Business segment information

6 Months Ended

Jun. 30, 2024

Business segment information

Business segment information

Note 2 – Business segment information:

		% controlled at
Business segment	Entity	June 30, 2024
Chemicals	Kronos	81%
Component products	CompX	87%
Real estate management and development	BMI and LandWell	63% - 77%

Our control of Kronos includes approximately 50% we hold directly and approximately 31% held directly by NL. We own approximately 83% of NL. Our control of CompX is through NL. We own approximately 63% of BMI. Our control of LandWell includes the approximately 27% we hold directly and 50% held by BMI.

	Three months ended				Six months ended
	June 30,				June 30,
	2023		2024		2023		2024
	(In millions)
Net sales:
Chemicals	$	443.2	$	500.5	$	869.5	$	979.3
Component products		36.6		35.9		77.8		73.9
Real estate management and development		27.3		23.3		52.5		37.1
Total net sales	$	507.1	$	559.7	$	999.8	$	1,090.3
Cost of sales:
Chemicals	$	399.4	$	400.7	$	795.2	$	808.6
Component products		26.3		24.8		54.8		53.1
Real estate management and development		15.9		12.9		30.2		21.0
Total cost of sales	$	441.6	$	438.4	$	880.2	$	882.7
Gross margin:
Chemicals	$	43.8	$	99.8	$	74.3	$	170.7
Component products		10.3		11.1		23.0		20.8
Real estate management and development		11.4		10.4		22.3		16.1
Total gross margin	$	65.5	$	121.3	$	119.6	$	207.6
Operating income (loss):
Chemicals	$	(2.6)	$	40.5	$	(17.7)	$	63.3
Component products		4.4		5.1		11.4		8.8
Real estate management and development		10.2		9.2		20.8		14.2
Total operating income		12.0		54.8		14.5		86.3
General corporate items:
Interest income and other		4.7		5.5		9.6		11.2
Gain on land sales		1.5		—		1.5		—
Other components of net periodic pension and OPEB expense		(7.5)		(.6)		(8.7)		(1.2)
Changes in market value of Valhi common stock held by subsidiaries		(1.1)		.1		(2.2)		.6
General expenses, net		(9.5)		(10.3)		(17.4)		(18.1)
Interest expense		(7.2)		(11.9)		(14.2)		(23.2)
Income (loss) before income taxes	$	(7.1)	$	37.6	$	(16.9)	$	55.6

Segment results we report may differ from amounts separately reported by our various subsidiaries due to purchase accounting adjustments and related amortization or differences in the way we define operating income. Intersegment sales are not material. Included in the determination of Chemicals operating loss is a business interruption insurance settlement gain of $.5 million and $2.2 million recognized in the second quarter and first six months of 2023, respectively. See Note 12.