Chemtura Loss Widens

It guides lower.
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Chemtura

(CEM) - Get Report

said its fourth-quarter loss widened from a year ago, hit by a charge on early extinguishment of debt, merger costs and tax charge for dividends.

The specialty chemicals manufacturer lost $69.32 million, or 29 cents a share, compared with a loss of $55.92 million, or 49 cents a share, a year ago. Pro forma adjusted earnings were 4 cents a share in the latest quarter. Analysts polled by Thomson First Call were expecting earnings of 9 cents a share.

Fourth quarter revenue rose 52.6% from a year ago to $876.1 million, below the analysts' estimates of $931.92 million.

On a pro forma, adjusted basis, the company expects first-quarter earnings to be roughly double the 4 cents a share it earned in the fourth quarter. For the full year, it expects to earn about 50% more than the 60 cents a share it earned in 2005. Analysts' estimates are 22 cents a share for the first quarter and 96 cents a share for the year

"Fourth quarter results reflect weak demand in our non-flame retardants plastics additives businesses as well as the carryover effects of higher manufacturing costs due to the third quarter share loss in those businesses," the company said. "Flame retardants and pool and spa exceeded our expectations in the fourth quarter while Crop showed some weakness due to a drought-induced economic downturn in Latin America."

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