Middlebury, Connecticut - Chemtura Corp., currently in Chapter 11 bankruptcy proceedings, has recorded a 38 percent and 13 percent drop in sales for its Industrial Performance Products and Consumer Performance Products units respectively in the second quarter of 2009 (Q2), compared to the same period last year, a 10 Aug statement said.
Chemtura's polyurethane activities are now under the Industrial Performance Products umbrella following a recent reorganisation.
Industrial Performance Products' sales fell to $243 million from £391 million in the same period last year, due to reduced sale volume, with urethane and antioxidant products feeling the greatest impact, the company said. Operating profit was down by $13 million due to the reduced sales volumes and unfavourable manufacturing costs, the statement added.
In Chemtura's Industrial Engineered Products, revenues declined 42% or$136 million, primarily due to reduced sales volume. "Products sold toelectronic, building and construction, and consumer durable polymerapplications continued to show the most dramatic year-over-yearreductions from the impact of the global recession," the group said.
Nevertheless, Chemtura reported modest improvement in demand comparedwith Q1 2009 as the most significant effects of inventory destockingabated. This unit's operating loss of $11 million deteriorated $36million from Q2 2008, primarily due to lower volume and the resultingimpact of unfavourable manufacturing costs.
Chemtura reported an overall 33 percent decline in net sales to $687 million in Q2, compared to the same period last year.
In March 2009, Chemtura entered Chapter 11 bankruptcy protection, giving the company access to its $400 million debtor-in-possession (DIP) credit facility agreement. On 13 July 2009, the Company and parties entered into Amendment 2 of the DIP agreement, which gives Chemtura the option to extend the maturity of the DIP Credit Facility for two consecutive periods of three months.
On 28 July 2009, the Court approved an extension of the right of Chemtura, and the 26 subsidiaries in the US that filed for Chapter 11, to file a reorganisation plan. The extension expires on 13 Nov 2009. (RD)
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