Arco Chemical 1996 earnings slightly down

Jan 21, 1997 01:00 AM

Arco Chemical Company reported results for the year ending December 31, 1996. Full year net income for 1996 was $ 348 million, or $3.60 per share, compared with $ 508 million, or $5.28 per share, for 1995. Revenue for 1996 was $ 3,955 million compared with $ 4,282 million a year ago. Commenting on the results, Alan R. Hirsig, president and chief executive officer, said, "Lower styrene prices have been the major factor in the fall off in 1996 earnings compared to 1995. However, it is important to note that the increased contribution of our core propylene oxide (PO) business allowed the company to achieve improved profitability in 1996, compared to the last down cycle for styrene in the early 1990's." The primary reason for the decline in net earnings from the third quarter 1996 was lower co-product profitability resulting from higher feedstock costs coupled with weaker MTBE and styrene markets. The company anticipates that raw material cost pressures will continue to squeeze product margins during the first quarter of 1997.
In April 1996, ARCO Chemical Company announced plans to build the world's largest grass roots propylene oxide/ styrene monomer plant in Rotterdam. During the fourth quarter of 1996, the company began expansion of its existing PO/SM capacity in Channelview, Texas. In September 1996, ARCO Chemical Company sold its plastics business to NOVA Chemicals. The company purchased Olin Corporation's isocyanates business in December 1996. In addition to the Olin acquisition for $562 million, which included $85 million of working capital, other capital expenditures were $244 million in 1996 and $195 million in 1995. The company expects 1997 capital spending of about $450 million.

Source: not available
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« July 2020 »
July
MoTuWeThFrSaSu
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31

Register to announce Your Event

View All Events