Philadelphia, Pennsylvania – Chemtura saw third quarter sales fall overall 2% to $558m compared to the third quarter of 2013 but operating earnings rose from $27m in the third quarter of 2013 to $35m in the third quarter of 2014.
Speaking at an analysts conference call, Craig Rogerson, ceo said that Industrial Performance Products, which includes polyurethanes “delivered a modest improvement in performance compared to the third quarter of 2013.”
He added that net sales increased $5 million or 2% to $247 million. The increase was driven by $3 million from volume and approximately $2 m from higher selling prices with the Urethanes product line leading the volume. The division also includes petroleum additives.
Adjusted earnings before interest, taxation, depreciation and amortisation for the segment increased by $2 million compared to the third quarter of 2013 to $35m. Managed basis operating income also increased by $2 m the third quarter of 2014 compared to the third quarter of 2013.
Year-on-year, the costs of raw materials rose but more slowly than in 2013. The level of increase was $4 m in the third quarter of 2014 compared to $7 m in the second quarter and price increases offset most of this impact in the quarter.
“During the quarter, the consulting support for our commercial excellence programs, which have been driving higher sales general and administration costs year-to-date, concluded and we'll see the benefit of lower SG&A going forward. The benefit of the investment in commercial excellence will continue to grow over the next few quarters,” Rogerson said.