LyondellBasell Profit Slumps

LyondellBasell Industries NV on Friday reported a worse-than-expected 31% slide in revenue, as pricing for its products remained under pressure.

The Dutch chemicals-and-polymer producer, which emerged from chapter 11 bankruptcy in 2010, provides compounds found in products ranging from electronics to construction materials and biofuels. Lyondell, with its U.S. headquarters in Houston, has benefited from lower natural gas prices that have led to lower key raw material costs—helping to offset diminished pricing power that has resulted from cheaper oil.

In recent quarters, however, lower product prices have pressured revenue. For the period ended Sept. 30, the price of ethylene fell by 26 cents per pound compared with the prior year.

In a news release, Chief Executive Bob Patel said the ethylene industry has become more balanced in the current quarter.

"Looking ahead to 2016, we continue to forecast stable industry demand and operating rates and believe that the markets for our products will tighten as we move into the spring," Mr. Patel said.

In all, the company reported a profit of $1.19 billion, or $2.54 a share, down from $1.26 billion, or $2.45 a share, a year earlier.

The quarter's results included a $181 million inventory adjustment charge. Excluding that item, per-share earnings were $2.80 a share.

Revenue fell to $8.33 billion from $12.07 billion in the prior-year period.

Analysts, according to Thomson Reuters, expected earnings of $2.57 a share and revenue of $9.05 billion.

Olefins and polyolefins in the Americas, the segment that produces products such as ethylene and the represents the bulk of the company's bottom line, reported operating income of $740 million, down from $1.07 billion a year earlier.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

October 23, 2015 09:15 ET (13:15 GMT)

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