Houston, Texas – Kraton Performance Polymers Inc. has reported an 11.9-percent drop in adjusted third quarter earnings (EBITDA), to $39.4 million, on sales of $319.0 million – 2.5-percent lower than the same period last year.
The Houston-based company said the were driven mostly by lower average selling prices due to weakness in European paving & roofing markets in the three months to 30 Sept.
The market decline offset increased demand for its higher value products in medical, automotive, industrial and personal care applications, the the styrene block copolymer maker said 29 Oct.
“Our most significant challenge in the quarter was a 16% decline in European paving & roofing sales volume, indicative of prevailing economic and competitive conditions in Europe during the quarter," said Kevin Fogarty, Kraton's president and CEO.
Fogarty was, however, encouraged by recent crude oil and naphtha pricing trends, which are likely to mean lower butadiene and isoprene prices.
“Lower relative and absolute costs for these building block monomers, which in turn typically results in lower relative and absolute selling prices of our finished goods, will [result in] a more confident view of the value of Kraton polymer offerings," he said.
Reviewing its the full-year earnings projections, though, Kraton now expects to fall a bit short of its previously stated estimate of $150 million - largely due to the weakened demand paving and roofing materials in Europe.