KRO experienced a dramatic financial deterioration with net income swinging from $86.2M profit to $110.9M loss, while cash position collapsed 69% to $33.2M.
This represents a fundamental business crisis with the company moving from strong profitability to significant losses while burning through most of its cash reserves. The combination of operational losses and severely weakened liquidity position raises immediate concerns about the company's ability to fund operations and meet obligations.
KRO's financial performance collapsed across all key metrics, with net income declining 229% from an $86.2M profit to a $110.9M loss, driven by a 41% drop in gross profit and the company moving to an operating loss of $36.5M. The company's cash position deteriorated dramatically, falling 69% to just $33.2M while operating cash flow evaporated from $72.5M to $2.5M, yet capital expenditures increased 45% to $42.9M. This combination of massive losses, cash burn, and reduced liquidity creates a potentially critical financial situation that threatens the company's operational sustainability.
Net income declined 228.7% — review whether driven by operations, interest costs, or non-recurring items.
Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.
Operating cash flow fell 96.6% — earnings quality concerns; investigate working capital changes and non-cash items.
Cash declined 68.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.
Capital expenditure jumped 45.4% — major investment cycle underway; assess returns on deployment.
Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.
Share repurchases increased 26.1% — management returning capital, signals confidence in intrinsic value.
Current liabilities reduced — improved short-term financial position and working capital health.
R&D investment increased 14.3% — signals commitment to future product development, though near-term margin impact.
Current assets declined 10% — monitor working capital adequacy and short-term liquidity.
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