05 November 2012 22:28 [Source: ICIS news]
HOUSTON (ICIS)--US-based specialty chemicals producer Chemtura reported on Monday a third-quarter net income of $9m (€7m), flat year on year, because an impairment charge offset lower expenses.
Third-quarter net sales were $743m, down 3.9% from $773m reported for the same time last year, Chemtura said. The company attributed the drop mainly to lower volumes in its industrials segments.
Cost of sales were $551m, down 8.0% from the same time last year, the company said. The drop was attributed in part to lower raw-material costs.
Selling, general and administrative expenses were $77m, down 8.3% from $84m reported for the same time last year, Chemtura said.
The drop in expenses was offset by a $35m impairment charge, the company said. Chemtura had no impairment charges from the same time last year.
In a statement, Chemtura chief executive Crag Rogerson said, “This quarter Chemtura AgroSolutions again led our performance improvement. With the benefit of a new sales strategy, Latin American sales grew significantly and the benefits of the introduction of new products and registrations combined with cost reduction expanded margins continued to drive profitability improvements."
He added, "In our Industrial Engineered Products segment we were able to offset much of the weak conditions in the electronics market through growth from insulation foams, mercury control and healthcare applications for bromine-based products."
Looking forward, Rogerson said, "With continuing economic uncertainty, we are unlikely to see recovery in industrial demand in the fourth quarter and there remains a risk of further weakening. We continue to look beyond the macroeconomic environment to focus on gaining revenues from sales from new products and applications while maintaining tight control on costs.($1 = €0.78)
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