Net income up 9.4% at Westlake Chemical in Q3
Net income went up 9.41 per cent year over year at Westlake Chemical Corporation (NYSE: WLK) in the three months ended September 30, 2015.
Net income for the third quarter of 2015 stood at $183.6 million or $1.39 per diluted share, a rise of 9.41 per cent over the same period of prior year.
“Net income for the third quarter of 2015 was impacted by a lower effective tax rate and several plant outages as a result of maintenance turnaround activity,” the company explained.
The lower effective tax rate was primarily due to several discrete tax items and other adjustments, which collectively lowered the third quarter 2015 effective tax rate to 24.2 per cent.
“We estimate the 2015 annual effective tax rate on ordinary income will be approximately 33.5 per cent,” it added.
In a press release, Westlake said net sales fell to $1,188.0 million in the reporting quarter as against $1,253.2 million in the third quarter of last year.
Net sales dipped mainly due to lower sales prices for all its major products, partially offset by higher sales volumes for most of its major products and sales contributed by its specialty PVC resin business.
Income from operations was $254.0 million for the third quarter of 2015 as compared to $306.8 million for the third quarter of 2014.
“The decrease in income from operations was mainly attributable to lower integrated product margins, primarily as a result of lower sales prices in the third quarter of 2015,” Westlake observed.
Other reasons include lower production rates, unabsorbed fixed manufacturing costs and other costs related to several maintenance turnarounds, partially offset by lower feedstock and energy costs.
EBITDA of $317.9 million for the third quarter of 2015 drove down $40.1 million as against $358.0 million in the third quarter of 2014.
Net cash provided by operating activities amounted to $841.3 million in the first nine months of 2015.
Capital expenditures for the first nine months of 2015 were $329.2 million and as of September 30, 2015, it had cash and marketable securities of $1,247.7 million and long-term debt of $764.1 million.
"The third quarter saw continued volatility in crude oil prices, which were more than 50 per cent lower than their 2014 peak levels, as well as uncertainty regarding the pace of global economic recovery,” CEO Albert Chao said.
“In spite of these conditions, we delivered strong results for the quarter as we continued to benefit from solid demand for our products and from low-cost natural gas-based feedstocks,” Chao noted. (AR)
Fibre2Fashion News Desk – India