US Chemtura reports Q2 net loss of $278m

31 July 2008 23:47  [Source: ICIS news]

HOUSTON (ICIS news)--US specialty chemicals producer Chemtura reported on Thursday a second-quarter net loss of $278m (€178m) due to a goodwill charge of $320m.

Chemtura reported a net profit of $8m for the same time last year.

Net sales were $1.02bn, down from $1.04bn for the same time last year. Cost of goods were $775m, down from $783m for the same time last year.

By segment, polymer additives reported an operating profit of $27m, down from $32m for the same time last year. Rising raw-material costs dragged down the segment's performance, Chemtura said.

Performance specialties - which includes petroleum additives and urethanes, reported an operating profit of $31m, up from $27m. The segment benefited from higher selling prices and an improved product mix, Chemtura said.

Consumer products - which produces water-treatment chemicals - reported an operating profit of $32m, down from $38m for the same time last year. Much of the drop was caused by a wet and cold start to the pool season, the company said.

Crop protection was $24m, up from $15m due to stronger sales, Chemtura said.

"Finding ways to fully capture the value in use for our products and drastically reduce the lag time between cost increases and price increases, while understanding the challenges our customers face, remains our biggest challenge," according to a statement by Robert Wood, CEO.

"We are determined to be successful in meeting this challenge," Wood said. "We have made progress, but we must do more to adapt our commercial practices to today's less-stable conditions."

($1 = €0.64)

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