Business
NOVA Chemicals: Improvement Heading into Second Quarter; Expanded JV for STYRENIX
NOVA Chemicals: Improvement Heading into Second Quarter; Expanded JV for STYRENIX.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\nPITTSBURGH, April 25 /CNW/ - NOVA Chemicals Corporation\n(NYSE:NCX)(TSX:NCX):\n\n\nAll financial information is in U.S. dollars unless otherwise indicated.\n\n\nNOVA Chemicals Corporation (NOVA Chemicals) reported net income of $44\nmillion ($0.53 per share) for the first quarter of 2007. The results include\nan unrealized gain on feedstock derivatives totaling $17 million after-tax\n($0.20 per share) and a negative impact of $8 million after-tax ($0.10 per\nshare) related to the Canadian National rail strike. Net income in the quarter\nimproved due to strengthening margins and the impact of recent cost reductions\nand restructuring.\n\n\nNet income for the first quarter compares to a net loss of $781 million\n($9.46 per share loss) for the fourth quarter of 2006, which included a $772\nmillion after-tax ($9.35 per share) non-cash restructuring charge related to\nthe write-down of assets in the STYRENIX business unit. In the first quarter\nof 2006, a net loss of $4 million ($0.05 per share loss) was reported.\n\n\nDuring the quarter, NOVA Chemicals announced that it plans to expand its\nexisting European joint venture with INEOS to include North American styrene\nand solid polystyrene assets. The preliminary target for new synergies is $40\nmillion per year for the joint venture.\n\n\nNOVA Chemicals also signed a letter of intent with Aux Sable Canada Ltd.\nto develop a new ethane extraction plant in Alberta that is expected to\nincrease ethane feedstock supply to the Joffre, Alberta site by approximately\n25% by 2010. The new ethane supply is intended to increase NOVA Chemicals'\nutilization of the Alberta Advantage.\n\n\n"With the expansion of the joint venture with INEOS, we look forward to\nbuilding upon our success in Europe to rapidly remove costs and continue to\nexpand the positive operating income from the North American business," said\nJeff Lipton, NOVA Chemicals' President and CEO.\n\n\n"We saw a sharp improvement in overall business results in March which we\nexpect to carry over into a strong second quarter," Mr. Lipton added.\n\n\nFirst quarter operating income from the businesses was $120 million\nversus $36 million in the fourth quarter of 2006.\n\n\n Operating Income First Fourth\n from the Businesses Quarter Quarter\n ($U.S. millions) 2007 2006\n\nOlefins/Polyolefins $116 $92\nPerfo...