27 August 2009 20:49 [Source: ICIS news]
LONDON (ICIS news)--Tessenderlo reported a second-quarter recurring earnings before interest and tax (REBIT) loss of €13.4m ($19.1m), down from a REBIT of €94.1m for the same period last year due to a fall in activity, the Belgian chemicals company said on Thursday.
Sales were down 32% year on year to €531.2m for the second quarter due primarily to a low demand in the chemicals market.
“The chemicals business group was impacted in first-half 2009 by a very depressed market, both in terms of volumes and prices, especially regarding inorganic products. This compares with an exceptionally favourable 2008 performance, driven by demand and price levels,” the company said in a statement.
It added that chlor-alklis had faced a significant drop in price in the second quarter of 2009 due to the slow market.
The producer had yet to see a recovery of activity in the markets on which it operates and would continue with its cost reduction plans, Tessenderlo said.
“The improvement in working capital, already successfully achieved at the end of June, notably through lower inventories, should accelerate by the end of the year,” the company added.
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