SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
October 23, 1995
-----------------------------------------------------
(Date of Report, date of earliest event reported)
VALHI, INC.
-----------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 1-5467 87-0110150
------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(214) 233-1700
------------------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
------------------------------------------------------------
(Former name or address, if changed since last report)
Item 5: Other Events
------------
On October 23, 1995, the Registrant issued the press
release attached hereto as Exhibit 99.1 which is incorporated
herein by reference.
Item 7: Financial Statements, Pro Forma Financial Information
-------------------------------------------------------
and Exhibits
------------
(c) Exhibit
-------
Item No. Exhibit Index
-------- ------------------------------------------
99.1 Press release dated October 23, 1995
issued by the Registrant
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
VALHI, INC.
(Registrant)
By: /s/ Steven L. Watson
-------------------------------
Steven L. Watson
Vice President & Secretary
Date: October 23, 1995
VALHI REPORTS HIGHER THIRD QUARTER EARNINGS
DALLAS, TEXAS . . . October 23, 1995 . . . Valhi, Inc.
(NYSE: VHI) reported net income of $13.7 million, or $.12 per
share, for the third quarter of 1995, up from $4.6 million, or
$.04 per share, in 1994. Net income for the first nine months of
1995 was $43.5 million, or $.38 per share, up from $6.9 million,
or $.06 per share, in the first nine months of 1994.
Operating income of $62.2 million in the third quarter of
1995 was up 29% on an 8% increase in sales to $494 million
(% comparisons to 1994 pro forma results). Year-to-date operating
income increased 46% to $196 million as sales increased 14% to
$1.5 billion. Overall operating income margins were 13% in the
first nine months of 1995 compared to 10% in 1994 as chemicals
improvements more than offset other declines.
The Company's improved sales and earnings were driven by
higher titanium dioxide pigments ("TiO2") prices at NL
Industries. Average TiO2 selling prices for the quarter were up
18% from the 1994 period and were 2% higher than in the second
quarter of this year. TiO2 shipments in the third quarter of
1995 were 6% below third quarter 1994 volume, and year-to-date
volume was slightly lower than last year. Economies worldwide
have continued to grow in 1995, but at a slower pace than last
year, which factors contributed to the somewhat lower TiO2 sales
volume in 1995 compared to 1994.
Higher refined sugar production costs, due partly to adverse
weather conditions, for the crop year ended September 30, 1995
more than offset slightly higher selling prices and higher
volumes. Average selling prices for medium density fiberboard
("MDF") during the quarter were up 4% from the 1994 period but
were down 7% from the second quarter of this year. Increases in
industry capacity, particularly in Europe, and slower economic
growth in North America and Europe are contributing to lower MDF
selling prices and operating rates. General corporate expenses
were lower than 1994 pro forma due to reduced environmental
remediation costs.
Valhi, Inc. is a major producer of TiO2, refined sugar, MDF
and other products.
* * * * *
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF CONTINUING OPERATIONS
(Unaudited)
Three months ended September 30, 1994 and 1995
(In millions, except earnings per share)
<TABLE>
<CAPTION>
1994 1995
==================
Actual Pro forma* Actual
-------- ------------------
<S> <C> <C> <C>
Net sales
Chemicals $ - $225.2 $255.4
Refined sugar 137.4 137.4 144.0
Building products 49.6 49.6 46.2
Other 45.6 45.6 48.9
------ ------ ------
$232.6 $457.8 $494.5
====== ====== ======
Operating income
Chemicals $ - $ 22.1 $ 45.2
Refined sugar 8.5 8.5 6.0
Building products 10.8 10.8 4.5
Other 6.8 6.8 6.5
------ ------ ------
Total operating income 26.1 48.2 62.2
Equity in NL Industries prior to
consolidation (5.5) - -
General corporate items, net (1.8) (10.4) (5.9)
Interest expense (8.2) (29.2) (30.8)
------ ------ ------
Income before income taxes 10.6 8.6 25.5
Income taxes 3.3 3.1 12.0
Minority interest - .1 (.2)
------ ------ ------
Income from continuing $ 7.3 $ 5.4 $ 13.7
------ ------ ------
operations
Earnings per common share $.06 $.05 $.12
==== ==== ====
</TABLE>
[FN]
* Pro forma 1994 results assume NL Industries (the Company's
chemicals subsidiary) was consolidated during the 1994 period.
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF CONTINUING OPERATIONS (CONTINUED)
(Unaudited)
Nine months ended September 30, 1994 and 1995
(In millions, except earnings per share)
<TABLE>
<CAPTION>
1994 1995
==================
Actual Pro forma* Actual
-------- ---------- --------
<S> <C> <C> <C>
Net sales
Chemicals $ - $ 664.2 $ 789.7
Refined sugar 353.9 353.9 387.8
Building products 143.0 143.0 154.2
Other 135.4 135.4 143.9
------ -------- --------
$632.3 $1,296.5 $1,475.6
====== ======== ========
Operating income
Chemicals $ - $ 61.2 $ 134.2
Refined sugar 25.0 25.0 18.7
Building products 27.5 27.5 23.1
Other 20.8 20.8 20.0
------ -------- --------
Total operating income 73.3 134.5 196.0
Equity in NL Industries prior to
consolidation (23.5) - -
General corporate items, net (6.7) (32.9) (16.3)
Interest expense (26.0) (89.1) (96.0)
------ -------- --------
Income before income taxes 17.1 12.5 83.7
Income taxes 5.6 9.6 39.9
Minority interest - .6 .3
------ -------- --------
Income from continuing $ 11.5 $ 2.3 $ 43.5
------ -------- --------
operations
Earnings per common share $.10 $.02 $.38
==== ==== ====
</TABLE>
[FN]
* Pro forma 1994 results assume NL Industries (the Company's
chemicals subsidiary) was consolidated during the 1994 period.
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(Unaudited)
(In millions, except earnings per share)
<TABLE>
<CAPTION>
Three months Nine months
ended ended
September 30, September 30,
---------------- ---------------
1994* 1995 1994* 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $232.6 $494.5 $632.3 $1,475.6
====== ====== ====== ========
Operating income $ 26.1 $62.2 $ 73.3 $ 196.0
General corporate items, (1.8) (5.9) (6.7) (16.3)
net
Interest expense (8.2) (30.8) (26.0) (96.0)
------ ------ ------ --------
16.1 25.5 40.6 83.7
Equity in NL Industries
prior to (5.5) - (23.5) -
------ ------ ------ --------
consolidation (*)
Income before income 10.6 25.5 17.1 83.7
taxes
Income taxes 3.3 12.0 5.6 39.9
Minority interest - (.2) - .3
------ ------ ------ --------
Income from continuing
operations 7.3 13.7 11.5 43.5
Discontinued operations (2.7) - (4.6) -
------ ------ ------ --------
Net income $ 4.6 $ 13.7 $ 6.9 $ 43.5
====== ====== ====== ========
Earnings per common share:
Continuing operations $ .06 $.12 $ .10 $.38
Discontinued operations (.02) - (.04) -
----- ---- ----- ----
Net income $ .04 $.12 $ .06 $.38
===== ==== ===== ====
Weighted average common
shares 114.3 114.4 114.3 114.4
----- ----- ----- -----
outstanding
</TABLE>
[FN]
* NL Industries' chemicals operations, consolidated in 1995, were
reported by
the equity method in 1994.
