Monday, October 18, 2010

Titan Chemicals' 3Q net profit down 63.4% on lower average selling price

KUALA LUMPUR: Titan Chemicals Corp Bhd net profit fell 63.4% to RM52.43 million in the third quarter ended Sept 30, 2010 from RM143.47 million a year ago, due mainly to a decline in average selling prices.

It said on Monday, Oct 18 revenue dropped 8% to RM1.40 billion from RM1.52 billion. Earnings per share were 3.04 sen, while net assets per share was RM2.32.

For the nine months ended Sept 30, Titan's net profit was RM230.32 million, down 48.5% from RM447.64 million in the previous corresponding period.

The slide in earnings was attributed to lower polymer-naphtha margins resulting from higher naphtha costs and lower average polymer prices.

On its prospects, the company said demand for polymer products for remainder of the year was expected to be sustained.

Polyolefins' margin however may be affected by the additional polyolefins supply from new manufacturing plants in the Middle East and China, it said.

'The company has suspended operation on one of its cracker plants for 30-days scheduled maintenance turnaround in October 2010.

'We expect positive contribution from our integrated business for the remainder of 2010,' it said.




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