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Crompton announces restructure, Q2 gains

By Patrick Raleigh, ERJ On-line news editorMiddlebury, Connecticut-Crompton Corp. is to carry out a $50-million restructuring of its organizational and manufacturing set up. The plan accompanied the group’s second quarter results announcement, which indicated sales and earnings gains for its urethane-related businesses.The group-wide restructuring to happen later this quarter will yield annual pre-tax savings of at least $50 million from 2005, according to Bob Wood, the group’s chairman, president and chief executive officer. “We expect to incur a one-time restructuring charge that should not exceed $50 million. It is expected that the bulk of the savings will come from streamlining the organisation and its work processes,” Wood added in a 22 July statement.Crompton’s second quarter resulted showed a 15-percent rise in Adiprene/Vibrathane urethane prepolymer sales compared to the same period last year. The increase, it said, was mainly due to higher unit volume sales of the materials which are used in applications such as mining, graphic arts, recreation, and mechanical goods.Urethane prepolymers, along with EPDM rubber, are the main components of the group’s Polymers reporting segment, which posted an operating profit of $11.6 million, compared to $4.8 million in the second quarter of 2003. Crompton linked the higher Polymers earnings to higher unit volume and selling prices, as well as lower costs due to increased plant throughput and cost saving initiatives. These factors more than offset the impact of higher raw material and energy costs, the group said.Crompton’s urethane additives sales, meanwhile, came in 5-percent higher than the same period last year, though this was mainly due to favorable currency movements, the company said. This segment covers the group’s Witcobond dispersions, Fomrez polyester polyols and Witcothane microcellular systems. “

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