US Chemtura reports Q1 net loss on restructuring, higher costs

02 May 2013 23:05  [Source: ICIS news]

HOUSTON (ICIS)--US-based specialty chemicals producer Chemtura reported on Thursday a Q1 net loss of $23m (€17m), compared with a net income of $22m for the same time last year, because of higher costs, lower sales and expenses related a restructuring programme.

Q1 net sales were $606m, down nearly 2% from $618m reported for the same time last year, Chemtura said.

Cost of sales were $480m, up more than 5% from $455m reported for the same time last year.

Costs rose, in part, because the company had a $21m charge to help pay for the clean-up costs for a shuttered plant in France, Chemtura said.

In addition, Chemtura reported a $14m charge related to a restructuring programme that the company's board approved on 22 February. Most of the expenses were reflected severance costs, the company said.

By segment, income fell by $24m for Industrial Engineered Products, as demand was weak for tin-based organometallics and brominated flame retardants.

Income fell $2m in the company's Consumer Products segment, which sells products used in swimming pools. Chemtura attributed the drop to a prolonged winter.

Income rose $3m for Industrial Performance Products. Chemtura attributed the increase to higher demand for petroleum additives and some of the segment's synthetic lubricant products.

Income also rose $3m for AgroSolutions because of higher volumes in North and Latin America.

($1 = €0.76)

By: Al Greenwood
+1 713 525 2645

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