Middlebury, Connecticut -- Chemtura's Industrial Performance Products delivered $5m (EUR3.6) or 18% year-over-year improvement in adjusted EBITDA in 2013 compared with 2012, the company said in a statement.
After the changes in demand and price mainly around insulation foam applications during 2013, the fourth quarter challenge for Industrial Performance Products show sequential improvement over the third quarter of 2013, the firm said.
The segment delivered $31m of Adjusted EBITDA in the fourth quarter of 2013 compared to $11m in the third quarter of 2013, but still short of the $40m in the fourth quarter of 2012, Chemtura added.
The company continued that the biggest component of the improvement were actions taken in the third quarter to reduce manufacturing costs. "We have actions in place to drive revenue, price and cost improvements in 2014 but the segment still is exposed to several challenging application markets,"said Craig Rogerson, chairman, president and CEO of Chemtura.
In the fourth quarter the Industrial Performance Products division's net sales increased $28m or 13% as a result of a $26m increase in sales volume, a $1myear-over-year increase in selling prices and $1 million from favorable foreign currency translation, said Chemtura.
Operating income increased $5 million or 25% in the fourth quarter of 2013 to $2m. Sales volume improvements were primarily in petroleum additives and synthetic lubricant products in all regions except Europe,said Chemtura. The firm added that it recorded $3m of unabsorbed costs related to the new Nantong, China and Ankerweg, The Netherlands facilities.
In 2013, the Industrial Performance Products business recorded sales of $979m and an operating income of $109m on a GAAP basis.
Overall Chemtura sales in 2013 were $2.23bn, the firm made an operating profit of $98m. In 2012 sales were $2.20bn, the firm made an operating profit of $162m on a GAAP basis.
