Borealis Q3 net profits fall on one-off 2007 gain

30 October 2008 09:04  [Source: ICIS news]

LONDON (ICIS news)--Borealis’ third-quarter net profits slumped 29% to €159m ($204m), from €225m year on year due to a one-off gain from the sale of assets in 2007, the Austrian plastics producer said on Thursday.

Excluding the one-off gain, net profits increased by 33% over the same period last year, the company added.

Operating profits rose 21% to €173m, from €143m, while sales revenue was up 9.9% at €1.83bn, from €1.67bn in the third quarter last year, it said.

“These solid third-quarter results were achieved despite worsening market conditions in the polyolefins business,” the company said, adding that its plant nutrients businesses continued to experience favourable trading conditions.

The company said the financial crisis was affecting demand going into the fourth quarter.

“We believe that significant parts of the world economy are already in recession and while we should be pleased with our third-quarter results, there are very clear indications of a significant softening of the polyolefin markets in the current quarter and beyond,” said CEO Mark Garrett.

"We need to step up attention to our cost-competitiveness, particularly in Europe, and operational performance without compromising our commitment to safety,” he said, adding that the company would continue its focus on the infrastructure, automotive and advanced packaging segments.

During the third quarter Borealis inaugurated its Burghausen, Germany, polypropylene plant.

It also said the construction of its 350,000 tonne/year low density polyethylene (PE) plant in Sweden was on track for completion in 2009.

In the Middle East, the construction of Borouge 2 petrochemicals complex was proceeding as planned for completion in 2010, and feasibility studies were in progress for Borouge 3 and a new chemicals industrial city, both to be located in Abu Dhabi, the United Arab Emirates.

($1 = €0.78)

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By: Hilde Ovrebekk
+44 20 8652 3214

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