2013 Q3 average TiO2 selling prices decreased 18% as compared to the third quarter of 2012;
2013 Q3 average TiO2 selling prices decreased 21% in the first nine months of the year as compared to the same prior 2012;
2013 Q3 TiO2 sales volumes were approximately 4% higher as compared to the third quarter of 2012;
TiO2 sales volumes were approximately were 8% higher in the first nine months of 2013;
Average TiO2 selling prices at the end of 2013 Q3 were 1% higher than at the end of the second quarter of 2013 and were 7% lower than at the end of 2012;
The Company＇s TiO2 segment profit in the third quarter of 2013 was $2.4 million compared to segment profit of $42.0 million in the third quarter of 2012. Segment profit declined in the third quarter of 2013 primarily due to the net effects of lower average TiO2selling prices, lower raw material costs and higher sales and production volumes.
As expected, the cost of sales per metric ton of TiO2 sold in the third quarter of 2013 was lower than the cost of sales per metric ton of TiO2 sold in the third quarter of 2012, primarily due to lower feedstock ore costs. Our cost of sales per metric ton of TiO2 sold in the first half of 2013 was significantly higher than TiO2 sold in the first half of 2012, as a substantial portion of the TiO2 products we sold in the first quarter of 2013 (and a portion of the TiO2 products we sold in the second quarter of 2013) was produced with significantly higher-cost feedstock ore purchased in 2012.
Kronos' TiO2 production volumes were 15% higher in the third quarter of 2013 as compared to the third quarter of 2012, and were 1% higher in the year-to-date period. During the first nine months of 2013, Kronos operated its facilities at approximately 88% of practical capacity primarily to align production and inventory levels to current and anticipated near-term customer demand levels.
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