| **UNITED                STATES**                                                                                                                                                                                                                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **SECURITIES                AND EXCHANGE COMMISSION**                                                                                                                                                                                                        |
| **Washington,                D.C. 20549**                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                         |
| **FORM                10-Q**                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                         |
| **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF****THE                SECURITIES EXCHANGE ACT OF 1934**                                                                                                                                       |
|                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                         |
| ** For                the quarter ended September 30, 2007**                                                                                                                                                                                            |
| **Commission                file number 1-31763**                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                         |
| **KRONOS                WORLDWIDE, INC.**                                                                                                                                                                                                                    |
| **(Exact                name of Registrant as specified in its                charter)**                                                                                                                                                                     |
|                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                         |
| **    DELAWARE                                    ** | **    76-0294959   ** |
| **(State                or other jurisdiction of****incorporation                or organization)**                                                                                                                                                          | **(IRS                Employer Identification No.)** |
| ** **                                                                                                                                                                                                                                              |
| ** **                                                                                                                                                                                                                                              |
| **5430                LBJ Freeway,  Suite 1700**                                                                                                                                                                                                   |
| **       Dallas,                Texas   75240-2697       **                                                                                                             |
| **(Address                of principal executive offices)**                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                         |
| ** **                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                         |
| **Registrant's                telephone number, including area                code:          (972) 233-1700  **                                                                             |
|                                                                                                                                                                                                                                                         |

**Indicate      by check mark whether the Registrant (1) has filed all reports required to      be      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during      the      preceding 12 months and (2) has been subject to such filing requirements for      the      past 90 days.  Yes X      No   **

**Indicate      by check mark whether the Registrant is a large accelerated filer, an      accelerated filer or a non-accelerated filer (as defined in Rule 12b-2 of the      Securities Exchange Act of 1934).  Large accelerated filer    Accelerated filer  X       Non-accelerated filer    **

**Indicate      by check mark whether the Registrant is a shell company (as defined in Rule      12b-2 of the Act).  Yes     No X **

**Number      of shares of the Registrant's common stock outstanding on October 31, 2007:      48,956,549.**

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**INDEX**

|                                                                                                                               |                                                                            | **Page**   |
|------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|------------|
|                                                                                                                               |                                                                            | **number** |
|                                                                                                                               |                                                                            |       |
| **Part                I.**                                                                                                         | **FINANCIAL                INFORMATION**                                        |       |
|                                                                                                                               |                                                                            |       |
| Item                1.                                                                                                             | Financial                Statements                                             |       |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               | Condensed                Consolidated Balance Sheets -                          |       |
|                                                                                                                               | December                31, 2006; September 30, 2007 (Unaudited)                | 3          |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               | Condensed                Consolidated Statements of Operations (Unaudited) -    |       |
|                                                                                                                               | Three                and nine months ended September 30, 2006 (As adjusted);    |       |
|                                                                                                                               | Three                and nine months ended September 30, 2007                   | 5          |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               | Condensed                Consolidated Statement of Stockholders'                |       |
|                                                                                                                               | Equity                and Comprehensive Income (Loss) (Unaudited) –       |       |
|                                                                                                                               | Nine                months ended September 30, 2007                             | 6          |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               | Condensed                Consolidated Statements of Cash Flows (Unaudited) -    |       |
|                                                                                                                               | Nine                months ended September 30, 2006 (As adjusted);              |       |
|                                                                                                                               | Nine                months ended September 30, 2007                             | 7          |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               | Notes                to Condensed Consolidated Financial Statements (Unaudited) | 8          |
|                                                                                                                               |                                                                            |       |
| Item                2.                                                                                                             | Management's                Discussion and Analysis of Financial                |       |
|                                                                                                                               | Condition                and Results of Operations                              | 14         |
|                                                                                                                               |                                                                            |       |
| Item                3.                                                                                                             | Quantitative                and Qualitative Disclosure About Market Risk        | 23         |
|                                                                                                                               |                                                                            |       |
| Item                4.                                                                                                             | Controls                and Procedures                                          | 23         |
|                                                                                                                               |                                                                            |       |
| **Part                II.**                                                                                                        | **OTHER                INFORMATION**                                            |       |
|                                                                                                                               |                                                                            |       |
| Item                1.                                                                                                             | Legal                Proceedings                                                | 25         |
|                                                                                                                               |                                                                            |       |
| Item                1A.                                                                                                            | Risk                Factors                                                     | 25         |
|                                                                                                                               |                                                                            |       |
| Item                6.                                                                                                             | Exhibits                                                                        | 25         |
|                                                                                                                               |                                                                            |       |
|                                                                                                                               |                                                                            |       |
| Items                2, 3, 4 and 5 of Part II are omitted because there is no information                to                report. |                                                                            |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(In      millions)**

|               **ASSETS** |   | **December                31,** |    |   | **September                30,** |       |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|--------|----------------------------------|------------|
|                                                                                           |   | **2006**                        |    |   | **2007**                         |       |
|                                                                                           |   |                            |    |   | **(Unaudited)**                  |       |
|                                                                                           |   |                            |    |   |                             |       |
| Current                assets:                                                                 |   |                            |    |   |                             |       |
| Cash                and cash equivalents                                                       |   | $                               | 63.3    |   |                             | **$**      | **86.9** |   |
| Restricted                cash                                                                 |   |                            | 1.5     |   |                             | ** ** | **1.1** |   |
| Accounts                and other receivables, net                                             |   |                            | 203.8   |   |                             | ** ** | **267.1** |   |
| Inventories,                net                                                                |   |                            | 286.5   |   |                             | ** ** | **288.6** |   |
| Prepaid                expenses and other                                                      |   |                            | 5.7     |   |                             | ** ** | **10.5** |   |
| Deferred                income taxes                                                           |   |                            | 2.1     |   |                             | ** ** | **1.4** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Total                current assets                                                            |   |                            | 562.9   |   |                             | ** ** | **655.6** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Other                assets:                                                                   |   |                            |    |   |                             |       |   |   |
| Investment                in TiO2                manufacturing joint venture                   |   |                            | 113.6   |   |                             | ** ** | **117.5** |   |
| Deferred                income taxes                                                           |   |                            | 264.4   |   |                             | ** ** | **193.6** |   |
| Other                                                                                          |   |                            | 18.6    |   |                             | ** ** | **18.9** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Total                other assets                                                              |   |                            | 396.6   |   |                             | ** ** | **330.0** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Property                and equipment:                                                         |   |                            |    |   |                             |       |   |   |
| Land                                                                                           |   |                            | 35.7    |   |                             | ** ** | **38.2** |   |
| Buildings                                                                                      |   |                            | 203.2   |   |                             | ** ** | **223.7** |   |
| Equipment                                                                                      |   |                            | 884.7   |   |                             | ** ** | **971.9** |   |
| Mining                properties                                                               |   |                            | 82.1    |   |                             | ** ** | **93.7** |   |
| Construction                in progress                                                        |   |                            | 17.9    |   |                             | ** ** | **41.0** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
|                                                                                           |   |                            | 1,223.6 |   |                             | ** ** | **1,368.5** |   |
| Less                accumulated depreciation and amortization                                  |   |                            | 761.6   |   |                             | ** ** | **871.1** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Net                property and equipment                                                      |   |                            | 462.0   |   |                             | ** ** | **497.4** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |
| Total                assets                                                                    |   | $                               | 1,421.5 |   |                             | **$**      | **1,483.0** |   |
|                                                                                           |   |                            |    |   |                             |       |   |   |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

**(In      millions)**

| **LIABILITIES                AND STOCKHOLDERS' EQUITY**         |   | **December                31,**** 2006** |    |   | **September                30,**** 2007** |       |
|-----------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|------------------------------------------------|------------|
|                                                            |   |                                          |    |   | **(Unaudited)**                                |       |
|                                                            |   |                                          |    |   |                                           |       |
| Current                liabilities:                             |   |                                          |    |   |                                           |       |
| Current                maturities of long-term debt             |   | $                                             | .9      |   |                                           | **$**      | **23.4** |   |
| Accounts                payable and accrued liabilities         |   |                                          | 166.1   |   |                                           | ** ** | **203.6** |   |
| Income                taxes                                     |   |                                          | 10.3    |   |                                           | ** ** | **21.9** |   |
| Deferred                income taxes                            |   |                                          | 2.2     |   |                                           | ** ** | **1.6** |   |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Total                current liabilities                        |   |                                          | 179.5   |   |                                           | ** ** | **250.5** |   |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Noncurrent                liabilities:                          |   |                                          |    |   |                                           |       |   |   |
| Long-term                debt                                   |   |                                          | 535.3   |   |                                           | ** ** | **568.1** |   |
| Deferred                income taxes                            |   |                                          | 47.3    |   |                                           | ** ** | **50.8** |   |
| Accrued                pension costs                            |   |                                          | 185.9   |   |                                           | ** ** | **195.1** |   |
| Accrued                postretirement benefit (OPEB) costs      |   |                                          | 9.8     |   |                                           | ** ** | **11.7** |   |
| Other                                                           |   |                                          | 15.3    |   |                                           | ** ** | **30.2** |   |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Total                noncurrent liabilities                     |   |                                          | 793.6   |   |                                           | ** ** | **855.9** |   |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Stockholders'                equity:                            |   |                                          |    |   |                                           |       |   |   |
| Common                stock                                     |   |                                          | .5      |   |                                           | ** ** | **.5** |   |
| Additional                paid-in capital                       |   |                                          | 1,061.6 |   |                                           | ** ** | **1,061.7** |   |
| Retained                deficit                                 |   |                                          | (406.3  | )      |                                           | ** ** | **(513.5** | **)** |
| Accumulated                other comprehensive loss             |   |                                          | (207.4  | )      |                                           | ** ** | **(172.1** | **)** |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Total                stockholders' equity                       |   |                                          | 448.4   |   |                                           | ** ** | **376.6** |   |
|                                                            |   |                                          |    |   |                                           |       |   |   |
| Total                liabilities and stockholders’ equity |   | $                                             | 1,421.5 |   |                                           | **$**      | **1,483.0** |   |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In      millions, except per share data)**

|                                                                                                                                          |   | **Three                months ended** |      |   | **Nine                months ended** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------|------------|
|                                                                                                                                          |   | **September                30,**      |      |   | **September                30,**     |       |
|                                                                                                                                          |   | **2006**                              |      |   | **2007**                             |       |   | **2006** |   |   | **2007** |   |
|                                                                                                                                          |   | **(As                adjusted)**      |      |   |                                 |       |   | **(As                adjusted)** |   |   |   |   |
|                                                                                                                                          |   | **(Unaudited)**                       |      |
|                                                                                                                                          |   |                                  |      |
| Net                sales                                                                                                                      |   | $                                     | 331.6     |   |                                 | **$**      | **343.3** |   |   | $ | 981.0 |   |   | **$** | **999.9** |   |
| Cost                of sales                                                                                                                  |   |                                  | 255.3     |   |                                 | ** ** | **276.4** |   |   |   | 748.0 |   |   | ** ** | **799.0** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Gross                margin                                                                                                                   |   |                                  | 76.3      |   |                                 | ** ** | **66.9** |   |   |   | 233.0 |   |   | ** ** | **200.9** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Selling,                general and administrative expense                                                                                    |   |                                  | 39.4      |   |                                 | ** ** | **41.8** |   |   |   | 118.5 |   |   | ** ** | **121.9** |   |
| Other                operating expense, net                                                                                                   |   |                                  | (1.7      | )      |                                 | ** ** | **(3.0** | **)** |   |   | (8.3 | ) |   | ** ** | **(4.0** | **)** |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Income                from operations                                                                                                         |   |                                  | 35.2      |   |                                 | ** ** | **22.1** |   |   |   | 106.2 |   |   | ** ** | **75.0** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                                                                                                        |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                                                                |   |                                  | .8        |   |                                 | ** ** | **.7** |   |   |   | 2.7 |   |   | ** ** | **1.7** |   |
| Loss                on prepayment of debt                                                                                                     |   |                                  | -         |   |                                 | ** ** | **-** |   |   |   | (22.3 | ) |   | ** ** | **-** |   |
| Interest                expense                                                                                                               |   |                                  | (9.7      | )      |                                 | ** ** | **(10.0** | **)** |   |   | (33.5 | ) |   | ** ** | **(29.3** | **)** |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Income                before income taxes                                                                                                     |   |                                  | 26.3      |   |                                 | ** ** | **12.8** |   |   |   | 53.1 |   |   | ** ** | **47.4** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Provision                for income taxes                                                                                                     |   |                                  | 14.1      |   |                                 | ** ** | **94.0** |   |   |   | 12.4 |   |   | ** ** | **115.7** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                                              |   | $                                     | 12.2      |   |                                 | **$**      | **(81.2** | **)** |   | $ | 40.7 |   |   | **$** | **(68.3** | **)** |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net income (loss) per                share                                                              |   | $                                     |  .25 |   |                                 | **$**      | **(1.66** | **)** |   | $ | .83 |   |   | **$** | **(1.40** | **)** |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Cash                dividends per share                                                                                                       |   | $                                     |  .25 |   |                                 | **$**      | **.25** |   |   | $ | .75 |   |   | **$** | **.75** |   |
|                                                                                                                                          |   |                                  |      |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted weighted-average shares used in the calculation of net                income                (loss) per share |   |                                  | 49.0      |   |                                 | ** ** | **49.0** |   |   |   | 49.0 |   |   | ** ** | **49.0** |   |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME      (LOSS)**

**Nine      months ended September 30, 2007**

**(In      millions)**

|                                                                       |   |                      |   |   | **Additional**               |   |    |                          |   |   | **Accumulated****other**                          |   |   | **Total**                         |   |   |                            |   |
|----------------------------------------------------------------------------|--------|---------------------------|--------|--------|------------------------------|--------|---------|-------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
|                                                                       |   | **Common**** stock** |   |   | **paid-in**** capital** |   |    | **Retained**** deficit** |   |   | **comprehensive****income                (loss)** |   |   | **stockholders'**** equity** |   |   | **Comprehensive**** loss** |   |
|                                                                       |   | **(Unaudited)**           |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |
| Balance                at December 31, 2006                                |   | $                         | .5     |   |                         | $      | 1,061.6 |                          |   | $      | (406.3                                            | )      |   | $                                 | (207.4 | )      |                            | $      | 448.4 |   |   |   |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |
| Net                loss                                                    |   |                      | -      |   |                         |   | -       |                          |   |   | (68.3                                             | )      |   |                              | -      |   |                            |   | (68.3 | ) |   | $ | (68.3 | ) |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Other                comprehensive income, net                             |   |                      | -      |   |                         |   | -       |                          |   |   | -                                                 |   |   |                              | 35.3   |   |                            |   | 35.3 |   |   |   | 35.3 |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Dividends                                                                  |   |                      | -      |   |                         |   | -       |                          |   |   | (36.7                                             | )      |   |                              | -      |   |                            |   | (36.7 | ) |   |   | - |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Issuance                of common stock                                    |   |                      | -      |   |                         |   | .1      |                          |   |   | -                                                 |   |   |                              | -      |   |                            |   | .1 |   |   |   | - |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Change                in accounting – FIN                No. 48 |   |                      | -      |   |                         |   | -       |                          |   |   | (2.2                                              | )      |   |                              | -      |   |                            |   | (2.2 | ) |   |   | - |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Balance                at September 30, 2007                               |   | $                         | .5     |   |                         | $      | 1,061.7 |                          |   | $      | (513.5                                            | )      |   | $                                 | (172.1 | )      |                            | $      | 376.6 |   |   |   |   |   |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |
| Comprehensive                loss                                          |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   | $ | (33.0 | ) |
|                                                                       |   |                      |   |   |                         |   |    |                          |   |   |                                              |   |   |                              |   |   |                            |   |   |   |   |   |   |   |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In      millions)**

|                                                                                                                                                     |   | **Nine                months ended**** September                30,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                                                                                                                     |   | **2006**                                                                   |   |   | **2007** |   |
|                                                                                                                                                     |   | **(As                adjusted)**                                           |   |   |   |   |
|                                                                                                                                                     |   | **(Unaudited)**                                                            |   |
| Cash                flows from operating activities:                                                                                                     |   |                                                                       |   |   |   |   |
| Net                income (loss)                                                                                                                         |   | $                                                                          | 40.7   |   |   | **$** | **(68.3** | **)** |
| Depreciation                and amortization                                                                                                             |   |                                                                       | 32.9   |   |   | ** ** | **36.1** |   |
| Loss                on prepayment of debt                                                                                                                |   |                                                                       | 22.3   |   |   | ** ** | **-** |   |
| Call                premium paid on prepayment of debt                                                                                                   |   |                                                                       | (20.9  | ) |   | ** ** | **-** |   |
| Deferred                income taxes                                                                                                                     |   |                                                                       | (7.2   | ) |   | ** ** | **99.0** |   |
|                    Distributions from (contributions to) to TiO2                     manufacturing joint venture |   |                                                                       | .5     |   |   | ** ** | **(3.9** | **)** |
| Benefit                plan expense greater (less) than cash funding:                                                                                    |   |                                                                       |   |   |   |   |   |   |
| Defined                benefit pension plans                                                                                                             |   |                                                                       | .6     |   |   | ** ** | **.2** |   |
| Other                postretirement benefits                                                                                                             |   |                                                                       | (.4    | ) |   | ** ** | **.1** |   |
| Other,                net                                                                                                                                |   |                                                                       | 2.4    |   |   | ** ** | **3.8** |   |
| Change                in assets and liabilities:                                                                                                         |   |                                                                       |   |   |   |   |   |   |
| Accounts                and other receivables, net                                                                                                       |   |                                                                       | (44.9  | ) |   | ** ** | **(47.5** | **)** |
| Inventories                                                                                                                                              |   |                                                                       | 28.3   |   |   | ** ** | **21.4** |   |
| Prepaid                expenses                                                                                                                          |   |                                                                       | (2.8   | ) |   | ** ** | **(4.1** | **)** |
| Accounts                payable and accrued liabilities                                                                                                  |   |                                                                       | 5.7    |   |   | ** ** | **25.9** |   |
| Income                taxes                                                                                                                              |   |                                                                       | (5.5   | ) |   | ** ** | **10.2** |   |
| Accounts                with affiliates                                                                                                                  |   |                                                                       | (.1    | ) |   | ** ** | **(2.4** | **)** |
| Other,                net                                                                                                                                |   |                                                                       | (1.3   | ) |   | ** ** | **(1.8** | **)** |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Net                cash provided by operating activities                                                                                                 |   |                                                                       | 50.3   |   |   | ** ** | **68.7** |   |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Capital                expenditures                                                                                                                      |   |                                                                       | (26.8  | ) |   | ** ** | **(29.4** | **)** |
| Change                in restricted cash equivalents                                                                                                     |   |                                                                       | .5     |   |   | ** ** | **.6** |   |
| Other,                net                                                                                                                                |   |                                                                       | -      |   |   | ** ** | **.1** |   |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Net                cash used in investing activities                                                                                                     |   |                                                                       | (26.3  | ) |   | ** ** | **(28.7** | **)** |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Indebtedness:                                                                                                                                            |   |                                                                       |   |   |   |   |   |   |
| Borrowings                                                                                                                                               |   |                                                                       | 722.2  |   |   | ** ** | **263.3** |   |
| Principal                payments                                                                                                                        |   |                                                                       | (686.6 | ) |   | ** ** | **(247.3** | **)** |
| Deferred                financing costs paid                                                                                                             |   |                                                                       | (8.8   | ) |   | ** ** | **-** |   |
| Dividends                paid                                                                                                                            |   |                                                                       | (36.7  | ) |   | ** ** | **(36.7** | **)** |
| Other,                net                                                                                                                                |   |                                                                       | .1     |   |   | ** ** | **-** |   |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Net                cash used in financing activities                                                                                                     |   |                                                                       | (9.8   | ) |   | ** ** | **(20.7** | **)** |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Cash                and cash equivalents - net change from:                                                                                              |   |                                                                       |   |   |   |   |   |   |
|   Operating,                investing and financing activities                                                                                 |   |                                                                       | 14.2   |   |   | ** ** | **19.3** |   |
|   Currency                translation                                                                                                          |   |                                                                       | 2.5    |   |   | ** ** | **4.3** |   |
| Cash                and cash equivalents at beginning of period                                                                                          |   |                                                                       | 72.0   |   |   | ** ** | **63.3** |   |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                                                                                |   | $                                                                          | 88.7   |   |   | **$** | **86.9** |   |
|                                                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
| Supplemental                disclosures -  cash paid for:                                                                                      |   |                                                                       |   |   |   |   |   |   |
|     Interest,                net of amounts capitalized                                                                              |   | $                                                                          | 16.1   |   |   | **$** | **19.2** |   |
|     Income                taxes, net                                                                                                 |   |                                                                       | 25.6   |   |   | ** ** | **10.1** |   |

----

**KRONOS      WORLDWIDE, INC. AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**September      30, 2007**

**(Unaudited)**

**Note      1      -                           Organization      and basis of presentation:**

*Organization      *
* *

*Basis      of presentation*
*– *

----

**Note      2 – Accounts and other receivables, net:**

|                                                 |   | **December                31,**** 2006** |   |   | **September                30,**** 2007** |       |
|------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                                 |   | **(In                millions)**              |   |
|                                                 |   |                                          |   |   |                                           |       |
| Trade                receivables                     |   | $                                             | 183.0  |   |                                           | **$**      | **238.2** |   |
| Recoverable                VAT and other receivables |   |                                          | 20.5   |   |                                           | ** ** | **28.0** |   |
| Refundable                income taxes               |   |                                          | 1.6    |   |                                           | ** ** | **1.4** |   |
| Receivable                from affiliates:           |   |                                          |   |   |                                           |       |   |   |
| Income                taxes, net - Valhi             |   |                                          | -      |   |                                           | ** ** | **1.4** |   |
| Other                                                |   |                                          | .2     |   |                                           | ** ** | **-** |   |
| Allowance                for doubtful accounts       |   |                                          | (1.5   | )      |                                           | ** ** | **(1.9** | **)** |
|                                                 |   |                                          |   |   |                                           |       |   |   |
| Total                                                |   | $                                             | 203.8  |   |                                           | **$**      | **267.1** |   |

**Note      3 - Inventories, net:**

|                             |   | **December                31,**** 2006** |   |   | **September                30,**** 2007** |       |
|----------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|------------|
|                             |   | **(In                millions)**              |   |
|                             |   |                                          |   |   |                                           |       |
| Raw                materials     |   | $                                             | 46.1   |   |                                           | **$**      | **64.6** |   |
| Work                in process   |   |                                          | 25.6   |   |                                           | ** ** | **15.4** |   |
| Finished                products |   |                                          | 167.7  |   |                                           | ** ** | **152.8** |   |
| Supplies                         |   |                                          | 47.1   |   |                                           | ** ** | **55.8** |   |
|                             |   |                                          |   |   |                                           |       |   |   |
| Total                            |   | $                                             | 286.5  |   |                                           | **$**      | **288.6** |   |

**Note      4 - Other noncurrent assets:**

|                                                 |   | **December                31,**** 2006** |   |   | **September                30,**** 2007** |       |
|------------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                                 |   | **(In                millions)**              |   |
|                                                 |   |                                          |   |   |                                           |       |
| Deferred                financing costs, net         |   | $                                             | 9.1    |   |                                           | **$**      | **8.4** |   |
| Pension                asset                         |   |                                          | 5.6    |   |                                           | ** ** | **6.5** |   |
| Restricted                marketable debt securities |   |                                          | 2.8    |   |                                           | ** ** | **3.2** |   |
| Other                                                |   |                                          | 1.1    |   |                                           | ** ** | **.8** |   |
|                                                 |   |                                          |   |   |                                           |       |   |   |
| Total                                                |   | $                                             | 18.6   |   |                                           | **$**      | **18.9** |   |

**Note      5 – Accounts payable and accrued liabilities:**

|                                               |   |                                          |   |   |                                           |       |
|----------------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                               |   | **December                31,**** 2006** |   |   | **September                30,**** 2007** |       |
|                                               |   | **(In                millions)**              |   |
|                                               |   |                                          |   |   |                                           |       |
| Accounts                payable                    |   | $                                             | 88.8   |   |                                           | **$**      | **98.4** |   |
| Employee                benefits                   |   |                                          | 25.7   |   |                                           | ** ** | **27.1** |   |
| Accrued                sales discounts and rebates |   |                                          | 8.5    |   |                                           | ** ** | **21.2** |   |
| Accrued                interest                    |   |                                          | 7.5    |   |                                           | ** ** | **17.1** |   |
| Payable                to affiliates:              |   |                                          |   |   |                                           |       |   |   |
| Louisiana                Pigment Company, L.P.     |   |                                          | 10.4   |   |                                           | ** ** | **9.1** |   |
| Income                taxes, net - Valhi           |   |                                          | .3     |   |                                           | ** ** | **-** |   |
| Other                                              |   |                                          | .2     |   |                                           | ** ** | **-** |   |
| Other                                              |   |                                          | 24.7   |   |                                           | ** ** | **30.7** |   |
|                                               |   |                                          |   |   |                                           |       |   |   |
| Total                                              |   | $                                             | 166.1  |   |                                           | **$**      | **203.6** |   |

----

**Note      6 - Long-term debt:**

|                                         |   | **December                31,**** 2006** |   |   | **September                30,**** 2007** |       |
|----------------------------------------------|--------|-----------------------------------------------|--------|--------|------------------------------------------------|------------|
|                                         |   | **(In                millions)**              |   |
|                                         |   |                                          |   |   |                                           |       |
| Kronos                International, Inc. -  |   |                                          |   |   |                                           |       |
| 6.5%                Senior Secured Notes     |   | $                                             | 525.0  |   |                                           | **$**      | **563.6** |   |
| Revolving                credit facilities - |   |                                          |   |   |                                           |       |   |   |
| Kronos                U.S. subsidiaries      |   |                                          | 6.4    |   |                                           | ** ** | **22.4** |   |
| Other                                        |   |                                          | 4.8    |   |                                           | ** ** | **5.5** |   |
|                                         |   |                                          |   |   |                                           |       |   |   |
| Total                debt                    |   |                                          | 536.2  |   |                                           | ** ** | **591.5** |   |
| Less                current maturities       |   |                                          | .9     |   |                                           | ** ** | **23.4** |   |
|                                         |   |                                          |   |   |                                           |       |   |   |
| Total                long-term debt          |   | $                                             | 535.3  |   |                                           | **$**      | **568.1** |   |

*Revolving      credit facilities*

**Note      7 - Income taxes:**

|                                                                                                                     |   | **Nine                months ended**** September                30,** |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                                                                                     |   | **2006**                                                                   |   |   | **2007** |   |
|                                                                                                                     |   | **(As                adjusted)**                                           |   |   |   |   |
|                                                                                                                     |   | **(In                millions)**                                           |   |
|                                                                                                                     |   |                                                                       |   |   |   |   |
| Expected                tax expense, at U.S. Federal statutory income tax rate of                35%                     |   | $                                                                          | 18.6   |   |   | **$** | **16.6** |   |
| Incremental                U.S. tax and rate differences on equity in earnings of non-tax group                companies |   |                                                                       | .7     |   |   | ** ** | **(1.2** | **)** |
| Non-U.S.                tax rates                                                                                        |   |                                                                       | (1.1   | ) |   | ** ** | **(.1** | **)** |
| Nondeductible                expenses                                                                                    |   |                                                                       | 2.6    |   |   | ** ** | **2.3** |   |
| U.S.                state income taxes, net                                                                              |   |                                                                       | .7     |   |   | ** ** | **.4** |   |
| Change                in reserve for uncertain tax positions                                                             |   |                                                                       | (8.1   | ) |   | ** ** | **(1.1** | **)** |
| German                tax rate change                                                                                    |   |                                                                       | -      |   |   | ** ** | **90.8** |   |
| Canadian                tax rate change                                                                                  |   |                                                                       | (1.1   | ) |   | ** ** | **-** |   |
| German                tax attribute adjustment                                                                           |   |                                                                       | -      |   |   | ** ** | **8.7** |   |
| Other,                net                                                                                                |   |                                                                       | .1     |   |   | ** ** | **(.7** | **)** |
|                                                                                                                     |   |                                                                       |   |   |   |   |   |   |
|      Total                                                                                      |   | $                                                                          | 12.4   |   |   | **$** | **115.7** |   |

**Note      8 – Employee benefit plans:**

*Defined      benefit plans - *

|                                                      |   | **Three                months ended** |   |   | **Nine                months ended** |       |
|-----------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|------------|
|                                                      |   | **September                30,**      |   |   | **September                30,**     |       |
|                                                      |   | **2006**                              |   |   | **2007**                             |       |   | **2006** |   |   | **2007** |   |
|                                                      |   | **(In                millions)**      |   |
|                                                      |   |                                  |   |   |                                 |       |   |   |   |   |   |   |
| Service                cost                               |   | $                                     | 1.9    |   |                                 | **$**      | **2.0** |   |   | $ | 5.8 |   |   | **$** | **5.9** |   |
| Interest                cost                              |   |                                  | 4.9    |   |                                 | ** ** | **5.8** |   |   |   | 14.2 |   |   | ** ** | **16.3** |   |
| Expected                return on plan assets             |   |                                  | (4.1   | )      |                                 | ** ** | **(4.3** | **)** |   |   | (12.0 | ) |   | ** ** | **(12.7** | **)** |
| Amortization                of prior service cost         |   |                                  | .1     |   |                                 | ** ** | **.2** |   |   |   | .3 |   |   | ** ** | **.5** |   |
| Amortization                of net transition obligations |   |                                  | .1     |   |                                 | ** ** | **.1** |   |   |   | .4 |   |   | ** ** | **.3** |   |
| Recognized                actuarial losses                |   |                                  | 2.2    |   |                                 | ** ** | **2.0** |   |   |   | 6.4 |   |   | ** ** | **6.1** |   |
|                                                      |   |                                  |   |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
|      Total                       |   | $                                     | 5.1    |   |                                 | **$**      | **5.8** |   |   | $ | 15.1 |   |   | **$** | **16.4** |   |

*Postretirement      benefits - *

|                                                |   | **Three                months ended** |   |   | **Nine                months ended** |       |
|-----------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|------------|
|                                                |   | **September                30,**      |   |   | **September                30,**     |       |
|                                                |   | **2006**                              |   |   | **2007**                             |       |   | **2006** |   |   | **2007** |   |
|                                                |   | **(In                millions)**      |   |
|                                                |   |                                  |   |   |                                 |       |   |   |   |   |   |   |
| Service                cost                         |   | $                                     | .1     |   |                                 | **$**      | **-** |   |   | $ | .2 |   |   | **$** | **.2** |   |
| Interest                cost                        |   |                                  | .2     |   |                                 | ** ** | **.2** |   |   |   | .5 |   |   | ** ** | **.5** |   |
| Amortization                of prior service credit |   |                                  | (.1    | )      |                                 | ** ** | **(.1** | **)** |   |   | (.2 | ) |   | ** ** | **(.2** | **)** |
| Recognized                actuarial losses          |   |                                  | -      |   |                                 | ** ** | **.1** |   |   |   | .1 |   |   | ** ** | **.1** |   |
|                                                |   |                                  |   |   |                                 |       |   |   |   |   |   |   |   |   |   |   |
|      Total                 |   | $                                     | .2     |   |                                 | **$**      | **.2** |   |   | $ | .6 |   |   | **$** | **.6** |   |

*Contributions      – *

**Note      9 – Other noncurrent liabilities:**

|                                               |   | **December                31,**** 2006** |   |   | **September                30,**** 2007                 ** |       |
|----------------------------------------------------|--------|-----------------------------------------------|--------|--------|----------------------------------------------------------------------|------------|
|                                               |   | **(In                millions)**              |   |
|                                               |   |                                          |   |   |                                                                 |       |
| Reserve                for uncertain tax positions |   | $                                             | -      |   |                                                                 | **$**      | **14.4** |   |
| Employee                benefits                   |   |                                          | 6.9    |   |                                                                 | ** ** | **7.4** |   |
| Insurance                claims and expenses       |   |                                          | 1.9    |   |                                                                 | ** ** | **1.7** |   |
| Other                                              |   |                                          | 6.5    |   |                                                                 | ** ** | **6.7** |   |
|                                               |   |                                          |   |   |                                                                 |       |   |   |
| Total                                              |   | $                                             | 15.3   |   |                                                                 | **$**      | **30.2** |   |

**Note      10 – Commitments and contingencies:**

*Litigation      matters – *

**Note      11 – Recent accounting pronouncements:**

***Uncertain      Tax      Positions.***
*Accounting for Uncertain Tax      Positions*
*Accounting for Income Taxes*

***Planned      Major Maintenance Activities.***
** **
*Accounting      for Planned Major Maintenance Activities*

***Fair      Value Option***
*The Fair Value Option for Financial Assets and Financial      Liabilities*

----

**ITEM        2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS        OF  FINANCIAL  CONDITION AND RESULTS OF OPERATIONS   **

**RESULTS      OF OPERATIONS:**

**Business      and results of operations overview**

**Forward-looking      information**

| ·   | Future                supply and demand for our products, |
|--------------------|-----------------------------------------------------------|

| ·   | The                extent of our dependence on certain market                sectors, |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | The                cyclicality of our businesses, |
|--------------------|---------------------------------------------------|

| ·   | Customer                inventory levels (such as the extent to which our customers may,                from time                to time, accelerate purchases of TiO2                in advance of                anticipated price increases or defer purchases of TiO2                in advance of                anticipated price decreases), |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes                in raw material and other operating costs (such as energy                costs), |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | The                possibility of labor disruptions, |
|--------------------|------------------------------------------------------|

| ·   | General                global economic and political conditions (such as changes in the                level of                gross domestic product in various regions of the world and the impact                of                such changes on demand for TiO2), |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Competitive                products and substitute products, |
|--------------------|--------------------------------------------------------------|

| ·   | Customer                and competitor strategies, |
|--------------------|----------------------------------------------------|

| ·   | Potential                consolidation of our competitors |
|--------------------|-----------------------------------------------------------|

| ·   | The                impact of pricing and production                decisions, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Competitive                technology positions, |
|--------------------|--------------------------------------------------|

| ·   | The                introduction of trade barriers, |
|--------------------|----------------------------------------------------|

| ·   | Fluctuations                in currency exchange rates (such as changes in the exchange rate                between                the U.S. dollar and each of the euro, the Norwegian kroner and the                Canadian dollar), |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating                interruptions (including, but not limited to, labor disputes, leaks,                natural disasters, fires, explosions, unscheduled or unplanned downtime                and transportation interruptions), |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                timing and amounts of insurance                recoveries, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Our                ability to renew or refinance credit                facilities, |
|--------------------|------------------------------------------------------------------------------------|

| ·   | The                ultimate outcome of income tax audits, tax settlement initiatives                or other                tax matters, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                ultimate ability to utilize income tax attributes or changes in income                tax                rates related to such attributes, the benefit of which has been recognized                under the more likely than not recognition                criteria, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Environmental                matters (such as those requiring compliance with emission and discharge                standards for existing and new                facilities), |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Government                laws and regulations and possible changes                therein, |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | The                ultimate resolution of pending litigation,                and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Possible                future litigation. |
|--------------------|--------------------------------------------|

----

**Results      of operations**

| ·   | Our                TiO2                selling prices, |
|--------------------|--------------------------------------------------------|

| ·   | Foreign                currency exchange rates (particularly the exchange rate for the U.S.                dollar relative to the euro and the Canadian                dollar), |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                TiO2                sales and production volumes, and |
|--------------------|--------------------------------------------------------------------------|

| ·   | Manufacturing                costs, particularly maintenance and energy-related                expenses. |
|--------------------|----------------------------------------------------------------------------------------------------------|

***Quarter      ended September 30, 2007 compared to the***

***Quarter      ended September 30, 2006 -***

|                                                                       |   | **Three                months ended**** September                30,** |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                       |   | **2006**                                                                    |   |   | **2007** |   |
|                                                                       |   | **(Dollars                in millions)**                                    |   |
|                                                                       |   | **(As                adjusted)**                                            |   |   |   |   |   |   |   |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |
| Net                sales                                                   |   | $                                                                           | 331.6  |   |   |   | 100 | % |   | **$** | **343.3** |   |   | ** ** | **100** | **%** |
| Cost                of sales                                               |   |                                                                        | 255.3  |   |   |   | 77 |   |   | ** ** | **276.4** |   |   | ** ** | **81** |   |
|  Gross                margin                                          |   |                                                                        | 76.3   |   |   |   | 23 |   |   | ** ** | **66.9** |   |   | ** ** | **19** |   |
| Other                operating expenses, net                               |   |                                                                        | 41.1   |   |   |   | 12 |   |   | ** ** | **44.8** |   |   | ** ** | **13** |   |
|   Income                from operations                          |   | $                                                                           | 35.2   |   |   |   | 11 | % |   | **$** | **22.1** |   |   | ** ** | **6** | **%** |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | **%** |   |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | **Change** |   |
| TiO2                operating                statistics:                   |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Sales                volumes*                                  |   |                                                                        | 132    |   |   |   |   |   |   | ** ** | **138** |   |   | ** ** | **5** | **%** |
|   Production                volumes*                             |   |                                                                        | 126    |   |   |   |   |   |   | ** ** | **126** |   |   | ** ** | **-** | **%** |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Percent                change in net sales:                    |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     TiO2                product                pricing |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | ** ** | **(5** | **)%** |
|     TiO2                sales                volumes   |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | ** ** | **5** |   |
|     TiO2                product                mix     |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | ** ** | **-** |   |
|     Changes                in currency exchange rates  |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | ** ** | **4** |   |
|                                                                       |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                                              |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   | ** ** | **4** | **%** |

*Net      sales – *

*Cost      of sales -*

*Income      from operations – *

*Other      non-operating income (expense) *

*Provision      for income taxes *

----

***Nine      months ended September 30, 2007 compared to the***

***nine      months ended September 30, 2006** -*

|                                                     |   | **Nine                months ended**** September                30,** |   |
|----------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                     |   | **2006**                                                                   |   |   | **2007** |   |
|                                                     |   | **(Dollars                in millions)**                                   |   |
|                                                     |   | **(As                adjusted)**                                           |   |   |   |   |   |   |   |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Net                sales                                 |   | $                                                                          | 981.0  |   |   |   | 100 | % |   | **$** | **999.9** |   |   | ** ** | **100** | **%** |
| Cost                of sales                             |   |                                                                       | 748.0  |   |   |   | 76 |   |   | ** ** | **799.0** |   |   | ** ** | **80** |   |
| Gross                margin                              |   |                                                                       | 233.0  |   |   |   | 24 |   |   | ** ** | **200.9** |   |   | ** ** | **20** |   |
| Other                operating expenses, net             |   |                                                                       | 126.8  |   |   |   | 13 |   |   | ** ** | **125.9** |   |   | ** ** | **13** |   |
|   Income                from operations        |   | $                                                                          | 106.2  |   |   |   | 11 | % |   | **$** | **75.0** |   |   | ** ** | **7** | **%** |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | **%** |   |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | **Change** |   |
| Ti02                operating                statistics: |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                volumes*                            |   |                                                                       | 396    |   |   |   |   |   |   |   | 400 |   |   | ** ** | **1** | **%** |
| Production                volumes*                       |   |                                                                       | 383    |   |   |   |   |   |   |   | 386 |   |   | ** ** | **1** | **%** |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent                change in net sales:              |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| TiO2                product                pricing       |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | ** ** | **(4** | **)%** |
| TiO2                sales                volumes         |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | ** ** | **1** |   |
| TiO2                product                mix           |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | ** ** | **1** |   |
| Changes                in currency exchange rates        |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | ** ** | **4** |   |
|                                                     |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |   | ** ** | **2** | **%** |

|   | *                Thousands of metric tons |
|--------|-------------------------------------------|

*Net      sales – *

*Cost      of sales -*

*Income      from operations –*

*Other      non-operating income (expense) *

*Provision      for income taxes *

***Currency      exchange***

* *

|                                  |   | **Three                months ended****September                30, 2007**** vs.                2006** |   |   | **Nine                months ended****September                30, 2007**** vs.                2006** |   |
|---------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------|--------|
|                                  |   | **Increase                (decrease), in millions**                                                         |   |
|                                  |   |                                                                                                        |   |   |                                                                                                       |   |
| Impact                on:             |   |                                                                                                        |   |   |                                                                                                       |   |
| Net                sales              |   | $                                                                                                           | 13     |   |                                                                                                       | $      | 44 |   |
| Income                from operations |   |                                                                                                        | (3     | )      |                                                                                                       |   | 4 |   |

***Outlook***

**LIQUIDITY      AND CAPITAL RESOURCES**

**Consolidated      cash flows**

***Operating      activities***

| ·   | Lower                income from operations in 2007 of $31.2                million; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | The                $20.9 million call premium we paid in 2006 when we prepaid our 8.875%                Senior Secured Notes, which GAAP requires to be included in the                determination of cash flows from operating                activities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Higher                net contributions to our TiO2                joint venture                in 2007 of $4.4 million due to relative changes in their cash                requirements; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Lower                net cash used from relative changes in our inventories, receivables,                payables and accruals of $13.1 million in 2007 due primarily to relative                changes in our inventory levels, as discussed below;                and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Lower                cash paid for income taxes in 2007 of $15.5 million due in part to                the                2006 payment of certain income taxes associated with the settlement                of                prior year income tax audits. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Investing      activities***

***Financing      activities***

**Outstanding      debt obligations**

| ·   | euro                400 million principal amount of our 6.5% Senior Secured Notes ($563.6                million at September 30, 2007) due in                2013; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $22.4                million under our U.S. revolving credit facility which matures in                September 2008; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | Approximately                $5.5 million of other indebtedness. |
|--------------------|------------------------------------------------------------------|

**Future      cash requirements**

***Liquidity***

***Capital      expenditures***

**Off-balance      sheet financing**

**Commitments      and contingencies**

**Recent      accounting pronouncements**

**Critical      accounting policies**

**ITEM      3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET      RISK**

**ITEM      4.  CONTROLS AND PROCEDURES**

**Evaluation      of disclosure controls and procedures**

**Internal      control over financial reporting**

| ·   | Pertain                to the maintenance of records that in reasonable detail accurately                and                fairly reflect the transactions and dispositions of our                assets, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of financial statements in accordance with GAAP, and                that our                receipts and expenditures are made only in accordance with authorizations                of our management and directors,                and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance regarding prevention or timely detection of                an                unauthorized acquisition, use or disposition of our assets that could                have                a material effect on our Condensed Consolidated Financial                Statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes      in internal control over financial reporting**

----

**Part      II. OTHER INFORMATION**

**Item      1.                      Legal      Proceedings**

**Item      1A.                           Risk      Factors**

**Item      6.                           Exhibits.**

|   | 31.1                -  Certification |
|--------|------------------------------------------------|

|   | 31.2                -  Certification |
|--------|------------------------------------------------|

|   | 32.1                -  Certification |
|--------|------------------------------------------------|

----

**SIGNATURES**