Chemtura Corp. announces $118 million Q2 loss

Troubled Middlebury-based specialty chemicals maker Chemtura Corp., today reported a $118 million net loss for the second quarter as the company grapples with declining sales.

Although the $118 million loss for Chemtura Corp., which is currently in Chapter 11 bankruptcy, was steep, it was actually a 56 percent improvement from the $273 million loss in the year ago period ending June 30.

Late last year the company announced that it would cut at least 500 jobs worldwide as part of a cost-reduction program that intended to save the company about $50 million.
Net sales at the company in the second quarter of 2009 fell to $687 million, down from $1 billion in the year ago period. The companys operating loss was $75 million, compared to $241 million last year.

Chemtura Corp.s consumer and industrial performance products and crop protection and industrial engineered products all saw reduced sales in the quarter largely due to the recession and a lack of credit from would be buyers.

Chemtura and its U.S. subsidiaries filed voluntary petitions for Chapter 11 bankruptcy protection earlier this year after drops in order volumes led to a sharp decline in its liquidity and cash flow.

In April the company said that the United States Bankruptcy Court for the Southern District of New York granted final approval of its $400 million debtor-in-possession (DIP) credit facility.

Chemtura said the DIP financing would boost the companys financial flexibility to continue operations such as funding employee wages and benefits, payments to suppliers and other business obligations as it restructures.