Chemtura reports loss in Q4 and for the full year

Middlebury, Connecticut - Chemtura Corp. reported a loss from continuing operations for the fourth quarter of 2006 of $145.9 million. Most of this was due to a tax liability of over $90 milion. For the 12 months ended December 2006, the company showed an operating profit of $35.6 million, but its continuing operations showed a loss of $218 million.

The company blamed the poor results on higher anti-trust costs, an inability to recover all the increases in raw materials costs and poor performance at its rubber-related businesses, ot of which have now been sold to Lion Polymer.

“Although we have made progress on a number of fronts during 2006 - strengthening our balance sheet, resolving legacy antitrust issues, reshaping our portfolio, and generating cash, results are below our expectations,” said Robert Wood, chairman and CEO. “Most of the underperformance was in Rubber Additives, EPDM Polymers and non-Flame Retardant Plastics Additives. We have taken steps and have gained momentum coming into 2007 by addressing all of these matters with the announced divestiture of Rubber Chemicals and EPDM and the aggressive overhaul of the non-Flame Retardant Plastics Additives business.

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Press release from Chemtura