06 May 2011 00:18 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura swung into a first-quarter $7m (€5m) continuing operations net profit from a $177m loss in the same period in 2010, reflecting its emergence from bankruptcy protection last year and growth in year-on-year sales, the US producer said on Thursday.
Net sales for the first quarter were $699m, an increase of $96m from $603m during the first quarter of 2010, Chemtura said.
“With the reorganisation costs almost behind us, we returned to profitability on a GAAP basis,” said Chemtura CEO Craig Rogerson.
“Importantly, we made significant progress in recovering the increases in raw material costs, and together with the strength of our bromine franchise, our year-on-year changes in selling prices exceeded year-on-year changes in raw material cost by $19m in the quarter," he said.
The company emerged from bankruptcy protection in November. It reported a fourth-quarter loss of $367m because of charges it paid as part of its exit from bankruptcy protection.
The company’s industrial performance products unit rose to a $30m operating profit during the first quarter from $25m in the same period last year.
Operating profits for industrial engineered products increased to $33m in the first quarter from a $3m loss in the first quarter of 2010.
Consumer products, however, recorded a $3m loss compared with a $6m profit in the first quarter of 2010.
The company’s AgroSolutions segment reported a $2m profit, compared with a $1m loss for the same quarter last year.
Looking forward, Rogerson said the second quarter will be “a tougher challenge than the first quarter as it is always our strongest quarter of the year”.
“Our industrial segments are performing strongly and they are expected to offset any softness in our consumer products business,” the CEO said.
Chemtura produces agricultural chemicals, plastic additives, petroleum additives, pool chemicals and urethane chemicals.
($1 = €0.67)
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