Westlake Chemical closes Axiall deal, nets small profit

Houston-based Westlake Chemical Corp. reported a small $65.7 million quarterly profit on Tuesday after successfully completing its long-pursued acquisition of rival Axiall Corp. in the third quarter.

The $2.3 billion deal for Atlanta-based Axiall boosts Westlake’s scale and strength, said Westlake President and Chief Executive Albert Chao. But the integration and closing costs cut down on Westlake’s profits. Westlake also found itself weighed down by a mechanical failure that caused an outage at its Calvert City, Kentucky chemical plant for most of July.

Westlake’s net income fell nearly 65 percent from a $183.6 million gain during the same quarter last year. However, Westlake revenues jumped slightly from $1.19 billion to $1.28 billion.

The combined Westlake represents the world’s third-largest maker of both PVC, or polyvinyl chloride, and chlor-alkali, used to make chlorine and more. Westlake makes a variety of plastics and vinyls, while Axiall also made building products like siding, decking and window frames.

“We are focused on the integration of the organizations and continue to look for opportunities to better serve our customers with a more diversified portfolio that should create growth opportunities for the business and significant value for our stockholders,” Chao added in a prepared statement.