 Dallas, Texas, Aug. 05, 2020 GLOBE NEWSWIRE -- NL Industries, Inc. NYSE: NL today reported net income attributable to NL stockholders of 4.6 million, or .09 per share, in the second quarter of 2020 compared to net income attributable to NL stockholders of 5.9 million, or .12 per share, in the second quarter of 2019. For the first six months of 2020, NL reported net income attributable to NL stockholders of 6.5 million, or .13 per share, compared to net income of 21.1 million, or .43 per share for the first six months of 2019. NL results include an unrealized loss of 14.3 million in the first six months of 2020 related to the change in value of marketable equity securities compared to a 14.9 million unrealized gain in the first six months of 2019. NL also recognized a pre-tax litigation settlement expense of 19.6 million .32 per share, net of income tax benefit in the second quarter of 2019.CompX net sales were 23.8 million for the second quarter of 2020 compared to 33.7 million in the second quarter of 2019 and 56.1 million for the six months ended June 30, 2020 compared to 64.9 million for the same prior year period. Income from operations attributable to CompX was 2.4 million for the second quarter of 2020 compared to 5.6 million for the second quarter of 2019 and 7.4 million for the first six months of 2020 compared to 9.9 million for the same prior year period. The COVID-19 pandemic impacted CompXs operations during the second quarter of 2020 due to government mandated closures and reduced demand for its products which resulted in a decrease in net sales and operating income in the second quarter and for the first six months of 2020 compared to the same periods in 2019. NL recognized equity in earnings of Kronos of 5.7 million in the second quarter of 2020 compared to 9.0 million in the same period of 2019 and 13.9 million in the first six months of 2020 compared to 18.2 million in the same period of 2019. Kronos net sales of 386.0 million in the second quarter of 2020 were 98.5 million, or 20, lower than in the second quarter of 2019. Kronos net sales of 807.0 million in the first six months of 2020 were 114.0 million, or 12, lower than in the first six months of 2019. Kronos net sales decreased in the 2020 periods primarily due to lower sales volumes and lower average TiO2 selling prices. Kronos TiO2 sales volumes were 22 lower in the second quarter of 2020 as compared to the second quarter of 2019 and 14 lower in the first six months of 2020 as compared to the same prior year period due to lower sales volumes in all major markets primarily due to demand contraction related to the COVID-19 pandemic. Kronos average TiO2 selling prices were 1 lower in the second quarter and first six months of 2020 as compared to the same periods in 2019. Kronos average TiO2 selling prices at the end of the second quarter of 2020 were comparable to the end of the first quarter of 2020. Fluctuations in currency exchange rates primarily the euro also affected net sales comparisons, decreasing net sales by approximately 4 million in the second quarter of 2020 and approximately 11 million in the first six months of 2020 as compared to the same periods in 2019. Kronos income from operations in the second quarter of 2020 was 33.0 million as compared to 46.5 million in the second quarter of 2019. For the year-to-date period, Kronos income from operations was 76.5 million as compared to 95.5 million in the first six months of 2019. Kronos income from operations decreased in the 2020 periods primarily due to the unfavorable effects of lower sales volumes, lower average TiO2 selling prices and higher raw materials and other production costs. Kronos TiO2 production volumes were 2 lower in the second quarter and year-to-date periods of 2020 as compared to the same periods in 2019. Kronos operated its production facilities at overall average capacity utilization rates of 95 in the first six months of 2020 95 and 96 in the first and second quarters of 2020, respectively compared to 97 in 2019 97 in the first and second quarters of 2019. Fluctuations in currency exchange rates also affected the year-to-date income from operations comparison, which increased income from operations by approximately 11 million in the year-to-date 2020 period as compared to the same period of 2019. Fluctuations in currency exchange rates had a nominal effect on the second quarter income from operations comparison.Corporate expenses decreased 1.1 million in the second quarter of 2020 compared to the second quarter of 2019 primarily due to lower litigation fees and related costs. Corporate expenses decreased .7 million in the first six months of 2020 compared to the same period of 2019 primarily due to lower litigation fees and related costs partially offset by higher environmental remediation and related costs. We recognized an additional 19.6 million pre-tax litigation settlement expense in the second quarter of 2019 for a settlement agreement that was approved by the court in July 2019. Insurance recoveries represent amounts we receive from certain of our former insurance carriers and generally relate to the recovery of past lead pigment and asbestos litigation defense costs we have incurred. Substantially all of the insurance recoveries we recognized in the second quarter of 2019 relate to a settlement we reached with a single insurance carrier that agreed to reimburse us for a portion of our past and future litigation defense costs. Such insurance recoveries aggregated 5.0 million 3.9 million, or .08 per share, net of income tax expense in the first six months of 2019. Interest and dividend income decreased 1.6 million in the second quarter and 2.0 million in the first six months of 2020 compared to the prior year periods primarily due to lower average outstanding balances under CompXs revolving promissory note receivable from Valhi and lower average interest rates partially offset by higher cash and cash equivalents and restricted cash and cash equivalents balances available for investment. Marketable equity securities represent unrealized gains losses on our portfolio of marketable equity securities during the periods.Our results of operations for the second quarter of 2020 were significantly impacted by the COVID-19 pandemic, specifically through reduced demand for many of CompX and Kronos products resulting from the rapid contraction of vast areas of the global economy. The extent of the COVID-19 impact on our future operations will depend on the time period and degree to which the COVID-19 pandemic persists in the global economy thereby reducing customer demand for certain of CompX and Kronos products, including the timing and extent to which CompX and Kronos customers operations continue to be impacted, their customers perception as to when consumer demand for their products will return to pre-pandemic levels and on any future disruptions in their operations or their suppliers operations, all of which are difficult to predict.The statements in this release relating to matters that are not historical facts are forward-looking statements that represent managements beliefs and assumptions based on currently available information. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those described in such forward-looking statements. While it is not possible to identify all factors, we continue to face many risks and uncertainties. Factors that could cause actual future results to differ materially include, but are not limited to: Future supply and demand for our products The extent of the dependence of certain of our businesses on certain market sectors The cyclicality of our businesses such as Kronos TiO2 operations Customer and producer inventory levels Unexpected or earlier-than-expected industry capacity expansion such as the TiO2 industry Changes in raw material and other operating costs such as energy, ore, zinc, aluminum, steel and brass costs and our ability to pass those costs on to our customers or offset them with reductions in other operating costs Changes in the availability of raw material such as ore General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material costs or reduce demand or perceived demand for Kronos TiO2 and our products or impair our ability to operate our facilities including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises such as COVID-19 Competitive products and substitute products Price and product competition from low-cost manufacturing sources such as China Customer and competitor strategies Potential consolidation of Kronos competitors Potential consolidation of Kronos customers The impact of pricing and production decisions Competitive technology positions Our ability to protect or defend intellectual property rights Potential difficulties in integrating future acquisitions Potential difficulties in upgrading or implementing accounting and manufacturing software systems The introduction of trade barriers or trade disputes The impact of current or future government regulations including employee healthcare benefit related regulations Fluctuations in currency exchange rates such as changes in the exchange rate between the U.S. 