Axiall Corporation (NYSE: 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.
About Axiall
Axiall Corporation is a leading integrated chemicals and building
products company. It is an international manufacturer of chlor-alkali
and derivatives, chlorovinyls and aromatics products including chlorine,
caustic soda, vinyl chloride monomer, chlorinated solvents, calcium
hypochlorite, ethylene dichloride, muriatic acid, phosgene derivatives,
polyvinyl chloride, vinyl compounds, acetone, cumene and phenol. It also
manufactures vinyl-based building and home improvement products that are
marketed under Royal Building Products, Celect™, Zuri™, Kor Flo™,
Overture, S4S and Exterior Portfolio brands, including window and door
profiles, mouldings, siding, pipe and pipe fittings, and decking.
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 outlook for future periods, global demand for our products
and the expected cost advantage of natural gas in North America and the
expected duration of any such cost advantage and 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
Industries, Inc. with which Axiall merged; (ii) the ability of Axiall to
successfully integrate the businesses of the chemicals business formerly
owned by PPG, resulting in the combined company not operating as
effectively and efficiently as expected; (iii) the possibility that the
merger and related transactions may involve other unexpected costs,
liabilities or delays; and (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 after the
merger, future economic conditions in the specific industries to which
its products are sold, and global economic conditions.
In light of these risks, uncertainties, assumptions, and factors, the
forward-looking events discussed in this press release may not occur.
Other unknown or unpredictable factors could also have a material
adverse effect on Axiall’s actual future results, performance, or
achievements. For a further discussion of these and other risks and
uncertainties applicable to Axiall and its business, see Axiall’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2012, and
subsequent filings with the SEC. As a result of the foregoing, readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Axiall does not undertake, and expressly disclaims, any duty to update
any forward-looking statement whether as a result of new information,
future events, or changes in its expectations, except as required by law.
Copyright Business Wire 2013