OxyChem expects lower Q4 earnings amid seasonal slowdown

27 October 2011 18:28  [Source: ICIS news]

HOUSTON (ICIS)--Occidental Petroleum’s OxyChem chemicals business expects to see lower fourth-quarter earnings amid a seasonal slowdown, the company’s CEO said on Thursday.

Chief executive Stephen Chazen told analysts during the company’s third-quarter results conference call that OxyChem is expected to record earnings of about $100m (€72m) in the fourth quarter.

This compares with $111m in earnings OxyChem generated in the 2010 fourth quarter, and $245m in the 2011 third quarter.

Chazen said the fourth quarter is historically the segment’s weakest because of seasonal slowdowns in construction and other markets.

Also affecting OxyChem’s fourth-quarter are customers' efforts to minimise inventories and a slowdown in exports, he said.

OxyChem is a North American producer of polyvinyl chloride (PVC) resins, chlorine and caustic soda.

($1 = €0.72)

For more on OxyChem and other producers visit ICIS company intelligence

By: Stefan Baumgarten
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