Wellman Q3 sales improves despite disruption caused by hurricanes
26 Oct '05
3 min read
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 September 30, 2005 of $9.6 million, or $0.30 per diluted share. This compares to a net loss of $10.7 million, or $0.34 per diluted share for the quarter ended September 30, 2004.
For the first nine months of 2005, Wellman reported a net loss attributable to common stockholders of $28.7 million, or $0.91 per diluted share, compared to a net loss attributable to common stockholders of $46.4 million, or $1.47 per diluted share for the same period in 2004.
The third quarter 2005 loss includes previously announced pretax charges of $8.0 million arising from the settlement of lawsuits alleging that the Company engaged in price fixing relating to polyester staple fiber and $7.4 million for costs relating to damages caused by hurricane Katrina. The combined after-tax effect of both charges is $10.0 million, or $0.32 per diluted share.
Tom Duff, Wellman's Chairman and Chief Executive Officer, stated, 'Their third quarter 2005 results were an improvement over 2nd quarter results despite the disruption to their operations caused by the hurricanes in the Gulf. Their Adjusted EBITDA of $33.9 million in the third quarter 2005 is approximately a $12 million improvement over the second quarter of 2005.
PET resin sales had begun improving before hurricane Katrina and they were able to utilize existing inventory and higher than normal production at their Palmetto Plant to offset some of the lost production from the Pearl River Plant.'
marketing@alchempro.com
