Middlebury, Connecticut - Chemtura Corp., currently under Chapter 11 protection of the US Bankruptcy Code, has recorded a large fall in sales in Q1 2009, the company said 8 May.
The newly renamed Industrial Performance Products segment, formerly the Performance Specialities segment, which houses Chemtura's polyurethane activities, reported revenues were down 47 percent to $206 million, compared to Q1 2008, due to $176 lower sales volume and $8 million unfavourable foreign currency translation, offset by $4 million higher selling prices, Chemtura said. Operating profit decreased by $27 million, primarily due to lower sales volumes and unfavourable product mix, the company added.
Chemtura recorded an overall net loss of $94 million in Q1 2009, with total sales falling by 43 percent to $517 million compared to $909 million the previous year.
On 20 March 2009, Chemtura received approval for Chapter 11 protection, allowing the company to pay outstanding employee wages, health benefits and other employee obligations. On 29 April 2009, the Bankruptcy Court for Southern District of New York approved access to Chemtura's $400 million debtor-in-possession (DIP) credit facility agreement, which will help to ensure the reorganisation does not adversely affect customers. (RD)