Shares of LyondellBasell Industries N.V. sank 5.2% in premarket trading Friday, after the chemical company reported third-quarter profit that fell well below expectations, as higher energy costs, new supply and weaker markets pressured margins. "Global demand for LyondellBasell's products utilized in consumer packaging remained stable, but demand from durable goods markets softened," the company stated. Net income dropped to $572 million, or $1.75 a share, from $1.76 billion, or $5.25 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.96 was below the FactSet consensus of $2.89. Sales fell 3.5% to $12.25 billion, missing the FactSet consensus of $12.58 billion. Looking ahead, the company said demand from consumer packaging, oxyfuels and refining markets remains strong in October, but "persistent inflation and high energy costs with weaker seasonal demand are likely to drive further margin compression across most of the company's businesses in the fourth quarter." The stock has lost 6.8% over the past three months through Thursday, while shares of rival Dow Inc. has declined 9.0% and the S&P 500 has dropped 6.5%.
(END) Dow Jones Newswires
October 28, 2022 06:46 ET (10:46 GMT)
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