Corrected: Hungary's TVK Q4 net loss widens to Ft8.4bn on poor plastics demand

24 February 2012 01:57  [Source: ICIS news]

Correction: in the ICIS news story headlined “Hungary’s TVK Q4 loss widens to $8.4bn on poor plastics demand” dated 24 February 2012, please read the headline as “Hungary’s TVK Q4 loss widens to Ft8.4bn…” instead of  “… widens to $8.4bn …”

LONDON (ICIS)--Hungarian petrochemicals producer TVK said on Friday its fourth-quarter net loss widened to forint (Ft) 8.4bn ($38.8m, €29.1m) in 2011, compared with Ft2.5bn in the same period a year earlier, on the back of falling demand for plastics.

The company’s sales rose by 2% year on year to Ft97bn in the fourth quarter of last year, while operating profit slumped by 79% to Ft6.5bn, the company said in a statement.

“Unfortunately, in the second half of 2011 demand for plastic feedstocks produced by companies including TVK decreased not only in Europe, but throughout the whole world, and that tendency caused a dramatic weakening of our margins as well as those of others,” said Zsolt Petho, CEO of TVK.

The poor market environment has led the company into starting a three-year efficiency and competitiveness programme which partly aims to cut costs, Petho added.

On a quarter-on-quarter basis, average prices of lower density polyethylene (LDPE) in Europe fell 7%. Average prices of high density polyethylene (HDPE) and polypropylene (PP) also dropped by 5% and 5–10% respectively, according to TVK.

The company is a subsidiary of Hungary’s MOL oil, gas and petrochemicals group, which reported its fourth-quarter 2011 results earlier on Friday.

($1 = €0.75, $1 = Ft216.6)

By: Will Conroy
+44 20 8652 3214

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