Chemtura AgroSolutions sales down 5% in Q3 2014

Chemtura AgroSolutions' net sales decreased $6 million or 5% resulting from $7 million in lower sales volume and $2 million in unfavorable foreign currency translation, partly offset by $3 million in higher selling prices.

Operating income decreased $4 million in the third quarter of 2014 to $20 million. The decrease in operating income reflected an increase in bad debt reserves of $5 million, higher manufacturing costs of $3 million, higher raw material costs of $2 million and unfavorable foreign currency translation of $2 million, partly offset by higher selling prices of $3 million, favorable sales volume and product mix changes of $2 million and a decrease in other costs of $3 million.

Chemtura experienced a lower volume partly due to timing related to obtaining sales earlier in 2014 than in 2013 and partly due to a temporary supply issue related to miticide products in North America and Asia. The company saw a modest gain in selling prices which were partly offset by the effects of unfavorable foreign currency translation. The increase in bad debt reserves related to certain customers in Brazil and Kazakhstan.

Outlook

The company concluded, "With the sale of Chemtura AgroSolutions expected to close shortly, our Board of Directors has approved an authorization of up to $500 million to repurchase shares of our common stock under our share repurchase program using a substantial portion of the net proceeds of the sale. In addition, they have authorized the Company to make debt repayments of up to $250 million. These authorizations become effective upon the closing of the Chemtura AgroSolutions transaction."