07 June 2013 15:24 [Source: ICIS news]
HOUSTON (ICIS)--US specialty chemicals firm Chemtura expects its 2013 second-quarter performance – on a continuing operations basis – to fall short of the 2012 second quarter, mainly because of weakness in its industrial engineered products segment, according to a statement on Friday.
Chemtura said margins in industrial engineered products remain under pressure.
While selling prices for insulation foam products and for flame retardants in Asian electronics markets stabilised at the levels seen at the end of the first quarter of 2013, they remain lower than in the second half of 2012, the company said.
At the same time, certain raw material costs – for example for phenol-based products – increased, it said.
As a result, Chemtura expects that operating income in industrial engineered products for the three months ending 30 June will be about $5m-$10m (€3.8m-€7.6m) below the $20m the segment earned in the first quarter of 2013, it said.
CEO Craig Rogerson said the performance of industrial engineered products "appears to be bottoming this quarter and [we] anticipate improving results over the second half of 2013".
Meanwhile, Chemtura’s three other segments – industrial performance products, consumer products, and agro-solutions –are on track to deliver comparable results with the second quarter of 2012.
"We are encouraged by the robust performance of our other three segments," Rogerson added.
"We are also on track to eliminate the stranded costs from the divestiture of our antioxidants business," he said.
In the 2012 second quarter, Chemtura reported overall operating income of $69m, on net sales of $845m.
($1 = €0.76)
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