Axiall Corporation (NYSE: AXLL) today announced financial results for the quarter ended March 31, 2014.
The company reported net sales of $993.7 million for the first quarter of 2014, compared to net sales of $1.1 billion reported for the first quarter of 2013. The company reported a Net loss attributable to Axiall of $11.6 million, or $0.17 loss per diluted share, for the first quarter of 2014, compared to Net loss attributable to Axiall of $3.5 million, or $0.06 loss per diluted share, for the first quarter of 2013. The company reported an Adjusted Net Loss of $5.3 million and Adjusted Loss per Share of $0.08 for the first quarter of 2014, compared to Adjusted Net Income of $45.1 million and Adjusted Earnings per Share of $0.75 for the first quarter of 2013. The company reported Adjusted EBITDA of $67.6 million for the first quarter of 2014, compared to Adjusted EBITDA of $133.4 million for the first quarter of the prior year.
“Our first quarter results were challenged by the unusually cold weather and the outage at our PHH VCM facility,” said Paul Carrico, president and chief executive officer. “As we move into the second quarter, we expect the typical building products business seasonality and warmer weather to lead to improvement in demand, pricing and costs in our businesses. We have restarted the PHH VCM facility and expect to reach full operating rates later this quarter. Additionally, we remain focused on meeting our run rate synergy target of $140 million by the end of this year.”
|Three Months Ended|
|(In millions, except per share data)||2014||2013|
|Net loss attributable to Axiall||$||(11.6||)||$||(3.5||)|
|Pretax charges (benefits):|
|Fair value of inventory – purchase accounting||-||10.2|
|Merger-related and other, net||4.5||9.4|
|Costs to attain Merger-related synergies||4.6||0.7|
|Long-lived asset impairment charges, net||0.6||2.6|
|Gain on acquisition of controlling interests||-||(23.5||)|
|Loss on redemption and other debt costs||-||78.5|
|Total pretax charges||9.7||77.9|
|Provision for taxes related to these items||3.4||29.3|
|After tax effect of above items||6.3||48.6|
|Adjusted Net Income (Loss)||$||(5.3||)||$||45.1|
|Diluted loss per share attributable to Axiall||$||(0.17||)||$||(0.06||)|
|Adjusted Earnings (Loss) Per Share||$||(0.08||)||$||0.75|
ChlorovinylsIn the Chlorovinyls segment, first quarter 2014 net sales were $682.2 million compared to $614.5 million during the first quarter of 2013. The increase in net sales was primarily driven by inclusion of 3 months of sales results from the PPG chemicals business we acquired in January 2013 in the first quarter of 2014 compared to 2 months in the first quarter of 2013, partially offset by lower vinyls operating rates and vinyls sales volumes attributable to the outage at the company’s PHH VCM manufacturing facility as well as operating and logistical impacts of severe weather during the period. The segment posted Adjusted EBITDA of $76.2 million in the first quarter of 2014, compared to Adjusted EBITDA of $134.2 million for the same quarter in the prior year. The $58.0 million decrease in Adjusted EBITDA was primarily due to higher natural gas and maintenance costs, lower electrochemical unit (ECU) values, and the lower operating rates primarily driven by the outage at our PHH VCM manufacturing facility and the impact of severe weather on operating rates and logistics.