Nova Chemicals 1st-quarter up 14 percent on strong sales
Thursday April 24, 9:42 am ET
Nova Chemicals 1st-quarter jumps 14 percent, polyethylene sales volumes set quarterly record
PITTSBURGH (AP) -- Nova Chemicals Corp. said Thursday its first-quarter profit rose 14 percent on the back of record polyethylene sales.
Net income rose to $50 million, or 60 cents per share, from $44 million, or 53 cents per share. The latest quarter includes $36 million, or 43 cents per share, in charges related to mark-to-market derivative values, stock-based compensation costs and other compensation expenses.
Revenue jumped 27 percent to $1.91 billion from $1.51 billion.
On average, analysts surveyed by Thomson Financial forecast earnings per share of 48 cents and revenue of $1.78 billion.
Polyethylene sales rose 52 percent to $644 million, as Nova Chemicals posted revenue quarterly sales volume of 916 million pounds. Polyethylene is used in a variety of plastics to make everything from plastic bags to pipes.
"We see very positive supply/demand balances going forward, and good prospects for strong ongoing financial performance in our core ethylene and polyethylene business," said Jeff Lipton, Nova Chemicals chief executive.
In morning trading, shares of the company rose 89 cents, or 3.6 percent, to $25.44.
Source: Associated Press
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