Pittsburgh based global chemical leader NOVA Chemicals Corporation has reported a net loss of $68 million for the fourth quarter of 2005. The net loss from the two businesses was $20 million.
The quarter's net loss compares to a net loss of $105 million for the third quarter of 2005. In the fourth quarter of 2004, it reported net income of $162 million.
In the fourth quarter, a turnaround for maintenance and modernization work at the Corunna, Ontario flexi-cracker was extended primarily due to a series of problems with new equipment. The after-tax impact of the outage in the fourth quarter is estimated to be approximately $70 million.
On January 19, 2006, NOVA Chemicals announced the closure of its Chesapeake, Virginia site, including solid polystyrene production capacity of 300 million pounds per year and compounding capability of 170 million pounds per year. It expects to reduce costs by approximately $15 million per year and lower working capital needs.
In the fourth quarter, a non-cash, after-tax charge of $46 million was taken.
For the full year 2005, NOVA Chemicals reported a net loss of $104 million compared with net income of $252 million in 2004.
Jeff Lipton, NOVA Chemicals' President and CEO, said, "In the fourth quarter we experienced a number of turnaround problems at the Corunna ethylene cracker that were outside of our control. We are using every internal and external resource available to us to correctthe start up issues."
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