Axiall Corporation (NYSE: AXLL) today announced that its PHH vinyl chloride monomer manufacturing facility in Lake Charles, Louisiana, has been repaired and the facility has returned to full operating rates.
On its first-quarter earnings call in May, the company noted that the PHH facility had returned to service at reduced operating rates and described its expectation that the PHH facility would reach full operating rates during the second quarter.
“The PHH facility returned to full service at the end of June, but followed a slower ramp up to full operating rates, resulting in lower than expected sales volumes and higher operating and maintenance costs during the second quarter,” President and CEO Paul Carrico said today.
Carrico also provided broader perspective about the company’s second-quarter performance. “In our Building Products segment, we experienced a normal seasonal increase in U.S. sales volumes but continued to see weaker Canadian sales and the impact of a weaker Canadian dollar during the period. Additionally, our Aromatics operating income results will be approximately $12 million lower than the second quarter of 2013 due to lower operating rates and lower margins.”Based on these factors, the company expects to report $125-130 million of Adjusted EBITDA for the second quarter of 2014. A reconciliation of Adjusted EBITDA to consolidated net income, the most directly comparable GAAP measure, is provided in the attachment to this press release. “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. 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 This press release contains certain statements relating to future events and our intentions, beliefs, expectations, and predictions for the future. Any such statements other than statements of historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words or phrases such as “anticipate,” “believe,” “plan,” “estimate,” “project,” “may,” “will,” “intend,” “target,” “expect,” “would” or “could” (including the negative variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These statements relate to, among other things, our expectations regarding: (i) our estimates regarding our financial performance for the quarter ended June 30, 2014, and our future financial performance; (ii) the cost advantage of natural gas in North America and the degree, and duration of, any such cost advantage; (iii) global demand for our products; and (iv) other statements of expectations concerning matters that are not historical facts. These statements are based on the current expectations of our management. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements included in this press release. These risks and uncertainties include, among other things: (i) a material adverse change, event or occurrence affecting Axiall or the chemicals business formerly owned by PPG, with which Axiall has merged (the “Merged Business”); (ii) the ability of Axiall to successfully integrate the Merged Business, resulting in the combined company not operating as effectively and efficiently as expected; (iii) the possibility that the merger with the Merged Business, and related transactions may involve other unexpected costs, liabilities or delays; (iv) uncertainties regarding future prices, industry capacity levels and demand for Axiall’s products, raw materials and energy costs and availability, feedstock availability and prices, changes in governmental and environmental regulations, the adoption of new laws or regulations that may make it more difficult or expensive to operate Axiall’s businesses or manufacture its products, Axiall’s ability to generate sufficient cash flows from its business, future economic conditions in the specific industries to which its products are sold, and global economic conditions.