Westlake Chemical Corp. (WLK, Financial) filed Quarterly Report for the period ended 2009-06-30.
Westlake Chemical Corporation is a vertically integrated international manufacturer and supplier of petrochemicals polymers and fabricated products. The company\'s range of products includes ethylene polyethylene styrene vinyl intermediates PVC PVC Pipe PVC windows fence and decking components. Westlake Chemical Corp. has a market cap of $1.62 billion; its shares were traded at around $24.5 with and P/S ratio of 0.5. The dividend yield of Westlake Chemical Corp. stocks is 0.8%.
For the six months ended June 30, 2009, net income was $10.8 million, or $0.16 per diluted share, on net sales of $1,063.1 million. This represents a decrease in net income of $41.9 million, or $0.64 per diluted share, from the six months ended June 30, 2008 net income of $52.7 million, or $0.80 per diluted share, on net sales of $2,021.5 million. Sales for the six months ended June 30, 2009 decreased $958.4 million compared to the first six months of 2008 largely due to lower sales prices for all major products except caustic and lower sales volumes for all major products except caustic and styrene. Income from operations was $35.3 million for the first six months of 2009 as compared to $87.4 million for the first six months of 2008. Income from operations for the first six months of 2009 was negatively impacted by a number of factors, including reduced demand for polyethylene, PVC resin and vinyls downstream products due to the economic downturn, an unscheduled outage caused by an ice storm at our Calvert City, Kentucky complex and a turnaround at one of our ethylene units in Lake Charles. The Calvert City outage and Lake Charles turnaround resulted in repair costs and the expensing of unabsorbed fixed manufacturing costs of $19.5 million during the first quarter of 2009. The decrease in income from operations was partially offset by a gain from trading activity of $12.2 million during the first six months of 2009 compared to a loss of $6.9 million during the first six months of 2008. Costs related to the closure of a fabrication manufacturing facility and a turnaround and revamp of our styrene facility in Lake Charles negatively impacted income from operations in the first six months of 2008.
Income from Operations. Income from operations decreased by $13.5 million, or 23.4%, to $44.3 million in the second quarter of 2009 from $57.8 million in the second quarter of 2008. This decrease was primarily due to lower polyethylene sales volumes and operating rates and the sharp drop in sales prices, partially offset by lower energy and feedstock costs. Also partially offsetting the decrease, trading activity resulted in a gain of $9.8 million for the second quarter of 2009 as compared to a loss of $7.0 million for the second quarter of 2008.
Income from Operations. Income from operations decreased by $17.6 million, or 22.6%, to $60.4 million in the first six months of 2009 from $78.0 million in the first six months of 2008. This decrease was primarily due to the decrease in polyethylene and styrene sales prices and lower operating rates. The lower operating rates were primarily due to reduced polyethylene demand and a turnaround at one of our ethylene facilities in Lake Charles in the first quarter of 2009. These decreases were partially offset by lower raw material costs and by trading activity. Trading activity resulted in a gain for the first six months of 2009 of $12.2 million as compared to a loss of $6.9 million for the first six months of 2008. The first six months of 2008 were negatively impacted by the styrene plant turnaround in Lake Charles.
turnaround costs of $23.6 million resulting from the turnaround of our ethylene unit in Lake Charles. Income from operations decreased by $52.2 million in the first six months of 2009 as compared to the first six months of 2008 primarily as a result of the decline in volume and margins for most of our major products due to lower demand and pricing pressures. Changes in components of working capital, which we define for purposes of this cash flow discussion as accounts receivable, inventories, prepaid expense and other current assets less accounts payable and accrued liabilities, provided cash of $113.1 million in the first six months of 2009 (including a federal tax refund of $30.0 million, resulting from over payment of 2008 federal income taxes), compared to $105.7 million of cash used in the first six months of 2008, a favorable change of $218.8 million. This change was largely due to reduced working capital requirements as a result of a reduction in inventory levels, a decrease in energy and feedstock costs, a decrease in average sales prices, and an increase in accrued taxes, as compared to the prior year period.
Net cash used for investing activities during the first six months of 2009 was $53.3 million as compared to net cash used for investing activities of $80.9 million in the first six months of 2008. Capital expenditures were $50.4 million in the first six months of 2009 compared to $81.8 million in the first six months of 2008. The decrease in capital expenditures in
Read the The complete ReportWLK is in the portfolios of Third Avenue Management, Charles Brandes of Brandes Investment.
Westlake Chemical Corporation is a vertically integrated international manufacturer and supplier of petrochemicals polymers and fabricated products. The company\'s range of products includes ethylene polyethylene styrene vinyl intermediates PVC PVC Pipe PVC windows fence and decking components. Westlake Chemical Corp. has a market cap of $1.62 billion; its shares were traded at around $24.5 with and P/S ratio of 0.5. The dividend yield of Westlake Chemical Corp. stocks is 0.8%.
Highlight of Business Operations:
For the three months ended June 30, 2009, net income was $16.9 million, or $0.26 per diluted share, on net sales of $574.9 million. This represents a decrease in net income of $30.4 million, or $0.46 per diluted share, from the three months ended June 30, 2008 net income of $47.3 million, or $0.72 per diluted share, on net sales of $1,106.4 million. Sales for the three months ended June 30, 2009 decreased $531.5 million compared to the second quarter of 2008 due primarily to lower sales prices for all major products and lower sales volumes for all major products except caustic and styrene. Income from operations was $36.2 million for the second quarter of 2009 as compared to $73.6 million for the second quarter of 2008. The decrease in income from operations for the three months ended June 30, 2009 was primarily due to reduced demand for polyethylene and vinyls downstream products and significantly lower sales prices, which were partially offset by lower feedstock and energy costs. Also partially offsetting this decrease, trading activity resulted in a gain of $9.8 million in the second quarter of 2009 as compared to a loss of $7.0 million in the second quarter of 2008.For the six months ended June 30, 2009, net income was $10.8 million, or $0.16 per diluted share, on net sales of $1,063.1 million. This represents a decrease in net income of $41.9 million, or $0.64 per diluted share, from the six months ended June 30, 2008 net income of $52.7 million, or $0.80 per diluted share, on net sales of $2,021.5 million. Sales for the six months ended June 30, 2009 decreased $958.4 million compared to the first six months of 2008 largely due to lower sales prices for all major products except caustic and lower sales volumes for all major products except caustic and styrene. Income from operations was $35.3 million for the first six months of 2009 as compared to $87.4 million for the first six months of 2008. Income from operations for the first six months of 2009 was negatively impacted by a number of factors, including reduced demand for polyethylene, PVC resin and vinyls downstream products due to the economic downturn, an unscheduled outage caused by an ice storm at our Calvert City, Kentucky complex and a turnaround at one of our ethylene units in Lake Charles. The Calvert City outage and Lake Charles turnaround resulted in repair costs and the expensing of unabsorbed fixed manufacturing costs of $19.5 million during the first quarter of 2009. The decrease in income from operations was partially offset by a gain from trading activity of $12.2 million during the first six months of 2009 compared to a loss of $6.9 million during the first six months of 2008. Costs related to the closure of a fabrication manufacturing facility and a turnaround and revamp of our styrene facility in Lake Charles negatively impacted income from operations in the first six months of 2008.
Income from Operations. Income from operations decreased by $13.5 million, or 23.4%, to $44.3 million in the second quarter of 2009 from $57.8 million in the second quarter of 2008. This decrease was primarily due to lower polyethylene sales volumes and operating rates and the sharp drop in sales prices, partially offset by lower energy and feedstock costs. Also partially offsetting the decrease, trading activity resulted in a gain of $9.8 million for the second quarter of 2009 as compared to a loss of $7.0 million for the second quarter of 2008.
Income from Operations. Income from operations decreased by $17.6 million, or 22.6%, to $60.4 million in the first six months of 2009 from $78.0 million in the first six months of 2008. This decrease was primarily due to the decrease in polyethylene and styrene sales prices and lower operating rates. The lower operating rates were primarily due to reduced polyethylene demand and a turnaround at one of our ethylene facilities in Lake Charles in the first quarter of 2009. These decreases were partially offset by lower raw material costs and by trading activity. Trading activity resulted in a gain for the first six months of 2009 of $12.2 million as compared to a loss of $6.9 million for the first six months of 2008. The first six months of 2008 were negatively impacted by the styrene plant turnaround in Lake Charles.
turnaround costs of $23.6 million resulting from the turnaround of our ethylene unit in Lake Charles. Income from operations decreased by $52.2 million in the first six months of 2009 as compared to the first six months of 2008 primarily as a result of the decline in volume and margins for most of our major products due to lower demand and pricing pressures. Changes in components of working capital, which we define for purposes of this cash flow discussion as accounts receivable, inventories, prepaid expense and other current assets less accounts payable and accrued liabilities, provided cash of $113.1 million in the first six months of 2009 (including a federal tax refund of $30.0 million, resulting from over payment of 2008 federal income taxes), compared to $105.7 million of cash used in the first six months of 2008, a favorable change of $218.8 million. This change was largely due to reduced working capital requirements as a result of a reduction in inventory levels, a decrease in energy and feedstock costs, a decrease in average sales prices, and an increase in accrued taxes, as compared to the prior year period.
Net cash used for investing activities during the first six months of 2009 was $53.3 million as compared to net cash used for investing activities of $80.9 million in the first six months of 2008. Capital expenditures were $50.4 million in the first six months of 2009 compared to $81.8 million in the first six months of 2008. The decrease in capital expenditures in
Read the The complete ReportWLK is in the portfolios of Third Avenue Management, Charles Brandes of Brandes Investment.
