Profit plummets at NOVA Chemicals
Pittsburgh Business Times
NOVA Chemicals Corp. earnings plummeted 78 percent in the second quarter thanks to a spike in unrealized losses on feedstock derivatives.
NOVA (NYSE:NCX), a chemical manufacturer that is based in Calgary and has U.S. headquarters in the Pittsburgh suburb of Moon Township, posted net income of $18 million, or 21 cents per share, on revenue of $2.2 billion.
On average, analysts had predicted earnings of 22 cents per share on revenue of $1.94 billion.
In the year-ago period, the company had income of $80 million, or 96 cents per share, on revenue of $1.7 billion.
The company blamed the drop on an $86 million increase in unrealized losses on mark-to-market feedstock derivatives. It took a $5 million restructuring charge over downsizing its information technology department.
Its depreciation and amortization costs were $7 million higher due to the strength of the Canadian dollar.
In the year-ago period, the company faced a $10 million charge over eliminating about 90 positions. NOVA Chemicals also took charges in the current quarter and the year-ago quarter thanks to restructurings at INEOS NOVA, a joint venture with the British chemical company INEOS.
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