixed costs associated with production curtailments included in cost of sales decreased by $10 million to $12 million in the first quarter of 2024 compared to $22 million in the first quarter of 2023. Changes in currency exchange rates had a nominal effect on Kronos's income from operations in the first quarter of 2024 as compared to the same period in 2023. Corporate expenses decreased $.4 million in the first quarter of 2024 compared to the first quarter of 2023 primarily due to lower litigation fees and related costs, somewhat offset by higher environmental remediation and related costs. Interest and dividend income increased $.6 million in the first quarter of 2024 compared to the same period of 2023 primarily due to higher average interest rates and increased investment balances, somewhat offset by lower average balances on CompX's revolving promissory notes receivable from Valhi. Marketable equity securities represent the change in unrealized gains (losses) on our portfolio of marketable equity securities during the period. Net income attributable to NL stockholders for the first three months of 2024 includes a loss of $.3 million ($.3 million, or $.01 per share, net of tax) due to Kronos' recognition of an aggregate charge related to a write-off of deferred financing costs. Net loss attributable to NL stockholders for the first three months of 2023 includes income of $.4 million ($.3 million, or $.01 per share, net of tax) due to Kronos' recognition of a pre-tax insurance settlement gain related to a business interruption insurance claim arising from Hurricane Laura in 2020. The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to: Future supply and demand for our products; The extent of the dependence of certain of our businesses on certain market sectors; The cyclicality of our businesses (such as Kronos' TiO2 operations); Customer and producer inventory levels; Unexpected or earlier-than-expected industry capacity expansion (such as the TiO2 industry); Changes in raw material and other operating costs (such as energy, ore, zinc, aluminum, steel and brass costs) and our ability to pass those costs on to our customers or offset them with reductions in other operating costs; Changes in the availability of raw material (such as ore); General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs or reduce demand or perceived demand for Kronos' TiO2 and our products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises); Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises); Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades, or improvements; technology processing failures; or other events) related to our ...