PHILADELPHIA (March 25, 2010)—Chemtura Corp. has reduced its net loss to $89 million in the fourth quarter of 2009, compared to $690 million a year earlier.
The company's Industrial Performance Products division, which includes the company's urethanes and antioxidant/ultraviolet plastic additives activities, has reported sales down by 7 percent to $279 million in the fourth quarter, compared to the same period the previous year.
Chemtura said the decrease in sales was mainly a result of reduced sales volume and selling prices. The unit did however report an operating profit of $25 million, on a managed basis, because of lower raw material and energy prices. The quarterly result is an improvement from the third quarter, when sales in the unit had dropped 30 percent, compared to the same period in 2008.
For the full year 2009, the unit reported sales of $999 million, down from $1.47 billion in 2008, Chemtura said.
Chemtura's Industrial Engineered Products business, which includes the company's flame retardants activities, reported sales down by 3 percent in the fourth quarter to $202 million, also mainly caused by reduced prices.
The unit reported a recovery in demand for electronics applications through the third quarter 2009 and continuing into quarter four, while building and construction polymer applications—which had experienced the most dramatic declines—show a modest recovery as the broader economy improves.
Operating profit increased by $37 million for the quarter, compared to 2008, as a result of lower raw material, energy and manufacturing costs, the company said.
Overall company sales were down 5 percent to $656 million for the quarter, compared to the same period of 2008. Full year sales were $2.5 billion, down from $3.5 billion in 2008.
In regards to the company's bankruptcy proceedings, Chemtura said it remains committed to emerging from Chapter 11 protection “as soon as practicable.”