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

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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