Home / Knowledge / News / Textiles / Westlake Chemical volume improves in first quarter
Westlake Chemical volume improves in first quarter
05
May '09
Westlake Chemical Corporation reported a net loss of $6.1 million, or $0.09 per diluted share, for the first quarter of 2009. This represents a decrease from the first quarter of 2008 net income of $5.4 million, or $0.08 per diluted share. Sales for the first quarter of 2009 were $488.3 million and loss from operations for the first quarter of 2009 was $0.9 million. This compares with net sales of $915.1 million and income from operations of $13.9 million for the first quarter of 2008.

The decrease in sales was primarily due to significantly lower selling prices for all of the Company's major products with the exception of caustic, after the global collapse in commodity prices that occurred in the fourth quarter of 2008. In addition, sales volumes were lower in the first quarter of 2009 as compared to the first quarter of 2008 largely due to lower overall demand.

The first quarter of 2009 loss from operations and net loss reflected lower sales volumes, weakness in the vinyls construction markets, reduced demand for polyethylene, an unscheduled outage caused by an ice storm at our Calvert City facility and a turnaround at one of our ethylene units in Lake Charles, Louisiana. In January 2009, the Calvert City, Kentucky complex experienced an ice storm that caused a power failure at the facility and resulted in damage to a compressor in an ethylene unit. The shutdown of the complex and associated damage resulted in reduced production rates for all major products at the facility.

The ethylene unit in Lake Charles was idled during December 2008 due to significant customer de-stocking and resulting weakened demand. A maintenance turnaround for this unit, which was scheduled for later during 2009, was brought forward and performed during this downtime. The unit was shut down for a total of 71 days during the first quarter of 2009. The maintenance turnaround was completed and the unit resumed production in March. The Calvert City outage and Lake Charles turnaround resulted in repair costs and the expensing of unabsorbed fixed manufacturing costs of approximately $19.5 million in the first quarter of 2009.

First quarter 2009 net loss of $6.1 million, or $0.09 per diluted share, was an improvement from the $109.6 million net loss, or $1.67 per diluted share, in the fourth quarter of 2008. First quarter 2009 loss from operations of $0.9 million also compared favorably to the loss from operations of $165.8 million in the fourth quarter of 2008, while first quarter 2009 net sales decreased by $108.8 million from the $597.1 million reported in the fourth quarter of 2008. The decrease in sales was primarily due to lower average selling prices for all of the company's major products in the first quarter of 2009 as compared to the fourth quarter of 2008.

These decreases were partially offset by higher sales volumes for polyethylene, PVC resin and PVC pipe. The first quarter net loss was negatively impacted by lower operating rates resulting from the outages at the Calvert City facility and the Lake Charles ethylene unit. The fourth quarter of 2008 net loss was negatively impacted by approximately $168.0 million (pre-tax) due to inventory losses and the expensing of unabsorbed fixed manufacturing costs related to a drop in product prices and operating rates, as a result of the global recession.


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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