Middlebury, Connecticut - Chemtura Corp. has increased profits by 91 percent in the third quarter (Q3) of 2008 to $44 million from $23 million in the same period of 2007, the company said 30 Oct. The increase reflects, amongst other things a "$10 million decrease in selling, general and administrative, and research and development costs," the company said.
Net sales of Polymer Additives were down from $447 million in Q3 2007 to $414 million, which according to Chemtura included a $45 million reduction from the divestiture of the oleochemicals and organic peroxides businesses. Sales volumes were down by $21 million, "primarily related to lower sales in plastic antioxidants," the company said, adding that, "these reductions were partially offset by higher selling prices of $25 million, improved mix and favourable foreign currency translation of $8 million."
The impact of the hurricanes in early September led to the closure of the company's Taft, Louisiana facility for four days, with a negative impact on operating income for the quarter of around $3 million, Chemtura said. This resulted in operating profit on a managed basis falling by 13 percent in comparison to Q3 2007.
Chemtura's performance specialities segment, which includes its urethanes prepolymer business, increased revenue by 14 percent to $271 million and operating profit by 11 percent to $31 million. According to Chemtura, the revenue growth was mainly due to higher selling prices of $28 million, increased sales volumes of $3 million and favourable foreign currency translation of $3 million which helped offset increased raw material, energy, manufacturing and freight costs.
Chemtura's gross profit for Q3 was down from $202 million in Q3 2007 to $193 million whilst earnings increased to $11 million from $1 million in Q3 2007.