Tronox Ltd (NYSE:TROX)’s Operational Excellence Program Is Yielding Results


Tronox Ltd (NYSE:TROX) was a notable mover during Tuesday’s trading session. The stock was higher by close to 0.76% on higher volumes, which were 1.1 times the daily average. The stock seems to have formed a strong bottom near levels of $4.60. The stock was able to breach and close above its 50 day moving average on the back of the price volume action seen during the trading session. The MACD indicator is showing first signs of a reversal indicative of the return of buying interest, which is bullish. Traders see the stock heading to $7.03 in the near term.


Tronox Ltd (NYSE:TROX) reported a robust session driven by its solid third-quarter results. The company’s revenues in the third quarter came in at $575 million as opposed to $429 million in the previous year’s corresponding quarter. Meanwhile, the adjusted EBITDA reported was $86 million, which excluded net non-cash LCM charges to the tune of $5 million. The company’s EBITDA in the previous year stood at $101 million, which excluded non-cash LCM charges of $1 million.

Earnings and performance

Tronox Ltd (NYSE:TROX) posted a net loss of $53 million in the third quarter or $0.46 per share. The company’s net loss narrowed from its second quarter’s net loss of $81 million or $0.70 per share.

On the occasion of the company’s earnings announcement, its chairman and CEO Tom Casey said that the results reflect the cash generating capacity and strength of their two vertically mutually related businesses. As per Casey, the company’s EBITDA and operations showed positive growth in the third quarter. Also, he added that the company’s Operational Excellence program is showing the desired results. Going ahead, Casey anticipates substantial cost reductions in 2016 and 2017 as a result of undertaking the program. He highlighted that the Operational Excellence program aims to provide roughly $600 million in cash during the period between 2015-17.

Dividend declared

Apart from the third-quarter results, Tronox Ltd (NYSE:TROX) also announced a quarterly dividend for the 14th consecutive quarter in a row. The company’s Board of Directors nodded to a dividend payout of $0.25 per share. The dividend payout date has been fixed as December 3, 2015, which will be paid to those shareholders appearing on the company’s records as on November 16, 2015.

In the last trading session, the company’s stock price surged by as much as 11.07% to end the day at $5.82.

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