Tronox reports Q3 adjusted EPS 13c, consensus 16c

Reports Q3 revenue $804M, consensus $790.66M. CEO John Romano commented, “Tronox’s (TROX) Q3 results demonstrated continued demand recovery compared to the prior year, though ultimately came in below our expectations as a result of softer than anticipated market conditions as the pace of the recovery slowed late in the quarter. Orders in North America and Latin America met our expectations, while demand in Europe and Asia Pacific was softer than forecasted in the last month of the quarter…The impacts from a weaker market environment along with higher freight costs drove the miss relative to our previously guided range of $145M-$165M, resulting in a Q3 Adjusted EBITDA of $143M and an Adjusted EBITDA margin of 17.8%. Lower sales volume also drove higher finished goods inventory, resulting in a neutral impact from working capital in the quarter.”