“In the third quarter, we were disappointed by the volume declines we saw in our Paving and Roofing end use market due to lower market demand driven primarily by poor weather in our North American market and lower government spending.
Outside of Paving and Roofing however, we were pleased that our core product volume experienced 6% growth versus last year,” said George B. Gregory, President and Chief Executive Officer.
“The price increases we implemented in the quarter only partially offset variable cost increases. 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 programs. As always, we remain committed to providing our customers with the highest valued products and service in the industry.”
Quarterly Business Developments: • Achieved 6% core volume growth outside of Paving & Roofing. • Implemented SBS price increases in Europe and North America. • Finalized actions for closure of the SIS unit at the Pernis, Netherlands plant, generating expected cost savings of $6-$9 million annually. • Pre-paid $40 million of term debt. • Grew innovation-based volumes by 114%. • Generated $32 million incremental cash from working capital versus 3rd quarter 2006.
marketing@alchempro.com
