МОSCOW (MRC) -- Chemtura Corporation announced financial results for the second quarter ended June 30,
2016, said the company on its site.
The Company also filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2016. For the second quarter of 2016, Chemtura reported net sales of USD441 million and net earnings from continuing operations on a GAAP basis of USD34 million, or USD0.53 per diluted share. Net earnings from continuing operations on a Non-GAAP basis were USD26 million, or USD0.40 per diluted share.
The year-over-year reduction in net sales primarily reflected lower sales prices in the current period that are the result of passing along the benefit of lower raw material costs to certain of our customers. Additionally, sales volume for our urethane products used in mining and oil and gas applications declined due to continued soft demand conditions in those markets. Sequentially, sales volume grew modestly as petroleum additives sales of inhibitor and detergents increased offset by lower sales volume for certain synthetic lubricant basestocks and intermediates as well as the lower urethane products sales volumes.
Operating income year-over-year benefited from the net change in sales prices compared to the change in raw material costs ("price-over-raw-materials") and lower distribution costs and inventory adjustments. However, these gains were offset by the lower volume of our urethane products coupled with the $2 million charge associated with the state excise tax matter in the second quarter of 2016. Sequentially, we also benefited from favorable price-over-raw-materials and lower distribution costs, but this was offset by unfavorable product mix and the settlement of the state excise tax matter.
Additionally, in the first quarter of 2016, we recognized income on a technology license of approximately $2 million, which did not repeat in the second quarter.
As MRC informed earlier, Chemtura has announced that Azelis Americas (formerly Koda Distribution Group) will be the sole distributor for its pre-polymer urethanes, curatives, and polyester polyols product lines in North America. The agreement will be effective from 26 July 2016, in addition to the current urethanes surface coatings portfolio. At the same date, Chemtura will be discontinuing its relationship with AdipreneDirect in North America. Azelis Americas with headquarters in Stamford, CT, USA, is part of the Azelis Group, which is based in Luxembourg.
Chemtura, with 2015 sales of USD 1.7 billion, is a global manufacturer and marketer of speciality chemicals headquartered in Philadelphia, Pennsylvania, with its other principal executive office in Middlebury, Connecticut. The company focuses on specialty chemicals for various industrial sectors, and these are transportation (including automotive), energy, and electronics.
MRC