HOUSTON, May 3, 2016 /PRNewswire/ -- Westlake Chemical Corporation (NYSE: WLK) today reported net income for the three months ended March 31, 2016 of $123.1 million, or $0.94 per diluted share, on net sales of $975.2 million. This represents a decrease in net income of $23.2 million, or $0.16 per diluted share, compared to the quarter ended March 31, 2015 net income of $146.3 million, or $1.10 per diluted share, on net sales of $1,103.5 million. Net sales for the first quarter of 2016 decreased by $128.3 million compared to net sales for the first quarter of 2015, mainly due to lower sales prices for all of our major products, partially offset by higher sales volumes for polyethylene and most of our major Vinyls products. Sales prices in the first quarter of 2016 were negatively impacted by lower crude oil prices as compared to the prior-year period. Income from operations was $202.3 million for the first quarter of 2016 as compared to $229.3 million for the first quarter of 2015. The decrease in income from operations for the first quarter of 2016 was mainly attributable to lower North American integrated product margins, primarily as a result of lower sales prices in the first quarter of 2016, partially offset by lower average feedstock and energy costs, higher product margins at our European operations and higher chlor alkali production, as compared to the first quarter of 2015.

First quarter 2016 net income of $123.1 million, or $0.94 per diluted share, increased by $12.1 million from the $111.0 million, or $0.84 per diluted share, reported in the fourth quarter of 2015. Net sales in the first quarter of 2016 of $975.2 million decreased $11.6 million from net sales of $986.8 million in the fourth quarter of 2015, mainly due to lower sales prices for all of our major products, partially offset by higher sales volumes. First quarter 2016 income from operations was $202.3 million as compared to $181.1 million reported for the fourth quarter of 2015, an increase of $21.2 million, which was primarily the result of higher sales volumes for polyethylene and PVC and higher operating rates for most of our facilities.

"We delivered solid results for the first quarter of 2016 as we benefitted from lower cost feedstocks and strong global demand for both polyethylene and PVC," said Albert Chao, President and Chief Executive Officer. "We continue to focus on growing our specialty PVC, PVC pipe and polyethylene product portfolios, and on our integration strategy which, upon the completion of the 250 million pound expansion of our Petro 1 ethylene cracker later this year, is expected to balance our ethylene requirements in North America."

EBITDA (earnings before interest expense, income taxes, depreciation and amortization) of $270.6 million for the first quarter of 2016 decreased $26.4 million compared to EBITDA of $297.0 million in the first quarter of 2015. EBITDA for the first quarter of 2016 increased $19.4 million compared to EBITDA of $251.2 million in the fourth quarter of 2015. A reconciliation of EBITDA to reported net income and to net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Net cash provided by operating activities was $129.0 million in the first quarter of 2016. Capital expenditures for the first quarter of 2016 were $136.3 million. As of March 31, 2016, we had cash, cash equivalents and current marketable securities of $1.1 billion and our long-term debt was $758.3 million.

OLEFINS SEGMENT

The Olefins segment reported income from operations of $149.2 million in the first quarter of 2016, a decrease of $41.9 million compared to income from operations of $191.1 million reported in the first quarter of 2015. This decrease was mainly attributable to lower olefins integrated product margins primarily as a result of lower sales prices, partially offset by higher polyethylene sales volume and lower feedstock and energy costs as compared to the prior-year period.

The Olefins segment income from operations of $149.2 million for the first quarter of 2016 increased $10.5 million from the $138.7 million reported in the fourth quarter of 2015. This increase was primarily attributable to higher polyethylene sales volumes and improved operating rates as compared to the fourth quarter of 2015. The fourth quarter of 2015 was negatively impacted by several polyethylene turnarounds.

VINYLS SEGMENT

The Vinyls segment reported income from operations of $62.1 million in the first quarter of 2016, an increase of $15.0 million compared to $47.1 million reported in the first quarter of 2015. This increase was mainly attributable to higher product margins at our European operations and higher U.S. caustic soda sales volume as compared to the prior-year period.

The Vinyls segment income from operations of $62.1 million for the first quarter of 2016 increased $10.5 million from the $51.6 million reported in the fourth quarter of 2015. This increase was primarily attributable to higher sales volumes for PVC and improved operating rates as compared to the fourth quarter of 2015.

The statements in this release and the related teleconference relating to matters that are not historical facts, such as statements regarding the timing and results of expansion projects and anticipated balancing of our ethylene requirements in North America, are forward-looking statements. These forward-looking statements are subject to significant risks and uncertainties. Actual results could differ materially, based on factors including, but not limited to: general economic and business conditions; the cyclical nature of the chemical industry; availability, cost and volatility of raw materials and utilities, including natural gas from shale production; the price of crude oil; uncertainties associated with the United States and worldwide economies, including those due to global economic and financial conditions; governmental regulatory actions, including environmental regulation; political unrest; industry production capacity and operating rates; the supply/demand balance for Westlake's products; competitive products and pricing pressures; access to capital markets; technological developments; the effect and results of litigation and settlements of litigation; operating interruptions; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC in February 2016.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial measures, such as EBITDA, as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with U.S. GAAP. A reconciliation of EBITDA to reported net income and to net cash provided by operating activities can be found in the financial schedules at the end of this press release.

Westlake Chemical Corporation Conference Call Information:

A conference call to discuss Westlake Chemical Corporation's first quarter 2016 results will be held Tuesday, May 3, 2016 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). To access the conference call, dial (855) 760-8160, or (704) 288-0624 for international callers, approximately 10 minutes prior to the scheduled start time and reference passcode 90251315.

A replay of the conference call will be available beginning two hours after its conclusion until 11:59 p.m. Eastern Time on Tuesday, May 10, 2016. To hear a replay, dial (855) 859-2056, or (404) 537-3406 for international callers. The replay passcode is 90251315.

The conference call will also be available via webcast at: http://edge.media-server.com/m/p/wugjxpzb and the earnings release can be obtained via the company's web page at: http://www.westlake.com/fw/main/IR_Home_Page-123.html

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/westlake-chemical-corporation-announces-first-quarter-2016-earnings-300261107.html

SOURCE Westlake Chemical Corporation

(713) 960-9111, Investors--Steve Bender, Media--Ben Ederington