Kraton reports higher 2011 sales, but lower profit

By Frank Esposito
Senior Staff Reporter

Published: March 9, 2012 6:00 am ET

Related to this story

Topics Materials, Suppliers, NPE 2012

HOUSTON (March 9, 12 p.m. ET) — For Kraton Performance Polymers Inc., 2011 was a mixed bag, with sales up but profit down.

Houston-based Kraton — which ranks as the world’s largest producer of styrenic block copolymers — saw sales for full-year 2011 climb 17 percent to more than $1.4 billion. In a Feb. 29 news release, officials said that the sales increase “was primarily the result of global product sale price increases…which were implemented primarily in response to rising raw material costs.”

The firm’s profit, however, fell more than 6 percent to less than $91 million. Higher prices for butadiene feedstock played a role in the decrease, although President and CEO Kevin Fograrty said in the release that Kraton “was able to defend unit margins through continued implementation of our Price Right strategy. As butadiene prices rose throughout much of the year, reaching record levels in the third quarter.”

Looking ahead to 2012, officials said that they “are encouraged by customer order patterns experienced in the first two months of the first quarter.”

Kraton’s SBCs are used in standard plastic applications such as IV bags, as well as in adhesives, sealants, coatings, paving and roofing. The firm’s Cariflex-brand synthetic polyisoprene rubber and latex materials enjoyed solid growth in 2011, officials said.

Kraton is exhibiting at NPE2012, in booth 39000.

In 2011, Kraton also celebrated the 50th anniversary of its manufacturing site in Belpre, Ohio. The 600-employee site ranks as the world’s largest production facility for styrenic thermoplastic elastomers.

On Wall Street, Kraton’s per-share stock price began 2011 around $31, but stumbled in the second half of the year and finished near $21. It’s fared better so far in 2012, and was just over $27 in early trading March 9.


Comments

Kraton reports higher 2011 sales, but lower profit

By Frank Esposito
Senior Staff Reporter

Published: March 9, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Chinese coal mining company Jinhui launches bioplastic factory

April 21, 2014 10:18 am ET

Chinese coal mining company Shanxi Jinhui Energy Group Co. Ltd. is diversifying into bioplastics, launching production this month on a $35 million,...    More

Taiwan's TSRC expands in Nantong

April 21, 2014 10:08 am ET

Taiwan's TSRC Corp. said April 21 it has opened a 25,000-metric-ton capacity styrene-isoprene-styrene block copolymer manufacturing facility in...    More

Image

'Thermoforming has nearly limitless possibilities'

April 18, 2014 12:54 pm ET

Julie McAlindon of PolyOne Corp. speaks about the future of thermoforming and the integration of Spartech Corp.    More

Image

Ascend targets nylon for auto applications, opening propylene monomer unit in Texas

April 18, 2014 10:57 am ET

Materials firm Ascend Performance Materials Inc. is in full operation at its new nylon 6/6 compounding line in Florida and will break ground by the...    More

Dutch company launching $100 million PP, PE recycling plant

April 18, 2014 10:42 am ET

Quality Circular Polymers is building a new plastics recycling operation in Geleen, the Netherlands' Chemelot industrial chemical site, with a capacit...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events