US Rockwood posts Q1 loss of $3.8m on recession

29 April 2009 00:18  [Source: ICIS news]

HOUSTON (ICIS news)--Rockwood Holdings posted a first-quarter net loss of $3.8m (€2.9m), compared with a profit of $28.7m during the same period a year ago due to a significant falloff in demand due to the global recession, the US specialty chemicals producer said on Tuesday.

Overall net sales for the three months ended 31 March were $660m, a decline of 22% compared to $843.8m in the first quarter of 2008.

"The reduction in sales was particularly severe in automotive and construction-related businesses," CEO Seifi Ghasemi said, adding that corporate priorities including controlling both working capital and capital spending helped Rockwood "cope with this [economic] downturn".

Net sales declined in all of the company's segments except titanium dioxide (TiO2) pigments, which saw an increase of 19.9%, the company reported.

Net sales declined by 28% in the company's specialty chemicals segments, 27% in its performance additives division, 34% in advanced ceramics and 26% in specialty compounds, Rockwood said.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations were down by 36% to $109.2m for the quarter, compared with $169.2 for the same period a year ago.

($1 = €0.77)

To discuss issues facing the chemical industry, go to ICIS connect

By: Larry Terry
1 713 525 2653

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.

Printer Friendly