Interviews
News Flash
Westlake Chemical registers turnraound in Q2 earnings
04 Aug '09
6 min read
Income from operations was $36.2 million for the second quarter of 2009 as compared to $73.6 million for the second quarter of 2008. The decrease in income from operations for the three months ended June 30, 2009 was primarily due to reduced demand for polyethylene and vinyls downstream products and significantly lower sales prices, which were partially offset by lower feedstock and energy costs. Also partially offsetting the decrease, trading activity resulted in a gain of $9.8 million in the second quarter of 2009 as compared to a loss of $7.0 million in the second quarter of 2008.
Net income for the six months ended June 30, 2009 was $10.8 million, or $0.16 per diluted share, on net sales of $1,063.1 million. This represents a decrease of $41.9 million compared to the net income of $52.7 million, or $0.80 per diluted share, for the six months ended June 30, 2008. Sales for the six months ended June 30, 2009 decreased $958.4 million from $2,021.5 million in the first six months of 2008, largely due to lower sales prices for all major products except caustic and lower sales volumes for all major products except caustic and styrene.
Income from operations was $35.3 million for the first six months of 2009 as compared to $87.4 million for the first six months of 2008. Income from operations for the first six months of 2009 was negatively impacted by a number of factors, including reduced demand for polyethylene, PVC resin and vinyls downstream products due to the impact of the recession, the unscheduled outage at the Calvert City, Kentucky complex and the turnaround in Lake Charles.
The decrease in income from operations was partially offset by a gain from trading activity of $12.2 million during the first six months of 2009 compared to a loss of $6.9 million during the first six months of 2008. Costs related to the closure of a PVC fabrication manufacturing facility and a turnaround and revamp of the Company's styrene facility in Lake Charles negatively impacted income from operations for the first six months of 2008.
EBITDA (earnings before interest expense, income taxes, depreciation and amortization) for the second quarter of 2009 increased $37.8 million to $68.4 million from the $30.6 million of EBITDA in the first quarter of 2009. EBITDA for the second quarter of 2009 decreased $34.8 million to $68.4 million compared to the $103.2 million in the second quarter of 2008.
Cash provided by operating activities was $153.4 million in the first six months of 2009, an increase of $161.4 million compared with the first six months of 2008. The increase was primarily the result of decreases in working capital. Cash used for investing activities, including capital additions, was $53.3 million for the first half of 2009, compared to $80.9 million for the first half of 2008. At June 30, 2009, the Company had $317.0 million of cash, including $113.0 million of restricted cash, and the Company's long-term debt was $510.4 million. The restricted cash is held by a trustee until such time as the Company requests reimbursement for qualifying amounts spent for capital additions in Louisiana.
Click here to view more:
Net income for the six months ended June 30, 2009 was $10.8 million, or $0.16 per diluted share, on net sales of $1,063.1 million. This represents a decrease of $41.9 million compared to the net income of $52.7 million, or $0.80 per diluted share, for the six months ended June 30, 2008. Sales for the six months ended June 30, 2009 decreased $958.4 million from $2,021.5 million in the first six months of 2008, largely due to lower sales prices for all major products except caustic and lower sales volumes for all major products except caustic and styrene.
Income from operations was $35.3 million for the first six months of 2009 as compared to $87.4 million for the first six months of 2008. Income from operations for the first six months of 2009 was negatively impacted by a number of factors, including reduced demand for polyethylene, PVC resin and vinyls downstream products due to the impact of the recession, the unscheduled outage at the Calvert City, Kentucky complex and the turnaround in Lake Charles.
The decrease in income from operations was partially offset by a gain from trading activity of $12.2 million during the first six months of 2009 compared to a loss of $6.9 million during the first six months of 2008. Costs related to the closure of a PVC fabrication manufacturing facility and a turnaround and revamp of the Company's styrene facility in Lake Charles negatively impacted income from operations for the first six months of 2008.
EBITDA (earnings before interest expense, income taxes, depreciation and amortization) for the second quarter of 2009 increased $37.8 million to $68.4 million from the $30.6 million of EBITDA in the first quarter of 2009. EBITDA for the second quarter of 2009 decreased $34.8 million to $68.4 million compared to the $103.2 million in the second quarter of 2008.
Cash provided by operating activities was $153.4 million in the first six months of 2009, an increase of $161.4 million compared with the first six months of 2008. The increase was primarily the result of decreases in working capital. Cash used for investing activities, including capital additions, was $53.3 million for the first half of 2009, compared to $80.9 million for the first half of 2008. At June 30, 2009, the Company had $317.0 million of cash, including $113.0 million of restricted cash, and the Company's long-term debt was $510.4 million. The restricted cash is held by a trustee until such time as the Company requests reimbursement for qualifying amounts spent for capital additions in Louisiana.
Click here to view more:
Westlake Chemical Corporation
Popular News
Leave your Comments
Pratik Gadia
The Yarn Bazaar - Filosha Infotech Private Limited
Unenbat Ch.
GOBI Mongolian Cashmere USA Corp
Andrea pompilio
Label - Andrea pompilio
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
