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Demand for titanium dioxide pigments improves in second quarter
October 2002
largely on schedule for completion near the end of 2002. One facility in Chicago was closed during the second quarter and manufacturing transferred to the DeForest, WI, plant, and five plants are scheduled for closing in the third quarter. The company completed a reassessment of its Bethlehem site, which affirmed an earlier decision to close the facility and transfer production to Avon Lake, OH. This evaluation has delayed the Bethlehem closing until mid-2003, when PolyOne will begin to realize annual savings of approximately $5 million. Looking ahead, PolyOne expects third quarter revenues to be level with or slightly ahead of the second quarter and 5% or more above the third quarter of 2001. “We remain optimistic about realizing improvements in revenues and income in the third quarter”, says Waltermire. “Most of our markets have demonstrated steady growth since the beginning of 2002, and this trend continues despite the uncertainties reflected in the equity market.” The outlook for the final quarter remains uncertain. While the company anticipates some normal seasonal slowdown in sales from second quarter and projected third quarter levels, the current view projects strong double-digit sales demand versus the fourth quarter of 2001. PolyOne’s earnings in the fourth quarter are anticipated to be substantially higher than the year-earlier results, assuming that margins retain gains achieved in the third quarter. Contact: PolyOne Corp, Suite 36-5000, 200 Public Square, Cleveland, OH 44114-2304, USA; tel: +1-216-589-4000; fax: +1-216-5894077; URL: www.polyone.com
Demand for titanium dioxide pigments improves in second quarter Titanium dioxide pigment producers Millennium Chemicals, Kerr-McGee Corp and NL Industries Inc have all reported improved sales volumes in the second quarter of 2002. Millennium Chemicals posted net sales for the second quarter of US$836 million, down 6% from last year’s second quarter of $891 million and up 22% from the first quarter of 2002.
©2002 Elsevier Science
Additives for Polymers
Second quarter 2002 EBITDA was $74 million, compared to $83 million and $34 million for second quarter 2001 and first quarter 2002, respectively, and net income was $1 million compared to a net loss of $23 million in the same quarter last year. The titanium dioxide (TiO2) segment contributed $300 million to the net sales, compared to $298 million in 2001 and $262 million in the first quarter of this year. Second quarter TiO2 sales volumes of 168 000 tonnes were up 12% from both the second quarter of last year and this year’s first quarter. Volume was up in the second quarter of 2002 due to strong demand from the coatings season and improving global business conditions. Second quarter EBITDA was $34 million, compared to $40 million in the second quarter last year and $31 million in this year’s first quarter. EBITDA improved in the second quarter of 2002 over the first quarter due to higher prices and increased sales volume, the company says. In US dollar terms, the worldwide average second quarter price was 11% lower than the same quarter last year and 2% higher than the first quarter of 2002. Millennium and most major producers announced two global price increases, which cumulatively total about 15%, during the first six months of 2002. The company says the majority of the first price increase is being realized in the third quarter of 2002. Millennium expects operating results to continue to improve in the third quarter over the second quarter, as it is expected that sales volume will continue to be robust but seasonally lower, and price increases gradually obtained during the second quarter will be in effect for the full third quarter. NL Industries, Inc posted net sales for its Kronos’ titanium dioxide pigments business of $226.9 million for the second quarter of 2002, up from $220.1 million for the same three-month period in 2001. Operating income for the quarter amounted to $24.7 million compared with $45.2 million in the second quarter of 2001. The company says the decrease in operating income was primarily due to lower average selling prices, partially offset by higher sales and production volumes. Compared to the first quarter of 2002, operating income in the second quarter of 2002 increased 11% on the higher volumes. Kronos’
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Additives for Polymers
second quarter 2002 average selling price in US dollars was 13% lower than the second quarter of 2001 and 2% higher than the first quarter of 2002. The company reports that the second-quarter sales volume of 123 000 tonnes represented the highest quarter in Kronos’ history. The volume increased 17% from the second quarter of 2001 and 9% from the first quarter of 2002, reflecting sustained demand in all major regions. The production volume (113 000 tonnes) was also up 14% on the second quarter of 2001 and 7% on the first quarter of 2002 with operating rates near full capacity in the second quarter of 2002. The increase from the previous year period was due in part to lost sulphate-process production in 2001 as a result of the Leverkusen fire. J. Landis Martin, president and CEO, says that demand for TiO2 in the first half of 2002 was strong in all regions, reflecting improving economic conditions, some seasonality, and customer restocking of inventories ahead of previously announced price increases. However, sales volume in the second half of 2002 is expected to be lower than the first half of the year. At Kerr-McGee Corp, net sales for the second quarter were $932 million compared to $919.3 million last year. Adjusted second quarter income from continuing operations before special items was $92.1 million; after special charges, currency adjustments and stock revaluation the net loss for the period was $58 million. For the company’s pigment segment, second quarter 2002 sales totalled $264.8 million, up from $245.6 million in 2001. Net operating profit for the pigment segment was $12.5 million compared to $16.9 million for the second quarter of 2001, primarily due to lower pigment sales prices. This was partially offset by higher sales volumes and lower per unit costs. The company reported gross worldwide production of TiO2 pigment of 128 000 tonnes for the quarter, compared to 122 000 tonnes in the same period of 2001. Millennium Chemicals Inc, 230 Half Mile Road, PO Box 7015, Red Bank, NJ 07701, USA; tel: +1-732-933-5000; fax: +1-732-933-5240; URL: www.millenniumchem.com NL Industries, Inc, 16825 Northchase Drive, Suite 1200, Houston, TX 77060, USA; tel: +1281-423-3332; e-mail: Kronos.marketing@ NLI-usa.com; URL: www.nl-ind.com
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October 2002
Kerr-McGee Corp, PO Box 25861, Oklahoma City, OK 73125, USA; tel: +1-405-775-5012; fax: +1-405-775-5027; URL: www.kerr-mcgee.com
Noveon sees second quarter sales growth In its financial results for the second quarter of 2002, Noveon, Inc reported net sales of US$280.9 million, up 4% from $271.1 million for the same quarter of 2001. Earnings before interest, taxes, depreciation and amortization (EBITDA) totalled $60.2 million, an increase of 42% on $42.3 million, and net income was $15.8 million, compared to a net loss of $6.9 million. Looking at the first six months of the year 2002, sales fell slightly from $553.9 to $540.3 but both EBITDA and net income improved substantially. The results for the first half of 2001 incorporate two months as BFGoodrich Performance Materials, which included certain businesses not included in the acquisition that resulted in the establishment of Noveon. Commenting on the results, Steve Demetriou, Noveon president and CEO, says, “We are very pleased with our second quarter results despite the uncertainty in the overall economy. Resumption of top line growth in the second quarter reflects Noveon’s investment in growth resources, [and] continued benefits from productivity initiatives and lower raw material costs helped drive our improved bottom line results in the second quarter.” The company has seen continued sequential improvements in volumes across many of its product lines, evidence of a slow but steady recovery from the lows of 2001, he adds. The company’s Polymer Solutions segment reported a sales increase of 9% compared to the second quarter of 2001, from $97.2 million to $105.8 million. This was said to be due to higher volumes for its TempRite® product and the stronger Euro, and was partially offset by lower volumes in polymer additives’ rubber chemical products and lower revenues from the Estane product line. EBITDA increased by 32% or $7.6 million, from $23.6 million in 2001 to $31.2 million in 2002, aided by lower raw material and utility costs.
©2002 Elsevier Science
largely on schedule for completion near the end of 2002. One facility in Chicago was closed during the second quarter and manufacturing transferred to the DeForest, WI, plant, and five plants are scheduled for closing in the third quarter. The company completed a reassessment of its Bethlehem site, which affirmed an earlier decision to close the facility and transfer production to Avon Lake, OH. This evaluation has delayed the Bethlehem closing until mid-2003, when PolyOne will begin to realize annual savings of approximately $5 million. Looking ahead, PolyOne expects third quarter revenues to be level with or slightly ahead of the second quarter and 5% or more above the third quarter of 2001. “We remain optimistic about realizing improvements in revenues and income in the third quarter”, says Waltermire. “Most of our markets have demonstrated steady growth since the beginning of 2002, and this trend continues despite the uncertainties reflected in the equity market.” The outlook for the final quarter remains uncertain. While the company anticipates some normal seasonal slowdown in sales from second quarter and projected third quarter levels, the current view projects strong double-digit sales demand versus the fourth quarter of 2001. PolyOne’s earnings in the fourth quarter are anticipated to be substantially higher than the year-earlier results, assuming that margins retain gains achieved in the third quarter. Contact: PolyOne Corp, Suite 36-5000, 200 Public Square, Cleveland, OH 44114-2304, USA; tel: +1-216-589-4000; fax: +1-216-5894077; URL: www.polyone.com
Demand for titanium dioxide pigments improves in second quarter Titanium dioxide pigment producers Millennium Chemicals, Kerr-McGee Corp and NL Industries Inc have all reported improved sales volumes in the second quarter of 2002. Millennium Chemicals posted net sales for the second quarter of US$836 million, down 6% from last year’s second quarter of $891 million and up 22% from the first quarter of 2002.
©2002 Elsevier Science
Additives for Polymers
Second quarter 2002 EBITDA was $74 million, compared to $83 million and $34 million for second quarter 2001 and first quarter 2002, respectively, and net income was $1 million compared to a net loss of $23 million in the same quarter last year. The titanium dioxide (TiO2) segment contributed $300 million to the net sales, compared to $298 million in 2001 and $262 million in the first quarter of this year. Second quarter TiO2 sales volumes of 168 000 tonnes were up 12% from both the second quarter of last year and this year’s first quarter. Volume was up in the second quarter of 2002 due to strong demand from the coatings season and improving global business conditions. Second quarter EBITDA was $34 million, compared to $40 million in the second quarter last year and $31 million in this year’s first quarter. EBITDA improved in the second quarter of 2002 over the first quarter due to higher prices and increased sales volume, the company says. In US dollar terms, the worldwide average second quarter price was 11% lower than the same quarter last year and 2% higher than the first quarter of 2002. Millennium and most major producers announced two global price increases, which cumulatively total about 15%, during the first six months of 2002. The company says the majority of the first price increase is being realized in the third quarter of 2002. Millennium expects operating results to continue to improve in the third quarter over the second quarter, as it is expected that sales volume will continue to be robust but seasonally lower, and price increases gradually obtained during the second quarter will be in effect for the full third quarter. NL Industries, Inc posted net sales for its Kronos’ titanium dioxide pigments business of $226.9 million for the second quarter of 2002, up from $220.1 million for the same three-month period in 2001. Operating income for the quarter amounted to $24.7 million compared with $45.2 million in the second quarter of 2001. The company says the decrease in operating income was primarily due to lower average selling prices, partially offset by higher sales and production volumes. Compared to the first quarter of 2002, operating income in the second quarter of 2002 increased 11% on the higher volumes. Kronos’
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Additives for Polymers
second quarter 2002 average selling price in US dollars was 13% lower than the second quarter of 2001 and 2% higher than the first quarter of 2002. The company reports that the second-quarter sales volume of 123 000 tonnes represented the highest quarter in Kronos’ history. The volume increased 17% from the second quarter of 2001 and 9% from the first quarter of 2002, reflecting sustained demand in all major regions. The production volume (113 000 tonnes) was also up 14% on the second quarter of 2001 and 7% on the first quarter of 2002 with operating rates near full capacity in the second quarter of 2002. The increase from the previous year period was due in part to lost sulphate-process production in 2001 as a result of the Leverkusen fire. J. Landis Martin, president and CEO, says that demand for TiO2 in the first half of 2002 was strong in all regions, reflecting improving economic conditions, some seasonality, and customer restocking of inventories ahead of previously announced price increases. However, sales volume in the second half of 2002 is expected to be lower than the first half of the year. At Kerr-McGee Corp, net sales for the second quarter were $932 million compared to $919.3 million last year. Adjusted second quarter income from continuing operations before special items was $92.1 million; after special charges, currency adjustments and stock revaluation the net loss for the period was $58 million. For the company’s pigment segment, second quarter 2002 sales totalled $264.8 million, up from $245.6 million in 2001. Net operating profit for the pigment segment was $12.5 million compared to $16.9 million for the second quarter of 2001, primarily due to lower pigment sales prices. This was partially offset by higher sales volumes and lower per unit costs. The company reported gross worldwide production of TiO2 pigment of 128 000 tonnes for the quarter, compared to 122 000 tonnes in the same period of 2001. Millennium Chemicals Inc, 230 Half Mile Road, PO Box 7015, Red Bank, NJ 07701, USA; tel: +1-732-933-5000; fax: +1-732-933-5240; URL: www.millenniumchem.com NL Industries, Inc, 16825 Northchase Drive, Suite 1200, Houston, TX 77060, USA; tel: +1281-423-3332; e-mail: Kronos.marketing@ NLI-usa.com; URL: www.nl-ind.com
8
October 2002
Kerr-McGee Corp, PO Box 25861, Oklahoma City, OK 73125, USA; tel: +1-405-775-5012; fax: +1-405-775-5027; URL: www.kerr-mcgee.com
Noveon sees second quarter sales growth In its financial results for the second quarter of 2002, Noveon, Inc reported net sales of US$280.9 million, up 4% from $271.1 million for the same quarter of 2001. Earnings before interest, taxes, depreciation and amortization (EBITDA) totalled $60.2 million, an increase of 42% on $42.3 million, and net income was $15.8 million, compared to a net loss of $6.9 million. Looking at the first six months of the year 2002, sales fell slightly from $553.9 to $540.3 but both EBITDA and net income improved substantially. The results for the first half of 2001 incorporate two months as BFGoodrich Performance Materials, which included certain businesses not included in the acquisition that resulted in the establishment of Noveon. Commenting on the results, Steve Demetriou, Noveon president and CEO, says, “We are very pleased with our second quarter results despite the uncertainty in the overall economy. Resumption of top line growth in the second quarter reflects Noveon’s investment in growth resources, [and] continued benefits from productivity initiatives and lower raw material costs helped drive our improved bottom line results in the second quarter.” The company has seen continued sequential improvements in volumes across many of its product lines, evidence of a slow but steady recovery from the lows of 2001, he adds. The company’s Polymer Solutions segment reported a sales increase of 9% compared to the second quarter of 2001, from $97.2 million to $105.8 million. This was said to be due to higher volumes for its TempRite® product and the stronger Euro, and was partially offset by lower volumes in polymer additives’ rubber chemical products and lower revenues from the Estane product line. EBITDA increased by 32% or $7.6 million, from $23.6 million in 2001 to $31.2 million in 2002, aided by lower raw material and utility costs.
©2002 Elsevier Science