18 February 2009 12:26 [Source: ICIS news]
LONDON (ICIS news)--Westlake Chemical posted a net loss of $109.6m (€86.8m) in the fourth quarter, plummeting from a gain of $18.8m in the same period a year earlier as the global recession reduced demand for its products, the Houston-based company said on Wednesday.
Group sales dropped 30% to $597.1m, down from $850.6m in the year earlier period, the company said.
“[The loss] was primarily due to the impact on our inventories caused by the unprecedented drop in feedstock and product prices, which resulted in significant inventory losses, lower customer demand and the resulting reduction in operating rates,” said president and CEO Albert Chao.
The Olefins business segment reported a $136.3m loss from operations during the fourth quarter compared with a gain of $25.6m in the same period of 2007.
Due to the weakened demand for ethylene derivative products,
The company’s Vinyls segment posted an operating loss of $27.9m compared to a $4m loss in the year-earlier period.
“PVC resin and pipe prices were reduced largely as a result of sharply falling raw material costs, and sales volumes declined as customers anticipated lower prices and demand weakened,”
Construction activity in the
The group reported a full year 2008 net loss of $29.5m, down from a gain of $114.7m in 2007. Sales increased 16% to $3.69bn.
($1 = €0.79)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections