AkzoNobel's Q2 net income falls as raw materials rise 20%

(ICIS) -- AkzoNobel's net income fell by 1.8% in the second quarter because of raw material price inflation, low demand in mature markets and prolonged production outages, the Netherlands-headquartered chemicals major said on Thursday.

Net income decreased to EUR 268 mln (USD 383 mln) from EUR 273 mln in the same period last year. ⌠The results of the first quarter do not satisfy us at all, CEO Hans Wijers said during the company's earnings press conference.

According to AkzoNobel's report for the second quarter of 2011, raw material costs increased by 20%, which had a major impact on the company's three business areas: decorative paints, performance coatings and specialty chemicals.

Wijers said the strong euro against other currencies, volatility in certain end markets - particularly in mature economies - and prolonged production outages have worsened the economic difficulties facing the firm.

As a result, second-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) were down by 10%, to EUR 551m from EUR 614m in the previous year's quarter.


MRC

(Plastics Today) -- Metal stamping and overmolding specialist, Kramski North America Inc. (Largo, FL) has installed a new 140-ton Arburg 420C Allrounder to injection mold cases, covers, and buttons for the new RxEnergy NeverDie Series of sterilizable lithium battery packs for use in orthopedic power tools used in surgery. The job is the first of two in the battery market that Kramski recently landed, with both prompting capital investments, according to Glenn Shaw, director of sales.

Kramski is also stamping the beryllium-copper contact terminals for the RxEnergy battery in-house assembling all components of the battery packs, and charging, testing, and bar coding each finished assembly. This battery technology enters the market as a replacement to standard nickel cadmium batteries, with several purported benefits, including lighter weight, longer life, and faster charging.

Kramski supplies molded components and assemblies for the RxEnergy battery systems for use in orthopedic surgical devices.

MRC

(Arabian Oil and Gas) -- Rabigh Refining and Petrochemicals Company (Petro Rabigh) posted a $107m loss in the second quarter compared to USD 186.25 mln profits in the first quarter. The first half profits have slashed 25% to USD 78.98 mln compared to USD104.87 mln for the same first half 2010.

The company blamed a two-month closure of its facilties for the loss, as it conducted maintenance work requiring total production shutdown. Closure of the complex for maintenance from April 21 to June 30 hit sales for the comparable period of 2011 hard.

The reason for the loss in the second quarter is the substantial decrease in sales resulting from loss of production during the shutdown period of the complex for test and inspection maintenance," the firm said in a statement.

Operational losses for the second quarter were USD 103.72m, compared to a profit of USD 22.13m in the same quarter last year, it said. Petro Rabigh started operations at its USD 10.1 billion complex in 2009. Aramco and Sumitomo Chemical each have 37.5-percent stakes in the joint venture, while the rest is publicly held.

MRC

(Plastemart) -- Governor of Rayong has forcibly shut down the APEX Petrochemical factory in Map Ta Phut industrial zone and declared the surrounding area as a dangerous zone after leaks of a hazardous substance were detected. The plant produces vinyl chloride monomer, which is used to make polymer polyvinyl chloride or PVC.

The Governor led a team of engineers and officials to investigate the premises and has ordered authorities to remove all hazardous substances from the factory.


MRC

(Platts) -- Shell Chemicals plans to extend the August shutdown of its its naphtha-fed steam cracker at Pulau Bukom, Singapore, to 40-45 days from around one month, sources close to the company said Thursday. The steam cracker, which is able to produce 800 KTa of ethylene and 450 KTa of propylene, is scheduled to shut around August 11. The cracker also supports a 155 KTa butadiene unit. The duration of the turnaround was likely extended to carry out further repairs, the sources added.

The steam cracker is relatively new and was first brought on stream in March last year. After the startup, the cracker had been experiencing some technical problems, which caused several shutdowns in late 2010.

MRC