Millennium Chemicals posts '01 loss of $43m on economy
31 January 2002 17:32 [Source: ICIS news]
HOUSTON (CNI)--Titanium dioxide (TiO2) and acetyls producer Millennium Chemicals posted a 2001 loss of $43m (Euro50.5m) Thursday on a 41% decline in operating earnings and an 11% decrease in sales with the company citing the impact of "sluggish demand and lower pricing in all businesses."
For the year ended 31 December, the Red Bank, New Jersey-based company recorded sales of $1.6bn and earnings of $192m before interest, taxes, depreciation and amortisation (Ebitda). Those figures compare with net income of $122m on sales of $1.8bn with Ebitda of $326m in 2000.
In the fourth quarter, Millennium reported net income of $8m with the help of an unusual reduction of its income tax accruals by $42m. Excluding that reduction, Millennium said it would have posted a loss of $34m for the quarter. Millennium recorded a 70% decline in fourth quarter Ebitda to $27m on a 23% decrease in sales to $334.
Those figures exclude Millennium's 29.5% share of sales from the Equistar joint venture, which also reported results Thursday for last year.
Despite the decline, William Landuyt, Millennium's chairman and chief executive officer, said the company reduced its fourth quarter costs for selling, development and administration by 30%.
He also warned that Millennium anticipates first quarter results similar to those of the fourth quarter due to "industry overcapacity and the weak global economy."
In its segments for the fourth quarter, Millennium said operating earnings for TiO2 declined 53% to $28m while acetyls recorded a $4m operating loss compared with earnings of $25m in the same period for 2000. Operating earnings for Millennium's specialty and fragrance chemicals business declined 40% to $3m.
By: Gary Taylor
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