Philadelphia, Pennsylvania – A strong dollar, poor product sales mix in polyurethanes and decline in flame retardant sales hit Chemtura in the third quarter of 2015.
Sales were down by $23m to $266m in the firm’s Industrial Performance product sector, which includes flame retardants, and by $17m to $181m in the Industrial Engineered Products sector. Overall sales from these businesses were $407m in the quarter, compared with $445m in the Q3 2014.
The company said its Industrial Engineered segment suffered from “supply chain disruption surrounding the ability to import and export hazardous products due to the explosion at the port of Tianjin, China.”
Sales in the Industrial Performance segment were hit by lower prices, an unfavourable product mix in urethane products and a strengthening dollar, Chemtura said.
The firm added that volumes in urethanes were flat and there was an unfavourable mix of products in the mining, oil and gas application areas.
Craig Rogerson, Chemtura ceo, told analysts: "In urethanes, we're selling less of the Duracast product.
“Third quarter year to date, sales volume has been lower than prior year in our core segments as we experienced lack-lustre demand in a number of applications. We do not expect any significant improvement in the fourth quarter,” the firm said.
Chemtura added that its Industrial Engineered segment has seen “continuing year on year declines in the demand for flame retardants used in flexible polyurethane foam applications in furniture.”
Rogerson added: "The residual effects of the decline in furniture foam flame retardants also impacted sales... although we expect that the third quarter will be the last quarter where the year-over-year impact is noticeable."