NOVA has $101m Q1 op profit on margins, costs

25 April 2007 15:28  [Source: ICIS news]

TORONTO (ICIS news)--Canada’s NOVA Chemicals reported on Wednesday a first-quarter operating profit of $101m (€74m), up from $37m in the year-earlier quarter on better margins and cost cuts.

 

In the 2006 fourth-quarter, NOVA recorded an operating loss of $837m, on a $772m restructuring charge for its STYRENIX business unit.

 

Revenues for the first three months ended 31 March were $1.51bn, down from $1.55bn in the 2006 first quarter, and $1.63bn in the 2006 fourth quarter.

 

NOVA’s olefins/polyolefins business recorded first-quarter operating income of $116m, down from $144m in the 2006 first quarter and up from $92m in the 2006 fourth quarter.

 

The company’s performance styrenics business had a loss of $11m, compared with a loss of $4m in the 2006 first quarter and a loss of $19m in the 2006 fourth quarter.

 

The STYRENIX business unit had operating income of $15m, compared with losses of $37m each in the 2006 first and 2006 fourth quarters.

 

Net income was $44m, compared with a loss of $4m in the 2006 first quarter and a loss of $781m in the 2006 fourth quarter.

 

First-quarter net income included an $17m unrealised gain on feedstock derivatives, and an $8m negative impact from the Canadian National rail strike in February, NOVA said.

 

NOVA chief executive Jeff Lipton commented: “We saw a sharp improvement in overall business results in March which we expect to carry over into a strong second quarter.”

 

During the first quarter NOVA said it would expand its existing European joint venture with INEOS to include North American styrene and solid polystyrene assets.

 

“With the expansion of the joint venture with INEOS, we look forward to building upon our success in Europe to rapidly remove costs and continue to expand the positive operating income from the North American business,” Lipton said.

 

($1 = €0.73)

By: Stefan Baumgarten
+1 713 525 2653

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