27 October 2000 17:21 [Source: ICIS news]
HOUSTON (CNI)--Arch Chemicals said Friday its third quarter net income rose 12% to $4.6m (Euro5.5m) on flat sales of $200m, and the company announced plans to restructure its process chemicals business.
Diluted earnings/share (eps) for the period ended 30 September were 21 cent compared to 18 cent/share in the third quarter 1999, Arch said.
Results for the third quarter 2000 included $2.2m in costs related to the acquisition of UK-based Hickson International, a $7.5m pre-tax restructuring charge and a pre-tax gain of $10.6m related to the sale of Superior Pool Products Incorporated (SPPI).
The increase in sales associated with the $145m acquisition of Hickson, which occurred on 22 August, were offset by the reduction of sales due to the divestiture of SPPI, which occurred 31 July, the company noted.
Michael Campbell, Arch's chairman and chief executive, said the acquisition of Hickson strengthens Arch's "significant positions in the biocides and performance urethanes marketplace, expands our global infrastructure and has been accretive from day one."
Added Campbell: "We have recently embarked on a plan to reorganise and streamline certain of our businesses. In addition, we have planned a major fourth quarter restructuring of our process chemicals business to return this business to profitability."
Arch's microelectronic chemicals division reported sales of $57.3m and operating income of $2.4m during the third quarter 2000 compared with sales of $55.2m and an operating loss of $1.5m in that period in 1999.
Arch's water chemicals unit reported sales of $46.8m and an operating loss of $4.4m in the quarter, versus sales of $63.2m and an operating loss of $800 000 in the same period last year.
Performance chemicals reported sales of $96.2m and operating income of $10.9m for the third quarter 2000 compared with sales of $83.2m and operating income of $9.2m in 1999.
Based in Norwalk, Connecticut, Arch Chemicals is a global specialty chemicals company with leadership positions in microelectronic, water and performance chemicals.
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