08 August 2013 13:38 [Source: ICIS news]
LONDON (ICIS)--Thailand-based polyester producer Indorama Ventures (IVL) said on Thursday that its net profit for the second quarter of 2013 had dropped by 53% year on year to $7m (€5m) as a result of inventory losses and turnarounds.
Profits were reduced by a $38m inventory loss during the quarter as a result of lower feedstock prices and a “longer-than-expected” shutdown at the company’s Texas glycols plant in the US during the period, Indorama added.
Core earnings before interest, taxes, depreciation and amortisation (EBITDA) were also down year on year to $144m compared to $150m during the prior-year quarter, despite a 9% increase in sales year on year to $1.90bn.
Indorama’s core margins improved quarter on quarter in Asia, indicating that difficulties for the industry may be easing, according to CEO Aloke Lohia.
“We have been seeing signs that the trough period of the past two years is coming to an end and this is extremely encouraging,” he said.
“We are excited that IVL’s differentiation and low cost strategy is paying off since our 18% margin recovery over first quarter this year is much superior to a typical industry player,” he added.
Indorama is predicting earnings of $520m on revenues of $7.8bn in 2013, up 14% and 15% respectively.
($1 = €0.75)
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