MOSCOW (MRC) -- Axiall, a manufacturer of chemicals and building products, reported a year-over-year increase in adjusted net profit for Q1 2016 on lower revenues versus the comparable period in 2015, as per Sonoranweeklyreview.
Net loss for the quarter was USD53.6 million, or USD0.76 loss per share, compared to a net loss of USD10.6 million, or USD0.15 loss per share in Q1 2015. On an adjusted basis, net income for the quarter was USD0.17 per share, up from USD0.10 per share in the prior year period. Capital IQ provided a Street estimate of a USD0.29 loss per share, but this may not be comparable.
Net sales were USD699.2 million, down from USD784.6 million reported for the same period last year and lower than the USD753 million Street estimate. "In the Chlorovinyls segment, the company expects decreased caustic soda and vinyl resin sales volumes primarily due to scheduled turnarounds in Q2 2016 as compared to Q1 2016. Vinyl resin and caustic soda prices, particularly export caustic soda and vinyl resin prices, have increased thus far in Q2. At the same time, ethylene costs have risen. The impact of these factors on Q2 2016 results will depend on the timing and magnitude of vinyl resin and caustic soda price changes and ethylene costs. The company does not expect any material changes in the components of its ethylene supply portfolio during Q2," the company said.
As MRC informed earlier, Axiall Corp. and Lotte Chemical Corp. will make a combined USD3 billion capital investment in two new chemical manufacturing plants in Lake Charles, Louisiana. LACC LLC, a subsidiary of Axiall and Lotte Chemical USA Corp.’s 50–50 joint venture Eagle US 2 LLC, will invest USD1.9 billion to build the steam cracker adjacent to Axiall’s Lake Charles chlor-alkali manufacturing plants to take advantage of existing infrastructure, competitive US shale feedstock resources, and ethylene distribution infrastructure, according to a series of releases from the JV and Louisiana Economic Development (LED).
Axiall Corporation manufactures and markets chemicals and building products in the United States and internationally. It operates through two segments, Chlorovinyls and Building Products. The Chlorovinyls segment produces chlor-alkali and derivative products, including chlorine, caustic soda, vinyl chloride monomer, and vinyl resins; other chlor-alkali and derivative products comprising chlorinated ethylene, calcium hypochlorite, and hydrochloric acid; and compound products, such as vinyl compounds, and compound additives and plasticizers.
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