01 November 2012 21:52 [Source: ICIS news]
HOUSTON (ICIS)--TPC Group’s third-quarter income fell by 22% year on year, the US-based butadiene (BD) producer said on Thursday.
Net income for the quarter ending on 30 September was $7.3m (€5.6m) compared with last year’s $9.4m, TPC said.
Revenue was $510.6m, a 39% decline due to a decrease in overall average selling prices and lower sales volume, the company said.
“The lower average selling price was driven primarily by a 49% decline in the benchmark contract price for butadiene, while the lower sales volume reflected softer demand due to continuing weakness in global economic conditions," TPC said.
Cost of sales was $432.1m, down 43% from last year’s $758.1m. Despite the drop in cost of sales, general and administrative expenses rose by 50%, reaching $11.4m.
TPC is amidst acquisition discussions. US specialty chemicals company Innospec made an offer in October, which was substantially higher than an earlier bid by energy-focused private equity firm First Reserve and chemical industry-focused private investment firm SK Capital Partners.
($1 = €0.77)
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