Tronox, Chemours, Kronos EPS estimates slashed at Barclays (NYSE:TROX)

Tronox (NYSE:TROX), Chemours (NYSE:CC) and Kronos (NYSE:KRO) will see decrease earnings on weaker demand for titanium dioxide, analysts at Barclays mentioned on Tuesday. The financial institution lowered its estimates for the chemical producers after assembly with an business guide and up to date steering from Chemours and Tronox up to now week.

“We see Europe remaining difficult for titanium dioxide producers, because the area offers with the confluence of elevated manufacturing prices, weaker quantity and elevated imports from China,” Michael Leithead, analyst at Barclays, mentioned within the Sept. 27 report.

His staff this week hosted Gerry Colamarino from TiPMC Consulting for a sequence of investor conferences about the marketplace for titanium dioxide, a mineral that’s generally used as a white pigment in shopper merchandise.

Demand for titanium dioxide will decline 10% from a 12 months earlier through the second half of 2022, and should decline as a lot as 30% to 40% in Europe due to recessionary pressures, TiPMC forecasts.

The financial institution maintained scores of Chubby for Tronox, Equal Weight for Chemours and Underweight for Kronos, whereas decreasing value targets for all three firms based mostly on decrease earnings estimates for the present 12 months and subsequent 12-month interval.

Tronox and Chemours are “well-positioned to journey out the downturn” in titanium dioxide demand due to their massive scale, geographic footprint, expertise and operational prices, in line with Barclays. Kronos is most weak to decreased profitability due to its publicity to Europe, the place vitality costs surged as Russia lower provides of pure gasoline.

Chemours and Tronox up to now week lowered their steering due to softer demand in Europe and Asia and better prices for vitality in Europe.