Business
NOVA Chemicals: Record Core Business Performance; Improvement in STYRENIX
NOVA Chemicals: Record Core Business Performance; Improvement in STYRENIX.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\n\nPITTSBURGH, October 18 /CNW/ - NOVA Chemicals Corporation\n(NYSE:NCX)(TSX:NCX):\n\nAll financial information is in U.S. dollars unless otherwise indicated.\n\nNOVA Chemicals Corporation (NOVA Chemicals) reported a net loss of $25\nmillion ($0.30 per share loss) for the third quarter of 2006 compared to net\nincome of $108 million ($1.30 per share) for the second quarter of 2006, which\nincluded a $60 million benefit from Canadian tax rate reductions. NOVA\nChemicals reported a net loss of $105 million ($1.28 per share loss) for the\nthird quarter of 2005.\n\nThe following items had a negative net impact of $103 million after-tax\nor $1.25 per share on third quarter earnings:\n\nRestructuring charges (see page 3)\n\n-- Carrington, UK joint venture site closure...$46 million or $0.56 per\nshare\n\n-- North American restructuring costs...$33 million or $0.40 per share\n\nOther charges (see pages 10 and 13)\n\n-- Mutual insurance company wind-up costs...$13 million or $0.16 per\nshare\n\n-- Unrealized losses on feedstock derivatives...$11 million or $0.13 per\nshare\n\nNet income from the businesses was $83 million ($1.00 per share) versus\n$102 million ($1.23 per share) in the previous quarter. The $102 million\nincludes the $60 million tax benefit.\n\n\"Looking past the restructuring and other charges, investors will see\nrecord operating performance in Olefins/ Polyolefins and improvement in\nSTYRENIX due to our cost reduction program,\" said Jeff Lipton, NOVA Chemicals'\nPresident and CEO.\n\n\"The progress in STYRENIX improves the prospects of a deal that will\nunlock the full value of our core businesses for shareholders.\"\n\nThird Quarter Snapshot\n\nCore Businesses: $118 million income or $1.42 per share\n\n-- The Core Businesses include Olefins/Polyolefins and Performance\nStyrenics (renamed from Expandable Polystyrene/Styrenic Performance Products)\n\n-- Olefins/Polyolefins reported net income of $123 million and record\nEBITDA of $255 million\n\n-- Record Alberta Advantage averaged 17 cents per pound of ethylene cash\ncost, up from 14 cents per pound in the previous quarter\n\n-- Performance Styrenics net loss of $5 million similar to a net loss of\n$4 million in the second quarter\n\nSTYRENIX: $35 million loss or $(0.42) per share\n\n-- Cash flow from operations in Europe improved to a positive level by\nthe e...