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VALHI FOR IMMEDIATE RELEASE Valhi , Inc. Three Lincoln Centre 5430 LBJ Freeway , Suite 1700 Dallas , Texas 75240-2620 PRESS RELEASE CONTACT : Janet G. Keckeisen Vice President - Investor Relations ( 972 ) 233-1700 VALHI REPORTS THIRD QUARTER 2021 RESULTS DALLAS , TEXAS . . November 4 , 2021. Valhi , Inc. ( NYSE : VHI ) reported net income attributable to Valhi stockholders of $ 39.0 million , or $ 1.36 per share , in the third quarter of 2021 compared to net income of $ 15.4 million , or $ .54 per share , in the third quarter of 2020. For the first nine months of 2021 , Valhi reported net income attributable to Valhi stockholders of $ 75.2 million , or $ 2.64 per diluted share compared to net income of $ 30.7 million , or $ 1.08 per diluted share in the first nine months of 2020. Net income attributable to Valhi stockholders increased in the third quarter of 2021 as compared to the third quarter of 2020 primarily due to higher operating results from all of our segments and a gain on the sale of land not used in our operations . Net income attributable to Valhi stockholders increased in the first nine months of 2021 as compared to the first nine months of 2020 primarily due to higher operating results from our Chemicals and Component Products Segments and higher gains on the sale of land not used in our operations . The Chemicals Segment's net sales were $ 499.8 million in the third quarter of 2021 compared to $ 416.9 million in the third quarter of 2020 and $ 1.4 billion in the first nine months of 2021 compared to $ 1.2 billion in the same period of 2020. The Chemicals Segment's net sales increased in the 2021 periods primarily due to higher sales volumes and higher average TiO2 selling prices . The Chemicals Segment's TiO2 sales volumes were 6 % higher in the third quarter of 2021 as compared to the third quarter of 2020 due to higher demand in its European and North American markets and 8 % higher in the first nine months of 2021 compared to the same period in 2020 due to higher demand in all major markets . Increased demand resulted from continuing improvements in global economic activity in the 2021 periods compared to the negative impact from the COVID - 19 pandemic on the same periods in 2020. The Chemicals Segment's average TiO2 selling prices were 11 % higher in the third quarter of 2021 as compared to the third quarter of 2020 and 4 % higher in the first nine months of 2021 as compared to the first nine months of 2020. The Chemicals Segment's average TiO2 selling prices at the end of the third quarter of 2021 were 10 % higher than its average TiO2 selling prices at the end of 2020. Fluctuations in currency exchange rates ( primarily the euro ) also affected net sales comparisons , increasing our Chemicals Segment's net sales by approximately $ 5 million in the third quarter of 2021 and approximately $ 47 million in the first nine months of 2021 as compared to the third quarter and first nine months of 2020. The table at the end of this press release shows how each of these items impacted our Chemical Segment's net sales . The Chemicals Segment's operating income in the third quarter of 2021 was $ 60.3 million as compared to $ 21.6 million in the third quarter of 2020 and $ 145.4 million for the nine months ended September 30 , 2021 compared to $ 104.3 million for the same prior year period . The Chemicals Segment's operating income increased in the 2021 periods primarily due to higher average TiO2 selling prices and higher sales volumes , partially offset by higher manufacturing and other production costs , including higher costs for raw materials and energy . The Chemicals Segment's TiO2 production volumes were 13 % higher in the third quarter of 2021 as compared to the third quarter of 2020 and 4 % higher in the year - to - date period . The Chemicals Segment decreased production levels in 2020 ( primarily in the third quarter ) to correspond to the temporary decline in demand resulting from the COVID- 19 pandemic . The Chemicals Segment operated its production facilities at overall average capacity utilization rates of 99 % in the first nine months of 2021 ( 97 % , 100 % and 100 % in the first , second and third quarters of 2021 , respectively ) compared to 92 % in 2020 ( 95 % , 96 % and 86 % in the first , second and third quarters of 2020 , respectively ) . Fluctuations in currency exchange rates ( primarily the euro ) increased operating income by approximately $ 2 million in the third quarter of 2021 as compared to the third quarter of 2020. Fluctuations in currency exchange rates ( primarily the Canadian dollar ) also affected the year - to - date operating income comparison , which decreased operating income by approximately $ 15 million in the year - to - date 2021 period as compared to the same period of 2020 . Page 1 of 6