Westlake Chemicals Reports Jump in Sales, Earnings for Third-Quarter 2010

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Chemical and plastic products manufacturer Westlake Chemical Corporation (NYSE:WLK) (Houston, Texas) reported very positive results for the third quarter of 2010, as higher sales prices affected all of the company's major products and higher sales volumes affected most. Net income for the quarter was reported to be $62.73 million, compared with $29.77 million in third-quarter 2009.

Westlake officials said that positive results also could be found using the EBITDA measurement, which is defined as net income excluding provisions for income taxes; deferred income taxes; interest expenses; depreciation; amortization; and changes in operating assets and liabilities. Using this method, net income for the quarter was $140.17 million, a 71.17% increase from the same period last year.

Net sales stood at $779.68 million, a 23.26% increase from third-quarter 2009. Much of the overall improvement came from the company's Olefins segment, which saw higher prices and higher integrated product margins. The Olefins segment benefited from strong domestic and foreign demand for polyethylene; high operating rates; and lower costs for natural gas-based ethylene production. Low ethylene costs also boosted PVC resin exports.

"Our Olefins segment delivered record earnings this quarter, resulting in a very strong third-quarter performance by Westlake, despite the fact that sales and profitability of our Vinyls segment have yet to recover from tough conditions," said Albert Chao, Westlake's president and chief executive officer, in a conference call.

Both of Westlake's segments reported significant gains in sales, although the Vinyls segment saw a bigger overall loss in earnings:

• The Olefins segment reported net sales of $555.16 million, a 24.8% increase from third-quarter 2009, and income from operations of $136.10 million, compared with $61.65 million in the same period last year.
• The Vinyls segment reported net sales of $224.52 million, a 17.18% increase from third-quarter 2009, and a loss from operations of $24.23 million, compared with a loss of $8.08 million in the same period last year.

Chao said the company's advantageous cost position as a natural gas-based producer of ethylene and a manufacturer of value-added grades of polyethylene will continue to fuel success in the Olefins segment. He also expressed optimism on the Vinyls segment.

"We are optimistic that we will continue to see gradual recovery in the economy, and with it, improvements in the construction industry and our Vinyls business performance," Chao said in the conference call.

Industrial Info is tracking 13 active Westlake projects in the U.S. that are worth a total of $354 million, including the $280 million chlor-alkali unit addition at a chemicals plant in Geismar, Louisiana. The project involves the installation of membrane-cell technology to produce 700 million pounds per year of chlorine; 790 million pounds per year of caustic soda; 20 million cubic feet per year of hydrogen; and 100 tons per day of muriatic acid. For more information, visit Industrial Info's North American Chemical Processing Project Database.

View Plant Report - 1018077
View Project Report - 2006222

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.