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.”
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