25 February 2009 23:38 [Source: ICIS news]
HOUSTON (ICIS news)--Chemtura sank into a $737m (€575m) net loss for the fourth quarter on a 23% drop in sales from the 2007 fourth quarter, the financially stricken US specialty chemicals producer said on Wednesday.
Chemtura had reported a loss of less than $1m for the same quarter in 2007.
Net sales plunged to $690m in the fourth quarter from $891m in the same quarter of 2007.
Chemtura “saw order volumes decline sharply in November and December as our customers experienced, or anticipated, reductions in demand from the industries they serve,” said company president and CEO Craig Rogerson.
“Lower manufacturing output resulting from lower demand and our efforts to reduce inventories, resulted in much higher manufacturing variances,” he continued.
Chemtura reported on 20 February that is was in danger of being de-listed from the New York Stock Exchange (NYSE) due to its falling share value. Chemtura shares closed on Wednesday at 58 cents on the New York Stock Exchange.
Rogerson noted that Chemtura reached an agreement with its creditors for a 90-day credit waiver ending on 30 March. The company said its total debt as of 31 December was $1.2bn and it was unlikely it would be in compliance with its debt agreements for the remainder of 2009 following the end of the 90-day waiver.
Chemtura has announced a wide range of cost cutting measures.
Looking forward, Rogerson said the company is focusing on three areas of operations, including cost controls, closely managing its liquidity and completing its assets sales to generate liquidity.
($1 = €0.78)
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