Press Release: NL REPORTS FIRST QUARTER 2020 RESULTS

Dallas, Texas, May 06, 2020 (GLOBE NEWSWIRE) -- NL Industries, Inc.
(NYSE: NL) today reported net income attributable to NL stockholders of
$1.9 million, or $.04 per share, in the first quarter of 2020 compared
to net income attributable to NL stockholders of $15.2 million, or $.31
per share, in the first quarter of 2019 primarily due to an unrealized
loss of $12.1 million in the first quarter of 2020 related to the change
in value of marketable equity securities compared to a $5.5 million
unrealized gain in the first quarter of 2019.

Net sales at CompX of $32.3 million in the first quarter of 2020
increased $1.1 million compared to the first quarter of 2019 primarily
due to higher security products sales to existing government security
customers, partially offset by lower sales to transportation and
distribution customers. Marine components also contributed higher sales
for the quarter, mainly to the towboat and center console boat markets,
partially offset by lower sales to distribution customers. Income from
operations attributable to CompX increased to $5.0 million in the first
quarter of 2020 compared to $4.3 million in the first quarter of 2019
due to the favorable effects of customer and product mix on higher sales,
partially offset by increased medical costs for both security products
and marine components.

Kronos\' net sales of $421.0 million in the first quarter of 2020 were
$15.5 million, or 4%, lower than in the first quarter of 2019. Kronos\'
net sales decreased in the first quarter of 2020 primarily due to lower
sales volumes. Kronos\' TiO(2) sales volumes were 5% lower in the first
quarter of 2020 as compared to the first quarter of 2019 due to lower
sales volumes in the North American, Latin American and export markets
partially offset by higher sales volumes in the European market.
Kronos\' average TiO(2) selling prices in the first quarter of 2020 were
comparable to its average TiO2 selling prices in the first quarter of
2019. Kronos\' average TiO(2) selling prices at the end of the first
quarter of 2020 were 2% lower than at the end of 2019. Fluctuations in
currency exchange rates (primarily the euro) also affected net sales
comparisons, decreasing net sales by approximately $7 million in the
first quarter of 2020 as compared to the first quarter of 2019. The
table at the end of this press release shows how each of these items
impacted the overall change in Kronos\' net sales.

Kronos\' income from operations in the first quarter of 2020 was $43.5
million as compared to $49.0 million in the first quarter of 2019.
Kronos\' income from operations decreased in the first quarter of 2020
primarily due to lower sales volumes and higher raw materials and other
production costs. Kronos\' TiO(2) production volumes were 1% lower in
the first quarter of 2020 as compared to the first quarter of 2019.
Kronos operated its production facilities at overall average capacity
utilization rates of 95% and 97% in the first quarters of 2020 and 2019,
respectively. Fluctuations in currency exchange rates also affected
income from operations, which increased income from operations by
approximately $11 million in the first quarter of 2020 as compared to
the first quarter of 2019.

Kronos\' other income (expense) in the first quarter of 2020 includes a
pre-tax insurance settlement gain of $1.5 million (NL\'s equity interest
was $.4 million, or $.01 per share, net of income tax expense) related
to a property damage claim.

Corporate expense increased by $.4 million in the first quarter of 2020
compared to the first quarter of 2019 primarily due to higher
environmental remediation and related costs partially offset by lower
litigation fees and related costs. Interest and dividend income
decreased $.4 million in the first quarter of 2020 as compared to the
first quarter of 2019 primarily due to lower average outstanding
balances under CompX\'s revolving promissory note receivable from Valhi
and lower average interest rates partially offset by higher cash and
cash equivalents and restricted cash and cash equivalent balances
available for investment. Marketable equity securities represent
unrealized gains (losses) on our portfolio of marketable equity
securities during the periods.





Although the COVID-19 pandemic had limited impact on our operations
during the first quarter of 2020, we believe U.S. and worldwide gross
domestic product will be significantly impacted for an indeterminate
period, including the demand for our products and those of our
customers. Consequently, we expect to report lower sales and earnings
than would otherwise have been expected for the remainder of 2020. The
extent of the impact will depend on numerous factors, including future
developments, and therefore is uncertain and cannot be predicted.

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 that 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 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 such as
COVID-19)

-- Competitive products and substitute products

-- Price and product competition from low-cost manufacturing sources (such
as China)

-- Customer and competitor strategies

-- Potential consolidation of Kronos\' competitors

-- Potential consolidation of Kronos\' customers

-- The impact of pricing and production decisions

-- Competitive technology positions

-- Our ability to protect or defend intellectual property rights

-- Potential difficulties in integrating future acquisitions

-- Potential difficulties in upgrading or implementing accounting and
manufacturing software systems

-- The introduction of trade barriers or trade disputes

-- The impact of current or future government regulations (including
employee healthcare benefit related regulations)

-- Fluctuations in currency exchange rates (such as changes in the exchange
rate between the U.S. dollar and each of the euro, the Norwegian krone
and the Canadian dollar), or possible disruptions to our business
resulting from uncertainties associated with the euro or other currencies

-- Operating interruptions (including, but not limited to, labor disputes,
leaks, natural disasters, fires, explosions, unscheduled or unplanned
downtime, transportation interruptions, cyber-attacks and public health
crises such as COVID-19)

-- Decisions to sell operating assets other than in the ordinary course of
business

-- Kronos\' ability to renew or refinance credit facilities

-- Our ability to maintain sufficient liquidity

-- The timing and amounts of insurance recoveries

-- The ability of our subsidiaries or affiliates to pay us dividends

-- Uncertainties associated with CompX\'s development of new products and
product features

-- The ultimate outcome of income tax audits, tax settlement initiatives or
other tax matters, including future tax reform

-- Our ability to utilize income tax attributes or changes in income tax
rates related to such attributes, the benefits of which may or may not
have been recognized under the more-likely-than-not recognition criteria

-- Environmental matters (such as those requiring compliance with emission
and discharge standards for existing and new facilities or new
developments regarding environmental remediation at sites related to our
former operations)

-- Government laws and regulations and possible changes therein (such as
changes in government regulations which might impose various obligations
on former manufacturers of lead pigment and lead-based paint, including
us, with respect to asserted health concerns associated with the use of
such products), including new environmental health and safety regulations
such as those seeking to limit or classify TiO2 or its use

-- The ultimate resolution of pending litigation (such as our lead pigment
and environmental matters)

-- Possible future litigation.


Should one or more of these risks materialize (or the consequences of

(MORE TO FOLLOW) Dow Jones Newswires

May 06, 2020 16:20 ET (20:20 GMT)

Press Release: NL REPORTS FIRST QUARTER 2020 -2-

such a development worsen), or should the underlying assumptions prove
incorrect, actual results could differ materially from those currently
forecasted or expected. We disclaim any intention or obligation to
update or revise any forward-looking statement whether as a result of
changes in information, future events or otherwise.

NL Industries, Inc. is engaged in the component products (security
products and recreational marine components), chemicals (TiO(2) ) and
other businesses.

NL INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except earnings per share)




Three months ended
March 31,
2019 2020
--------
(unaudited)
Net sales $ 31.2 $ 32.3
Cost of sales 21.6 21.9

Gross margin 9.6 10.4

Selling, general and administrative expense 5.3 5.4
Other operating income (expense):
Insurance recoveries .3 -
Corporate expense (2.1) (2.5)

Income from operations 2.5 2.5

Equity in earnings of Kronos Worldwide, Inc. 9.2 8.2

General corporate items:
Interest and dividend income 1.5 1.1
Marketable equity securities 5.5 (12.1)
Other components of net periodic pension
and OPEB cost (.4) (.2)
Interest expense - (.3)

Income (loss) from operations 18.3 (.8)

Income tax expense (benefit) 2.6 (3.3)

Net income 15.7 2.5

Noncontrolling interest in net income of
subsidiary .5 .6

Net income attributable to NL stockholders $ 15.2 $ 1.9

Net income per share attributable to
NL stockholders $ .31 $ .04

Weighted average shares used in the
calculation of net income per share 48.7 48.8

NL INDUSTRIES, INC.

COMPONENTS OF INCOME FROM OPERATIONS

(In millions)

(unaudited)




Three months ended
March 31,
2019 2020
-------

CompX - component products $ 4.3 $ 5.0
Insurance recoveries .3 -
Corporate expense (2.1) (2.5)

Income from operations $ 2.5 $ 2.5

CHANGE IN KRONOS\' TiO(2) SALES

(unaudited)




Three months ended
March 31,
2020 vs. 2019
------------------------

Percentage change in net sales:
TiO(2) sales volume (5) %
TiO(2) product pricing -
TiO(2) product mix/other 3
Changes in currency exchange rates (2)

Total (4) %

(END) Dow Jones Newswires

May 06, 2020 16:20 ET (20:20 GMT)

Press Release: NL REPORTS FIRST QUARTER 2020 RESULTS

Dallas, Texas, May 06, 2020 (GLOBE NEWSWIRE) -- NL Industries, Inc.
(NYSE: NL) today reported net income attributable to NL stockholders of
$1.9 million, or $.04 per share, in the first quarter of 2020 compared
to net income attributable to NL stockholders of $15.2 million, or $.31
per share, in the first quarter of 2019 primarily due to an unrealized
loss of $12.1 million in the first quarter of 2020 related to the change
in value of marketable equity securities compared to a $5.5 million
unrealized gain in the first quarter of 2019.

Net sales at CompX of $32.3 million in the first quarter of 2020
increased $1.1 million compared to the first quarter of 2019 primarily
due to higher security products sales to existing government security
customers, partially offset by lower sales to transportation and
distribution customers. Marine components also contributed higher sales
for the quarter, mainly to the towboat and center console boat markets,
partially offset by lower sales to distribution customers. Income from
operations attributable to CompX increased to $5.0 million in the first
quarter of 2020 compared to $4.3 million in the first quarter of 2019
due to the favorable effects of customer and product mix on higher sales,
partially offset by increased medical costs for both security products
and marine components.

Kronos\' net sales of $421.0 million in the first quarter of 2020 were
$15.5 million, or 4%, lower than in the first quarter of 2019. Kronos\'
net sales decreased in the first quarter of 2020 primarily due to lower
sales volumes. Kronos\' TiO(2) sales volumes were 5% lower in the first
quarter of 2020 as compared to the first quarter of 2019 due to lower
sales volumes in the North American, Latin American and export markets
partially offset by higher sales volumes in the European market.
Kronos\' average TiO(2) selling prices in the first quarter of 2020 were
comparable to its average TiO2 selling prices in the first quarter of
2019. Kronos\' average TiO(2) selling prices at the end of the first
quarter of 2020 were 2% lower than at the end of 2019. Fluctuations in
currency exchange rates (primarily the euro) also affected net sales
comparisons, decreasing net sales by approximately $7 million in the
first quarter of 2020 as compared to the first quarter of 2019. The
table at the end of this press release shows how each of these items
impacted the overall change in Kronos\' net sales.

Kronos\' income from operations in the first quarter of 2020 was $43.5
million as compared to $49.0 million in the first quarter of 2019.
Kronos\' income from operations decreased in the first quarter of 2020
primarily due to lower sales volumes and higher raw materials and other
production costs. Kronos\' TiO(2) production volumes were 1% lower in
the first quarter of 2020 as compared to the first quarter of 2019.
Kronos operated its production facilities at overall average capacity
utilization rates of 95% and 97% in the first quarters of 2020 and 2019,
respectively. Fluctuations in currency exchange rates also affected
income from operations, which increased income from operations by
approximately $11 million in the first quarter of 2020 as compared to
the first quarter of 2019.

Kronos\' other income (expense) in the first quarter of 2020 includes a
pre-tax insurance settlement gain of $1.5 million (NL\'s equity interest
was $.4 million, or $.01 per share, net of income tax expense) related
to a property damage claim.

Corporate expense increased by $.4 million in the first quarter of 2020
compared to the first quarter of 2019 primarily due to higher
environmental remediation and related costs partially offset by lower
litigation fees and related costs. Interest and dividend income
decreased $.4 million in the first quarter of 2020 as compared to the
first quarter of 2019 primarily due to lower average outstanding
balances under CompX\'s revolving promissory note receivable from Valhi
and lower average interest rates partially offset by higher cash and
cash equivalents and restricted cash and cash equivalent balances
available for investment. Marketable equity securities represent
unrealized gains (losses) on our portfolio of marketable equity
securities during the periods.





Although the COVID-19 pandemic had limited impact on our operations
during the first quarter of 2020, we believe U.S. and worldwide gross
domestic product will be significantly impacted for an indeterminate
period, including the demand for our products and those of our
customers. Consequently, we expect to report lower sales and earnings
than would otherwise have been expected for the remainder of 2020. The
extent of the impact will depend on numerous factors, including future
developments, and therefore is uncertain and cannot be predicted.

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 that 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 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 such as
COVID-19)

-- Competitive products and substitute products

-- Price and product competition from low-cost manufacturing sources (such
as China)

-- Customer and competitor strategies

-- Potential consolidation of Kronos\' competitors

-- Potential consolidation of Kronos\' customers

-- The impact of pricing and production decisions

-- Competitive technology positions

-- Our ability to protect or defend intellectual property rights

-- Potential difficulties in integrating future acquisitions

-- Potential difficulties in upgrading or implementing accounting and
manufacturing software systems

-- The introduction of trade barriers or trade disputes

-- The impact of current or future government regulations (including
employee healthcare benefit related regulations)

-- Fluctuations in currency exchange rates (such as changes in the exchange
rate between the U.S. dollar and each of the euro, the Norwegian krone
and the Canadian dollar), or possible disruptions to our business
resulting from uncertainties associated with the euro or other currencies

-- Operating interruptions (including, but not limited to, labor disputes,
leaks, natural disasters, fires, explosions, unscheduled or unplanned
downtime, transportation interruptions, cyber-attacks and public health
crises such as COVID-19)

-- Decisions to sell operating assets other than in the ordinary course of
business

-- Kronos\' ability to renew or refinance credit facilities

-- Our ability to maintain sufficient liquidity

-- The timing and amounts of insurance recoveries

-- The ability of our subsidiaries or affiliates to pay us dividends

-- Uncertainties associated with CompX\'s development of new products and
product features

-- The ultimate outcome of income tax audits, tax settlement initiatives or
other tax matters, including future tax reform

-- Our ability to utilize income tax attributes or changes in income tax
rates related to such attributes, the benefits of which may or may not
have been recognized under the more-likely-than-not recognition criteria

-- Environmental matters (such as those requiring compliance with emission
and discharge standards for existing and new facilities or new
developments regarding environmental remediation at sites related to our
former operations)

-- Government laws and regulations and possible changes therein (such as
changes in government regulations which might impose various obligations
on former manufacturers of lead pigment and lead-based paint, including
us, with respect to asserted health concerns associated with the use of
such products), including new environmental health and safety regulations
such as those seeking to limit or classify TiO2 or its use

-- The ultimate resolution of pending litigation (such as our lead pigment
and environmental matters)

-- Possible future litigation.


Should one or more of these risks materialize (or the consequences of

(MORE TO FOLLOW) Dow Jones Newswires

May 06, 2020 16:20 ET (20:20 GMT)

Press Release: NL REPORTS FIRST QUARTER 2020 -2-

such a development worsen), or should the underlying assumptions prove
incorrect, actual results could differ materially from those currently
forecasted or expected. We disclaim any intention or obligation to
update or revise any forward-looking statement whether as a result of
changes in information, future events or otherwise.

NL Industries, Inc. is engaged in the component products (security
products and recreational marine components), chemicals (TiO(2) ) and
other businesses.

NL INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except earnings per share)




Three months ended
March 31,
2019 2020
--------
(unaudited)
Net sales $ 31.2 $ 32.3
Cost of sales 21.6 21.9

Gross margin 9.6 10.4

Selling, general and administrative expense 5.3 5.4
Other operating income (expense):
Insurance recoveries .3 -
Corporate expense (2.1) (2.5)

Income from operations 2.5 2.5

Equity in earnings of Kronos Worldwide, Inc. 9.2 8.2

General corporate items:
Interest and dividend income 1.5 1.1
Marketable equity securities 5.5 (12.1)
Other components of net periodic pension
and OPEB cost (.4) (.2)
Interest expense - (.3)

Income (loss) from operations 18.3 (.8)

Income tax expense (benefit) 2.6 (3.3)

Net income 15.7 2.5

Noncontrolling interest in net income of
subsidiary .5 .6

Net income attributable to NL stockholders $ 15.2 $ 1.9

Net income per share attributable to
NL stockholders $ .31 $ .04

Weighted average shares used in the
calculation of net income per share 48.7 48.8

NL INDUSTRIES, INC.

COMPONENTS OF INCOME FROM OPERATIONS

(In millions)

(unaudited)




Three months ended
March 31,
2019 2020
-------

CompX - component products $ 4.3 $ 5.0
Insurance recoveries .3 -
Corporate expense (2.1) (2.5)

Income from operations $ 2.5 $ 2.5

CHANGE IN KRONOS\' TiO(2) SALES

(unaudited)




Three months ended
March 31,
2020 vs. 2019
------------------------

Percentage change in net sales:
TiO(2) sales volume (5) %
TiO(2) product pricing -
TiO(2) product mix/other 3
Changes in currency exchange rates (2)

Total (4) %

(END) Dow Jones Newswires

May 06, 2020 16:20 ET (20:20 GMT)

*DJ NL Industries 1Q EPS 4c >NL

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May 06, 2020 16:49 ET (20:49 GMT)

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