25 February 2013 23:43 [Source: ICIS news]
HOUSTON (ICIS)--US-based specialty chemicals firm Chemtura posted a more than 41% year-on-year drop in Q4 net earnings on losses from discontinued operations, the company said on Monday.
Net earnings for the quarter ended 31 December 2012 were $20m (€15m), down from $34m in the same period a year earlier.
Revenues for Q4 2012 totalled $622m, about a 7.6% year-on-year increase from $578m.
However, Chemtura agreed in November to sell its antioxidant and UV stabilisers business for $200m to SK Capital. In an amended agreement signed in January and expected to close in Q1 2013, SK Capital said it would also assume $93m in pension and environmental liabilities for a closing of $107m.
“As a result of entering into this transaction, we recorded an additional impairment loss of $11m in the fourth quarter of 2012 and determined that discontinued operations treatment applied,” Chemtura said.
In addition, the company incurred $125m of debt under its senior secured term facility, writing off $1m in debt and costs and incurring $2m in interest.
Highlighting the company’s business segments, CEO Craig Rogerson said AgroSolutions and consumer products both performed strongly in one of their seasonally weaker quarters. However, Chemtura's industrial segments faced tougher business conditions, he said.
For the year, Chemtura posted nearly a 17% decrease in net income to $100m in 2012 from $120m in 2011. Revenues for the year were up to $2.629bn in 2012, a slight increase from $2.606bn in 2011.
Looking forward, Rogerson said improved economic conditions will leverage Chemtura’s performance.
“The year has started with comparable industrial demand conditions to those we experienced in the fourth quarter of 2012, which makes the first quarter challenging,” he said. “Nevertheless, we see opportunities for demand recovery as the year progresses led by the Asia-Pacific region. With the investments we have made in people and facilities, our businesses are better positioned than in the past to capture the benefits of economic recovery as it occurs.”
($1 = €0.76)
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