Westlake Reports Q3 Earnings Below Expectations Due to Production Disruptions

HOUSTON - Westlake Corporation (NYSE:WLK) reported lower third-quarter earnings that fell short of analyst estimates due to extended maintenance outages affecting production and sales volumes. WLK shares were trading flat in pre-market on Tuesday following the announcement.

The chemical and building products manufacturer reported adjusted earnings of $1.41 per share for the quarter, significantly lower than the $2.20 reported in the same period last year and below the analysts' expectations of $2.21. Revenue remained relatively stable at $3.12 billion compared to $3.15 billion last year, but came in below the consensus estimate of $3.31 billion.

Westlake noted that its results were adversely impacted by extended maintenance outages at its ethylene joint venture facility and one of its chlorovinyl plants. This situation led to higher ethylene raw material purchases and lower production volumes.

President and CEO Jean-Marc Gilson stated, "While I am not satisfied with this operational performance, we completed the maintenance, and these facilities are back in service."

Excluding a $75 million charge related to the shutdown of two units in Europe, the operating income from the company's Performance and Essential Materials segment fell to $66 million from $105 million last year. Revenue from the Housing and Infrastructure Products segment declined from $256 million to $202 million.

Westlake indicated that global macroeconomic trends have shown moderate improvement compared to the second quarter, with relatively solid conditions continuing in North America, ongoing recovery in Asia, and a slow improvement in Europe. However, it added that the pace of recovery remains uneven across regions.

The company ended the quarter with $2.9 billion in cash and $4.6 billion in total debt. Westlake repaid $300 million of senior notes that matured during the period.