Westlake records $6.1m Q1 net loss on drop in sales, demand

05 May 2009 11:41  [Source: ICIS news]

LONDON (ICIS news)--Westlake has reported a net loss in the first quarter of $6.1m (€4.6m), a slump from profits of $5.4m during the same three months last year, the company said on Tuesday.

The company reported an operating loss of $0.9m compared with profits of $13.9m during the same period last year.

Westlake said these losses reflected lower sales volumes, weakness in the vinyls construction markets, reduced demand for polyethylene, an unscheduled outage caused by an ice storm at its Calvert City facility and a turnaround at one of its ethylene units in Lake Charles, Louisiana.

Net sales dropped 47% to $488.3m from $915.1m in the first quarter of 2008.

The company said that as well as a fall in demand, the decrease in sales was due to significantly lower selling prices for all of its major products with the exception of caustic, after the global collapse in commodity prices in the fourth quarter of 2008.

"Our volume improved in the first quarter of 2009 as compared to last quarter and we were able to implement price increases for polyethylene and PVC [polyvinyl chloride] resin,” said Albert Chao, president and CEO.

“As to our financial liquidity, we currently have $300m in cash, including restricted cash, and have no outstanding borrowings under our revolving credit facility," he added.

($1 = €0.75)

For more on Westlake visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Hilde Ovrebekk
+44 20 8652 3214

AddThis Social Bookmark Button

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