Corrected: US Albemarle Q1 net profits plunge 60%

28 April 2009 03:55  [Source: ICIS news]

Correction: In the ICIS news story headlined “US Albermarle Q1 net profits plunge 60%” dated 28 April 2009, please read in the headline, first, fourth and fifth paragraphs … Albemarle … instead of … Albermarle …. A corrected story follows.

SINGAPORE (ICIS news)--US producer Albemarle said late on Monday its first quarter net profits fell 60% year-on-year to $25.4m (€19.6m) as weakness in end-consumer demand severely hit its polymer additives business.

The financial results included a $2.1m in restructuring charges, it said. Net sales for the period declined 27% to $486.6m, with operating profits down 66% to $28.9m.

Sales for polymer additives were halved to $123.2m given sharp declines in demand from the consumer electronics, automotive and construction markets.

“Our first quarter results were significantly impacted by the continued steep downturn in consumer end-market demand and destocking actions throughout the supply chain,” Albemarle chairman and CEO Mark Rohr said in a statement.

Albemarle ran its plants at “much lower operating rates” in the first three months of the year to cut down on inventory and align production to current needs, he added.

Rohr said the company expected 2009 to be a “very challenging year” but was on track to achieve $30m in savings from restructuring efforts.

“There is still much uncertainty as to the length of the current global economic downturn and to when meaningful demand will be restored on consumer end-markets,” the company said.

($1 = €0.77)

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