LyondellBasell 1st-Quarter Net Rises 50% on Lower Costs
By Saabira Chaudhuri
LyondellBasell Industries N.V.'s (LYB) first-quarter profit rose 50% as the plastics and chemicals company reported lower input costs that outweighed a slump in revenue, while logging fewer charges. LyondellBasell, which makes chemicals and polymers, emerged from Chapter 11 bankruptcy in 2010. The company, like others in the chemicals industry, has benefited from low U.S. natural-gas prices, with its North America olefins segment logging strong margins due to low-priced natural gas liquid raw materials. But LyondellBasell has said the global olefins industry outside of North America has hurt its European olefins and commodity polyolefin businesses. Chief Executive Jim Gallogly said Friday that "the situation in European olefins and polyolefins continued to be difficult," noting that although "results improved from recent quarters, underlying economic and industry conditions have not." LyondellBasell posted a profit of $901 million, or $1.55 a share, versus a profit of $600 million, or $1.04 a share, a year earlier. The year-ago period included charges of $22 million tied to impairments and $10 million tied to warrants. Revenue fell 9.1% to $10.67 billion. Analysts polled by Thomson Reuters most recently forecast earnings of $1.45 a share on $11.14 billion in revenue. Input costs dropped 13%. Operating income in olefins and polyolefins in the Americas rose 58%, while in the Europe, Asia and International segment this surged to $93 million from $3 million a year ago. Meanwhile, in the intermediates and derivatives segment, operating income fell 13%, while the refining swung to an operating loss. Class A shares closed Thursday at $60.92 and were inactive in recent premarket trading. The stock has risen 34% in the past 12 months. |
