| For the quarter ended March 31, 2011 | Commission file number 1-5467 |
|--------------------------------------|-------------------------------|

| VALHI, INC.                                            |
|--------------------------------------------------------|
| (Exact name of Registrant as specified in its charter) |

| Delaware                                                      |   | 87-0110150                       |
|---------------------------------------------------------------|--------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.) |

| 5430 LBJ Freeway, Suite 1700, Dallas, Texas  75240-2697                |
|----------------------------------------------------------------------------------|
| (Address of principal executive offices)     (Zip Code) |

|   | * | The registrant has not yet been phased into the interactive data requirements. |
|--------|---|--------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                       | Pagenumber    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| Part I.                  FINANCIAL INFORMATION                                                                                   |          |
|                                                                                                                                                                                                                       |          |
| Item 1.                   Financial Statements.                                                                             |          |
|                                                                                                                                                                                                                       |          |
| Condensed Consolidated Balance Sheets – December 31, 2010 and March 31, 2011 (unaudited)                                                                                                                        |  3       |
|                                                                                                                                                                                                                       |          |
| Condensed Consolidated Statements of Income (unaudited)   – Three ended March 31, 2010 and 2011                                                                                                            |  5       |
|                                                                                                                                                                                                                       |          |
| Condensed Consolidated Statements of Cash Flows (unaudited) – Three months ended March 31, 2010 and 2011                                                                                                        |  6       |
|                                                                                                                                                                                                                       |          |
| Condensed Consolidated Statement of Equity and Comprehensive Income –  Three months ended  March 31, 2011 (unaudited)                                                                       |   8 |
|                                                                                                                                                                                                                       |          |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                      |  9       |
|                                                                                                                                                                                                                       |          |
| Item 2.                   Management’s Discussion and Analysis of Financial Condition and Results of Operations. |  26      |
|                                                                                                                                                                                                                       |          |
| Item 3.                   Quantitative and Qualitative Disclosures About Market Risk                                   | 47            |
|                                                                                                                                                                                                                       |          |
| Item 4.                   Controls and Procedures                                                                           | 47            |
|                                                                                                                                                                                                                       |          |
| Part II.                      OTHER INFORMATION                                                              |          |
|                                                                                                                                                                                                                       |          |
| Item 1.                   Legal Proceedings.                                                                                | 49            |
|                                                                                                                                                                                                                       |          |
| Item 1A.                Risk Factors.                                                                                                      | 49            |
|                                                                                                                                                                                                                       |          |
| Item 2.                  Unregistered Sales of Equity Securities and Use of Proceeds                                             | 50            |
|                                                                                                                                                                                                                       |          |
| Item 6.                   Exhibits.                                                                                         | 50            |
|                                                                                                                                                                                                                       |          |

----

|               ASSETS |   | December 31, 2010 |    |   | March 31, 2011   |   |
|--------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|----------------------------|--------|
|                                                                                       |   |                   |    |   | (unaudited)                |   |
|                                                                                       |   |                   |    |   |                       |   |
| Current assets:                                                                       |   |                   |    |   |                       |   |
|   Cash and cash equivalents                                       |   | $                      | 325.1   |   |                       | $      | 143.2 |   |
|   Restricted cash equivalents                                          |   |                   | 9.4     |   |                       |   | 6.9 |   |
|   Marketable securities                                                     |   |                   | 1.7     |   |                       |   | 107.4 |   |
|   Accounts and other receivables, net                        |   |                   | 262.7   |   |                       |   | 328.4 |   |
|   Inventories, net                                                          |   |                   | 294.9   |   |                       |   | 347.4 |   |
|   Other current assets                                                           |   |                   | 14.1    |   |                       |   | 22.3 |   |
|   Deferred income taxes                                                |   |                   | 13.9    |   |                       |   | 13.8 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
|       Total current assets                         |   |                   | 921.8   |   |                       |   | 969.4 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
| Other assets:                                                                         |   |                   |    |   |                       |   |   |   |
|   Marketable securities                                                          |   |                   | 340.4   |   |                       |   | 366.0 |   |
|   Investment in affiliates                                             |   |                   | 113.2   |   |                       |   | 112.1 |   |
|   Goodwill                                                                       |   |                   | 397.4   |   |                       |   | 397.4 |   |
|   Deferred income taxes                                                |   |                   | 192.0   |   |                       |   | 191.9 |   |
|   Other noncurrent assets                                                   |   |                   | 103.4   |   |                       |   | 108.8 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
|       Total other assets                           |   |                   | 1,146.4 |   |                       |   | 1,176.2 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
| Property and equipment:                                                          |   |                   |    |   |                       |   |   |   |
|   Land                                                                           |   |                   | 54.9    |   |                       |   | 57.1 |   |
|   Buildings                                                                      |   |                   | 287.4   |   |                       |   | 298.1 |   |
|   Equipment                                                                      |   |                   | 1,170.3 |   |                       |   | 1,216.7 |   |
|   Mining properties                                                         |   |                   | 69.1    |   |                       |   | 67.4 |   |
|   Construction in progress                                             |   |                   | 20.2    |   |                       |   | 38.6 |   |
|                                                                                       |   |                   | 1,601.9 |   |                       |   | 1,677.9 |   |
|   Less accumulated depreciation                                        |   |                   | 955.8   |   |                       |   | 997.6 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
|       Net property and equipment              |   |                   | 646.1   |   |                       |   | 680.3 |   |
|                                                                                       |   |                   |    |   |                       |   |   |   |
|       Total assets                                      |   | $                      | 2,714.3 |   |                       | $      | 2,825.9 |   |

----

|    LIABILITIES AND EQUITY                                       |   | December 31, 2010 |    |   | March 31, 2011 |   |
|--------------------------------------------------------------------------------|--------|------------------------|---------|--------|---------------------|--------|
|                                                                           |   |                   |    |   | (unaudited)         |   |
|                                                                           |   |                   |    |   |                |   |
| Current liabilities:                                                      |   |                   |    |   |                |   |
|   Current maturities of long-term debt           |   | $                      | 17.4    |   |                | $      | 17.5 |   |
|   Accounts payable and accrued liabilities                      |   |                   | 275.6   |   |                |   | 296.9 |   |
|   Income taxes                                                  |   |                   | 7.9     |   |                |   | 18.0 |   |
|   Deferred income taxes                                    |   |                   | 5.0     |   |                |   | 5.3 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
|       Total current liabilities        |   |                   | 305.9   |   |                |   | 337.7 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
| Noncurrent liabilities:                                                   |   |                   |    |   |                |   |   |   |
|   Long-term debt                                                |   |                   | 922.9   |   |                |   | 945.7 |   |
|   Deferred income taxes                                    |   |                   | 417.6   |   |                |   | 426.1 |   |
|   Accrued pension costs                                    |   |                   | 128.1   |   |                |   | 130.0 |   |
|   Accrued environmental costs                              |   |                   | 32.6    |   |                |   | 31.7 |   |
|   Accrued postretirement benefits costs                         |   |                   | 19.5    |   |                |   | 19.7 |   |
|   Other liabilities                                             |   |                   | 69.5    |   |                |   | 70.7 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
|       Total noncurrent liabilities     |   |                   | 1,590.2 |   |                |   | 1,623.9 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
| Equity:                                                                        |   |                   |    |   |                |   |   |   |
|   Valhi stockholders’ equity:                                  |   |                   |    |   |                |   |   |   |
|     Preferred stock                                   |   |                   | 667.3   |   |                |   | 667.3 |   |
|     Common stock                                      |   |                   | 1.2     |   |                |   | 1.2 |   |
|     Additional paid-in capital                   |   |                   | 76.2    |   |                |   | 76.3 |   |
|     Accumulated deficit                                    |   |                   | (183.2  | )      |                |   | (156.6 | ) |
|     Accumulated other comprehensive income  |   |                   | 21.2    |   |                |   | 37.3 |   |
|     Treasury stock                                    |   |                   | (40.9   | )      |                |   | (44.6 | ) |
|                                                                           |   |                   |    |   |                |   |   |   |
|       Total Valhi stockholders' equity |   |                   | 541.8   |   |                |   | 580.9 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
| Noncontrolling interest in subsidiaries                                   |   |                   | 276.4   |   |                |   | 283.4 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
|       Total equity                          |   |                   | 818.2   |   |                |   | 864.3 |   |
|                                                                           |   |                   |    |   |                |   |   |   |
|       Total liabilities and equity     |   | $                      | 2,714.3 |   |                | $      | 2,825.9 |   |
|                                                                           |   |                   |    |   |                |   |   |   |

----

|                                                                  |   | Three months ended |   |
|-----------------------------------------------------------------------|--------|--------------------|--------|
|                                                                  |   | March 31,          |   |
|                                                                  |   | 2010               |   |   | 2011 |   |
|                                                                  |   | (unaudited)        |   |
|                                                                  |   |               |   |   |   |   |
| Revenues and other income:                                            |   |               |   |   |   |   |
|   Net sales                                                 |   | $                  | 356.8  |   |   | $ | 455.7 |   |
|   Other income, net                                         |   |               | 28.0   |   |   |   | 16.8 |   |
|                                                                  |   |               |   |   |   |   |   |   |
|     Total revenues and other income               |   |               | 384.8  |   |   |   | 472.5 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Costs and expenses:                                                   |   |               |   |   |   |   |   |   |
|   Cost of sales                                             |   |               | 290.7  |   |   |   | 306.8 |   |
|   Selling, general and administrative                       |   |               | 58.3   |   |   |   | 61.3 |   |
|   Loss on prepayment of debt                                |   |               | -      |   |   |   | 3.3 |   |
|   Litigation settlement and contract termination            |   |               | 33.3   |   |   |   | - |   |
|   Interest                                                  |   |               | 17.4   |   |   |   | 17.2 |   |
|                                                                  |   |               |   |   |   |   |   |   |
|       Total costs and expenses          |   |               | 399.7  |   |   |   | 388.6 |   |
|                                                                  |   |               |   |   |   |   |   |   |
|     Income (loss) before income taxes             |   |               | (14.9  | ) |   |   | 83.9 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Provision for income taxes (benefit)                                  |   |               | (30.0  | ) |   |   | 30.7 |   |
|                                                                  |   |               |   |   |   |   |   |   |
|     Net income                                    |   |               | 15.1   |   |   |   | 53.2 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Noncontrolling interest in net income of subsidiaries                 |   |               | 1.5    |   |   |   | 15.2 |   |
|                                                                  |   |               |   |   |   |   |   |   |
|     Net income attributable to Valhi stockholders |   | $                  | 13.6   |   |   | $ | 38.0 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Amounts attributable to Valhi stockholders:                           |   |               |   |   |   |   |   |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Basic and diluted earnings per share                                  |   | $                  | .10    |   |   | $ | .33 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Cash dividends per share                                              |   | $                  | .10    |   |   | $ | .10 |   |
|                                                                  |   |               |   |   |   |   |   |   |
| Basic and diluted weighted average shares outstanding                 |   |               | 114.3  |   |   |   | 114.2 |   |

----

|                                                                                                                    |   | Three months ended March 31, |       |
|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                    |   | 2010                              |       |   | 2011 |   |
|                                                                                                                    |   | (unaudited)                       |       |
|                                                                                                                    |   |                              |       |   |   |   |
| Cash flows from operating activities:                                                               |   |                              |       |   |   |   |
|   Net income                                                                                             |   | $                                 | 15.1       |   |   | $ | 53.2 |   |
|   Depreciation and amortization                                                                     |   |                              | 16.3       |   |   |   | 15.6 |   |
|   Loss on prepayment of debt                                                                                  |   |                              | -          |   |   |   | 3.3 |   |
|   Call premium paid                                                                                           |   |                              | -          |   |   |   | (2.5 | ) |
|   Accrued litigation settlement and contract termination                                                      |   |                              | 33.3       |   |   |   | - |   |
|   Benefit plan expense greater (less) than cash funding   requirements:         |   |                              |       |   |   |   |   |   |
|     Defined benefit pension expense                                                                 |   |                              | 1.3        |   |   |   | (2.1 | ) |
|     Other postretirement benefit expense                                                            |   |                              | .1         |   |   |   | (.5 | ) |
|   Deferred income taxes                                                                             |   |                              | (30.0      | ) |   |   | 12.6 |   |
|   Net distributions from Ti02 manufacturing joint venture                                      |   |                              | .8         |   |   |   | 1.1 |   |
|   Other, net                                                                                             |   |                              | .3         |   |   |   | .4 |   |
|   Change in assets and liabilities:                                                       |   |                              |       |   |   |   |   |   |
|     Accounts and other receivables, net                                         |   |                              | (63.2      | ) |   |   | (56.7 | ) |
|     Inventories, net                                                                           |   |                              | 6.1        |   |   |   | (38.6 | ) |
|     Accounts payable and accrued liabilities                                    |   |                              | (9.3       | ) |   |   | 13.4 |   |
|     Accounts with affiliates                                                              |   |                              | 16.5       |   |   |   | 1.6 |   |
|     Income taxes                                                                               |   |                              | (1.0       | ) |   |   | 9.9 |   |
|     Other, net                                                                                 |   |                              | (3.3       | ) |   |   | (8.2 | ) |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
|         Net cash provided by (used in) operating activities |   |                              | (17.0      | ) |   |   |  2.5 |   |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
| Cash flows from investing activities:                                                               |   |                              |       |   |   |   |   |   |
|   Capital expenditures                                                                                   |   |                              | (8.9       | ) |   |   | (24.0 | ) |
|   Capitalized permit costs                                                                                    |   |                              | (.6        | ) |   |   | (1.4 | ) |
|   Purchases of:                                                                                               |   |                              |       |   |   |   |   |   |
|     Marketable securities                                                                           |   |                              | (4.5       | ) |   |   | (200.0 | ) |
|     Titanium Metals Corporation (“TIMET”) common stock                                  |   |                              | -          |   |   |   | (20.4 | ) |
|   Proceeds from:                                                                                              |   |                              |       |   |   |   |   |   |
|     Disposal of marketable securities                                                     |   |                              | 2.1        |   |   |   | 94.9 |   |
|     Sale of business                                                                                |   |                              | .5         |   |   |   | .3 |   |
|   Change in restricted cash equivalents, net                                         |   |                              | 4.3        |   |   |   | 2.6 |   |
|   Other, net                                                                                             |   |                              |   -   |   |   |   | (.8 | ) |
|                                                                                                                    |   |                              |       |   |   |   |   |   |
|         Net cash used in investing activities          |   |                              |  (7.1 | ) |   |   | (148.8 | ) |
|                                                                                                                    |   |                              |       |   |   |   |   |   |

----

|                                                                                                                                                   |   | Three months ended March 31, |              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------------|
|                                                                                                                                                   |   | 2010                              |              |   | 2011 |   |
|                                                                                                                                                   |   | (unaudited)                       |              |
|                                                                                                                                                   |   |                              |              |   |   |   |
| Cash flows from financing activities:                                                                                                                  |   |                              |              |   |   |   |
|   Indebtedness:                                                                                                                              |   |                              |              |   |   |   |
|     Borrowings                                                                                                                     |   | $                                 | 112.3             |   |   | $ | 113.3 |   |
|     Principal payments                                                                                                        |   |                              | (96.3             | ) |   |   | (121.3 | ) |
|   Valhi cash dividends paid                                                                                                             |   |                              | (11.4             | ) |   |   | (11.4 | ) |
|   Distributions to noncontrolling interest in   subsidiaries                                                        |   |                              | (1.2              | ) |   |   | (15.4 | ) |
|   Treasury stock acquired                                                                                                                    |   |                              | -                 |   |   |   | (3.7 | ) |
|   Issuance of subsidiary common stock                                                                                                        |   |                              | -                 |   |   |   | .3 |   |
|   Issuance of common stock and other, net                                                                                                    |   |                              | .1                |   |   |   | (.1 | ) |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
|       Net cash provided by (used in) financing activities                                                      |   |                              | 3.5               |   |   |   | (38.3 | ) |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
| Cash and cash equivalents – net change from:                                                                  |   |                              |              |   |   |   |   |   |
|   Operating, investing and financing activities                                                                          |   |                              | (20.6             | ) |   |   | (184.6 | ) |
|   Currency translation                                                                                                                  |   |                              | (1.8              | ) |   |   | 2.7 |   |
| Cash and cash equivalents at beginning of period                                                                         |   |                              | 68.7              |   |   |   | 325.1 |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                               |   | $                                 | 46.3              |   |   | $ | 143.2 |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
| Supplemental disclosures:                                                                                                                         |   |                              |              |   |   |   |   |   |
|   Cash paid for:                                                                                                                   |   |                              |              |   |   |   |   |   |
|     Interest, net of capitalized interest(including call premium paid)                                                             |   | $                                 | 7.3               |   |   | $ | 13.9 |   |
|     Income taxes paid (refunded), net                                                                                    |   |                              | (15.1             | ) |   |   | 11.6 |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
| Noncash investing activities:                                                                                                                          |   |                              |              |   |   |   |   |   |
|     Accrual for capital expenditures                                                                                               |   |                              | 2.4               |   |   |   | 10.4 |   |
|     Accrual for capitalized permit costs                                                                                           |   |                              | .1                |   |   |   | .5 |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |
| Noncash financing activities:                                                                                                                          |   |                              |              |   |   |   |   |   |
|   Promissory notes payable incurred in   connection with litigation settlement and   contract termination |   |                              |    30.0 |   |   |   |    - |   |
|                                                                                                                                                   |   |                              |              |   |   |   |   |   |

----

|                                                      |   | Valhi Stockholders’ Equity |    |   |   |   |    |       |   |   |        |   |
|-----------------------------------------------------------|--------|----------------------------------|---------|--------|--------|--------|---------|------------|--------|--------|-------------|--------|
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                             |    |   |   |   |    | Additional |   |   |        |   |   | other |   |   |   |   |   | Non- |   |   |   |   |   |   |   |
|                                                      |   | Preferred                        |    |   | Common |   |    | paid-in    |   |   | Accumulated |   |   | comprehensive |   |   | Treasury |   |   | controlling |   |   | Total |   |   | Comprehensive |   |
|                                                      |   | stock                            |    |   | stock  |   |    | capital    |   |   | deficit     |   |   | income |   |   | stock |   |   | interest |   |   | equity |   |   | income |   |
|                                                      |   | (unaudited)                      |    |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                              |   | $                                | 667.3   |   |   | $      | 1.2     |       |   | $      | 76.2        |   |   | $ | (183.2 | ) |   | $ | 21.2 |   |   | $ | (40.9 | ) |   | $ | 276.4 |   |   | $ | 818.2 |   |   |   |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                |   |                             | -       |   |   |   | -       |       |   |   | -           |   |   |   | 38.0 |   |   |   | - |   |   |   | - |   |   |   | 15.2 |   |   |   | 53.2 |   |   | $ | 53.2 |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net                           |   |                             | -       |   |   |   | -       |       |   |   | -           |   |   |   | - |   |   |   | 16.1 |   |   |   | - |   |   |   | 6.9 |   |   |   | 23.0 |   |   |   | 23.0 |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity transaction with noncontrolling interest, net |   |                             |  - |   |   |   |  - |       |   |   |  .1    |   |   |   |  - |   |   |   |  - |   |   |   |  - |   |   |   |  .3 |   |   |   |  .4 |   |   |   |  - |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends                                            |   |                             | -       |   |   |   | -       |       |   |   | -           |   |   |   | (11.4 | ) |   |   | - |   |   |   | - |   |   |   | (15.4 | ) |   |   | (26.8 | ) |   |   | - |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury stock acquired                                   |   |                             | -       |   |   |   | -       |       |   |   | -           |   |   |   | - |   |   |   | - |   |   |   | (3.7 | ) |   |   | - |   |   |   | (3.7 | ) |   |   | - |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011                                 |   | $                                | 667.3   |   |   | $      | 1.2     |       |   | $      | 76.3        |   |   | $ | (156.6 | ) |   | $ | 37.3 |   |   | $ | (44.6 | ) |   | $ | 283.4 |   |   | $ | 864.3 |   |   |   |   |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 76.2 |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                             |    |   |   |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|   Business segment  |   |         Entity        |   | % controlled at March 31, 2011  |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
|                               |   |                                                                                             |   |                                      |
| Chemicals                          |   |    Kronos                                                                              |   |    80%                          |
| Component products                 |   |    CompX                                                                               |   |    87%                          |
| Waste management                   |   | WCS                                                                                              |   |  100%                                |

|                                                           |   | Three months ended March 31, |   |
|----------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                           |   | 2010                              |   |   | 2011 |   |
|                                                           |   | (In millions)                     |   |
|                                                           |   |                              |   |   |   |   |
| Net sales:                                                |   |                              |   |   |   |   |
|   Chemicals                                          |   | $                                 | 319.7  |   |   | $ | 420.4 |   |
|   Component products                            |   |                              | 32.8   |   |   |   | 34.8 |   |
|   Waste management                              |   |                              | 4.3    |   |   |   | .5 |   |
|                                                           |   |                              |   |   |   |   |   |   |
|     Total net sales              |   | $                                 | 356.8  |   |   | $ | 455.7 |   |
|                                                           |   |                              |   |   |   |   |   |   |
| Cost of sales:                                       |   |                              |   |   |   |   |   |   |
|   Chemicals                                          |   | $                                 | 260.0  |   |   | $ | 274.6 |   |
|   Component products                            |   |                              | 23.7   |   |   |   | 26.1 |   |
|   Waste management                              |   |                              | 7.0    |   |   |   | 6.1 |   |
|                                                           |   |                              |   |   |   |   |   |   |
|     Total cost of sales     |   | $                                 | 290.7  |   |   | $ | 306.8 |   |
|                                                           |   |                              |   |   |   |   |   |   |
| Gross margin:                                             |   |                              |   |   |   |   |   |   |
|   Chemicals                                          |   | $                                 | 59.7   |   |   | $ | 145.8 |   |
|   Component products                            |   |                              | 9.1    |   |   |   | 8.7 |   |
|   Waste management                              |   |                              | (2.7   | ) |   |   | (5.6 | ) |
|                                                           |   |                              |   |   |   |   |   |   |
|     Total gross margin           |   | $                                 | 66.1   |   |   | $ | 148.9 |   |
|                                                           |   |                              |   |   |   |   |   |   |
| Operating income (loss):                             |   |                              |   |   |   |   |   |   |
|   Chemicals                                          |   | $                                 | 22.6   |   |   | $ | 103.5 |   |
|   Component products                            |   |                              | 1.7    |   |   |   | 8.8 |   |
|   Waste management                              |   |                              | (6.7   | ) |   |   | (9.0 | ) |
|                                                           |   |                              |   |   |   |   |   |   |
|     Total operating income  |   |                              | 17.6   |   |   |   | 103.3 |   |
|                                                           |   |                              |   |   |   |   |   |   |
| Equity in earnings of investee                                 |   |                              | .1     |   |   |   | (.1 | ) |
|                                                           |   |                              |   |   |   |   |   |   |
| General corporate items:                             |   |                              |   |   |   |   |   |   |
|   Securities earnings                                |   |                              | 6.5    |   |   |   | 7.4 |   |
|   Insurance recoveries                          |   |                              | 18.2   |   |   |   | .4 |   |
|   Litigation settlement expense                      |   |                              | (32.2  | ) |   |   | - |   |
|   General expenses, net                    |   |                              | (7.7   | ) |   |   | (6.6 | ) |
|   Loss on prepayment of debt                         |   |                              | -      |   |   |   | (3.3 | ) |
| Interest expense                                          |   |                              | (17.4  | ) |   |   | (17.2 | ) |
|                                                           |   |                              |   |   |   |   |   |   |
|     Income (loss) before income taxes      |   | $                                 | (14.9  | ) |   | $ | 83.9 |   |

----

| Marketable securities                                                                    |   | Marketvalue |   |   | Costbasis |   |   | Unrealized gains, net |   |
|------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-----------|--------|--------|-----------------------|--------|
|                                                                                     |   |        |   |   |      |   |   |                  |   |
| December 31, 2010:                                                                       |   |        |   |   |      |   |   |                  |   |
| Current assets -                                                                         |   |        |   |   |      |   |   |                  |   |
| Other                                                                                    |   | $           | 1.7    |   |      | $      | 1.7    |                  |   | $ | - |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| Noncurrent assets:                                                                       |   |        |   |   |      |   |   |                  |   |   |   |   |
|           The Amalgamated Sugar Company LLC |   | $           | 250.0  |   |      | $      | 250.0  |                  |   | $ | - |   |
|           TIMET common stock                |   |        | 86.1   |   |      |   | 59.0   |                  |   |   | 27.1 |   |
|           Other                             |   |        | 4.3    |   |      |   | 4.3    |                  |   |   | - |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| Total                                                                                    |   | $           | 340.4  |   |      | $      | 313.3  |                  |   | $ | 27.1 |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| March 31, 2011:                                                                          |   |        |   |   |      |   |   |                  |   |   |   |   |
| Current assets -                                                                         |   |        |   |   |      |   |   |                  |   |   |   |   |
|           Mutual funds                 |   | $           | 106.1  |   |      | $      | 105.8  |                  |   | $ | .3 |   |
|           Other                        |   |        | 1.3    |   |      |   | 1.3    |                  |   |   | - |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| Total                                                                                    |   | $           | 107.4  |   |      | $      | 107.1  |                  |   | $ | .3 |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| Noncurrent assets:                                                                       |   |        |   |   |      |   |   |                  |   |   |   |   |
|           The Amalgamated Sugar Company LLC |   | $           | 250.0  |   |      | $      | 250.0  |                  |   | $ | - |   |
|           TIMET common stock                |   |        | 111.9  |   |      |   | 76.7   |                  |   |   | 35.2 |   |
|           Other                             |   |        | 4.1    |   |      |   | 4.1    |                  |   |   | - |   |
|                                                                                     |   |        |   |   |      |   |   |                  |   |   |   |   |
| Total                                                                                    |   | $           | 366.0  |   |      | $      | 330.8  |                  |   | $ | 35.2 |   |

----

|                                      |   | December 31, 2010 |   |   | March 31, 2011   |   |
|-------------------------------------------|--------|------------------------|--------|--------|----------------------------|--------|
|                                      |   | (In millions)          |   |
|                                      |   |                   |   |   |                       |   |
| Accounts receivable                       |   | $                      | 246.1  |   |                       | $      | 312.3 |   |
| Real-estate related note receivable       |   |                   | 15.0   |   |                       |   | 15.0 |   |
| Notes receivable                          |   |                   | 2.9    |   |                       |   | 1.7 |   |
| Refundable income taxes                   |   |                   | 1.3    |   |                       |   | 1.5 |   |
| Receivable from affiliates                |   |                   | .1     |   |                       |   | - |   |
| Accrued interest and dividend receivable  |   |                   | .1     |   |                       |   | - |   |
| Allowance for doubtful accounts           |   |                   | (2.8   | )      |                       |   | (2.1 | ) |
|                                      |   |                   |   |   |                       |   |   |   |
|       Total |   | $                      | 262.7  |   |                       | $      | 328.4 |   |

|                                                                    |   | December 31, 2010 |   |   | March 31, 2011   |   |
|-------------------------------------------------------------------------|--------|------------------------|--------|--------|----------------------------|--------|
|                                                                    |   | (In millions)          |   |
|                                                                    |   |                   |   |   |                       |   |
| Raw materials:                                                     |   |                   |   |   |                       |   |
|   Chemicals                                                   |   | $                      | 52.1   |   |                       | $      | 67.2 |   |
|   Component products                                     |   |                   | 6.3    |   |                       |   | 6.6 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
|       Total raw materials       |   |                   | 58.4   |   |                       |   | 73.8 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
| Work in process:                                                        |   |                   |   |   |                       |   |   |   |
|   Chemicals                                                   |   |                   | 13.6   |   |                       |   | 17.4 |   |
|   Component products                                     |   |                   | 6.7    |   |                       |   | 7.6 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
|       Total in-process products |   |                   | 20.3   |   |                       |   | 25.0 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
| Finished products:                                                 |   |                   |   |   |                       |   |   |   |
|   Chemicals                                                   |   |                   | 155.3  |   |                       |   | 184.5 |   |
|   Component products                                     |   |                   | 5.4    |   |                       |   | 5.2 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
|       Total finished products   |   |                   | 160.7  |   |                       |   | 189.7 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
| Supplies (primarily chemicals)                                |   |                   | 55.5   |   |                       |   | 58.9 |   |
|                                                                    |   |                   |   |   |                       |   |   |   |
|       Total                          |   | $                      | 294.9  |   |                       | $      | 347.4 |   |

----

|                                                                                                                  |   | December 31, 2010 |   |   | March 31, 2011 |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|
|                                                                                                                  |   | (In millions)          |   |
|                                                                                                                  |   |                   |   |   |                |   |
| Investment in affiliates:                                                                                             |   |                   |   |   |                |   |
|   TiO2 manufacturing joint venture, Louisiana Pigment Company, L.P. (“LPC”) |   | $                      | 96.2   |   |                | $      | 95.2 |   |
|   Other                                                                                                |   |                   | 17.0   |   |                |   | 16.9 |   |
|                                                                                                                  |   |                   |   |   |                |   |   |   |
|       Total                                                                             |   | $                      | 113.2  |   |                | $      | 112.1 |   |
|                                                                                                                  |   |                   |   |   |                |   |   |   |
| Other assets:                                                                                                    |   |                   |   |   |                |   |   |   |
|   Waste disposal site operating permits, net                                       |   | $                      | 58.8   |   |                | $      | 60.2 |   |
|   IBNR receivables                                                                                          |   |                   | 6.6    |   |                |   | 6.7 |   |
|   Capital lease deposit                                                                                     |   |                   | 6.2    |   |                |   | 6.2 |   |
|   Deferred financing costs                                                                        |   |                   | 4.5    |   |                |   | 3.5 |   |
|   Assets held for sale                                                                                      |   |                   | 3.0    |   |                |   | 3.0 |   |
|   Other intangible assets                                                                                   |   |                   | .8     |   |                |   | .7 |   |
|   Pension asset                                                                                             |   |                   | .3     |   |                |   | .5 |   |
|   Other                                                                                                     |   |                   | 23.2   |   |                |   | 28.0 |   |
|                                                                                                                  |   |                   |   |   |                |   |   |   |
|       Total                                                                             |   | $                      | 103.4  |   |                | $      | 108.8 |   |

|                                                 |   |                   |      |   |                |   |
|------------------------------------------------------|--------|------------------------|-----------|--------|---------------------|--------|
|                                                 |   | December 31, 2010 |      |   | March 31, 2011 |   |
|                                                 |   | (In millions)          |      |
|                                                 |   |                   |      |   |                |   |
| Current:                                             |   |                   |      |   |                |   |
|   Accounts payable                         |   | $                      | 129.6     |   |                | $      | 140.6 |   |
|   Payable to affiliates:                   |   |                   |      |   |                |   |   |   |
|     Contran – income taxes |   |                   |  4.3 |   |                |   | .6 |   |
|     Contran – trade items  |   |                   | 17.4      |   |                |   | 18.2 |   |
|     LPC                          |   |                   | 7.4       |   |                |   | 13.0 |   |
|     TIMET                        |   |                   | 1.0       |   |                |   | - |   |
|     Other                        |   |                   | .1        |   |                |   | - |   |
|   Employee benefits                   |   |                   | 44.8      |   |                |   | 39.2 |   |
|   Environmental costs                 |   |                   | 9.7       |   |                |   | 10.0 |   |
|   Accrued sales discounts and rebates      |   |                   | 11.3      |   |                |   | 6.9 |   |
|   Interest                                 |   |                   | 7.4       |   |                |   | 14.2 |   |
|   Deferred income                     |   |                   | 3.3       |   |                |   | 1.6 |   |
|   Other                                    |   |                   | 39.3      |   |                |   | 52.6 |   |
|                                                 |   |                   |      |   |                |   |   |   |
|       Total            |   | $                      | 275.6     |   |                | $      | 296.9 |   |
|                                                 |   |                   |      |   |                |   |   |   |

----

|                                                     |   |                   |   |   |                |   |
|----------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|
|                                                     |   | December 31, 2010 |   |   | March 31, 2011 |   |
|                                                     |   | (In millions)          |   |
|                                                     |   |                   |   |   |                |   |
| Noncurrent:                                              |   |                   |   |   |                |   |
|   Reserve for uncertain tax positions          |   | $                      | 41.3   |   |                | $      | 42.0 |   |
|   Insurance claims and expenses |   |                   | 10.3   |   |                |   | 10.3 |   |
|   Employee benefits                       |   |                   | 9.8    |   |                |   | 10.2 |   |
|   Deferred income                              |   |                   | 1.1    |   |                |   | 1.1 |   |
|   Other                                        |   |                   | 7.0    |   |                |   | 7.1 |   |
|                                                     |   |                   |   |   |                |   |   |   |
|       Total                |   | $                      | 69.5   |   |                | $      | 70.7 |   |

|                                                                 |   | December 31, 2010 |   |   | March 31, 2011 |   |
|----------------------------------------------------------------------|--------|------------------------|--------|--------|---------------------|--------|
|                                                                 |   | (In millions)          |   |
|                                                                 |   |                   |   |   |                |   |
| Valhi:                                                               |   |                   |   |   |                |   |
|   Snake River Sugar Company                                |   | $                      | 250.0  |   |                | $      | 250.0 |   |
|                                                                 |   |                   |   |   |                |   |   |   |
| Subsidiary debt:                                                     |   |                   |   |   |                |   |   |   |
|   Kronos International:                               |   |                   |   |   |                |   |   |   |
|     6.5% Senior Secured Notes     |   |                   | 532.8  |   |                |   | 450.5 |   |
|     European bank credit facility |   |                   | -      |   |                |   | 112.9 |   |
|   CompX promissory note payable to TIMET                   |   |                   | 42.2   |   |                |   | 38.0 |   |
|   CompX bank credit facility                |   |                   | 3.0    |   |                |   | - |   |
|   NL promissory note                                       |   |                   | 18.0   |   |                |   | 18.0 |   |
|   WCS financing capital lease                              |   |                   | 72.0   |   |                |   | 71.8 |   |
|   WCS 6% promissory notes                                  |   |                   | 15.4   |   |                |   | 15.5 |   |
|   Other                                                    |   |                   | 6.9    |   |                |   | 6.5 |   |
|     Total subsidiary debt              |   |                   | 690.3  |   |                |   | 713.2 |   |
|                                                                 |   |                   |   |   |                |   |   |   |
|     Total debt                              |   |                   | 940.3  |   |                |   | 963.2 |   |
|                                                                 |   |                   |   |   |                |   |   |   |
|     Less current maturities            |   |                   | 17.4   |   |                |   | 17.5 |   |
|                                                                 |   |                   |   |   |                |   |   |   |
|     Total long-term debt               |   | $                      | 922.9  |   |                | $      | 945.7 |   |

----

|                                               |   | Three months ended  March 31, |   |
|----------------------------------------------------|--------|------------------------------------|--------|
|                                               |   | 2010                               |   |   | 2011 |   |
|                                               |   | (In millions)                      |   |
|                                               |   |                               |   |   |   |   |
| Service cost                             |   | $                                  | 2.7    |   |   | $ | 2.7 |   |
| Interest cost                            |   |                               | 6.5    |   |   |   | 6.6 |   |
| Expected return on plan assets |   |                               | (5.3   | ) |   |   | (5.6 | ) |
| Amortization of unrecognized:            |   |                               |   |   |   |   |   |   |
|   Prior service cost           |   |                               | .3     |   |   |   | .4 |   |
|   Net transition obligations   |   |                               | .1     |   |   |   | .1 |   |
| Recognized actuarial losses              |   |                               | 1.7    |   |   |   | 1.8 |   |
|                                               |   |                               |   |   |   |   |   |   |
|       Total          |   | $                                  | 6.0    |   |   | $ | 6.0 |   |

|                                      |   | Three months ended March 31, |   |
|-------------------------------------------|--------|-----------------------------------|--------|
|                                      |   | 2010                              |   |   | 2011 |   |
|                                      |   | (In millions)                     |   |
|                                      |   |                              |   |   |   |   |
| Service cost                              |   | $                                 | .1     |   |   | $ | .1 |   |
| Interest cost                             |   |                              | .4     |   |   |   | .2 |   |
| Amortization of prior service credit      |   |                              | (.2    | ) |   |   | (.6 | ) |
| Recognized actuarial losses               |   |                              | -      |   |   |   | .1 |   |
|                                      |   |                              |   |   |   |   |   |   |
|       Total |   | $                                 | .3     |   |   | $ | (.2 | ) |
|                                      |   |                              |   |   |   |   |   |   |

----

|                                               |   | Three months ended March 31, |   |
|----------------------------------------------------|--------|-----------------------------------|--------|
|                                               |   | 2010                              |   |   | 2011 |   |
|                                               |   | (In millions)                     |   |
|                                               |   |                              |   |   |   |   |
| Securities earnings:                               |   |                              |   |   |   |   |
|   Dividends and interest       |   | $                                 | 6.5    |   |   | $ | 7.3 |   |
|   Securities transactions, net |   |                              | -      |   |   |   | .1 |   |
|                                               |   |                              |   |   |   |   |   |   |
|       Total     |   |                              | 6.5    |   |   |   | 7.4 |   |
|                                               |   |                              |   |   |   |   |   |   |
| Equity in joint venture earnings                   |   |                              | .1     |   |   |   | (.1 | ) |
| Currency transactions, net               |   |                              | 2.6    |   |   |   | 1.4 |   |
| Insurance recoveries                          |   |                              | 18.2   |   |   |   | .4 |   |
| Patent litigation settlement gain                  |   |                              | -      |   |   |   | 7.5 |   |
| Other, net                                    |   |                              | .6     |   |   |   | .2 |   |
|                                               |   |                              |   |   |   |   |   |   |
|       Total     |   | $                                 | 28.0   |   |   | $ | 16.8 |   |

|                                                                                       |   | Three months ended March 31,  |        |
|--------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|
|                                                                                       |   | 2010                                    |        |   | 2011 |   |
|                                                                                       |   | (In millions)                           |        |
|                                                                                       |   |                                    |        |   |   |   |
| Expected tax expense (benefit), at U.S. federal Statutory income tax rate of 35% |   | $                                       | (5.2        | ) |   | $ | 29.4 |   |
| Incremental U.S. tax and rate differences on equity in earnings                       |   |                                    |   10.3 |   |   |   |  3.8 |   |
| Non-U.S. tax rates                                                                         |   |                                    | (.1         | ) |   |   | (3.7 | ) |
| German tax attribute adjustments                                                           |   |                                    | (35.2       | ) |   |   | - |   |
| Adjustment to the reserve for uncertain tax positions, net                            |   |                                    |  -     |   |   |   |  .4 |   |
| Nondeductible expenses                                                                     |   |                                    |   .8   |   |   |   | .5 |   |
| Nontaxable income                                                                          |   |                                    | (.3         | ) |   |   | (.2 | ) |
| Prior year adjustments                                                                     |   |                                    | (.7         | ) |   |   | - |   |
| U.S. state income taxes, net                                                               |   |                                    |  .4    |   |   |   | .4 |   |
| Other, net                                                                                 |   |                                    | -           |   |   |   | .1 |   |
|                                                                                       |   |                                    |        |   |   |   |   |   |
|      Income tax expense (benefit)                                 |   | $                                       | (30.0       | ) |   | $ | 30.7 |   |

----

|                                      |   | December 31, 2010 |   |   | March 31, 2011  |   |
|-------------------------------------------|--------|------------------------|--------|--------|---------------------------|--------|
|                                      |   | (In millions)          |   |
|                                      |   |                   |   |   |                      |   |
| Noncontrolling interest in subsidiaries:  |   |                   |   |   |                      |   |
|   Kronos                        |   | $                      | 208.7  |   |                      | $      | 210.0 |   |
|   NL                            |   |                   | 56.8   |   |                      |   | 62.1 |   |
|   CompX                    |   |                   | 10.9   |   |                      |   | 11.3 |   |
|                                      |   |                   |   |   |                      |   |   |   |
|       Total |   | $                      | 276.4  |   |                      | $      | 283.4 |   |

|                                                               |   | Three months ended March 31, |   |
|--------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                               |   | 2010                              |   |   | 2011 |   |
|                                                               |   | (In millions)                     |   |
|                                                               |   |                              |   |   |   |   |
| Noncontrolling interest in net income (loss) of subsidiaries: |   |                              |   |   |   |   |
|   Kronos                                                 |   | $                                 | 2.0    |   |   | $ | 11.8 |   |
|   NL                                                |   |                              | (.4    | ) |   |   | 2.9 |   |
|   CompX                                             |   |                              | (.1    | ) |   |   | .5 |   |
|                                                               |   |                              |   |   |   |   |   |   |
|       Total                          |   | $                                 | 1.5    |   |   | $ | 15.2 |   |
|                                                               |   |                              |   |   |   |   |   |   |

----

|                                                                                                  |   | Three months ended |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                  |   | March 31,          |   |
|                                                                                                  |   | 2010               |   |   | 2011 |   |
|                                                                                                  |   | (In millions)      |   |
|                                                                                                  |   |               |   |   |   |   |
| Net income attributable to Valhi stockholders                                                         |   | $                  | 13.6   |   |   | $ | 38.0 |   |
|                                                                                                  |   |               |   |   |   |   |   |   |
| Transfers from noncontrolling interest:                                                               |   |               |   |   |   |   |   |   |
|                                                                                                  |   |               |   |   |   |   |   |   |
| Equity adjustment                                                                                     |   |               | .4     |   |   |   | - |   |
|                                                                                                  |   |               |   |   |   |   |   |   |
| Issuance of subsidiary common stock                                                                   |   |               | .1     |   |   |   | .3 |   |
|                                                                                                  |   |               |   |   |   |   |   |   |
| Transfers from noncontrolling interest                                                                |   |               | .5     |   |   |   | .3 |   |
|                                                                                                  |   |               |   |   |   |   |   |   |
| Net income attributable to Valhi stockholders and change from noncontrolling interest in subsidiaries |   | $                  | 14.1   |   |   | $ | 38.3 |   |

----

| ·   | we have never settled any of the market share, risk contribution, intentional tort, fraud, nuisance, supplier negligence, breach of warranty, conspiracy, misrepresentation, aiding and abetting, enterprise liability, or statutory cases, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | no final, non-appealable adverse verdicts have ever been entered against us, and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | we have never ultimately been found liable with respect to any such litigation matters. |
|--------------------|-----------------------------------------------------------------------------------------|

----

| ·   | complexity and differing interpretations of governmental regulations, |
|--------------------|-----------------------------------------------------------------------|

| ·   | number of PRPs and their ability or willingness to fund the allocation of costs among them, |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | financial capabilities of the PRPs and the allocation of costs among them, |
|--------------------|----------------------------------------------------------------------------|

| ·   | solvency of other PRPs, |
|--------------------|-------------------------|

| ·   | multiplicity of possible solutions, |
|--------------------|-------------------------------------|

| ·   | number of years of investigatory, remedial and monitoring activity required and |
|--------------------|---------------------------------------------------------------------------------|

| ·   | number of years between former operations and notice of claims and lack of information and documents about the former operations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                 |   | Amount        |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                                                                                 |   | (In millions) |   |
|                                                                                                                                                 |   |          |   |
| Balance at the beginning of the period                                                                                                               |   | $             | 42.3   |   |
| Additions charged to expense, net                                                                                                                    |   |          | .1     |   |
| Changes in currency exchange rates                                                                                                                   |   |          | .1     |   |
| Payments, net                                                                                                                                        |   |          | (.8    | ) |
|                                                                                                                                                 |   |          |   |   |
|       Balance at the end of the period                                                                                 |   | $             | 41.7   |   |
|                                                                                                                                                 |   |          |   |   |
| Amounts recognized in the Condensed Consolidated Balance Sheet at the end of the period: |   |          |   |   |
|   Current liability                                                                                                                   |   | $             | 10.0   |   |
|   Noncurrent liability                                                                                                                |   |          | 31.7   |   |
|                                                                                                                                                 |   |          |   |   |
|       Total                                                                                                            |   | $             | 41.7   |   |

----

| ·   | facts concerning historical operations, |
|--------------------|-----------------------------------------|

| ·   | the rate of new claims, |
|--------------------|-------------------------|

| ·   | the number of claims from which we have been dismissed and |
|--------------------|------------------------------------------------------------|

| ·   | our prior experience in the defense of these matters, |
|--------------------|-------------------------------------------------------|

----

|                                   |   | Fair Value Measurements |   |
|----------------------------------------|--------|-------------------------|--------|
|                                   |   | Total                   |   |   | Quoted Prices in Active Markets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
|                                   |   | (In millions)           |   |
|                                   |   |                    |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                     |   |                    |   |   |   |   |   |   |   |   |   |   |
|   Marketable securities:     |   |                    |   |   |   |   |   |   |   |   |   |   |
|     Current        |   | $                       | 1.7    |   |   | $ | - |   |   | $ | 1.7 |   |   | $ | - |   |
|     Noncurrent     |   |                    | 340.4  |   |   |   | 87.2 |   |   |   | 3.2 |   |   |   | 250.0 |   |
|                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Currency forward contracts |   |                    | 6.3    |   |   |   | 6.3 |   |   |   | - |   |   |   | - |   |
|                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2011:                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Marketable securities:     |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current        |   |                    | 107.4  |   |   |   | 106.1 |   |   |   | 1.3 |   |   |   | - |   |
|     Noncurrent     |   |                    | 366.0  |   |   |   | 112.7 |   |   |   | 3.3 |   |   |   | 250.0 |   |
|                                   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Currency forward contracts |   |                    | 6.9    |   |   |   | 6.9 |   |   |   | - |   |   |   | - |   |

----

| ·   | an aggregate of $49.5 million for an equivalent value of Canadian dollars at exchange rates ranging from Cdn. $1.05 to Cdn. $1.08 per U.S. dollar.  These contracts with Wachovia Bank, National Association, mature from April 2011 through December 2011 at a rate of $5.5 million per month, subject to early redemption provisions at our option. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an aggregate $10 million for an equivalent value of Norwegian kroner at exchange rates ranging from kroner 6.59 to kroner 6.60 per U.S. dollar.  These contracts with DnB Nor Bank ASA mature from April 2011 through July 2011 at a rate of $2.5 million per month. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an aggregate euro 11.8 million for an equivalent value of Norwegian kroner at exchange rates ranging from kroner 8.19 to kroner 8.28 per euro.  These contracts with DnB Nor Bank ASA mature from April 2011 through August 2011 at a rate of euro 1.8 million to euro 2.5 million per month, subject to early redemption provisions at our option. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | December 31, 2010    |   |   | March 31,2011 |   |
|-------------------------------------------------------------|--------|----------------------|--------|--------|---------------|--------|
|                                                        |   | Carrying amount |   |   | Fairvalue     |   |   | Carrying amount |   |   | Fairvalue |   |
|                                                        |   | (In millions)        |   |
|                                                        |   |                 |   |   |          |   |   |   |   |   |   |   |
| Cash, cash equivalents and restricted cash equivalents |   | $                    | 334.8  |   |          | $      | 334.8 |   |   | $ | 150.4 |   |   | $ | 150.4 |   |
| Promissory note receivable                                  |   |                 | 15.0   |   |          |   | 15.0 |   |   |   | 15.0 |   |   |   | 15.0 |   |
|                                                        |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt (excluding capitalized leases):              |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   Publicly-traded fixed rate debt -               |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|     KII Senior Secured Notes            |   | $                    | 532.8  |   |          | $      | 536.0 |   |   | $ | 450.5 |   |   | $ | 456.3 |   |
|   Snake River Sugar Company fixed rate loans      |   |                 | 250.0  |   |          |   | 250.0 |   |   |   | 250.0 |   |   |   | 250.0 |   |
|   WCS fixed rate debt                             |   |                 | 87.4   |   |          |   | 87.4 |   |   |   | 87.3 |   |   |   | 87.3 |   |
|   Variable rate bank credit facilities            |   |                 | 3.0    |   |          |   | 3.0 |   |   |   | 112.9 |   |   |   | 112.9 |   |
|   CompX variable rate promissory note             |   |                 | 42.2   |   |          |   | 42.2 |   |   |   | 38.0 |   |   |   | 38.0 |   |
|   NL variable rate promissory note                |   |                 | 18.0   |   |          |   | 18.0 |   |   |   | 18.0 |   |   |   | 18.0 |   |
|                                                        |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling interest in:                                 |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
|   Kronos common stock                             |   | $                    | 208.7  |   |          | $      | 482.0 |   |   | $ | 210.0 |   |   | $ | 663.0 |   |
|   NL common stock                                 |   |                 | 56.8   |   |          |   | 92.0 |   |   |   | 62.1 |   |   |   | 122.8 |   |
|   CompX common stock                              |   |                 | 10.9   |   |          |   | 18.6 |   |   |   | 11.3 |   |   |   | 25.5 |   |
|                                                        |   |                 |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Valhi stockholders' equity                                  |   | $                    | 541.8  |   |          | $      | 2,509.2 |   |   | $ | 580.9 |   |   | $ | 2,986.5 |   |

----

|                                                   |   | Three months ended March 31, |   |
|--------------------------------------------------------|--------|-----------------------------------|--------|
|                                                   |   | 2010                              |   |   | 2011 |   |
|                                                   |   | (In millions)                     |   |
|                                                   |   |                              |   |   |   |   |
| Net income attributable to Valhi stockholders     |   | $                                 | 13.6   |   |   | $ | 38.0 |   |
| Equity adjustment                                      |   |                              | (2.1   | ) |   |   | - |   |
|                                                   |   |                              |   |   |   |   |   |   |
| Adjusted net income attributable to Valhi stockholders |   | $                                 | 11.5   |   |   | $ | 38.0 |   |

----

|   | · | Chemicals – Our chemicals segment is operated through our majority control of Kronos.  Kronos is a leading global producer and marketer of value-added titanium dioxide pigments (“TiO2”), a base industrial product used in a diverse range of customer applications and end-use markets, including coatings, plastics, paper, food, cosmetics, inks, textile fibers, rubber, pharmaceuticals, glass, ceramics and other industrial and consumer markets. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Component Products – We operate in the component products industry through our majority control of CompX.  CompX is a leading global manufacturer of security products, precision ball bearing slides and ergonomic computer support systems used in the office furniture, transportation, tool storage and a variety of other industries.  CompX also manufactures steel exhaust systems, gauges and electronic and mechanical throttle controls for the performance boat industry. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Waste Management – WCS is our subsidiary which operates a West Texas facility for the processing, treatment, storage and disposal of a broad range of radioactive, hazardous, toxic and other wastes.  WCS obtained a byproduct disposal license in 2008 and began disposal operations at this facility in October 2009.  In January 2009 WCS received a low-level radioactive waste (“LLRW”) disposal license, which was signed in September 2009.  Construction of the LLRW facility began in January 2011 and the facility is expected to be operational in late 2011.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|   | · | The extent of the dependence of certain of our businesses on certain market sectors; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | The cyclicality of certain of our businesses (such as Kronos’ titanium dioxide pigment (“TiO2”)operations); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | Customer inventory levels (such as the extent to which Kronos’ customers may, from time to time, accelerate purchases of TiO2 in advance of anticipated price increases or defer purchases of TiO2in advance of anticipated price decreases; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | Changes in the availability of raw materials (such as ore); |
|--------|--------|-------------------------------------------------------------|

|   | · | 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, among other things, TiO2); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Competitive products and prices, including increased competition from low-cost manufacturing sources (such as China); |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Customer and competitor strategies; |
|--------|--------|-------------------------------------|

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

|   | · | Competitive technology positions; |
|--------|--------|-----------------------------------|

|   | · | Our ability to protect our intellectual property rights in our technology; |
|--------|--------|----------------------------------------------------------------------------|

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

|   | · | Restructuring transactions involving us and our affiliates; |
|--------|--------|-------------------------------------------------------------|

|   | · | Potential consolidation or solvency of our competitors; |
|--------|--------|---------------------------------------------------------|

|   | · | The ability of our subsidiaries to pay us dividends (such as Kronos’ suspension of its dividend in 2009 through the third quarter of 2010); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Uncertainties associated with new product development; |
|--------|--------|--------------------------------------------------------|

|   | · | Fluctuations in currency exchange rates (such as changes in the exchange rate between the U.S. dollar and each of the euro, the Norwegian krone, the Canadian dollar and the New Taiwan 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, amend, refinance or establish credit facilities; |
|--------|--------|------------------------------------------------------------------------|

|   | · | Our ability to maintain sufficient liquidity; |
|--------|--------|-----------------------------------------------|

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

|   | · | Our 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 (such as Kronos’ ability to utilize its German net operating loss carryforwards); |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Environmental matters (such as those requiring compliance with emission and discharge standards for existing and new facilities, or new developments regarding environmental remediation at sites related to our former operations); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Government laws and regulations and possible changes therein (such as changes in government regulations which might impose various obligations on present and former manufacturers of lead pigment and lead-based paint, including NL, with respect to asserted health concerns associated with the use of such products); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The ultimate resolution of pending litigation (such as NL's lead pigment litigation, environmental and other litigation and Kronos’ class action litigation); |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Uncertainties associated with the development of new product features; |
|--------|--------|------------------------------------------------------------------------|

|   | · | Our ability to comply with covenants contained in our revolving bank credit facilities; |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | Our ability to complete, obtain approval of and comply with the conditions of our licenses and permits (such as approval by the Texas Commission on Environmental Quality (“TCEQ”) of license conditions of WCS’s LLRW disposal license); and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | · | increased operating income from each of our Chemicals and Component Products Segments in 2011 compared to 2010 (in 2011 our Component Products Segments operating income increased primarily due to a patent litigation settlement gain recognized in 2011) offset by an increased operating loss at our Waste Management segment in 2011 compared to 2010; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a non-cash deferred income tax benefit recognized in the first quarter of 2010; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | a decrease in our ownership percentage of Kronos from 95% in the first quarter of 2010 to 80% in 2011 due to Kronos’ secondary stock offering completed in November 2010; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loss on the prepayment of debt in 2011 as a result of calling  €80 million of our Senior Notes; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | litigation settlement and contract termination expense in 2010 and; |
|--------|--------|---------------------------------------------------------------------|

|   | · | lower insurance recoveries in 2011. |
|--------|--------|-------------------------------------|

----

|   | · | a non-cash deferred income tax benefit of $.21 per diluted share (net of noncontrolling interest) recognized by Kronos related to a European Court ruling that resulted in the favorable resolution of certain German income tax issues; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | insurance recoveries of $.09 per diluted share (net of tax and noncontrolling interest); and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | a charge of $.16 per diluted share (net of tax and noncontrolling interest) related to litigation settlement and contract termination. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | higher expected operating income from our Chemicals Segment as the expected increase in operating income will more than offset the effect of the 15% reduction in our aggregate ownership percentage of Kronos as a result of Kronos’ secondary offering of its common stock completed in November 2010; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | higher expected operating income from our Component Products Segment due to the patent litigation settlement gain recognized in the first quarter of 2011 as well as from higher sales and lower legal expenses; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | litigation settlement and contract termination expense recorded in 2010; and |
|--------|--------|------------------------------------------------------------------------------|

|   | · | higher operating losses at WCS as we expect more expenses associated with the limited operations of our byproduct disposal facility which commenced operations in the fourth quarter of 2009 and the construction of the LLRW facility which is expected to be operational in late 2011. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

|                                           |   | Three months ended  March 31, |   |
|------------------------------------------------|--------|-----------------------------------------|--------|
|                                           |   | 2010                                    |   |   | 2011 |   |   | % Change |   |
|                                           |   | (Dollars in millions)                   |   |
|                                           |   |                                    |   |   |   |   |   |   |   |
| Net sales                                      |   | $                                       | 319.7  |   |   | $ | 420.4 |   |   |   | 31 | % |
| Cost of sales                                  |   |                                    | 260.0  |   |   |   | 274.6 |   |   |   | 6 |   |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Gross margin                                   |   | $                                       | 59.7   |   |   | $ | 145.8 |   |   |   | 144 | % |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Operating income                               |   | $                                       | 22.6   |   |   | $ | 103.5 |   |   |   | 358 | % |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Percent of net sales:                          |   |                                    |   |   |   |   |   |   |   |   |   |   |
|   Cost of sales                      |   |                                    | 81     | % |   |   | 65 | % |   |   |   |   |
|   Gross margin                       |   |                                    | 19     |   |   |   | 35 |   |   |   |   |   |
|   Operating income                   |   |                                    | 7      |   |   |   | 25 |   |   |   |   |   |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Ti02 operating statistics:                     |   |                                    |   |   |   |   |   |   |   |   |   |   |
|   Sales volumes*                     |   |                                    | 122    |   |   |   | 125 |   |   |   | 2 | % |
|   Production volumes*                |   |                                    | 124    |   |   |   | 133 |   |   |   | 7 |   |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Percent change in net sales:                   |   |                                    |   |   |   |   |   |   |   |   |   |   |
|   Ti02 product pricing               |   |                                    |   |   |   |   |   |   |   |   | 32 | % |
|   Ti02 sales volumes                 |   |                                    |   |   |   |   |   |   |   |   | 2 |   |
|   Ti02 product mix                   |   |                                    |   |   |   |   |   |   |   |   | (2 | ) |
|   Changes in currency exchange rates |   |                                    |   |   |   |   |   |   |   |   | (1 | ) |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |
|       Total      |   |                                    |   |   |   |   |   |   |   |   | 31 | % |
|                                           |   |                                    |   |   |   |   |   |   |   |   |   |   |

----

----

| Impact of changes in currency exchange ratesThree months ended March 31, 2011 vs March 31, 2010 |   |
|-------------------------------------------------------------------------------------------------|--------|
|                                                                                            |   | Transaction gains recognized |   |   | Translation loss-impact of rate changes |   |   | Total currency impact2010 vs 2011 |   |
|                                                                                            |   | 2010 |   |   | 2011 |   |   | Change |   |
|                                                                                            |   | (In millions) |   |
| Impact on:                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                                                                       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | (5 | ) |   | $ | (5 | ) |
| Operating income                                                                                |   |   | 3 |   |   |   | 1 |   |   |   | (2 | ) |   |   | (7 | ) |   |   | (9 | ) |

----

|                         |   | Three months ended March 31, |    |
|------------------------------|--------|-----------------------------------|---------|
|                         |   | 2010                              |    |   | 2011 |   |   | % Change |   |
|                         |   | (Dollars in millions)             |    |
|                         |   |                              |    |   |   |   |   |   |   |
| Net sales                    |   | $                                 | 32.8    |   |   | $ | 34.8 |   |   |   | 6 | % |
| Cost of sales                |   |                              | 23.7    |   |   |   | 26.1 |   |   |   | 10 |   |
|                         |   |                              |    |   |   |   |   |   |   |   |   |   |
| Gross margin                 |   | $                                 | 9.1     |   |   | $ | 8.7 |   |   |   | (5 | )% |
|                         |   |                              |    |   |   |   |   |   |   |   |   |   |
| Operating income             |   | $                                 | 1.7     |   |   | $ | 8.8 |   |   |   | 405 | % |
|                         |   |                              |    |   |   |   |   |   |   |   |   |   |
| Percent of net sales:        |   |                              |    |   |   |   |   |   |   |   |   |   |
|   Cost of sales    |   |                              | 72      | % |   |   | 75 | % |   |   |   |   |
|   Gross margin     |   |                              | 28      |   |   |   | 25 |   |   |   |   |   |
|   Operating income |   |                              |  5 |   |   |   | 25 |   |   |   |   |   |

----

| Impact of changes in currency exchange ratesThree months ended March 31, 2011 vs. 2010 |   |
|----------------------------------------------------------------------------------------|--------|
|                                                                                   |   | Transaction losses recognized |   |   | Translation gain/loss-impact of rate |   |   | Total currency impact |   |
|                                                                                   |   | 2010 |   |   | 2011 |   |   | Change |   |   | changes |   |   | 2011 vs. 2010 |   |
|                                                                                   |   | (in millions) |   |
| Impact on:                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net sales                                                                  |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | .2 |   |   | $ |  .2 |   |
|   Operating income                                                           |   |   | (.1 | ) |   |   | (.1 | ) |   |   | - |   |   |   | (.4 | ) |   |   | (.4 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|           |   | Three months ended |   |
|----------------|--------|--------------------|--------|
|           |   | March 31,          |   |
|           |   | 2010               |   |   | 2011 |   |
|           |   | (In millions)      |   |
|           |   |               |   |   |   |   |
| Net sales      |   | $                  | 4.3    |   |   | $ | .5 |   |
| Cost of sales  |   |               | 7.0    |   |   |   | 6.1 |   |
|           |   |               |   |   |   |   |   |   |
| Gross margin   |   | $                  | (2.7   | ) |   | $ | (5.6 | ) |
|           |   |               |   |   |   |   |   |   |
| Operating loss |   | $                  | (6.7   | ) |   | $ | (9.0 | ) |

----

----

| ·   | litigation and related costs at NL of $1.8 million in 2011 compared to $2.9 million in 2010 and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | environmental expenses of $.1 million in each of 2010 and 2011. |
|--------------------|-----------------------------------------------------------------|

----

----

|   | · | higher consolidated operating income in 2011 of $85.7 million in 2010; |
|--------|--------|------------------------------------------------------------------------|

|   | · | cash paid for taxes of $11.6 million in 2011 compared to cash refunds received of $15.1 million in 2010; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | call premium paid of $2.5 million related to the redemption of €80 million of our Senior Notes; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | changes in receivables, inventories, payables and accrued liabilities in 2011 used $83.7 million of net cash, an increase in the amount of cash used of $45.1 million compared to 2010, primarily due to increased sales and production volumes. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Kronos’ average days sales outstanding (“DSO”) increased from December 31, 2010 to March 31, 2011 due to the timing of collections on receivable balances; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Kronos’ average days sales in inventory (“DSI”) increased from December 31, 2010 to March 31, 2011 as Kronos was building inventory for the spring painting season; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     · | CompX’s average DSO remained constant from December 31, 2010 to March 31, 2011; and |
|--------|---------------------------|-------------------------------------------------------------------------------------------|

|   |     · | CompX’s average DSI decreased slightly from December 31, 2010 to March 31, 2011 as the result of the increase in sales in the first quarter of 2011 and the additional inventory built up at the end of December in advance of the facility consolidation that occurred during the first quarter of 2011. |
|--------|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                | December 31,  | March 31, | December 31, | March 31, |
|-------------------------------------|---------------|-----------|--------------|-----------|
|                                | 2009          | 2010      | 2010         | 2011      |
|                                |          |      |         |      |
| Kronos:                             |          |      |         |      |
|   Days sales outstanding  |  56 days | 61 days   | 55 days      | 60 days   |
|   Days sales in inventory |  58 days | 56 days   | 52 days      | 63 days   |
|                                |          |      |         |      |
| CompX:                              |          |      |         |      |
|   Days sales outstanding  | 37 days       | 43 days   | 41 days      | 41 days   |
|   Days sales in inventory | 64 days       | 67 days   | 70 days      | 68 days   |

----

|                                              |   | Three months ended March 31, |   |
|---------------------------------------------------|--------|-----------------------------------|--------|
|                                              |   | 2010                              |   |   | 2011 |   |
|                                              |   | (In millions)                     |   |
|                                              |   |                              |   |   |   |   |
| Cash provided by (used in) operating activities:  |   |                              |   |   |   |   |
|   Valhi exclusive of subsidiaries       |   | $                                 | 15.7   |   |   | $ | 34.9 |   |
|   Kronos                                |   |                              | (15.9  | ) |   |   | 21.2 |   |
|   NL exclusive of its subsidiaries |   |                              | (1.7   | ) |   |   | 18.1 |   |
|   CompX                                 |   |                              | (2.5   | ) |   |   | .1 |   |
|   WCS                                   |   |                              | (5.6   | ) |   |   | (7.1 | ) |
|   Tremont                               |   |                              | (.9    | ) |   |   | (.1 | ) |
|   Other                                 |   |                              | .3     |   |   |   | .1 |   |
|   Eliminations                          |   |                              | (6.4   | ) |   |   | (64.7 | ) |
|                                              |   |                              |   |   |   |   |   |   |
|       Total    |   | $                                 | (17.0  | ) |   | $ | 2.5 |   |

|   | · | $13.3 million in our Chemicals Segment; |
|--------|--------|-----------------------------------------|

|   | · | $.6 million in our Component Products Segment. |
|--------|--------|------------------------------------------------|

|   | Our Waste Management had $1.4 million in capitalized permit costs. |
|--------|--------------------------------------------------------------------|

|   | · | purchased net marketable securities of $105.1 million; and |
|--------|--------|------------------------------------------------------------|

|   | · | purchased TIMET common stock in market transactions for $22.4 million, including late 2010 trades settled in 2011. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

----

| ·   | had net borrowings of euro 80 million ($113.3 million when borrowed) on Kronos’ European credit facility; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | redeemed euro 80 million of KII’s euro 400 million 6.5% Senior Secured Notes; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | repaid the $3.0 million outstanding balance on CompX’s bank credit facility; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | repaid $4.2 million on CompX promissory note payable to TIMET; |
|--------------------|----------------------------------------------------------------|

| ·   | paid a quarterly dividend to stockholders of $.10 per share for an aggregate dividend of $11.4 million; and |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | our subsidiary Kronos acquired our stock, which we account for as treasury stock, in market transactions for $3.7 million. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | KII’s €320 million aggregate principal amount of its 6.5% Senior Secured Notes ($450.5 million) due in 2013; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | Valhi’s $250 million loan from Snake River Sugar Company due in 2027; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | euro 80 million ($112.9 million) under Kronos’ European revolving credit facility which matures in October 2013; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | CompX’s promissory note payable to TIMET ($38.0 million outstanding) which is due in 2014; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | NL’s $18.0 million promissory note issued in connection with a litigation settlement due in 2011 and 2012; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | WCS’ $72.0 million financing capital lease ($71.8 million outstanding) with Andrews County, Texas which has an effective interest rate of 7.0% and is due in monthly installments through August 2035; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | WCS’ two 6.0% promissory notes ($15.5 million principal amount outstanding) due in 2011 through 2014; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | approximately $6.5 million of other indebtedness, primarily capital lease obligations. |
|--------|--------|----------------------------------------------------------------------------------------|

----

----

|   | · | $37.5 million under CompX’s bank credit facility, and |
|--------|--------|-------------------------------------------------------------|

|   | · | $100(1) million under Valhi’s Contran credit facility. |
|--------|--------|--------------------------------------------------------------|

|   |  (1) Amounts available under this facility are at the sole discretion of Contran. |
|--------|----------------------------------------------------------------------------------------|

|                                                                                                                        |   |          |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                                                        |   | Amount        |   |
|                                                                                                                        |   | (In millions) |   |
|                                                                                                                        |   |          |   |
|   Kronos                                                                                                          |   | $             | 303.5  |   |
|   Valhi exclusive of its subsidiaries                                                                             |   |          | 18.2   |   |
|   NL exclusive of its subsidiaries                                                                           |   |          | 37.4   |   |
|   CompX                                                                                                           |   |          | 4.7    |   |
|   Tremont                                                                                                         |   |          | 9.1    |   |
|   WCS                                                                                                             |   |          | .9     |   |
|                                                                                                                        |   |          |   |   |
|   Total cash and cash equivalents, restricted cash and   marketable securities |   | $             | 373.8  |   |

|   | · | $68 million by our Chemicals Segment, including approximately $21 million in the area of environmental protection and compliance; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | $5 million by our Component Products Segment; and |
|--------|--------|---------------------------------------------------|

|   | · | $80 million by our Waste Management Segment. |
|--------|--------|----------------------------------------------|

----

----

----

|   | · | certain income tax examinations which are underway in various U.S. and non-U.S. jurisdictions; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | certain environmental remediation matters involving NL, Tremont and Valhi; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | certain litigation related to NL’s former involvement in the manufacture of lead pigment and lead-based paint; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | certain other litigation to which we are a party. |
|--------|--------|---------------------------------------------------|

----

----

|   | · | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our 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 unauthorized acquisition, use or disposition of our assets that could have a material effect on our Condensed Consolidated Financial Statements. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|             Period      |     Total number of shares purchased |    Averageprice paidper share, includingcommissions |    Total number of shares purchased as part of a publicly-announced        plan        | Maximum number of shares that may yet be purchased under the publicly-announced plan at end of     period     |
|--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                         |                                                     |                                                               |                                                                                                                                                                             |                                                                                                                                                       |
| January 1, 2011  to January 31,  2011                                |   80,786                                       |   $20.91                                                 |   -  0  -                                                                                                                                                    |   4,006,600                                                                                                                                      |
| February 1, 2011  to February 28,  2011                              |   24,729                                       |   $20.63                                                 |   -  0  -                                                                                                                                                    |   4,006,600                                                                                                                                      |
| March 1, 2011  to March 31,  2011                                    |   127,749                                      |   $21.41                                                 |   -  0  -                                                                                                                                                    |   4,006,600                                                                                                                                      |
|                                                                                                         |                                                     |                                                               |                                                                                                                                                                             |                                                                                                                                                       |
| Total                                                                                                        | 233,264                                                  |                                                               |                                                                                                                                                                             |                                                                                                                                                       |

|   | Item No. |   | Exhibit Index |
|--------|----------|--------|---------------|
|   |     |   |          |
|   | 31.1     |   | Certification |
|   |     |   |          |
|   | 31.2     |   | Certification |
|   |     |   |          |
|   | 32.1     |   | Certification |

----

|                                                                                                 |   |           VALHI, INC.          (Registrant) |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                 |   |                                                                                                                                            |
|                                                                                                 |   |                                                                                                                                            |
|                                                                                                 |   |                                                                                                                                            |
| Date   May 5, 2011             |   | /s/ Bobby D. O’Brien                                           |
|                                                                                                 |   | Bobby D. O’Brien(Vice President and Chief Financial Officer)                                                                         |
|                                                                                                 |   |                                                                                                                                            |
| Date   May 5, 2011             |   | /s/ Gregory M. Swalwell                                                             |
|                                                                                                 |   | Gregory M. Swalwell(Vice President and Controller, Principal Accounting Officer)                                                           |
|                                                                                                 |   |                                                                                                                                            |

----