Westlake Announces Third Quarter Earnings

                  Westlake Announces Third Quarter Earnings

- Reported earnings per share of $1.30, which includes the impact of costs
related to a scheduled plant turnaround and debt retirement costs totaling
$0.17 per share.

- Highest quarterly domestic polyethylene sales volume since 2007.

PR Newswire

HOUSTON, Nov. 8, 2012

HOUSTON, Nov. 8, 2012 /PRNewswire/ -- Westlake Chemical Corporation (NYSE:
WLK) today reported net income for the three months ended September 30, 2012
of $87.0 million, or $1.30 per diluted share, on sales of $821.2 million. This
represents an increase in net income of $19.1 million from the quarter ended
September 30, 2011 net income of $67.9 million, or $1.01 per diluted share, on
sales of $968.4 million. Income before income taxes for the third quarter of
2012 was impacted by $17.6 million related to debt refinancing costs ($7.1
million) and unabsorbed manufacturing costs associated with a planned outage
of our styrene plant in Lake Charles, Louisiana ($10.5 million). Net sales for
the third quarter of 2012 decreased $147.2 million compared to the third
quarter of 2011, mainly attributable to lower sales prices for most of the
Company's major products and lower sales volumes for styrene, partially offset
by higher polyethylene, ethylene, PVC resin and building products sales
volumes. Income from operations was $142.5 million for the third quarter of
2012 as compared to $117.3 million for the third quarter of 2011. Income from
operations for the third quarter of 2012 benefited from improved olefins and
vinyls integrated product margins primarily due to lower feedstock and energy
costs, higher sales volume for polyethylene and for our major vinyls products
and higher operating rates as compared to the third quarter of 2011. Industry
ethane prices declined 56.7% and industry propane prices declined 41.8% in the
third quarter of 2012 as compared to the third quarter of 2011.

Third quarter 2012 earnings of $87.0 million, or $1.30 per diluted share, on
sales of $821.2 million were lower than the second quarter 2012 earnings of
$115.5 million, or $1.72 per diluted share, on sales of $914.0 million. Third
quarter 2012 income from operations of $142.5 million decreased $28.5 million
compared to income from operations in the second quarter of 2012 of $171.0
million. The decrease in income from operations was due to lower olefins
integrated product margins as compared to the second quarter of 2012. Olefins
margins for the quarter were impacted by lower sales prices for polyethylene
and the impact of high feedstock costs in inventory at the end of the second
quarter of 2012, which flowed through cost of sales in the third quarter of
2012 as a result of utilizing the first-in-first-out (FIFO) method of
inventory accounting. In addition, the unabsorbed manufacturing costs related
to the styrene outage negatively impacted margins in the quarter.

Albert Chao, President and Chief Executive Officer, stated, "We are pleased to
report our strongest third quarter in the company's history, driven by strong
demand for ethylene derivatives and low feedstock costs. We are continuing to
make progress on our previously announced expansions that should grow our
bottom line and allow us to capitalize on the low cost ethane feedstock and
energy costs that shale gas is providing. This includes the expansion of our
ethylene capacity in Lake Charles, the construction of a new chlor-alkali
plant in Geismar, Louisiana and the recently announced conversion to ethane
feedstock and the expansion of ethylene and PVC capacity in Calvert City,
Kentucky."

Net income for the nine months ended September 30, 2012 was $290.3 million, or
$4.33 per diluted share, on net sales of $2,770.0 million. This represents an
increase in net income of $57.8 million, or $0.85 per diluted share, from the
nine months ended September 30, 2011 net income of $232.5 million, or $3.48
per diluted share. Net sales for the first nine months of 2012 increased
marginally by $9.3 million compared to the first nine months of 2011 net sales
of $2,760.7 million mainly due to higher ethylene and feedstock sales volumes,
mostly offset by lower sales prices for most of our major products. Income
from operations was $459.1 million for the nine months ended September 30,
2012 as compared to $396.3 million for the nine months ended September 30,
2011. The increase in income from operations was due to higher vinyls and
olefins integrated product margins as compared to the prior year period. The
improved margins were principally due to a significant decrease in feedstock
costs as industry ethane prices decreased 41.1% and industry propane prices
decreased 28.8%.

EBITDA (earnings before interest expense, income taxes, depreciation and
amortization) of $175.6 million for the third quarter of 2012 increased $24.0
million compared to $151.6 million in the third quarter of 2011. EBITDA for
the third quarter of 2012 decreased $48.2 million compared to EBITDA of $223.8
million in the second quarter of 2012. A reconciliation of EBITDA to reported
net income and to net cash provided by operating activities can be found in
the financial schedules at the end of this press release.

Net cash provided by operating activities was $500.6 million in the first nine
months of 2012. Capital expenditures for the first nine months of 2012 were
$235.5 million. At September 30, 2012, we had cash balances of $1,198.5
million and our long-term debt was $763.7 million.

OLEFINS SEGMENT

Income from operations in the third quarter of 2012 for the Olefins segment
was $124.5 million, an increase of $19.1 million compared to the $105.4
million reported in the third quarter of 2011. This increase was mainly
attributable to higher olefins integrated product margins as compared to the
prior year period. Margins improved primarily as a result of significantly
lower feedstock and energy costs, which were only partially offset by lower
sales prices. Third quarter 2012 income from operations was impacted by $10.5
million of unabsorbed fixed manufacturing costs related to a scheduled shut
down of our styrene plant.

Income from operations in the third quarter of 2012 for the Olefins segment of
$124.5 million decreased $31.4 million from the $155.9 million reported in the
second quarter of 2012. This decrease was due to lower olefins integrated
product margins as compared to the second quarter of 2012. The lower margins
were mostly the result of lower sales prices for polyethylene and the impact
of high cost feedstock in inventory at the end of the second quarter, which
flowed through cost of sales in the third quarter of 2012 as a result of
utilizing the FIFO method of inventory accounting.

Income from operations in the first nine months of 2012 for the Olefins
segment was $409.6 million, an increase of $26.2 million from the $383.4
million in the first nine months of 2011. This increase was mainly
attributable to higher olefins integrated product margins as compared to the
prior year period. Margins improved as a result of lower feedstock and energy
costs, which were only partially offset by lower sales prices.

VINYLS SEGMENT

The Vinyls segment reported income from operations of $24.1 million in the
third quarter of 2012, an increase of $8.0 million compared to the $16.1
million reported in the third quarter of 2011. This increase was primarily
driven by lower feedstock costs, improved building products margins and higher
operating rates as compared to the prior year period. While operating results
for the third quarter of 2012 improved compared to the third quarter of 2011,
our Vinyls segment continued to be impacted by weakness in the U.S.
construction markets and budgetary constraints in municipal spending.

Income from operations for the Vinyls segment of $24.1 million in the third
quarter of 2012 increased $1.5 million compared to income from operations of
$22.6 million in the second quarter of 2012. Income from operations benefitted
from higher caustic volumes and prices and lower feedstock costs. In addition,
the second quarter of 2012 was impacted by an unscheduled shut down of our
Geismar, Louisiana vinyls complex.

Income from operations for the Vinyls segment for the first nine months of
2012 was $67.7 million, an increase of $44.1 million compared to the $23.6
million reported in the same period in 2011. This increase was driven by lower
feedstock and energy costs and higher caustic and building products sales
volumes as compared to the prior year period. The 2012 period income from
operations was impacted by the unscheduled shut down of our Geismar vinyls
complex and lower operating rates at that complex as a result of operational
issues related to a fire at the complex in March 2012. We expensed
approximately $11.0 million of costs associated with that event in the first
nine months of 2012.

The statements in this release relating to matters that are not historical
facts, including statements regarding growth, low cost ethane feedstock and
energy costs that shale gas is providing and our plans to expand our ethylene
capacity in Lake Charles, the construction of a new chlor-alkali plant in
Geismar and the recently announced conversion to ethane feedstock and the
expansion of ethylene and PVC capacity in Calvert City, are forward-looking
statements that are subject to risks and uncertainties. Actual results could
differ materially, based on factors including, but not limited to: general
economic and business conditions; the cyclical nature of the chemical
industry; availability, cost and volatility of raw materials and utilities,
including natural gas from shale production; uncertainties associated with the
United States and worldwide economies, including those due to global economic
and financial conditions; governmental regulatory actions, including
environmental regulation; political unrest; industry production capacity and
operating rates; the supply/demand balance for Westlake's products;
competitive products and pricing pressures; access to capital markets;
technological developments; the effect and results of litigation and
settlements of litigation; operating interruptions; and other risk factors.
For more detailed information about the factors that could cause actual
results to differ materially, please refer to Westlake's Annual Report on Form
10-K for the year ended December 31, 2011, which was filed with the SEC in
February 2012.

In this release, Westlake refers to a non-GAAP financial measure, EBITDA.
EBITDA is calculated as net income before interest expense, income taxes,
depreciation and amortization. The body of accounting principles generally
accepted in the United States is commonly referred to as "GAAP." For this
purpose a non-GAAP financial measure is generally defined by the U.S.
Securities and Exchange Commission as one that purports to measure historical
and future financial performance, financial position or cash flows, but
excludes or includes amounts that would not be so adjusted in the most
comparable GAAP measures. We have included EBITDA in this release because our
management considers it an important supplemental measure of our performance
and believes that it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our industry, some
of which present EBITDA when reporting their results. We regularly evaluate
our performance as compared to other companies in our industry that have
different financing and capital structures and/or tax rates by using EBITDA.
EBITDA allows for meaningful company-to-company performance comparisons by
adjusting for factors such as interest expense, depreciation and amortization
and taxes, which often vary from company to company. In addition, we utilize
EBITDA in evaluating acquisition targets. Management also believes that EBITDA
is a useful tool for measuring our ability to meet our future debt service,
capital expenditures and working capital requirements, and EBITDA is commonly
used by us and our investors to measure our ability to service indebtedness.
EBITDA is not a substitute for the GAAP measures of earnings or of cash flow
and is not necessarily a measure of our ability to fund our cash needs. In
addition, it should be noted that companies calculate EBITDA differently and,
therefore, EBITDA as presented in this release may not be comparable to EBITDA
reported by other companies. EBITDA has material limitations as a performance
measure because it excludes (1) interest expense, which is a necessary element
of our costs and ability to generate revenues because we have borrowed money
to finance our operations, (2) depreciation, which is a necessary element of
our costs and ability to generate revenues because we use capital assets and
(3) income taxes, which is a necessary element of our operations. We
compensate for these limitations by relying primarily on our GAAP results and
using EBITDA only supplementally. A table included in the financial schedules
at the end of this release reconciles EBITDA to net income and to net cash
provided by operating activities.

Westlake Chemical Corporation Conference Call Information:

A conference call to discuss Westlake Chemical Corporation's third quarter
2012 results will be held Thursday, November 8, 2012 at 11:00 a.m. EST (10:00
a.m. CST). To access the conference call, dial (800) 591-6945, or (617)
614-4911 for international callers, approximately 10 minutes prior to the
scheduled start time and reference passcode 34410753.

A replay of the conference call will be available beginning two hours after
its conclusion until 11:59 p.m. EST on Thursday, November 15, 2012. To hear a
replay, dial (888) 286-8010, or (617) 801-6888 for international callers. The
replay passcode is 37113299.

The conference call will also be available via webcast at:
http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=180248&eventID=4847919and
the earnings release can be obtained via the company's Web page at:
http://www.westlake.com/fw/main/IR_Home_Page-123.html.



WESTLAKE CHEMICAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2012          2011          2012          2011
                        (In thousands of dollars, except per share data)
Net sales               $  821,175  $  968,372  $ 2,770,000   $ 2,760,673
Cost of sales           648,996       821,305       2,223,288     2,278,927
Gross profit           172,179       147,067       546,712       481,746
Selling, general and    29,662        29,736        87,592        85,409
administrative expenses
Income from operations  142,517       117,331       459,120       396,337
Interest expense        (11,934)      (12,727)      (35,682)      (38,449)
Debt retirement costs   (7,082)       -             (7,082)       -
Gain from sales of      477           -             16,429        -
equity securities
Other income, net       1,222         1,457         3,676         4,296
Income before income    125,200       106,061       436,461       362,184
taxes
Provision for income    38,236        38,131        146,183       129,661
taxes
Net income             $           $           $  290,278  $  232,523
                        86,964       67,930
Earnings per share:
        Basic         $         $         $         $    
                        1.30         1.02         4.36         3.50
        Diluted       $         $         $         $    
                        1.30         1.01         4.33         3.48



WESTLAKE CHEMICAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                            September 30,      December 31,
                                            2012               2011
                                            (In thousands of dollars)
ASSETS
Current assets
 Cash and cash equivalents                 $   1,198,468   $    825,901
 Accounts receivable, net                  393,592            407,372
 Inventories                               371,537            490,777
 Other current assets                      34,208             32,106
 Total current assets                   1,997,805          1,756,156
Property, plant and equipment, net          1,394,198          1,232,066
Restricted cash                             -                  96,283
Other assets, net                           152,171            182,316
Total assets                                $   3,544,174   $  3,266,821
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (accounts payable and   $     362,807  $    364,595
accrued liabilities)
Long-term debt                              763,731            764,563
Other liabilities                           384,208            381,351
Total liabilities                           1,510,746          1,510,509
Stockholders' equity                        2,033,428          1,756,312
 Total liabilities and              $   3,544,174   $  3,266,821
stockholders' equity



WESTLAKE CHEMICAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                     Nine Months Ended
                                                     September 30,
                                                     2012            2011
                                                     (In thousands of dollars)
Cash flows from operating activities
Net income                                          $  290,278    $ 232,523
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                        109,601         98,244
Deferred income taxes                                4,385           19,435
Other balance sheet changes                          96,359          (105,849)
 Net cash provided by operating activities     500,623         244,353
Cash flows from investing activities
Additions to property, plant and equipment           (235,463)       (111,823)
Construction of assets pending sale-leaseback        (5,484)         -
Proceeds from disposition of assets                  435             2,456
Proceeds from repayment of loan to affiliate         763             763
Proceeds from sales of equity securities             47,655          -
Purchase of investments                              (2,961)         (29,877)
Settlements of derivative instruments                471             (331)
 Net cash used for investing activities        (194,584)       (138,812)
Cash flows from financing activities
Capitalized debt issuance costs                      (2,221)         (2,540)
Dividends paid                                       (22,345)        (13,359)
Proceeds from borrowings                             248,818         -
Proceeds from exercise of stock options              6,627           5,323
Repayments of borrowings                             (250,000)       -
Repurchase of common shares for treasury             (10,784)        (19)
Utilization of restricted cash                       96,433          33,694
 Net cash provided by financing activities     66,528          23,099
Net increase in cash and cash equivalents            372,567         128,640
Cash and cash equivalents at beginning of period     825,901         630,299
Cash and cash equivalents at end of period           $ 1,198,468     $ 758,939



WESTLAKE CHEMICAL CORPORATION
SEGMENT INFORMATION
(Unaudited)
                     Three Months Ended          Nine Months Ended
                     September 30,               September 30,
                     2012          2011          2012            2011
                     (In thousands of dollars)
Net external sales
Olefins              $ 539,785     $ 695,674     $ 1,944,775     $ 1,946,069
Vinyls               281,390       272,698       825,225         814,604
                     $ 821,175     $ 968,372     $ 2,770,000     $ 2,760,673
Income (loss) from
operations
Olefins              $ 124,452     $ 105,353     $  409,550    $  383,376
Vinyls               24,059        16,123        67,724          23,565
Corporate and other  (5,994)       (4,145)       (18,154)        (10,604)
                     $ 142,517     $ 117,331     $  459,120    $  396,337
Depreciation and
amortization
Olefins              $  27,070    $  21,746    $   74,903   $   64,998
Vinyls               11,232        10,967        34,330          32,782
Corporate and other  122           148           368             464
                     $  38,424    $  32,861    $  109,601    $   98,244
Other income
(expense), net
Olefins              $    806  $    949  $    2,764  $   
                                                                 2,033
Vinyls               146           (303)         115             179
Corporate and other  270           811           797             2,084
                     $   1,222   $   1,457   $    3,676  $   
                                                                 4,296



WESTLAKE CHEMICAL CORPORATION
RECONCILIATION OF EBITDA TO NET INCOME AND TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
(Unaudited)
                       Three
                       Months       Three Months Ended    Nine Months Ended
                       Ended
                       June 30,     September 30,         September 30,
                       2012         2012       2011       2012       2011
                       (In thousands of dollars)
                       $       $         $         $         $ 
EBITDA                         175,558   151,649   581,744   498,877
                       223,820
Less:
Provision for income   60,965       38,236     38,131     146,183    129,661
taxes
Interest expense       11,571       11,934     12,727     35,682     38,449
Depreciation and       35,783       38,424     32,861     109,601    98,244
amortization
Net income            115,501      86,964     67,930     290,278    232,523
Changes in operating
assets and             91,127       93,380     47,632     205,960    (7,605)
liabilities
Deferred income taxes  5,929        (2,335)    3,486      4,385      19,435
Net cash provided by   $     
operating activities             $ 178,009  $ 119,048  $ 500,623  $ 244,353
                       212,557



WESTLAKE CHEMICAL CORPORATION
SUPPLEMENTAL INFORMATION
Product Sales Price and Volume Variance by Operating Segments
                        Third Quarter 2012 vs.         Third Quarter 2012 vs.
                        Third Quarter 2011           Second Quarter 2012
                        Average                       Average
                        Sales Price  Volume         Sales       Volume
                                                       Price
Olefins                 -14.4%        -8.1%            -10.1%      -9.6%
Vinyls                  -19.4%        +22.6%           -8.4%       +25.0%
Company                 -15.8%        +0.6%            -9.7%       -0.5%
Average Quarterly Industry Prices ^(1)
                        Quarter Ended
                        September     December  March  June 30,    September
                        30,           31,       31,                30,
                        2011          2011      2012   2012        2012
Ethane (cents/lb)       26.3          28.8      18.9   13.6        11.4
Propane (cents/lb)      36.4          34.1      29.8   23.1        21.2
Ethylene                60.4          50.1      62.3   59.0        52.1
(cents/lb)^(2)
Polyethylene            96.0          92.7      99.0   95.0        91.3
(cents/lb)^(3)
Styrene (cents/lb)^(4)  73.3          64.0      74.3   73.8        77.7
Caustic soda ($/short   570.0         613.3     603.3  580.0       611.7
ton)^(5)
Chlorine ($/short       348.3         305.8     274.2  267.7       262.5
ton)^(6)
PVC (cents/lb) ^(7)     55.2          51.8      56.8   55.5        52.5



(1)       Industry pricing data was obtained through IHS Chemical. We have not
          independently verified the data.
(2)       Represents average North American spot prices of ethylene over the
          period as reported by IHS Chemical.
(3)       Represents average North American contract prices of polyethylene
          low density film over the period as reported by IHS Chemical.
(4)       Represents average North American contract prices of styrene over
          the period as reported by IHS Chemical.
(5)       Represents average North American acquisition prices of caustic soda
          (diaphragm grade) over the period as reported by IHS Chemical.
(6)       Represents average North American contract prices of chlorine (into
          chemicals) over the period as reported by IHS Chemical.
          Represents average North American contract prices of PVC over the
          period as reported by IHS Chemical. During the first quarter of
          2012, IHS Chemical made a 23 cents per pound non-market downward
(7)       adjustment to PVC resin prices. For comparability, we adjusted each
          of the prior year periods' PVC resin prices downward by 23 cents per
          pound based on the first quarter 2012 IHS Chemical non-market
          adjustment.



SOURCE Westlake Chemical Corporation

Website: http://www.westlake.com
Contact: +1-713-960-9111, Investors - Steve Bender, or Media - David R. Hansen