Home / Knowledge / News / Textiles / Westlake reports a substantial increase in its operating income
Westlake reports a substantial increase in its operating income
05
Aug '08
Westlake Chemical Corporation reported net income of $47.3 million, or $0.72 per diluted share, for the second quarter of 2008. This represents an increase from the second quarter of 2007 net income of $37.9 million, or $0.58 per diluted share. Sales for the second quarter of 2008 were $1,106.4 million and income from operations for the second quarter of 2008 was $73.6 million.

This compares with net sales of $782.7 million and income from operations of $62.3 million in the second quarter 2007. The increase in sales was primarily due to higher selling prices and volumes for most major products. Income from operations increased in the second quarter as compared to the second quarter of 2007 as higher polyethylene and styrene selling prices outpaced higher feedstock, natural gas and electricity costs.

In addition, the second quarter of 2007 was adversely impacted by a major turnaround lasting approximately 30 days at one of the ethylene units in Lake Charles, Louisiana. These increases in second quarter 2008 operating income were partially offset by continued weakness in the construction markets, which negatively impacted Vinyls segment margins. Vinyls margins were lower in the second quarter of 2008 as compared to the prior year period as PVC pipe selling prices declined slightly in spite of higher feedstock costs.

PVC resin and caustic selling prices and PVC resin and pipe sales volumes, however, were higher in the second quarter of 2008 as compared to the second quarter of 2007. The second quarter of 2008 was negatively impacted by trading losses of $7.0 million as compared to a $4.1 million gain reported in the second quarter of 2007. The second quarter 2008 net income benefited from the reversal of $2.7 million of tax reserves due to tax settlements, which reduced income tax expense for the period.

Second quarter 2008 net income increased $41.9 million, or $0.64 per diluted share, from the $5.4 million net income, or $0.08 per diluted share, reported in the first quarter of 2008. Second quarter 2008 income from operations increased $59.7 million from the $13.9 million reported in the first quarter of 2008, while net sales increased by $191.3 million from the $915.1 million reported in the first quarter of 2008.

The increase in sales was largely due to higher selling prices for polyethylene, styrene, PVC resin and caustic and higher sales volumes for all major products.

PVC pipe sales volumes increased substantially in the second quarter as compared to the first quarter as construction activities picked up after an extended winter. Styrene sales volume returned to more normal levels after the styrene facility in Lake Charles, Louisiana underwent a major maintenance turnaround and revamp project during the first quarter designed to increase energy efficiency and boost capacity.

Income from operations increased in the second quarter of 2008 as compared to the first quarter of 2008 as selling price increases outpaced higher feedstock and energy costs. The first quarter of 2008 was negatively impacted by the turnaround of the styrene plant in Lake Charles and the closure of the Pawling, New York window and door component manufacturing facility.


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search