US Axiall reports 0.7% decline in Q3 income on one-time charge

05 November 2013 23:31 Source:ICIS News

HOUSTON (ICIS)--Axiall posted a Q3 net income of $39.0m (€28.9m), a slight 0.7% decline from $39.3m in the same period last year on a one-time charge, the US-based vinyls producer announced on Tuesday.

Axiall reported a long-lived asset impairment charge of $25.8m in the third quarter.

Q3 net sales reached $1.20bn, up nearly 48% year on year from $813.5m. Meanwhile, Q3 cost of sales was $984.8m, up 46% year on year from $673.2m.

Axiall's chlorovinyls segment generated $750.0m in net sales in the third quarter, more than doubling $329.1m for the same period last year. The increase was primarily driven by sales contributed to the January merger of Georgia Gulf and PPG Industries's chemical business.

Axiall's building products sales were up 2.9% to $253.4m on an increase in US sales volume, while its aromatics segment fell almost 19% to $194.1m on lower cumene sales volumes.

“In our chemicals business, the energy advantage continued to support strong export demand and, as previously identified, the merged organisation is focused on leveraging the combined assets to achieve synergy objectives and take advantage of our diverse portfolio – particularly serving the merchant chlorine, derivatives and vinyls markets,” said Paul Carrico, president CEO.

“We continue to be encouraged by the North American advantage in energy and the increasing evidence of a US housing recovery," he added.

($1 = €0.74)

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By Tracy Dang