Income from operations for the Olefins segment decreased by $6.5 million to $32.0 million in the second quarter of 2005 from $38.5 million in the second quarter of 2004. This decrease was primarily due to higher raw material costs for ethane, propane and benzene; higher energy costs and lowers sales volumes for ethylene and polyethylene, which were partially offset by higher selling prices and higher styrene sales volumes.
Second quarter 2005 income from operations for the Olefins segment decreased by $30.4 million from the $62.4 million income from operations reported in the first quarter of 2005. The decrease was primarily due to lower selling prices for ethylene and polyethylene, lower ethylene sales volumes and higher raw material and energy costs. These decreases were partially offset by higher styrene prices and higher polyethylene and styrene sales volumes.
Income from operations for the Olefins segment increased by $24.9 million to $94.4 million for the six months ended June 30, 2005 from $69.5 million for the six months ended June 30, 2004. This increase was primarily due to higher olefins selling prices, which outpaced higher raw material and energy costs. Sales volumes were relatively unchanged with slightly lower ethylene and polyethylene sales volumes essentially offset by higher styrene sales volumes. Merchant ethylene sales volumes were lower for the six months ended June 30, 2005 as compared to the six months ended June 30, 2004 due to the increase in internal ethylene consumption at the Geismar facility.
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