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%, ?xml:namespace>
“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.
($1 = €0.73)
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