Nova Chemicals promises turnaround in 2006

07-Apr-06

As inventory levels throughout the chain remain low, operating rates are high, and fundamental demand continues to build, Nova Chemicals expects a healthy performance in 2006. Nova, which has been hit by various production problems at its facilities, expects a turnaround in 2006. In the last year, Nova Chemicals' bottom line was hurt by a raw material disruption at its facility in Joffre, Alberta that occured when a tornado struck a supplier's facility and a US$70 million after-tax loss when its plant in Corunna, Ont. was shut down for several months because of equipment problems. Nova has reported a disappointing fiscal 2005 results with a US$104 million loss, a reversal from the US$252 million profit of 2004.