Sales rise at Nova Chemicals as quarterly profit falls

Citing increased depreciation costs, Canadian-based supplier Nova Chemicals Corporation reported $189 million in profit in its second quarter, a fall-off of 16 per cent from $225 million in the year-ago quarter.

Sales, however, edged up to $1.42 billion from $1.39 billion a year ago, the Calgary, Alta.-based company said in a news release.

“The modest declines were primarily due to an increase in depreciation expense and a decline in the mark-to-market values of our open feedstock derivatives, offset slightly during the six month period by higher margins in our Olefins/Polyolefins business unit,” the company said.

In its performance styrenics business, which makes foam resins for construction materials, packaging and beverage containers, operating profit fell to $1 million from $2 million a year ago.