US Chemtura still considers options - CFO

01 August 2008 17:31  [Source: ICIS news]

NEW YORK (ICIS news)--US specialty chemicals firm Chemtura  is still considering strategic options, including divestitures, acquisitions and joint ventures, chief financial officer Stephen Forsyth said on Friday.

“The alternatives, including divestitures, acquisitions and joint ventures, are all being considered,” said Forsyth in the company’s second-quarter earnings conference call.

On 26 June, the company announced that after “thoroughly exploring” a sale of the company or a merger with financial advisor Merrill Lynch, it decided to terminate sale discussions and operate as a stand-alone company.

Chemtura aims to focus on reducing debt, which stood at $1bn (€640m) on a net basis at the end of the quarter, said Forsyth.

“We would like less leverage, and we would manage our businesses with that consideration in mind,” he said.

In the meantime, Chemtura said it will continue to focus on improving the performance of its businesses.

“We are aggressively managing the businesses we have, until we don’t,” said chairman and CEO Robert Wood on the conference call.

Chemtura reported on Thursday a second-quarter net loss of $278m due to a goodwill charge of $320m in its Consumer Products segment, versus a net profit of $8m for the same time last year.

However, net income from continuing operations, excluding charges, rose 22% year-on-year to $45m, according to Chemtura. Earnings per share of 18 cents matched the Wall Street consensus.

Net sales were $1.02bn, down from $1.04bn for the same time last year.

($1 = €0.64)

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By: Joe Kamalick
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