Axiall Corporation (NYSE: AXLL) today provided an update to its outlook for the third quarter of 2013.
On August 1, company officials shared expectations that planned outage costs would increase in the third quarter compared to the second quarter of 2013 and that operating rates would be slightly lower in the third quarter than the second quarter. The company also expected that caustic prices, PVC margins, building products volumes and margins, and aromatics volumes would remain near second-quarter levels.
“Since that time, we elected to extend our planned VCM and PVC turnarounds to further improve reliability,” President and CEO Paul Carrico said today. “Also, we accelerated two turnarounds from the fourth quarter of 2013 to the third quarter in our aromatics and chlorinated derivatives businesses. We expect the combined impact of the operating plan changes in maintenance and the associated reductions in operating rates to be approximately $10-12 million of lower third-quarter Adjusted EBITDA, as compared to our original expectation. Additionally, current market prices and margins in our chlor-alkali and vinyls businesses are trending lower than our expectations on August 1, which we believe will have a further impact on third quarter Adjusted EBITDA.
“Long-term, we remain confident that our integrated chemicals and building products business will continue to benefit from low-cost natural gas in North America and growing global demand for our broadened product portfolio,” Carrico said.About Axiall Axiall Corporation is a leading integrated chemicals and building products company. It is an international manufacturer of chlor-alkali and derivatives, chlorovinyls and aromatics products including chlorine, caustic soda, vinyl chloride monomer, chlorinated solvents, calcium hypochlorite, ethylene dichloride, muriatic acid, phosgene derivatives, polyvinyl chloride, vinyl compounds, acetone, cumene and phenol. It also manufactures vinyl-based building and home improvement products that are marketed under Royal Building Products, Celect™, Zuri™, Kor Flo™, Overture, S4S and Exterior Portfolio brands, including window and door profiles, mouldings, siding, pipe and pipe fittings, and decking. Axiall, headquartered in Atlanta, Georgia, has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers. For more information, visit www.axiall.com. Cautionary Statements About Forward-Looking Information