NOVA Chemicals Corporation: Continued Debt Reduction Despite Market Conditions.

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NOVA Chemicals Corporation: Continued Debt Reduction Despite Market Conditions.

Business Editors

PITTSBURGH--(BUSINESS WIRE)--Jan. 30, 2002

All financial information is in U.S. dollars unless otherwise indicated.

NOVA Chemicals (NYSE:NCX)(TSE:NCX.) will host a conference call today, Wednesday, Jan. 30, 2002, for investors and analysts at 1 p.m. EST; (11 a.m. MST; 10 a.m. PST). Media are welcome to participate in this call in a "listen only" mode. The dial in number for this call is (416) 405-9328. The replay number is (416) 695-5800 (Reservation No. 1016555). The call will also be available live on the Internet at www.vcall.com.

As expected, NOVA Chemicals Corporation (NOVA Chemicals) reported a loss to common shareholders for the fourth quarter before unusual items of $88 million ($1.03 per share loss diluted). This compares to a loss of $81 million before unusual items ($0.95 per share loss diluted) in the third quarter of 2001 and earnings before unusual items of $39 million ($0.45 per share diluted) during the fourth quarter of 2000.

The fourth quarter of 2001 included unusual charges of $17 million after-tax, related to restructuring actions (see pages 10 and 19). As a result, NOVA Chemicals reported a net loss to common shareholders after unusual items of $105 million ($1.23 per share loss diluted) for the quarter.

Jeff Lipton, NOVA Chemicals' President and Chief Executive Officer said, "In spite of the very poor business conditions in the fourth quarter, we generated $111 million in cash from operations, including continued reductions in working capital. We paid down another $33 million of debt."

"We are taking the necessary actions to maintain a strong balance sheet and protect our investment grade credit rating," continued Lipton. "In 2002, we have already received $64 million in proceeds from the sale of our interest in the Cochin Pipeline. In total, we expect a net generation of significantly more than $200 million in cash in the first half of 2002. This will be used to pay down debt.

The Olefins/Polyolefins business reported a net loss of $28 million in the fourth quarter, compared to the third quarter net loss of $13 million. In the fourth quarter, demand remained very poor and volumes fell from the third quarter. Polyethylene, ethylene and co-product prices continued to fall. This was only partially offset by reduced feedstock costs.

The Styrenics business reported a fourth quarter net loss of $48 million, compared to the third quarter net loss of $56 million. Demand for monomer and polymers remained slow and market conditions were little changed from the third qu...

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