US Calumet sees Q4 income dip 56% on increasing crude prices

17 February 2010 17:15  [Source: ICIS news]

HOUSTON (ICIS news)--Fourth-quarter net income for Calumet Specialty Products fell 55.7% to $8.2m (€6m) due to increasing crude oil prices, the US lube oils, solvents and waxes producer said on Wednesday.

Sales were $495.9m, down 0.6% from $498.7m in the year-earlier period. The net income decline primarily reflected increased raw material costs and lower selling prices of specialty products, as well as a $4.3m increase in selling, general and administrative (SG&A) costs, the company said.

The company uses crude as a feedstock for many of its products.

Gross profit for the company’s specialty and fuel products segment was $27.5m, down 64.6% from the $77.7m in the year-earlier period due to pricing conditions - even as sales volumes increased by 18.7%, Calumet said.

“The continued economic weakness and lower fuel products crack spreads continue to weigh on our results,” chief executive Bill Grube said.

For the full 2009 year, however, earnings of $61.8m were up 39.2% from $44.4m in 2008, reflecting a year-over-year improvement in crude pricing conditions.

Looking forward, Calumet said it was optimistic based on its fourth-quarter agreement with LyondellBasell, in which it will market several specialty products and should positively impact the company’s 2010 results.

($1 = €0.73)

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By: Ben DuBose
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