12 November 2008 15:12 [Source: ICIS news]
TORONTO (ICIS news)--Texas Petrochemicals' fiscal first-quarter net income dropped 80% year on year to $1.4m (€1.1m) and operating income dropped 62% to $6.3m as hurricanes Gustav and Ike cost an estimated $10m-15m, the US producer said on Wednesday.
The company warned of continued adverse impacts from the hurricanes in its current fiscal second quarter.
Sales for the three months ended 30 September rose 11.7% to $543m from $486m as significantly higher selling prices offset lower volumes due to the hurricanes. Gross profit rose 7% to $71.4m from $66.7m.
"Our first-quarter performance was solid considering the very challenging circumstances we faced from two hurricanes in September and the deterioration of the domestic and global economies that unfolded as the quarter progressed,” said CEO Charlie Shaver.
“Regarding the impact of the hurricanes, it is important to understand that they will have a continuing adverse effect on our operating results in the second quarter as more costs will be incurred to complete the storm damage repairs and certain of our major raw material suppliers and customers are still shut down, some of which will continue to be for some time,” he said.
“We are working hard to mitigate the negative impact on our business until all of our suppliers and customers are back to normal operating conditions," he added.
($1 = €0.80)
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