18 September 2013 14:16 [Source: ICIS news]
HOUSTON (ICIS)--US chemicals and building products firm Axiall said on Wednesday that outage and turnaround costs, as well as lower chlor-alkali and vinyls prices and margins, would cut into its underlying 2013 third-quarter operating earnings.
Axiall said that because of costs from outages and turnarounds, third-quarter adjusted earnings before interest, tax, depreciation and amortisation would be about $10-12m (€8m-9m) lower than it had expected in its previous update from 1 August.
"Since that time, we elected to extend our planned VCM [vinyl chloride monomer] and PVC [polyvinyl choride] turnarounds to further improve reliability," CEO Paul Carrico said in a statement.
"Also, we accelerated two turnarounds from the fourth quarter of 2013 to the third quarter in our aromatics and chlorinated derivatives businesses," Carrico said.
"We expect the combined impact of the operating plan changes in maintenance and the associated reductions in operating rates to be approximately $10-12m of lower third-quarter adjusted EBITDA, as compared to our original expectation," he said.
Additionally, current market prices and margins in Axiall's chlor-alkali and vinyls businesses were trending lower than expected, which will likely have a further negative impact on third-quarter adjusted EBITDA, he said.
"Long-term, we remain confident that our integrated chemicals and building products business will continue to benefit from low-cost natural gas in North America and growing global demand for our broadened product portfolio," Carrico added.
($1 = €0.75)
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