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Resolution Performance Products LLC Announces Full Year and 4Q 2004 Results

Published on 2005-03-30. Author : SpecialChem

HOUSTON -- Resolution Performance Products LLC, a leading worldwide manufacturer and developer of epoxy resins, reported its financial results for the year ended December 31, 2004. The year end results include total revenues of $996 million, operating income of $32 million and EBITDA of $79 million. Revenues increased by $214 million, or 27%, operating income increased by $36 million and EBITDA increased by $21 million, or 36%, respectively, from 2003.

For the fourth quarter of 2004, revenue was $288 million up $92 million, or 47%, from the same period last year and up $43 million, or 18%, from the third quarter of 2004. EBITDA in the quarter was $26 million, which represents increases of $9 million, or 53%, from the same period last year and $6 million, or 30%, from the third quarter of 2004, respectively.

"We are pleased with the positive trend in operating income which reflects our efforts to reestablish acceptable margins in the various markets we serve as well as the continued growth of the higher valued specialty products in our portfolio," said Marvin O. Schlanger, Chairman and CEO.

"While fourth quarter EBITDA is at annualized rate above cash flow breakeven, we are taking additional steps in our marketplace -- particularly in light of the continued pressure in raw materials resulting from record high crude oil prices -- to ensure margins reach a long-term acceptable level," Schlanger added.

Resolution Performance Products LLC also announced that it will adjust its financial statements for the year ended December 31, 2003, and for each of the quarters ended March 31, 2004, June 30, 2004 and September 30, 2004, to recognize deferred tax liabilities in the determination of an allowance for deferred tax assets (net operating losses) with respect to a wholly-owned subsidiary in the Netherlands. Recognition of deferred tax liabilities in the determination of the allowance for deferred tax assets results in the total release of the valuation allowance. The adjustments to the prior period financial statements are non-cash adjustments and do not change prior period reported EBITDA amounts. As a result of the adjustments, the Company is decreasing the net loss by $17 million, $1 million, and $1 million for the year ended December 31, 2003, and each of the quarters ended March 31, 2004, and June 30, 2004, respectively. The Company is increasing the net loss for the quarter ended September 30, 2004 by $4 million. The adjustments to the previously issued financial statements referred to above will be reflected in the Company's Form 10-K for 2004 to be filed on or about March 31, 2005.

Resolution Performance Products will be hosting an investor conference call on March 31, 2005 at 10:00 a.m. eastern time.

Resolution Performance Products is a leading worldwide manufacturer and developer of epoxy resins and is also the leading global manufacturer of versatic acids and derivatives. Epoxy resins are chemicals primarily used in the manufacture of coatings, adhesives, printed circuit boards, fiber reinforced plastics and construction materials. Versatic acids and derivatives are specialty products which complement our epoxy resin product offerings in coatings, adhesives and construction applications. The Company, with approximately 950 employees, has operations in the United States, Europe and Asia.

Certain statements in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. The Company can give no assurance that such expectations will prove to be correct. Factors that could cause the Company's results to differ materially from current expectations include: general economic and business conditions, industry trends, raw material costs and availability, changes in demand for its products, actions of its competitors and the additional factors and risks contained in the Company's Registration Statement on Form S-4 declared effective on February 4, 2004 (file No. 333-112016) and in its periodic reports filed with the SEC.

Source: Resolution Performance Products LLC


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