US Chemtura posts $93m Q2 loss on discontinued operations charges

30 July 2013 23:10  [Source: ICIS news]

HOUSTON (ICIS)--Chemtura recorded a net loss in the second quarter of 2013, posting a loss of $93m (€70m) due to a large loss on sale of discontinued operations, the US-based specialty chemicals firm announced on Tuesday.

For the quarter ended 30 June, Chemtura recorded an after-tax loss of $146m on sale of discontinued operations, which included a pre-tax, non-cash loss of $119m from pension obligations.

Chemtura completed the sale of its antioxidant and UV stabilisers business to SK Capital on 30 April.

Actual net earnings from continuing operations were at $47m for the second quarter, down 11% from $53m in Q2 2012. One year ago, the company posted a $50m net profit.

Chemtura had warned in June and earlier this month that its Q2 performance would be weaker than it previously expected.

Chemtura’s Industrial Performance Products division posted an 8% increase in net sales and 11% rise in operating income due to improved demand for petroleum additives and certain synthetic lubricant products, the company said.

In AgroSolutions, net sales jumped 21% thanks to growth in North America, Latin America and China, while Europe was at comparable levels to Q2 2012 due to unseasonably wet conditions, Chemtura said.

In Industrial Engineered Products, net sales fell 15% due to a decrease in sales volumes and prices. Lower selling prices for brominated flame retardants was offset somewhat by stronger demand from oilfield and industrial applications, as well as an increase in volume of organometallics products such as those used as components of polyolefin polymerisation catalysts, Chemtura said.

“In this lacklustre industrial demand environment, we continue to look for improvements that we can drive and are focused on what additional actions we can take to reduce cost and improve efficiency,” said Chemtura CEO Craig Rogerson in a news release, “and we continue to actively work on portfolio transformation initiatives.”

($1 = €0.75)

By: Jeremy Pafford
+1 713 525 2653

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