Arch Chemicals Reports Second Quarter 2011 Earnings
05 Agosto 2011 - 2:44PM
Arch Chemicals, Inc. (NYSE:ARJ) announced sales for the second
quarter of 2011 of $443.8 million, compared to $441.4 million for
the second quarter of 2010. Earnings per share from continuing
operations for 2011 were $1.47 per share on $37.4 million of
income, compared to $1.73 per share on $43.5 million of income in
2010. Included in the 2011 results is an after-tax charge of
$0.3 million, or $0.01 per share, for relocation costs incurred in
conjunction with the previously announced research and development
consolidation. Excluding this item, earnings per share from
continuing operations for 2011 were $1.48 on $37.7 million of
income.
Net income and earnings per share in the second quarter were
significantly impacted by lower-than-expected results from the HTH
water products business, principally due to timing. In
particular, different replenishment strategies attributable to a
certain U.S. mass retail customer shifted a portion of the pool
season sales from the second quarter to the third quarter. To
a lesser extent, increased costs and unfavorable weather patterns
in the early part of the pool season, principally in the Northeast
and Midwest U.S., adversely impacted profits in the professional
pool dealer and mass channels.
The Company is no longer providing its 2011 outlook. On
July 10, 2011, the Company announced it had entered into an
agreement to be acquired by Lonza Group Ltd., which transaction is
currently pending.
Note: All references to earnings per share above reflect
diluted earnings per share.
About Arch
Headquartered in Norwalk, Connecticut (USA), Arch Chemicals,
Inc. is a global Biocides company with annual sales of over $1
billion. Arch and its subsidiaries provide innovative,
chemistry-based and related solutions to destroy or to selectively
inhibit the growth of harmful microorganisms. The Company is
concentrated in the areas of water treatment, personal care, health
and hygiene, industrial preservation and protection, and wood
treatment. Arch Chemicals operates in two segments:
Biocides Products and Performance Products. Together with its
subsidiaries, Arch has approximately 3,000 employees and
manufacturing and customer-support facilities in North and South
America, Europe, Asia, Australia and Africa. For more information,
visit the Company's Web site at http://www.archchemicals.com.
Except for historical information contained herein, the
information set forth in this communication contains
forward-looking statements that are based on management's beliefs,
certain assumptions made by management and management's current
expectations, outlook, estimates and projections about the markets
and economy in which the Company and its various businesses
operate, and the proposed transaction between the Company and
Lonza. Words such as "anticipates," "believes," "estimates,"
"expects," "forecasts," "intends," "opines," "plans," "predicts,"
"projects," "should," "targets" and variations of such words and
similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions ("Future Factors"), which are difficult to predict.
Therefore, actual outcomes may differ materially from what is
expected or forecasted in such forward-looking statements. The
Company undertakes no obligation to update any forward-looking
statements, whether as a result of future events, new information
or otherwise. Future Factors which could cause actual outcomes to
differ materially from those discussed include but are not limited
to: general economic and business and market conditions; no
improvement or weakening in U.S., European and Asian economies;
increases in interest rates; changes in foreign currencies against
the U.S. dollar; customer acceptance of new products; efficacy of
new technology; changes in U.S. or foreign laws and regulations;
increased competitive and/or customer pressure; loss of key
customers; the Company's ability to maintain chemical price
increases or achieve targeted price increases; higher-than-expected
product, raw material and energy costs and availability for certain
chemical product lines; unexpected changes in the antidumping
duties on certain products; increased foreign competition in the
calcium hypochlorite markets; inability to obtain transportation
for our chemicals; unfavorable court decisions, including
unfavorable decisions in appeals of antidumping rulings,
arbitration or jury decisions, tax matters or patent matters; the
supply/demand balance for the Company's products, including the
impact of excess industry capacity; failure to achieve targeted
cost-reduction programs; capital expenditures in excess of those
scheduled; environmental costs in excess of those projected; the
occurrence of unexpected manufacturing interruptions/outages at
customer, supplier or Company plants; unfavorable weather
conditions for swimming pool use; realization of deferred taxes;
inability to expand sales in the professional pool dealer market;
the impact of global weather changes; changes in the Company's
stock price; ability to obtain financing at attractive rates;
financial market disruptions that impact our customers or
suppliers; gains or losses on derivative instruments;
implementation of the Company's R&D consolidation consistent
with the Company's expectations; achievement of the Company's
multi-faceted margin improvement plan, including technology
improvements which result in lower processing, energy and other
costs; unfavorable changes in the regulatory status of the
Company's products; uncertainties as to the timing of the offer and
the merger; uncertainties as to how many shareholders will tender
their common stock in the offer; the possibility that various
closing conditions for the transaction with Lonza may not be
satisfied or waived; and the effects of disruption from the
transaction making it more difficult to maintain relationships with
employees, customers and other business partners.
Arch Chemicals, Inc. |
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Reconciliation of GAAP to Non-GAAP
Information (a) |
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(In millions, except per share
amounts) |
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The following table
reconciles income and diluted income per share from continuing
operations for the three months ended June 30, 2011 to income and
diluted income per share from continuing operations before
relocation costs incurred in conjunction with the previously
announced research and development consolidation. |
The table is being
included in order to provide comparability to the Company's income
and diluted income per share from continuing operations for the
three months ended June 30, 2010 and in order to provide
comparability to the Company's earnings guidance for the three
months ended June 30, 2011. |
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Three Months
Ended |
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June 30,
2011 |
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Income |
EPS |
Income from Continuing
Operations |
$ 37.4 |
$ 1.47 |
Add: Relocation costs, net of
tax |
0.3 |
0.01 |
Income from Continuing
Operations before relocation costs |
$ 37.7 |
$ 1.48 |
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(a) Unaudited. |
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CONTACT: Investor Contact: Mark E. Faford
(203) 229-3820
mefaford@archchemicals.com
Press Contact: Dale N. Walter
(203) 229-3033
dnwalter@archchemicals.com
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