Norwalk, Connecticut - Arch Chemicals Inc.'s Performance Products unit, which includes its Performance Urethanes business, has reported sales of $38.3 million and operating income of $1.4 million in the second quarter of 2009 (Q2), compared with $58.2 million in sales and $1.8 million operating income in Q2 2008.
Performance Urethanes, which supplies polyols to the coatings, adhesives, sealants and elastomers (CASE) industry, reported that sales fell by $18.5 million compared to the same period last year, while volumes fell "significantly" due to the downturn in the US economy, the statement said. Pricing in the Performance Urethanes business was also lower than in Q2 2008 because of lower raw material costs, although operating results improved by $2.9 million due to improved margins from some favourable raw material costs, mainly propylene, the statement said.
Arch Chemicals overall sales were down to $414.2 million compared to $469.6 million in Q2 2008. The company also revised its full-year earnings guidance to $1.60 - $1.80 per share from $1.85 - $2.05 because of lower demand in Water Treatment, Industrial Biocides and Performance Urethanes.
Arch Chemicals ceo, Michael Campbell, said the company benefited from reduced raw material costs in the Performance Urethanes business, adding that cost reduction will continue to be an urgent focus in all businesses. (RD)