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
April 28, 2000
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(Date of Report, date of earliest event reported)
VALHI, INC.
(Exact name of Registrant as specified in its charter)
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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
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(Address of principal executive offices) (Zip Code)
(972) 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)
<PAGE>
Item 5: Other Events
On April 28, 2000, 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 April 28, 2000
issued by the Registrant
<PAGE>
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/ Bobby D. O'Brien
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Bobby D. O'Brien
Vice President
Date: April 28, 2000
[LOGO GOES HERE]
PRESS RELEASE
FOR IMMEDIATE RELEASE CONTACT:
VALHI, INC. Bobby D. O'Brien
THREE LINCOLN CENTRE Vice President
5430 LBJ FREEWAY, SUITE 1700 (972) 233-1700
DALLAS, TEXAS 75240-2697
((72) 233-1700
VALHI REPORTS FIRST QUARTER RESULTS
DALLAS, TEXAS . . April 28, 2000. Valhi, Inc. (NYSE: VHI) reported net
income of $10.5 million, or $.09 per diluted share, in the first quarter of 2000
compared to net income of $2.4 million, or $.02 per diluted share, in the first
quarter of 1999. Total operating income in the first quarter of 2000 increased
38% to $49.1 million compared to the first quarter of 1999 due principally to
higher chemicals earnings at NL Industries.
Chemicals sales and operating income in the first quarter of 2000
increased compared to the first quarter of 1999 due primarily to record
first-quarter sales volumes for titanium dioxide pigments ("TiO2") and strong
TiO2 production volumes. NL's first quarter 2000 sales volumes increased 24%
from the first quarter of 1999 and was even with the fourth quarter of last
year, reflecting sustained strong demand in all major regions. NL's production
volumes in the first quarter of 2000 were 16% higher than the comparable period
in 1999, with utilization rates near full capacity versus 86% capacity
utilization in the first quarter of 1999. NL's average TiO2 selling prices in
the first quarter of 2000 were even with the first quarter of 1999, and were 3%
higher than the fourth quarter of 1999. During the first quarter of 2000, NL was
able to increase its TiO2 selling prices, and NL also announced new price
increases in Europe that are effective in the second quarter of this year. As NL
goes into its seasonally strong second quarter, NL believes TiO2 industry
fundamentals are good and that demand for TiO2 will remain strong in the near
term, resulting in continued upward pressure on selling prices.
Component products sales and operating income increased in the first
quarter of 2000 compared to the same period in 1999 due primarily to increased
demand for CompX's office furniture products, market share gains for its slide
products and the effect of acquisitions. Excluding the effect of acquisitions,
component products sales increased 7% in the first quarter of 2000 compared to
the first quarter of 1999, with sales of slides increasing 13%, ergonomic
products sales increasing 7% and sales of security products essentially flat.
During the first quarter of 2000, weakness in the Euro negatively impacted
component products sales and operating income comparisons. Excluding the effect
of currency and acquisitions, component products sales increased 9% over the
first quarter of 1999.
As previously-reported, the Company commenced consolidating the results
of operations of its waste management subsidiary, Waste Control Specialists, in
the third quarter of 1999. The waste management operations reported a lower
operating loss in the first quarter of 2000 compared to the first quarter of
1999 due in part to the favorable effect of certain cost control measures
implemented in the second half of 1999. Also as previously-reported, the Company
commenced consolidating the results of operations of Tremont Corporation
effective January 1, 2000. Tremont is primarily a holding company which directly
owns 20% of NL and 39% of Titanium Metals Corporation ("TIMET"). TIMET's
operating results in the first quarter of 2000 continued to be impacted by lower
sales volumes and selling prices for its titanium mill products. TIMET's results
in the first quarter of 2000 also include $9.2 million of special items
consisting of restructuring, equipment-related impairment and environmental
remediation charges aggregating $10.4 million, offset by a $1.2 million gain
from the sale of its castings joint venture. The restructuring charge relates to
personnel reductions of about 250 employees, approximately two-thirds of which
were accomplished as of March 31, 2000, with substantially all of the remainder
expected to be accomplished by the end of June 2000.
Interest expense declined due primarily to a lower level of outstanding
indebtedness and lower European borrowing rates for NL.
The statements in this release relating to matters that are not
historical facts are forward-looking statements that represent management's
belief and assumptions based on currently available information. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it 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,
the Company continues to face many risks and uncertainties. Among the factors
that could cause actual future results to differ materially include, but are not
limited to, future supply and demand for the Company's products, the extent of
the dependence of certain of the Company's businesses on certain market sectors,
the cyclicality of certain of the Company's businesses, the impact of certain
long-term contracts with customers and vendors on certain of the Company's
businesses and such customers and vendors performance thereunder, customer
inventory levels, the possibility of labor disruptions, general global economic
conditions, competitive products and substitute products, customer and
competitor strategies, the impact of pricing and production decisions,
competitive technology positions, potential difficulties in integrating
completed acquisitions, environmental matters, governmental regulations and
possible changes therein, the ultimate resolution of pending litigation and
possible future litigation. Should one or more of these risks materialize (or
the consequences of such a development worsen), or should the underlying
assumptions prove incorrect, actual results could differ materially from those
forecasted or expected. The Company disclaims any intention or obligation to
update or revise any forward-looking statement whether as a result of new
information, future events or otherwise.
Valhi, Inc. is engaged in the titanium dioxide pigments, component
products (ergonomic computer support systems, precision ball bearing slides and
security products), titanium metals products and waste management industries.
* * * * *
<PAGE>
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(Unaudited)
Quarters ended March 31, 1999 and 2000
(In millions, except earnings per share)
<TABLE>
<CAPTION>
1999 2000
---- ----
Net sales
<S> <C> <C>
Chemicals .......................................... $ 201.6 $ 231.0
Component products ................................. 55.2 66.1
Waste management (after consolidation) ............. -- 4.6
------- -------
$ 256.8 $ 301.7
Operating income
Chemicals .......................................... $ 26.0 $ 39.8
Component products ................................. 9.5 10.9
Waste management (after consolidation) ............. -- (1.6)
------- -------
Total operating income ........................... 35.5 49.1
Equity in
TIMET .............................................. -- (4.3)
Other .............................................. -- .3
Waste Control Specialists* ......................... (5.2) --
Tremont Corporation* ............................... (.7) --
General corporate items, net ......................... 4.2 3.9
Interest expense ..................................... (18.4) (17.3)
------- -------
Income before income taxes ....................... 15.4 31.7
Provision for income taxes ........................... 5.1 14.8
Minority interest in after-tax earnings .............. 7.9 6.4
------- -------
Net income ....................................... $ 2.4 $ 10.5
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Basic and diluted earnings per share ................. $ .02 $ .09
======= =======
Shares used in calculation of per share amounts
Basic earnings ..................................... 115.0 115.1
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Diluted earnings ................................... 116.2 116.2
======= =======
</TABLE>
*Prior to consolidation.
