DALLAS, Feb. 10, 2011 /PRNewswire/ -- Kronos Worldwide, Inc. (NYSE: KRO) announced today that its board of directors has declared the following dividends:
- a special cash dividend of one dollar ($1.00) per share on its common stock payable on February 28, 2011 to stockholders of record at the close of business on February 21, 2011; and
- a regular quarterly cash dividend of twenty five cents ($0.25) per share on its common stock, payable on March 24, 2011 to stockholders of record at the close of business on March 10, 2011.
Steven L. Watson, Vice Chairman and Chief Executive Officer of Kronos Worldwide, said, "Throughout 2010, global customer demand for our titanium dioxide (TiO2) products continued to strengthen and our production facilities operated at near full practical capacity rates. As a result of improved TiO2 industry conditions, we implemented significant increases in TiO2 selling prices that resulted in increased profitability and cash flows. Even with such increased profitability, we currently believe that profit margins are significantly lower than necessary to reasonably justify green-field or other major expansions of TiO2 capacity. Provided global demand for TiO2 products remains strong, we expect the low level of worldwide TiO2 inventories to continue for several years, and anticipate further implementation of TiO2 selling price increases. Based on these positive market dynamics in the TiO2 industry, we expect our profitability and cash flows to significantly increase in 2011 and the foreseeable future.
As a result the factors noted above, the results of our successful public offering of common stock in the fourth quarter of 2010 and our expectations for the future, we believe we have more than sufficient liquidity to prudently invest in our current operating facilities and business, retain the ability to expand our production capacity, either through the acquisition of certain existing TiO2 facilities that may become available or the construction of new TiO2 facilities when such expansion becomes justified, and responsibly manage our debt. Considering these factors, our management and board of directors have concluded that it is appropriate to declare and pay the special dividend in addition to the continuation of our regular quarterly dividend."