Crompton Corp. reports Q4, full year results
Middlebury, Connecticut--Crompton Corp. reported a fourth quarter net loss of $55.9 million, compared to a net loss of $58 million a year ago. For the year ended December 31, 2004, the Company reported a net loss of $34.6 million, compared to net earnings of $19 million in 2003.
In a statement, the company said, "Polymers sales of $87.7 million increased 21 percent from the prior year due to an increase in selling prices of 11 percent, higher unit volume of eight percent and favorable foreign currency translation of two percent. EPDM sales were up 29 percent due mainly to favorable pricing and higher unit volume."
Rich Owins, vive-president for EPDM & rubber chemicals at Crompton told ERJ that the company intends to turn the EPDM and rubber chemicals businesses around, following historically low profitability. According to Owins, "We did not value our own product as much as our customers." He said the company had announced a 15-cent per pound price increase in December, and the customers had paid the full amount. Although Owins declined to be drawn on the future direction of prices, he said, "My concern is that this will increase with tightness of ethylene and propylene."
When Owins was asked about the anti-trust investigations, he said, "The people who were involved in that are all gone. Now we have rigid training and enforcement." Owins added, "[price-fixing] is not the way I run a business. I like a fair fight."
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Crompton Corp Webcast of results conference
Crompton statement of results