Kraton revenue down as speciality polymer demand drops

Houston, Texas – Kraton Performance Polymers has reported a 4.8-percent decline in revenue in its 2014 financial year results ended 31 Dec 2014.

Revenue was down to $1,230 million (€1,086 million) from $1,292 million in 2013, said the report adding that currency factors negatively impacted the results. The company attributed a major part of the decline to “lower average selling prices with lower average raw material costs”.

Sales volume also declined 2.5 percent from 313.5 kilotonnes in 2013 to 305.6 kilotonnes.

According to Kraton, Cariflex polyisoprene products, which are used as alternative to natural rubber for applications that demand extreme purity, saw a significant 19.5-percent rise in revenue, increasing from $116 million in 2013 to $138.6 million in 2014.

Kraton’s speciality polymers revenue was on a par with the previous year at $412.4 million.

The performance products business was hit by an 11-percent decline, down to $678.9 million from $762.9 million in 2013.

Kraton attributed the decline to a 6.2-percent reduction in sales volumes and, to a lesser extent, lower average selling prices driven by lower butadiene and isoprene costs.

"The decline in sales volume was primarily due to lower paving and roofing volumes in Europe, lower paving volumes in Asia Pacific and lower volumes into packaging & industrial adhesives applications," said the company announcement.

In 2014, Kraton realigned its sales and marketing organization structured around three product groups: Performance Products, which is comprised of our unhydrogenated styrenic block copolymers ("USBC's"); Specialty Polymers, which is comprised of hydrogenated styrenic block copolymers ("HSBC's"); and Cariflex, which is comprised of isoprene rubber ("IR") and isoprene rubber latex ("IRL").

The company believes the alignment along product groups will improve collaboration between its sales & marketing and research & technical service departments.