Kronos Worldwide (NYSE:KRO) on Friday said it will resume its quarterly dividend in December after improved demand for its products helped the company pay off its debt and increase cash.
The Dallas-based company’s board of directors declared a dividend of 25 cents a share, payable on Dec. 23 to shareholders of record as of Dec. 10.
The specialty chemical company’s chief executive Steven L. Watson said that strong demand for its TiO2 products, which began to accelerate across its regions at the end of last year, led to “increased profitability,” which the company believes will continue through 2011.
“Considering the company's strong liquidity position and expectation of continued improvement in financial results and cash flow, the company's management and board of directors believe it is appropriate to reinstate the company's regular quarterly dividend,” he said.
Also Friday, according to Dow Jones Newswires, the company said it plans to sell at least 7.8 million shares.