Kronos expects higher operating results for 2024 versus 2023

The company said, “Throughout 2023, Kronos implemented cost reduction initiatives designed to improve its long-term cost structure, including targeted workforce reductions. In April 2024, Kronos announced plans to close the sulfate process line at its facility in Canada, which will further improve gross margins after the charges (primarily non-cash) related to the closure are recognized in the second and third quarters. In this regard, in addition to the approximately $2 million in cash charges related to workforce reductions noted above, Kronos expects to recognize non-cash charges of approximately $10 million in the second quarter and approximately $5 million in the third quarter related to accelerated depreciation. Raw material, energy and other input costs have generally improved compared to 2023. While the full positive impact of input cost improvements and cost reduction efforts are not yet fully reflected in Kronos’ gross margin, Kronos did experience improved gross margins during the second quarter that it expects to build on over the remainder of the year as it replaces higher cost inventory with lower cost inventory produced in 2024. Overall, if Kronos experiences improved demand, higher selling prices and lower production costs, including lower unabsorbed fixed costs, as it currently anticipates, Kronos expects to report higher operating results for the full year of 2024 as compared to 2023.”