Polyester maker Wellman business volume falls due to hurricanes
15 Feb '06
3 min read
New Jersey based textile polymer products, textile fiber, staple, polyester and resins for packaging maker company Wellman Inc reported sales of $301.3 million for the quarter ended December 31, 2005 and record sales of $1.4 billion for the year ended December 31, 2005.
The net loss attributable to common stockholders for the quarter ended December 31, 2005 was $15.5 million, or $0.49 per diluted share, compared to a net loss attributable to common stockholders of $4.7 million, or $0.15 per diluted share, for the quarter ended December 31, 2004.
For the full year 2005, Wellman reported a net loss attributable to common stockholders of $44.2 million, or $1.40 per diluted share, compared to a net loss attributable to common stockholders of $51.1 million, or $1.61 per diluted share for the full year 2004.
Tom Duff, Wellman's Chairman and Chief Executive Officer, stated, "Their overall financial performance improved in 2005 compared to 2004.
While volumes in both of their businesses decreased as a result of hurricane Katrina, raw material margins improved from 2004 levels, resulting in higher operating income for these businesses for the year.
The non-operational charges they incurred in 2005 relating to law suits alleging the company engaged in price fixing ($35.9 million) and the additional costs they incurred as a result of hurricane Katrina ($24.0 million) totaled approximately $60 million, resulting in a pretax loss of $48.0million for 2005 which is less than the pre-tax loss of $54.5 million for 2004.
marketing@alchempro.com
