4th Quarter Loss Narrows to $2.2 Million; Borden Chemicals and Plastics Reports Better Fourth Quarter; Carter Elected Chairman, Announces Intent to Focus on PVC Business.Business Editors COLUMBUS, Ohio--(BUSINESS WIRE)--Jan. 25, 2000 Borden Chemicals and Plastics Limited Partnership (NYSE NYSE See: New York Stock Exchange :BCU BCU British Canoe Union BCU Basic Command Unit (British Police) BCU Big Close-Up BCU Bus Controller Unit BCU Battery Coolant Unit BCU Bandwidth Control Unit BCU Beer Cans Unlimited (collectors) ) today reported a loss of $2.2 million, or six cents per unit for the fourth quarter period ended December 31, 1999. The quarter's results represented a significant improvement over the previous year's fourth quarter loss of $15.4 million, or 42 cents per unit, which included a one-time charge against earnings of $5.8 million, or 16 cents per unit, and the third quarter's loss of $7.3 million, or 20 cents per unit. As previously announced, Joseph M. Saggese, chairman, president and chief executive officer, retired effective with today's meeting of the board directors of BCP BCP Best Current Practice(s) BCP Business Continuity Planning BCP Business Continuity Plan BCP Book of Common Prayer BCP Banco Comercial Português BCP Bureau of Consumer Protection (US Federal Trade Commission) Management, Inc. the general partner. The board elected as its chairman William H. Carter, a board member since 1995, and is conducting a search for a chief executive officer. Carter announced that the partnership board has completed its previously announced strategic business review, conducted in conjunction with consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a A. D. Little. As a result of the study's findings, the partnership intends to evolve into a focused polyvinyl chloride polyvinyl chloride (PVC), thermoplastic that is a polymer of vinyl chloride. Resins of polyvinyl chloride are hard, but with the addition of plasticizers a flexible, elastic plastic can be made. (PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. ) resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. business, Carter said. &uot;We believe our future lies with our PVC resins business, the largest of our three business segments,&uot; Carter said. &uot;By focusing on the PVC business we have the best opportunity to build value for our unitholders. We are developing specific plans for our non-PVC businesses in order to realize maximum value in the near term.&uot; Commenting on the fourth quarter, Carter said: &uot;Our performance reflects better results in the PVC resins business, as pricing and margins during the quarter continued the gradual improvement that marked 1999. This was partially offset by continued depressed margins in methanol methanol, methyl alcohol, or wood alcohol, CH3OH, a colorless, flammable liquid that is miscible with water in all proportions. Methanol is a monohydric alcohol. It melts at −97. and nitrogen products.&uot; For the fourth quarter, revenues totaled $158.3 million compared with the year-ago period's $116.7 million, reflecting better pricing in all product lines offset by slightly lower PVC resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing volumes and higher raw material costs when compared with last year's quarter. For the year, the partnership posted a loss of $23.8 million, or 65 cents per unit, on revenues of $554.2 million, compared with a 1998 loss of $40.6 million, or $1.09 per unit, on revenues of $535.5 million. The partnership also said it completed in early January its previously announced acquisition of BASF BASF Bar Association of San Francisco (since 1872; San Francisco, California) BASF Badische Anilin und Soda Fabrik (German chemical products company) BASF Builders Association of South Florida Corporation's 50 percent interest in a jointly owned acetylene acetylene (əsĕt`əlēn') or ethyne (ĕth`īn), HC≡CH, a colorless gas. It melts at −80.8°C; and boils at −84.0°C;. plant in Geismar, La., which will provide additional raw material for the partnership's acetylene-based vinyl chloride vinyl chloride or chloroethylene Colourless, flammable, toxic gas (H2C=CHCl), belonging to the family of organic compounds of halogens. It is produced in very large quantities and used principally to make PVC, as well as in other syntheses and in monomer monomer (mŏn`əmər): see polymer. monomer Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). operations. &uot;While our 1999 results were better than the previous year, they still resulted in a loss primarily due to poor results from our nitrogen and methanol segments,&uot; Carter said. &uot;On a positive note, our PVC resins segment continues to improve thus far in 2000 and we are taking steps to build the partnership into a focused business with improved profitability and enhanced unitholder value.&uot; Borden Chemicals and Plastics Limited Partnership manufactures PVC resins, methanol and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. and nitrogen products at facilities in Geismar and Addis, La., and Illiopolis, Ill. BCP Management, Inc. is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Borden, Inc. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This news release contains forward-looking statements subject to the &uot;safe harbor&uot; provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These include statements regarding the Partnership's financial status, future business prospects and industry trends. These forward-looking statements are based on a number of assumptions and forecasts, and actual results may be materially different from those expressed or implied by such statements. Factors affecting future results include, but are not limited to, changes in the demand for and pricing of products, changes in industry production capacities, and changes in the supply of and costs of significant raw materials. Discussion of these and other factors and risks are discussed in detail in the Partnership's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. annual report and other documents filed with the Securities and Exchange Commission.
BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
(In millions, except per Unit data)
(Unaudited)
Selected Financial Data:
------------------------
Periods Ended December 31, 1999
Three Months Twelve Months
------------ -------------
Cash and equivalents at end of period 5.8 5.8
Net cash provided by operating activities $ 1.2 $ 4.0
Depreciation $ 9.3 $ 36.5
Capital expenditures $ 7.2 $ 18.3
EBITDA (earnings before interest, taxes, $ 15.2 $ 40.0
depreciation and amortization)
At December 31,
1999 1998
---- ----
Current assets $152.4 $110.5
Property, plant, equipment, net $269.3 $288.3
Total partners' capital $118.5 $142.5
Long-term debt $263.2 $251.8
BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
(In millions, except per Unit data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
---- ---- ---- ----
Revenues $ 158.3 $ 116.7 $ 554.2 $ 535.5
Cost of goods sold 141.7 111.1 520.6 521.1
--------- --------- --------- ---------
Gross profit 16.6 5.6 33.6 14.4
MG& expense 9.7 5.5 28.8 24.3
Interest expense 6.4 6.7 23.6 23.1
Other (income) and
expense 2.7 8.8 5.0 (7.6)
--------- --------- --------- ---------
Net (loss) income ($ 2.2) ($ 15.4) ($ 23.8) ($ 40.6)
--------- --------- --------- ---------
--------- --------- --------- ---------
Per Unit Data:
-------------
Net (loss) income ($ 0.06)($ 0.42)($ 0.65)($ 1.09)
--------- --------- --------- ---------
--------- --------- --------- ---------
Cash distribution
declared $ 0.00 $ 0.00 $ 0.00 $ 0.00
--------- --------- --------- ---------
--------- --------- --------- ---------
Average units 36.8 36.8 36.8 36.8
--------- --------- --------- ---------
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