Westlake Chemical announces record Q2 2015 net income

MOSCOW (MRC) -- Westlake Chemical Corporation has reported record net income for the second quarter of 2015 of USD205.1 million, or USD1.54 per diluted share, on net sales of USD1,185.0 million, as per the company's press release.

This represents an increase in net income attributable to Westlake Chemical Corporation of USD35.7 million, or USD0.28 per diluted share, compared to the quarter ended June 30, 2014 net income of USD169.4 million, or USD1.26 per diluted share, on net sales of USD998.6 million.

Net income for the second quarter of 2015 included a net pre-tax gain of USD15.5 million, or USD0.13 per diluted share, related to a gain from the acquisition of a controlling interest in Suzhou Huasu Plastics Co., Ltd., a Chinese PVC joint venture, and an impairment loss related to an equity investment. The gain from the acquisition was non-taxable and resulted in the lowering of our effective tax rate for the second quarter of 2015 from approximately 34.3% to 31.9%.

Net sales for the second quarter of 2015 increased by USD186.4 million compared to net sales for the second quarter of 2014, mainly attributable to sales contributed by Vinnolit, our specialty PVC resin business, which we acquired in July 2014, and higher sales volumes for most of our major products, partially offset by lower sales prices for all our major products.

Income from operations was USD295.4 million for the second quarter of 2015 as compared to USD266.8 million for the second quarter of 2014. Income from operations for the second quarter of 2015 benefited from improved vinyls integrated product margins as a result of lower feedstock costs, increased production at our Calvert City, Kentucky facility following the completion of the ethylene expansion project, higher production rates at our Geismar, Louisiana chlor-alkali plant, and the contribution from Vinnolit as compared to the second quarter of 2014. However, this benefit was partially offset by lower olefins integrated product margins as a result of lower sales prices in the second quarter of 2015 as compared to the prior-year period, and costs related to several maintenance turnarounds completed during the second quarter of 2015.

For the six months ended June 30, 2015, net income was USD351.4 million, or USD2.64 per diluted share, on net sales of USD2,288.5 million. This represents an increase in net income of USD23.9 million, or USD0.20 per diluted share, from the six months ended June 30, 2014 net income of USD327.5 million, or USD2.44 per diluted share, on net sales of USD2,026.3 million.

"We are pleased to report record second quarter results which benefited from our investments over the past several years to further expand our ethylene and chlorine product integration, and from our acquisitions of Vinnolit and North American Specialty Pipe which broaden our market reach into specialty PVC resin and pipe. We continue to benefit from our access to natural-gas based feedstocks, positioning us as a low-cost producer, and from strong demand for our end-products," said Albert Chao, President and Chief Executive Officer.

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe and specialty components, windows and fence.
MRC

MOSCOW (MRC) -- Following a strong second quarter, specialty chemicals company Lanxess again raised its guidance for the full year 2015, said the producer on its site.

The company now expects to achieve EBITDA pre exceptionals within a corridor of EUR 840 million and EUR 880 million. It had previously assumed that EBITDA pre exceptionals for the full year would come in at between EUR 820 million and EUR 860 million.

"Lanxess is returning more and more to the right course. In the second quarter of this year, we posted a very good operating result to which all segments of our company contributed," said Matthias Zachert, Chairman of the Board of Management of Lanxess. "On the basis of these strong figures and the rapid implementation of our realignment program, we assume that our annual result will be higher than previously anticipated."

Sales improved by 4.3 percent in the second quarter of 2015 to EUR 2.1 billion, compared with EUR 2.0 billion in the prior-year quarter. Higher volumes and positive currency effects more than offset the raw material induced lower selling prices. EBITDA pre exceptionals increased by 13 percent from EUR 239 million to EUR 270 million. This development was driven by increased volumes, savings generated by the realignment, and positive currency effects due to the strong U.S. dollar. The EBITDA margin pre exceptionals rose accordingly to 12.8 percent, against 11.8 percent in the prior-year quarter.

Net income improved by a substantial 58.2 percent to EUR 87 million from EUR 55 million a year earlier. Operational development and proceeds from the sale of noncurrent assets contributed to this increase.

At around EUR 1.4 billion, net financial liabilities were almost at the same level as at the end of 2014. Following the completion of major projects in Asia, capital expenditures declined by more than half in the second quarter against the prior-year quarter from EUR 154 million to EUR 73 million. "The financial consolidation measures we have implemented as part of our realignment process are taking effect," said Lanxess CFO Michael Pontzen. "This development was recently rewarded by the rating agencies Moody's and Standard & Poor's when both confirmed our investment-grade rating with stable outlook."

Higher volumes, positive currency effects and raw material induced lower prices characterized business development in the Performance Polymers segment and resulted overall in sales of around EUR 1.1 billion. This represents an increase of 3.5 percent against the prior-year figure of around EUR 1 billion. EBITDA pre exceptionals for this segment climbed by 22.1 percent to EUR 149 million, compared with EUR 122 million in the second quarter of 2014.

The three-phase realignment program initiated by Lanxess last year continues to progress on schedule. The company has already successfully implemented the first phase. Measures of the second phase, aimed at improving operational competitiveness, have also been initiated. They include the reorganization of the production networks for its rubber types EPDM (ethylene propylene diene monomer) and Nd-PBR (neodymium-based performance butadiene rubber).

The third phase of the program is focused on improving the competitiveness of the business portfolio, especially through potential alliances in the rubber business. "In this connection, we are currently engaged in very constructive discussions and assume that we will achieve concrete results in the course of the second half of the year," said Zachert.

As MRC reported earlier, the new Rhein Chemie Additives business unit of specialty chemicals company Lanxess has developed innovative halogen-free flame retardants that are based in part on a newly developed type of phosphorus chemistry. These are characterized by low fogging and scorching, making them ideal for use in the furniture and automotive industries.

Lanxess is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,600 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
MRC

MOSCOW (MRC) -- The expanded polypropylene (PP) foam Neopolen P reFLAM of BASF meets fire safety requirements of the aviation industry for applications in aircraft, reported BASF on its site.

The new material was tested in an institution certified by the aviation industry, in accordance with the specification CS25.853, and is approved for molding densities from 36g/l to 75g/l in accordance with applicable requirements. The certification allows Neopolen P reFLAM to be used in numerous applications with the highest fire safety requirements, particularly those found in the aviation sector.

"The level of interest in new, lightweight and at the same time flame-retardant materials is very high, particularly in the aviation industry", says Carsten Junghans, Key Account Manager Specialty Particle Foams Europe. It is in particular the high thermal insulation characteristic but also the almost unlimited scope for shaping that make this particle foam so versatile. "Neopolen P reFLAM now provides manufacturers with a foam material which combines these requirements and enables a wide variety of different applications."

The certification allows Neopolen P reFlam to be used, for example, in fitting out the aircraft cabin, in specific applications in the on-board kitchen, but also as a material to provide comfort for passengers and crew.

Specification CS25.853 is a standardized specification which serves as the basis for assessing the fire safety characteristics of materials using precisely defined criteria. The institutions that conduct the investigations are subject to strict certification and have the accreditation required to issue test certificates for aviation.

Neopolen P reFLAM is an advanced development of the expanded polypropylene foam Neopolen. The material owes its enhanced level of fire safety to its special flame-retardant additives. In addition, the metallic-gray material offers a further improvement in thermal insulation properties and meets the requirements of REACH and those of the ROHS Directive and its amendments.

As MRC reported earlier, in june 2014, BASF undertook three key capacity expansion projects for performance materials at its Pudong site in Shanghai (China). The capacity expansion projects includes Ultramid (polyamide, PA), Ultradur (polybutylene terephthalate, PBT), Elastollan thermoplastics polyurethane elastomers (TPU), and Technical Center and capacity expansion of Cellasto (microcellular polyurethane components).

BASF is the world’s leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC

MOSCOW (MRC) -- Evonik has presented its latest development based on polyphthalamide (PPA): VESTAMID HTplus M1035 P1 now offers customers a glass-fiber reinforced molding compound with superior properties, as per the company's press release.

Dynamically stressed casing components in the automotive industry need outstanding mechanical properties: high burst pressure strength is essential to withstand alternating stresses. Good chemical resistance against corrosive media is also required. VESTAMID HTplus M1035 P1 was developed especially for use under these difficult conditions. This new PPA grade also achieves very good results as regards to the impact strength.

"We are pleased that the trials carried out by our customers confirm our own test results, which allow us to increase our customers' competitiveness even more," says Dr. Simon Ting, global business director at High Temperature Polymers.

In addition to the excellent mechanical properties, customers also benefit from the good flow behavior of VESTAMID HTplus M1035 P1. As a result, the surface of the injection-molded parts tends to be smoother and defects-free.

The VESTAMID HTplus product family was developed to replace classic metal applications. It is a semi-crystalline, polyphthalamide-based material that is resistant to high temperatures with a very good price-performance ratio. It combines high temperature stability with outstanding resistance to chemicals and exceptionally good mechanical properties.

As MRC informed before, Evonik Industries is paving the way for a new technology whose applications include automotive finishes that are more scratch-resistant than ever before. The specialty chemicals company has developed an industrial-scale method for producing silane-modified binders for automotive finishes. The advantage of these silane-modified binders: silane groups increase crosslinking density, making it possible to create automotive finishes that are flexible yet harder, leading to improved scratch resistance.

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around EUR12.9 billion and an operating profit (adjusted EBITDA) of about EUR2.0 billion.
MRC

MOSCOW (MRC) -- Integrated Refinery and Petrochemical Co (IRPC) is in plans to shut two polypropylene (PP) lines for maintenance turnaround, as per Apic-online.

A Polymerupdate source in Thailand informed that the lines are planned to be shut this weekend or early next week. The duration of the turnaround could not be ascertained.

Located in Rayong province of Thailand, the lines have a production capacity of 150,000 mt/year each.

As MRC wrote before, in November 2014, Indian Oil, another major petrochemical producer in Asia, laid the foundation of USD509.58 million (Rs.3150 Crore) polypropylene plant at IndianOil’s Paradip Refinery project complex, Paradip on Nov. 16. Polypropylene produced by this unit of IndianOil’s Paradip Refinery will be used in ancillaries to make moulded furniture, packaging material, containers, medical disposables, adhesive tapes etc.
MRC