LyondellBasell 1Q Net Down 15% On Weakness In Europe
Last Update: 4/30/2012 7:40:31 AM
DOW JONES NEWSWIRES
LyondellBasell Industries N.V.'s (LYB) first-quarter earnings fell 15% as the
chemical company continued to see market weakness and high raw material costs in
Europe.
The plastics and chemicals company had warned that first-quarter activity would
remain slow in Europe and Asia in certain businesses but said its market
environment in the U.S. appeared to be strengthening.
Chief Executive Jim Gallogly said Monday that while European olefins and
polyolefins markets recovered slightly from a very poor fourth quarter, they
remained weak and raw material costs were still high. But he added that margins
in North American olefins and the company's Houston refinery had rebounded from
the fourth quarter.
For the current quarter, Gallogly said the margin improvement has continued into
April, benefiting from high global oil prices and low natural gas prices.
The company has seen better luck after emerging from Chapter 11 bankruptcy in
2010. Fueled by a glut of inexpensive North American ethane, the company has
improved its operating results, controlled costs and won ratings upgrades. But
its late-year results were impacted by refinancing costs and the shutdown of its
Berre oil refinery.
LyondellBasell in March said it was offering $3 billion of new debt to refinance
two costlier issues, in an effort to take advantage of historically low interest
rates to push back maturities and lower interest expenses.
LyondellBasell posted a profit of $599 million, or $1.04 a share, down from $660
million, or $1.15 a share, a year earlier. Excluding charges related to
reorganization, impairment and other special items, per-share earnings were
$1.07, down from $1.23.
Revenue fell 3% to $11.88 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of $1.06 cents
a share on revenue of $11.98 billion.
Shares closed at $45.73 on Friday and were inactive in premarket trading. The
stock is up 41% so far this year. |
