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Wellman operating loss declines to $292.7 million in fourth quarter, $304.6 million in 2007
By Caroline Salls
Pittsburgh, March 17 - Wellman, Inc. reported a $292.7 million operating loss for the quarter ended Dec. 31 on $244.2 million in sales and a $304.6 million operating loss for full-year 2007 on $1.13 billion in sales, according to a company news release.
"Although the company has taken numerous steps to reduce its debt and strengthen its balance sheet, these were not sufficient to offset the deterioration in business conditions and the cost of our substantial debt obligations," chairman and chief executive officer Tom Duff said in the release.
The quarterly figures showed a decline compared to a $29.8 million operating loss for the fourth quarter of 2006 on $289.1 million in sales.
In addition, the 2007 numbers also showed a decline over a $77.3 million 2006 operating loss on $1.21 billion in sales.
The net loss for the fourth quarter of 2007 was $307.6 million, widening from a $49.1 million net loss for the same period of 2006. Meanwhile, the 2007 net loss was $361.3 million, up from a $112.4 million 2006 net loss.
"In the fourth quarter of 2007, we determined that, based on the fair market value of our debt and equity, certain of our non-current assets were impaired," chief financial officer Keith Phillips said in the release.
"Consequently, our fourth-quarter and full-year 2007 results were negatively impacted by the recording of a pretax $292.6 million impairment charge to reflect our non-current assets at fair market value, which was lower than cost, at December 31, 2007."
Wellman, a Fort Mill, S.C., polyester products manufacturer, filed for bankruptcy on Feb. 22 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-10595.
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