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

Westlake Chemical Partners has strong stock opening

August 1, 2014 10:13 am ET

Westlake Chemical Partners LP debuted July 31 on the New York Stock Exchange at $24 per share, but jumped 28 percent by the end of the day.    More

LLDPE, PP sales grow in US, Canada

August 1, 2014 10:30 am ET

Other commodity resins lagged behind their rates from the first half of the previous year.    More

Image

UMass Lowell hosts collaborative research meeting for future projects

July 30, 2014 11:54 am ET

The University of Massachusetts at Lowell recently hosted a seminar, which was billed as a collaborative research meeting between Dow Chemical Co.,...    More

Image

North American robot sales set record

July 30, 2014 4:46 pm ET

The North American robotics sector is off to its fastest start ever, shattering last year's first-half record, with a first-half 2014 of 14,135...    More

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events