The third quarter of 2006 was also negatively impacted by lower sales volumes for polyethylene and PVC pipe and higher feedstock costs. These decreases were partially offset by higher selling prices for most of the company's products.
Cash flows from operating activities were $213.9 million for the nine months ended September 30, 2006, $100.7 million of which was used for capital additions.
At the end of the third quarter of 2006, the company's cash and short-term investments balance was $303.1 million and total debt outstanding was $260.1 million.
OLEFINS SEGMENT
Income from operations for the Olefins segment decreased by $3.2 million, or 7 percent, to $41.9 million in the third quarter of 2006 from $45.1 million in the third quarter of 2005.
This decrease was primarily due to the unscheduled outage at the ethylene unit in Lake Charles, Louisiana. While the unit was down, the company conducted a maintenance turnaround of the facility.
Third quarter 2006 income from operations for the Olefins segment decreased by $20.1 million from the $62.0 million income from operations reported in the second quarter of 2006.
This decrease was primarily due to the unscheduled outage at the ethylene unit in Lake Charles, Louisiana, higher raw material costs for ethane and propane and lower polyethylene sales volumes. These decreases were partially offset by higher selling prices for the company's Olefins products.
Westlake Chemical Corporation
marketing@alchempro.com
