Kraton suffers 25 percent loss in gross profit in Q3

Houston, Texas -- Kraton Polymers LLC reported a 25 percent loss in gross profit, to $46 million (€31.5 million) for Q3, compared to the same period last year.

The company said, in a 14 Nov statement that the loss was due to higher monomers and plant restructuring.

Pre-tax earnings (EBITDA) for the quarter decreased by 31 percent to $26 million year-on-year.

Net income was down by $800 000 to $12 million in the comparable period of 2006.

Kraton noted a $2 million increase in its total revenue, to $290 million. The company said that product price increases and the strengthening of foreign currencies, partially offset by lower sales volumes and lower by-product sales, drove the increase.

“The price increases we implemented in the quarter only partially offset variable cost increases,” said George Gregory, president and chief executive officer of the Kraton, in the statement.

“In response to lower margins, we are reviewing further price increases to keep pace with increasing raw material and energy costs and are accelerating cost reduction programmes,” he added.

Gregory said that Kraton would remain “ committed to providing our customers with the highest valued products and service in the industry.”

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Results from Kraton