Business segment information

9 Months Ended

Sep. 30, 2024

Business segment information

Business segment information

Note 2 – Business segment information:

		% controlled at
Business segment	Entity	September 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				Nine months ended
	September 30,				September 30,
	2023		2024		2023		2024
	(In millions)
Net sales:
Chemicals	$	396.9	$	484.7	$	1,266.4	$	1,464.0
Component products		40.3		33.6		118.1		107.5
Real estate management and development		31.7		15.3		84.2		52.4
Total net sales	$	468.9	$	533.6	$	1,468.7	$	1,623.9
Cost of sales:
Chemicals	$	362.8	$	384.4	$	1,158.0	$	1,193.0
Component products		27.7		24.1		82.5		77.2
Real estate management and development		17.8		8.8		48.0		29.8
Total cost of sales	$	408.3	$	417.3	$	1,288.5	$	1,300.0
Gross margin:
Chemicals	$	34.1	$	100.3	$	108.4	$	271.0
Component products		12.6		9.5		35.6		30.3
Real estate management and development		13.9		6.5		36.2		22.6
Total gross margin	$	60.6	$	116.3	$	180.2	$	323.9
Operating income (loss):
Chemicals	$	(21.8)	$	42.6	$	(39.5)	$	105.9
Component products		6.6		3.3		18.0		12.1
Real estate management and development		17.7		21.8		38.5		36.0
Total operating income		2.5		67.7		17.0		154.0
General corporate items:
Interest income and other		4.9		5.4		14.5		16.6
Gain on remeasurement of investment in TiO2 manufacturing joint venture		—		64.5		—		64.5
Insurance recoveries		.3		1.1		.4		1.3
Gain on land sales		—		—		1.5		—
Other components of net periodic pension and OPEB expense		(1.3)		(.6)		(10.0)		(1.8)
Changes in market value of Valhi common stock held by subsidiaries		.1		3.7		(2.1)		4.3
General expenses, net		(8.8)		(8.5)		(26.3)		(26.8)
Interest expense		(7.2)		(13.4)		(21.4)		(36.6)
Income (loss) before income taxes	$	(9.5)	$	119.9	$	(26.4)	$	175.5

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 $.3 million and $2.5 million recognized in the third quarter and first nine months of 2023, respectively. See Note 12. Infrastructure reimbursements and land related income is included in the determination of Real Estate Management and Development operating income. See Note 12.