PHILADELPHIA (May 3, 2012)—Chemtura Corp.'s first-quarter net income on a managed basis rose 36 percent to $19 million as sales inched up 1 percent to $708 million. Operating earning rose 26 percent to $44 million.
In the industrial performance products division, which includes the company's urethanes business, net sales decreased by 7 percent to $313 million as a result of a $36 million decline in sales volume. The weakness came from the antioxidants products and, to a lesser extent, the urethanes products, Chemtura said. Operating income decreased $6 million in the first quarter to $24 million.
“Demand across the segment has not yet recovered to the levels of the first quarter of 2011 and in some areas it was softer than in the fourth quarter of 2011, said Chemtura CEO Craig Rogerson. “Encouragingly, the second quarter to date has shown some improvement in demand but is not yet at the levels of the second quarter of 2011.
Rogerson said he expects Chemtura's first-half 2012 performance to equal or exceed that of the first half of 2011. “The challenge is now for our industrial segments to sequentially improve over their first-quarter performance and strive for the same levels as they achieved last year,” he said. “Continuing to recover increases in raw material costs and the strength of recovery in industrial demand will determine their progress.”