Westlake Chemical Posts Lower Q1 Earnings

reported a drop in its earnings for the first quarter on Monday. The Houston, Texas-based company reported quarterly net income of $146.3 million, or $1.10 per share, down from $158.0 million, or $1.18 per share, in the year-ago period. Its revenue rose to $1.1 billion from $1 billion. However, analysts were expecting earnings of $1.20 per share on revenue of $1.13 billion. The average estimate among 5 Estimize users was for earnings of $1.18 per share and revenue of $1.14 billion. Income from operations slipped to $229.3 million for the first quarter, from $248.1 million in the year-ago period. Income from operations for the Olefins segment slipped to $191.1 million in the first quarter, versus $272.3 million, in the year-ago period. The Vinyls segment posted operating income of $47.1 million, versus a year-ago loss from operations of $21.1 million. EBITDA rose to $297.0 million from $296.5 million. As of March 31, 2015, the company had cash of $945.6 million, and long-term debt of $764.0 million. Albert Chao, President and Chief Executive Officer, said, "In spite of the lower product prices resulting from a 55% drop in crude oil prices from their 2014 peak, we are pleased with our first quarter results. Our Olefins segment continues to benefit from strong global demand for polyethylene and low-cost feedstocks that are a result of abundant supplies of North American natural gas and natural gas liquids." Westlake Chemical shares fell 0.35 percent to close at $77.71 on Friday.