July 24, 2008 / 12:52 PM / 10 years ago

Nova Chemicals profit drops sharply

TORONTO (Reuters) - Nova Chemicals Corp NCX.TO said on Thursday its second-quarter profit fell 77.5 percent, more than expected, due in part to soaring energy costs.

Nova, Canada’s biggest raw-plastics manufacturer, said net income fell to $18 million, or 21 cents a share, in the period ended June 30, from $80 million, or 96 cents, in the year-earlier quarter.

Analysts, on average, forecast 29 cent per share profit, according to Reuters Estimates.

Adjusted net income was $83 million, or $1.00 a share, down from $84 million, or $1.00 in the year-earlier period, the company said.

Nova, which is based in Canada but has its executive offices in Pittsburgh, Pennsylvania, said the results were driven by a rise in its olefins/polyolefins business unit.

Adjusted EBITDA for the unit rose to $258 million from $228 million in the comparable period.

Nova, which produces a broad range of plastics used for food wraps, plastic bags, electronic components and other items, said revenue rose to $2.21 billion from $1.67 billion in the second quarter of 2007.

($1=$1.01 Canadian)

Reporting by Jennifer Kwan; Editing by Frank McGurty

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