Dallas, Texas, May 09, 2024 (GLOBE NEWSWIRE) -- Valhi, Inc. (NYSE:VHI) reported net income attributable to Valhi stockholders of $7.8 million, or $.27 per share, in the first quarter of 2024 compared to a net loss attributable to Valhi stockholders of $4.9 million, or $.17 per share, in the first quarter of 2023. Net income attributable to Valhi stockholders increased in the first quarter of 2024 as compared to the first quarter of 2023 primarily due to higher operating income from our Chemicals Segment partially offset by lower operating income from our Component Products Segment and our Real Estate Management and Development Segment. The Chemicals Segment's 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. The Chemicals Segment's 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 the Chemicals Segment's major markets and lower average TiO2 selling prices. The Chemicals Segment's TiO2 sales volumes were 28% higher in the first quarter of 2024 as compared to the first quarter of 2023. The Chemicals Segment 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 the Chemicals Segment's net sales by approximately $4 million in the first quarter of 2024 as compared to the same period in 2023. The table at the end of this press release shows how each of these items impacted the Chemicals Segment's net sales. The Chemicals Segment's operating income in the first quarter of 2024 was $22.8 million as compared to an operating loss of $15.1 million in the first quarter of 2023. The Chemicals Segment's operating income increased in the first quarter of 2024 compared to the same period in 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. The Chemicals Segment 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, the Chemicals Segment increased its production rates to 87% of practical capacity utilization in the first three months of 2024. As a result, our Chemicals Segment's 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 the Chemicals Segment's operating income in the first quarter of 2024 as compared to the same period in 2023. The Chemicals Segment's operating loss in the first quarter of 2023 includes an insurance settlement gain related to a 2020 business interruption insurance claim of $1.7 million ($.9 million, or $.03 per share, net of tax and noncontrolling interest). The Component Products Segment's net sales were $38.0 million in the first quarter of 2024 compared to $41.2 million in the first quarter of 2023. The Component Products Segment's net sales decreased in the first quarter of 2024 compared to the same period in 2023 due to lower marine components sales primarily to the towboat market, partially offset by higher security products sales to the government security market. Operating income attributable to the Component Products Segment was $3.7 million in the first quarter of 2024 compared to $7.0 million in the first quarter of 2023. The Component Products Segment's operating income decreased in the first quarter of 2024 compared to the same period in 2023 predominantly due to lower marine components sales and gross margin. The Real Estate Management and Development Segment had sales of $13.8 million in the first quarter of 2024 compared to $25.2 million in the first quarter of 2023. Land sales revenue is generally recognized over time based on cost inputs, and land sales revenues are dependent on spending for development activities. Land sales revenues are also impacted by the relative timing of when new land parcel sales are closed. Land sales revenues in the first quarter of 2024 decreased compared to the first quarter of 2023 due to the decreased pace of development activity for previously sold parcels within the residential/planned community. The pace of development activities is dictated by a number of factors such as city permit and design approval and labor and materials availability. Corporate expenses in the first quarter of 2024 were comparable to the first quarter of 2023. Interest income and other increased $.8 million in the first quarter of 2024 compared to the first quarter of 2023 primarily due to higher average interest rates. Interest expense increased $4.3 million in the first quarter of 2024 compared to the first quarter of 2023 primarily as a result of higher interest rates on the Chemicals Segment's refinanced debt in February 2024. In addition, interest expense for the first quarter of 2024 includes a charge of $1.5 million ($.7 million, or $.03 per share, net of tax and noncontrolling interest) for the write-off of deferred financing costs at our Chemicals Segment. The statements in this press 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 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 predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Among the factors that could cause our actual future results to differ materially include, but are not limited to, the following: Future supply and demand for our products; The extent of the dependence of certain of our businesses on certain market sectors; The cyclicality of certain 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 ore, zinc, brass, aluminum, steel and energy costs); Changes in the availability of raw materials (such as ore); General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material and energy costs, reduce demand or perceived demand for TiO2, component products and land held for development or impair our ability to operate our facilities (including changes ...