06 November 2012 20:02 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura does not expect to see a noticeable recovery in industrial demand in the current fourth quarter, the CEO of the US-based specialty chemicals firm said on Tuesday.
Rather, there remain “some risks of further weakening”, Craig Rogerson told analysts during Chemtura’s third-quarter results conference call.
In the third-quarter, Chemtura saw continued demand weakness in both ?xml:namespace>
“We didn’t see any sign of an upturn, but we didn’t see any further deterioration, but clearly there is a risk for further deterioration as we get into the fourth quarter,” he added.
Chemtura is responding to weak market demand by keeping a tight control on costs and focussing on gaining revenues from new products, Rogerson said.
Chemtura’s industrial segments – industrial performance products and industrial engineered products – saw year-on-year declines in third-quarter sales, mainly because of lower volumes and unfavourable exchange rate effects.
Rogerson also said that despite increased benzene costs, Chemtura expects to maintain margins at its industrial performance products segment, in particular in petroleum additives.
“I think we have done a good job, over the last six quarters or maybe a little longer than that, to get price”, thus offsetting higher raw material costs, he added.
Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections