Bankrupt and Distressed (BAD) Research and Due Diligence

[Madclown]

Chemtura Reports 2010 First Quarter Results

http://chemturaresearch.blogspot.com/2010/05/chemtura-reports-2010-first-quarter.html

For the first quarter of 2010, the Company recorded net loss from continuing operations on a GAAP basis of $177 million, or $0.73 per share, and net earnings on a managed basis of $1 million, or $0.01 per share. The $603 million in sales represented 30% top-line growth YOY and the $16 million operating profit on a managed basis represented a $31 million change YOY. EBITDA came in at $49 million on a GAAP basis and $54 million on a managed basis.

Substantially all ($136 million) of the $139 million in YOY sales growth came from increased volume and the other $3 million resulted from the net of price changes and currency translation adjustments. The biggest boost to the rise in sales resulted from the Industrial Performance and Industrial Engineered business segments which experienced sales increases of 39% and 54% respectively. $122 million of the $177 million net loss came from changes in estimates related to expected allowable claims.

The release of the statement of financial position and results of operations as of and for the 3 months ended March 31, 2010 showing an increase in estimated claims of $122 million (some of which may be offset by insurance coverage) comes as a bit of a surprise since it is a break from prior estimations and disclosures within previously filed SEC statements.

Some key dates to be aware of going forward include June 11, 2010 which is the date that the exclusivity period lapses and July 19, 2010 which is the date that a hearing will be held for estimation of the Diacetyl claims.

See the link below for the full release.

http://phoenix.corporate-ir.net/phoenix.zhtml?c=68079&p=irol-newsArticle&ID=1424309&highlight=