Middlebury, Connecticut — Chemtura saw sales in the first six months of 2016 fall by $47 m (EUR42 m) to $855 m from just over $900 m in the first half of 2015.
The firm posted a loss of $62 m in the first half of 2016 compared to a profit of $39 m in the same period in 2015.
Sales at the company’s polyurethane business, which is located in its industrial performance segment, fared badly in the second quarter, dropping by $10 m from the equivalent quarter in 2015 to $62. This was because of continued weak demand for urethane products used in mining, oil and gas applications, the company said. Chemtura’s polyurethanes sales also fell in the first quarter.
In terms of the first half of the year, the urethanes business sales dropped from $145 m in 2015 $127 m in the first half of 2016, a fall of 12.4%.
Looking ahead to the third quarter, Craig Rogerson, Chemtura ceo said: “We expect to see some improvement as the quarter goes on.” But he added that “it's hard to find applications the size of mining and oil and gas to offset that decline.”
Speaking to analysts, Rogerson said that his company has “built in continued anaemic sales” in mining and construction for its urethanes division.
Although the company doesn’t break out the profitability for individual segments within the industrial performance segment business, Rogerson said that had been held, and the firm is balancing the need to retain volume and market share with the need to maintain or grow profits in the business.
XE Currency conversion: 1 August, 2016