Borden Chemicals and Plastics reports first quarter loss of twelve cents per unit, cash distribution of ten cents per unit; expects improved second quarter.COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , Ohio--(BUSINESS WIRE)--April 22, 1997--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) ), a leading producer of 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. , 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, reported a loss of $4.4 million, or twelve cents per unit, and a cash distribution of ten cents Ten Cents has several meanings:
The twelve-cent per unit loss compares with last year's first quarter loss of $6.1 million, or sixteen cents per unit, and a cash distribution for the year-ago period of ten cents per unit. "Despite improving fundamentals during the latter part of the first quarter, our results were hurt by higher average costs for key raw materials such as natural gas, ethylene ethylene (ĕth`əlēn') or ethene (ĕth`ēn), H2C=CH2, a gaseous unsaturated hydrocarbon. It is the simplest alkene. and chlorine chlorine (klōr`ēn, klôr`–) [Gr.,=green], gaseous chemical element; symbol Cl; at. no. 17; at. wt. 35.453; m.p. −100.98°C;; b.p. −34.6°C;; density 3.2 grams per liter at STP; valence −1, +1, +3, +5, +7. when compared to the same period last year or to the previous quarter," said Joseph M. Saggese, chairman, president and chief executive officer 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. "On a brighter note, we have started the second quarter with significantly lower costs for natural gas and better margins for PVC resins and methanol, our two largest businesses. These factors should help us post improved second quarter results, barring unforeseen swings in product pricing or raw material costs," Saggese added. The cash distribution of ten cents per unit was declared at a meeting of the board of directors of BCP Management, Inc. and is payable May 15 to unitholders of record May 2. The amount of the partnership's quarterly cash distribution is based on available cash generated during the quarter. For the period ended March 31, Borden Bor·den , Gail 1801-1874. American surveyor and inventor who developed condensed milk (1853) and other food products. Borden, Lizzie Andrew 1860-1927. Chemicals and Plastics recorded revenues of $194.7 million, 12 percent more than the year-ago period revenues of $170.6 million and 9 percent above revenues of $176.6 million for the previous quarter. Quarterly sales volumes for PVC resins rose 5 percent compared to the year-ago period, reflecting strong demand, while sales volumes for methanol decreased 3 percent due to moderate production curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. early in the quarter. Sales volumes for nitrogen products (ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. and urea) declined 16 percent, as weather-related delays in spring plantings caused weaker agricultural demand. Average pricing for PVC resins improved through the period and was higher than the previous year's first quarter average, but this was offset by significantly higher average costs for raw materials ethylene and chlorine. The average price of methanol was better than in the year-ago period due to strong demand combined with tight supply caused by spot producer outages during the quarter. The average ammonia price was better than the same period last year, but was offset by lower average urea pricing when compared to 1996. The industry average contract price for natural gas at the Henry Hub Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC. settlement point reached historically high levels during the quarter. January gas costs exceeded $4.00 per mmbtu, the highest cost since the inception of the partnership in 1987 and almost double the prior ten-year January average of $2.10 per mmbtu. Gas costs averaged $2.94 per mmbtu during the first quarter, compared with the year-ago period average price of $2.92 per mmbtu and the previous quarter's average price of $2.84. Natural gas is a key raw material and energy source for the partnership. Partnership costs may differ from the industry Henry Hub average price for various reasons including purchasing practices, contract arrangements, transportation costs and other factors. Borden Chemicals and Plastics uses some 65 billion cubic feet of natural gas annually and gas costs can have a significant effect on margins. Also during the first quarter, Borden Chemicals and Plastics announced that the board of directors of the general partner, on behalf of the partnership, has approved a proposal to convert existing ownership interests in the partnership into shares of a newly formed corporation. The conversion is subject to, among other things, filing and clearance of a combined proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and prospectus, and the approval of a majority of unitholders. A proxy statement and prospectus is expected to be sent to unitholders during the summer. 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 located in Geismar and Addis, La., and Illiopolis, Ill. See Attached Financial Statements -0-
BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
(In millions, except per Unit data)
(Unaudited)
Three Months Ended March 31,
1997 1996
___________ ___________
Revenues 194.7 170.6
Cost of goods 188.0 164.8
___________ ___________
Gross profit 6.7 5.8
MG&A expense 5.8 6.5
Interest expense 5.3 5.4
___________ ___________
Net income/loss ($4.4) ($6.1)
___________ ___________
___________ ___________
Per Unit Data:
_____________
Net income/loss ($0.12) ($0.16)
___________ ___________
___________ ___________
Cash distribution declared $0.10 $0.10
___________ ___________
___________ ___________
Average units 36.8 36.8
___________ ___________
___________ ___________
BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
(In millions, except per Unit data)
(Unaudited)
Other Selected Financial Data:
_____________________________
Periods Ended March 31,
1997 1996
___________ ___________
Net cash provided by
operating activities ($6.7) ($9.0)
Depreciation $12.4 $12.2
Capital Expenditures $1.6 $3.1
At March 31,
1997 1996
___________ ___________
Current assets $154.8 $140.4
Property, plant, equipment,
net $308.6 $345.5
Total partners capital $201.7 $206.7
Long-term debt $200.0 $200.0
CONTACT: Borden Chemicals and Plastics, Columbus Peter F. Loscocco, 614/225-4482 |
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