New Jersey based textile polymer products, textile fiber, staple, polyester and resins for packaging maker company Wellman Inc reported a net loss attributable to common stockholders for the quarter ended June 30, 2005 of $26.1 million, or $0.82 per diluted share.
This compares to a net loss of $4.5 million, or $0.14 per diluted share for the quarter ended June 30, 2004. For the first six months of 2005, Wellman reported a net loss attributable to common stockholders of $19.1 million, or $0.60 per diluted share, compared to a net loss attributable to common stockholders of $35.7 million, or $1.13 per diluted share for the same period in 2004.
The second quarter loss includes a pretax charge of $24.0 million that relates to Wellman's expected costs to defend or settle all civil claims alleging that Wellman engaged in price fixing for sales of polyester staple fiber.
In addition, Wellman recorded a second quarter pretax restructuring charge of $0.6 million relating to their strategic decision to reduce their stated annual polyester staple fiber capacity located at the Johnsonville facility by approximately 80 million pounds and the related workforce reduction. The after-tax affect of both charges is $16.0 million or $ 0.50 per diluted share.
Tom Duff, Wellman's Chairman and Chief Executive Officer, stated, "The second quarter 2005 results were disappointing when compared to the first quarter 2005. However, their Post Financing Adjusted EBITDA in the first half of 2005 (see the chart below) was over $17 million or 34% more than in the first half of 2004."
marketing@alchempro.com
