Buoyant economy and higher prices help boost Q1 sales and earnings
The company’s HQ in Houston, Texas (Photo: Westlake)
The continuing global economic recovery, robust demand and pricing environment in the packaging sector, along with the strength in North American residential construction, drove up the first-quarter earnings at Westlake Chemical (Houston, Texas / USA; www.westlake.com). Higher sales prices and improved margin for most products including polyethylene and PVC also helped push operating income up by 154% to USD 346m (EUR 288m). Sales jumped one-fourth to USD 2.357 bn, while net income soared 67% at USD 242m.

“Westlake had a strong start to 2021 – we experienced solid financial performance as we benefited from the continuing global economic recovery and robust product demand paired with higher prices and margins for many of our products,” said CEO Albert Chao. Commenting on the outlook for the year, he said Westlake expects continuing strong global demand for its PVC, PE and downstream building products driven by solid markets in residential construction, packaging and healthcare.

Sales at its Vinyls segment shot up 21% to USD 1.82 bn. Operating income of USD 200m gained 174% mainly due to higher prices and integrated margins for PVC resin and increased earnings in the downstream building products business.

The positive development in operating income was partially offset by lower sales volumes and production, and rising maintenance expense resulting from the severe winter storm, higher feedstock and fuel costs, as well as lower sales prices for caustic soda. At Olefins, turnover improved more than one-fourth at USD 527m. Operating income nearly tripled to USD 180m.
18.05.2021 Plasteurope.com [247654-0]
Published on 18.05.2021
Westlake: Dreh an der Preisschraube füllt die Kassen der TexanerGerman version of this article...

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