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
July 25, 1996
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(Date of Report, date of earliest event reported)
VALHI, INC.
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(Exact name of Registrant as specified in its charter)
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Delaware 1-5467 87-0110150
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
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(Address of principal executive offices) (Zip Code)
(214) 233-1700
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(Registrant's telephone number, including area code)
Not applicable
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(Former name or address, if changed since last report)
Item 5: Other Events
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On July 25, 1996, the Registrant issued the press release attached
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hereto as Exhibit 99.1 which is incorporated herein by reference.
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Item 7: Financial Statements, Pro Forma Financial Information
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and Exhibits
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(c) Exhibit
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Item No. Exhibit Index
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99.1 Press release dated July 25, 1996
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issued by the Registrant
SIGNATURES
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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)
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By: /s/ Steven L. Watson
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Steven L. Watson
Vice President & Secretary
Date: July 25, 1996
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VALHI REPORTS SECOND QUARTER RESULTS
DALLAS, TEXAS . . . July 25, 1996. . . Valhi, Inc. (NYSE: VHI) reported net
income of $8.8 million, or $.08 per share, for the second quarter of 1996
compared to net income of $17.4 million, or $.15 per share, in the second
quarter of 1995. For the first six months of 1996, net income of $3.1 million,
or $.03 per share, includes a first quarter after-tax charge of approximately
$15 million to close Medite's New Mexico medium density fiberboard ("MDF")
plant. Net income was $29.8 million, or $.26 per share, in the first half of
1995.
Chemicals earnings at 55%-owned NL Industries declined in 1996 from the
year-ago periods due to lower selling prices and lower production volumes of
titanium dioxide pigments ("TiO2"). Average TiO2 selling prices for the second
quarter of 1996 were 7% lower than the second quarter of 1995 and 6% lower than
the first quarter of this year. Selling prices at the end of the second quarter
of 1996 were 2% lower than the average for the quarter. Second quarter TiO2
sales volumes increased 4% compared with the second quarter of 1995 due to
improved U.S. sales volumes. Based on the current TiO2 industry outlook, the
Company expects its earnings for the third and fourth quarters of 1996 will be
significantly lower than the second quarter.
Average sugar selling prices for the second quarter of 1996 were up 5%
compared to the 1995 second quarter and were up 3% for the six-month period of
1996. Sales volumes were down 4% year-to-date, reflecting a smaller crop, and
second quarter 1996 volume was down 19% from last year, also reflecting the
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relative timing of sales within the crop years. Refined sugar earnings
comparisons were also adversely impacted in 1996 by relative LIFO inventory
changes, with such LIFO adjustments reducing operating income for the second
quarter by approximately $4 million ($7 million year-to-date) compared to last
year.
Building products results were adversely affected by Medite's first quarter
plant closure charge and MDF selling prices 18% below levels of the first half
of last year. Second quarter 1996 MDF prices approximated those of the first
quarter of this year. In other operations, fast food earnings improved with
hardware products earnings down slightly.
Net corporate expenses in the second quarter of 1996 includes a $2.8
million gain related to the settlement of certain litigation of which NL was a
plaintiff. Minority interest in the 1996 periods consists principally of NL
dividends paid to stockholders other than Valhi.
The statements in this release relating to matters that are not historical
facts are forward looking statements that involve risks and uncertainties,
including, but not limited to, future supply and demand for the Company's
products (including cyclicality thereof), general economic conditions, changes
in government regulations, competitive products and substitute products,
customer and competitor strategies, the impact of pricing and production
decisions, environmental matters, the ultimate resolution of pending litigation
and any possible future litigation and other risks and uncertainties detailed in
the Company's SEC filings.
Valhi, Inc. is a major producer of TiO2, refined sugar, building products
and other products.
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VALHI, INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(Unaudited)
(In millions, except earnings per share)
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<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1996 1995 1996
<S> <C> <C> <C> <C>
NET SALES
Chemicals $283.4 $263.2 $534.3 $503.6
Refined sugar 132.6 108.5 243.8 235.6
Building products 49.4 48.1 108.0 94.6
Other 48.1 51.0 95.0 99.8
$513.5 $470.8 $981.1 $933.6
OPERATING INCOME
Chemicals $ 52.1 $ 30.8 $ 89.0 $ 67.4
Refined sugar 6.3 3.9 12.7 12.6
Building products 8.3 5.6 18.6 (16.9)
Other 6.9 7.4 13.5 13.4
TOTAL OPERATING INCOME 73.6 47.7 133.8 76.5
Equity in Waste Control Specialists - (1.3) - (2.4)
General corporate items, net (6.9) (.3) (10.4) (4.4)
Interest expense (32.4) (28.8) (65.2) (59.0)
Income before income taxes 34.3 17.3 58.2 10.7
Income taxes 16.7 6.2 27.9 3.0
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Minority interest .2 2.3 .5 4.6
NET INCOME $ 17.4 $ 8.8 $ 29.8 $ 3.1
NET INCOME PER COMMON SHARE $.15 $.08 $.26 $.03
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 114.6 114.6
114.4 114.4
</TABLE>
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