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

Image

Unique Tool adding equipment, jobs

October 30, 2014 1:52 pm ET

Mold maker Unique Tool & Gauge Inc., is planning to invest more than $3.5 million dollars in new equipment for its Windsor, Ontario, facility.    More

Image

PP prices rise, solid PS, PET drop

October 30, 2014 1:15 pm ET

North American polypropylene resin prices surged again in October, while regional prices for solid polystyrene and PET bottle resin continued their...    More

Image

Italian compounder opening first US plant

October 30, 2014 9:45 am ET

The song of the South has led Italian compounder So.F.Ter Group to open its first plant in the United States in Lebanon, Tenn.    More

Image

Ineos closing Barex plant, exiting business

October 29, 2014 3:58 pm ET

Materials maker Ineos Group is closing its only global Barex-brand polyacrylonitrile (PAN) resin plant in Lima, Ohio. Ineos – based in Rolle,...    More

Image

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as Sepro...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events