Chemtura Reports Third Quarter 2013 Financial Results

Regulatory News:

Chemtura Corporation (NYSE / Euronext Paris: CHMT) (the “Company,” “Chemtura,” “We,” “Us” or “Our”) today announced financial results for the third quarter ended September 30, 2013. We also filed with the Securities and Exchange Commission our Quarterly Report on Form 10-Q for the quarter ended September 30, 2013. For the third quarter of 2013, Chemtura reported net sales of $569 million and a net loss from continuing operations attributable to Chemtura on a GAAP basis of $44 million, or $0.45 per share. Net earnings from continuing operations attributable to Chemtura on a managed basis were $10 million, or $0.10 per share.

Third Quarter 2013 Financial Results

The discussion below includes financial information on both a GAAP and non-GAAP managed basis. We present managed basis financial information as management uses this information internally to evaluate and direct the performance of our operations and believes that managed basis financial information provides useful information to investors. A reconciliation of GAAP and managed basis financial information is provided in the supplemental schedules included in this release.

The following is a summary of third quarter and nine months ended September 30, 2013 financial results from continuing operations attributable to Chemtura on a GAAP basis:
(In millions, except per share data)   Third Quarter     Nine months ended September 30,  
2013   2012   % change 2013   2012   % change
Net sales $ 569 $ 546 4 % $ 1,687 $ 1,663 1 %
Operating income $ 27 $ 50 (46 %) $ 74 $ 154 (52 %)
Net (loss) earnings $ (44 ) $ 22 (a) $ (35 ) $ 84 (142 %)
Net (loss) earnings - per diluted share $ (0.45 ) $ 0.22 (a) $ (0.36 ) $ 0.85 (142 %)
 

(a) - Changes greater than 150% are not shown.

The following is a summary of third quarter and nine months ended September 30, 2013 financial results from continuing operations attributable to Chemtura on a managed basis:
(In millions, except per share data)   Third Quarter     Nine months ended September 30,  
2013   2012   % change 2013   2012   % change
Net sales $ 569 $ 546 4 % $ 1,687 $ 1,663 1 %
Operating income $ 33 $ 51 (35 %) $ 124 $ 163 (24 %)
Net earnings $ 10 $ 21 (52 %) $ 52 $ 81 (36 %)
Net earnings - per diluted share $ 0.10 $ 0.21 (52 %) $ 0.52 $ 0.82 (37 %)
Adjusted EBITDA $ 59 $ 79 (25 %) $ 210 $ 250 (16 %)

CEO Remarks

"With the agreement to sell our Consumer Products business, this quarter we have adopted discontinued operations treatment for this business," commented Craig A. Rogerson, Chairman, President and CEO of Chemtura. “In conjunction with our results for the third quarter of 2013, we have provided investors with our recent historical quarterly results recast to reflect the adoption of discontinued operations. While muted in the near term by the weaker demand conditions for our Industrial Engineered Products segment, the divestiture of our Consumer Products business over time will expand Chemtura’s percentage margins and lift our growth rates to assist us in meeting our financial and strategic performance goals. In the interim, the actions we took to eliminate stranded costs associated with the sale of our Antioxidants business contemplated this transaction, giving us a head start. We will eliminate the remaining stranded costs associated with the Consumer Products business upon the closing of the transaction.”

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