04 November 2013 22:34 [Source: ICIS news]
HOUSTON (ICIS)--Chemtura had net losses of $40m (€30m) in Q3 2013 due to weaker demand conditions in its Industrial Engineered Products segment, increased cost of sales and a loss on early extinguishment of debt, the US specialty chemical producer announced on Monday.
The year prior, Chemtura recorded a net profit of $9m for Q3 2012.
While net sales increased 4.2% year over year to $569m in Q3 2013 from $546m, cost of sales jumped 12.6% to $448m from $398m.
Chemtura recorded a $50m loss after it used the proceeds from a $450m registered public offering on senior notes due in 2021 to complete the purchase of $354m of senior notes due in 2018. These and other refinancing actions will reduce annual interest expenses by about $8m, the company said.
Also in the third quarter, Chemtura announced its plans to divest its Consumer Products business to KIK Custom Products for $315m and said it is considering the sale of its agrochemicals business.
“While muted in the near term by the weaker demand conditions for our Industrial Engineered Products segment, the divestiture of our Consumer Products business over time will expand Chemtura’s percentage margins and lift our growth rates to assist us in meeting our financial and strategic performance goals,” said CEO Craig Rogerson.
The CEO added: “This was a tough quarter for our Industrial Engineered Products segment. Unit volume in the quarter was relatively stable sequentially with some growth from insulation foam applications offset by lower electronic volumes as we elected to hold prices. The profitability of the segment deteriorated sequentially through the impact of lower utilisation of manufacturing capacity, higher input costs, cumulative effects on pricing and the requirement to establish a reserve against some slower moving electronics inventory.”
($1 = €0.74)
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