LyondellBasell Drops After Profit Misses Analysts’ Estimates
LyondellBasell Industries NV (LYB), the world’s largest maker of polypropylene plastic, dropped 3.5 percent after posting fourth-quarter profit that missed analysts’ estimates as refining margins weakened.
The company had a fourth-quarter net loss of $218 million, or 38 cents, a share, compared with net income of $766 million, or $1.34, a year earlier, Rotterdam-based LyondellBasell said today in a statement. Excluding costs related to a refinery closure and the early repayment of debt, the company said profit was 41 cents a share. The average of 14 estimates compiled by Bloomberg was for earnings of 80 cents.
“The downside was due mostly to weaker olefin and refining margins,” Charles Neivert, a New York-based analyst at Dahlman Rose & Co. who rate the shares “buy,” said in a note. “Shares are likely to pull back having rallied over 35 percent year to date.”
Sales advanced 7.9 percent to $11.4 billion from $10.6 billion, compared with the $12 billion average of 10 estimates.
LyondellBasell fell to $43 at 8:57 a.m. before the start of regular trading in New York.
(LyondellBasell will hold a conference call at 11 a.m, New York time. Dial +1-888-982-4611, pass code 3987211.)
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