Lyondell Reports Third Quarter 2000 Results
Highlights
Net income of $133 million, or $1.13 per share. Excluding unusual items, net income of $62 million, or $0.52 per share, compared to a net loss of $2 million, or $0.02 per share, for the third quarter 1999. Record EBITDA from LCR offsets decline at Equistar. 2000 year-to-date EBITDA of $912 million, up 13 percent from 1999.
HOUSTON, October 24, 2000 – Lyondell Chemical Company (NYSE:LYO) reported net income for the third quarter of 2000 of $133 million, or $1.13 per share. Excluding unusual items, net income for the quarter was $62 million, or $0.52 per share.
"Lyondell’s third quarter financial results reflect the strong competitive position and diversity of our portfolio of businesses, which helped offset the effects of generally difficult business conditions in the global chemical industry, including volatile energy prices. Compared to the second quarter, Lyondell’s results in the third quarter mainly benefited from the strong earnings contribution from our refinery venture," said Lyondell President and Chief Executive Officer Dan F. Smith. "This partially offset higher feedstock costs and softer demand at Equistar and lower co-products profitability in our intermediate chemicals business."
The favorable unusual items consist of post-closing adjustments to the gain associated with the previously reported sale of assets to Bayer and the effect on the first six months of 2000 of a revision in the estimated annual effective tax rate. The effect of the post-closing adjustments, including the final settlement of working capital with Bayer, was an additional after-tax gain of $31 million, or $0.26 per share. The full-year estimated tax rate was reduced from 39 percent to 32 percent primarily to reflect the finalization of the allocation of the gain associated with the Bayer transaction among the various state and foreign tax jurisdictions. The tax rate reduction for the first six months of 2000 resulted in net income of $40 million, or $0.35 per share.
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