Axiall Corporation 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.
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