Norwalk, Connecticut -- Arch Chemicals Inc. said 6 May that its sales in performance urethanes decreased $1.3 million, or three percent and explained that this was due to lower demand for propylene glycol products in the US economic downturn, but also from the end of a long-term contract manufacturing arrangement at the end of 2009.
Arch said the decrease in volumes was partially offset by higher pricing, driven by increased raw material costs. Operating results decreased by $4.5 million as the conclusion of the contract manufacturing arrangement, higher raw material costs, and the lower volumes more than offset the higher pricing.
Arch's urethanes business is part of its Performance Products division, which reported sales of $44.1 million and an operating loss of $1.8 million compared with sales and operating income of $44.7 million and $2.6 million, respectively, in 2009.
Overall, Arch Chemicals' sales for the first quarter of 2010 were $298.7 million a rise of 14 percent compared to sales of $262.2 million for Q1 2009. Arch completed the sale of the industrial coatings business to The Sherwin-Williams Co. on 31 March 2010. Including this sale, Arch Chemicals reported income for the first quarter of 2010 of $6.2 million, and income of $3.2 million for Q1 2009.
The company said in its Q1 results statement that it anticipates its full-year 2010 earnings will be towards the high end of its previous guidance.
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