US Axiall reports $3.5m loss for first quarter of 2013

08 May 2013 17:22  [Source: ICIS news]

HOUSTON (ICIS)--Shares of Axiall stock were down about 9% on Wednesday morning following the US integrated chemical company’s release of its Q1 2013 earnings results, which showed a loss in the quarter.

Axiall reported a net loss of $3.5m (€2.7m) for Q1 2013, compared with a net income of $35.3m the year before.

Excluding non-recurring items, the company reported an adjusted net income of $45.1m, compared with an adjusted net income of $27.6 for Q1 2012.

Overall net sales were $1.1bn for the first quarter of 2013, compared with $859.9m for Q1 2012.

Hurting the company’s bottom line were non-recurring expenses such as a $78.5m loss on redemption and other debt costs, as well as an $18.3m interest expense.

Axiall was formed on 28 January from the merger of Georgia Gulf with PPG’s chemicals business.

The Q1 2013 financial results included the results of the merged company since the date of the merger through 31 March, but not in prior periods, Axiall said.

Q1 2013 sales in Axiall’s chlorovinyls segment were $614.5m, compared with $329.5m the year before. The increase in net sales was primarily attributed to the sales contributed by the PPG chemicals business after the merger.

Net sales in the aromatics segment decreased to $284.5m for the first quarter, compared with $343.2m in Q1 2012, due to lower sales volumes for all products, Axiall said.

Net sales also dropped in the building products segment. Lower sales volume due to winter weather led to Q1 2013 coming in at $162.2m, compared with Q1 2012 net sales of $187.2m.

($1 = €0.76)


By: Jeremy Pafford
+1 713 525 2653



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