Distribution firm Nexeo Solutions Inc. saw growth in its plastics business in the second quarter of its 2017 fiscal year.
Sales of plastic resins and compounds grew more than 6 percent to almost $472 million for the three months ended March 31, officials with Nexeo in The Woodlands, Texas, said in a May 9 news release. They cited volume growth of almost 9 percent as a reason for the higher sales total. Plastics generated more than 51 percent of Nexeo's sales for the quarter.
In the release, officials said that plastics sales "continued to be affected in North America due to a supplier disruption which resulted in limited availability to us of certain products we distribute on a regular basis." Market sources said this comment likely refers to Saudi Basic Industries Corp., a Nexeo supplier which has faced delivery problems because of a new computer system.
Overall for the first half of its 2017 fiscal year, which ended March 31, Nexeo saw its sales grow more than 1 percent to just over $1.7 billion. In addition to plastics, the firm distributes a broad range of chemical products. Nexeo posted a $9.4 million loss for the half as a result of a $10 million non-cash charge.
Nexeo already has made a pair of acquisitions in 2017. In February, the firm bought part of the DSM NV business of German resin distributor K.D. Feddersn Norden AB. That deal covers parts of northern Europe. Nexeo followed up in March by acquiring Mexican distribution firm Ultra Chem S de RL de CV.
On Wall Street, Nexeo's per-share stock price has struggled so far in 2017. It started the year around $9.50 but closed at $9.09 on May 9, a decrease of around four percent since Jan. 1.