Borealis Reduces Net Loss
Borealis AG, Vienna, Austria, announces a net loss of EUR 56 million for the first quarter of 2009, a 54% improvement compared to the last quarter of 2008 as the company quickly reacts to the most significant global demand shock in decades. Focused working capital management contributed to a net debt reduction of EUR 98 million versus the end of the fourth quarter of 2008 and an improved gearing ratio of 43%, from 47% at the end of the fourth quarter of 2008.
Despite the continuous extremely challenging market conditions, both polyolefins sales volumes and prices have shown some recovery during the first quarter of 2009. Results were negatively impacted by the high cost inventory produced in the fourth quarter of 2008 which was largely cleared in the first quarter of 2009. This effect contributed to a majority of the operating losses in the quarter. The contribution of Borouge was soft during the first quarter, partly due to a scheduled maintenance shut down.
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