Acetic acid output loss hits Celanese Q2 profit

27 July 2007 03:27  [Source: ICIS news]

SINGAPORE (ICIS news)--Celanese posted late on Thursday a 53.3% year-on-year fall in second quarter operating profit, hit by a loss of acetic acid output, higher raw material and restructuring costs.

"The loss of acetic acid production at our Clear Lake facility regrettably affected our customers and had an impact on our earnings," David Weidman, chairman and CEO of the global acetyls producer, said in a statement.

Second quarter operating profit fell to $71m (€51.8m) from $152m in the same period a year ago, Celanese said.

Sales rose 7% to $1.6bn as prices for acetyls rose on strong global demand and the company started commercial production at its acetic acid unit in Nanjing, China, it added.

Ongoing growth in Ticona’s advanced engineered materials business and positive currency effects helped to offset the impact from the outage at its Clear Lake, Texas facility that occurred in May 2007, Celanese said.

Second quarter operating profit for its chemicals segment fell 30% to $91m from the same period a year ago as the lower volumes, higher raw material costs and $30m of other charges related to long-term compensation and restructuring expense more than offset the higher pricing, it added.

Net sales for chemicals rose 3% to $1bn compared with the same period last year.

At Ticona, its polymers business, operating profit fell 15.8% to $32m on higher energy costs in Europe, the company said. Net sales increased 12% to $257m on an 8% rise in volume.

Second quarter operating profit for its acetates segment remained unchanged at $29m compared with the same period a year ago even though sales rose 33.5%. Lower margins in the recently acquired APL business and higher restructuring costs offset the increase in sales, Celanese said.

($1=€0.73)

By: Florence Tan
+65 6780 4359

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