Borealis Q3 net profit slumps 71% to €46m due to poor sales

27 October 2009 09:23  [Source: ICIS news]

SINGAPORE (ICIS news)--Borealis posted a third-quarter net profit of €46m ($68.7m), down 71% year on year, due to poor sales, the Austria-based chemical producer said on Tuesday.

Sales for the three-month period ending on 30 September declined 30% year on year to €1.28bn, Borealis said.

Operating profit slumped 66% to €58m on continued margin pressure, particularly on its melamine and fertilizer businesses, the company said.

For the January-September period, the company said its net profit shrank 93% to €25m, while sales were down 36% at €3.45bn.

Borealis said its sales margins have slightly improved but were still below historic levels.

“Due to the anticipated additional volumes coming on stream from the Middle East, this trend is not expected to change,” the company said.

Borealis is 64% owned by the International Petroleum Investment Co (IPIC) of Abu Dhabi, with the remaining 36% held by energy group OMV.

($1 = €0.67)

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By: Pearl Bantillo
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