He reiterated his buy rating on the stock. “There are many investors who have not forgotten how Sony in past repeatedly over-promised and under-delivered," Atul Goyal, an analyst at Jefferies Group, wrote in a report. The writedown announcement comes two weeks after Sony said the chief executive officer of Sony Entertainment, Michael Lynton, is stepping down after a 13-year run.
#WRITEDOWN IN PREMIUM MOVIE#
The studio has struggled recently, including with last year’s Ghostbusters sequel and a movie based on the Angry Birds video game. in a multibillion-dollar deal that spun out the chemicals operations into a separate company, Nova Chemicals.In June, Sony warned the movie division was at a risk of posting more losses. and became a major gas shipper and chemicals producer before a 1998 deal that saw the gas pipelines sold to TransCanada PipeLines Inc. Nova originated half a century ago in the old Alberta Gas Trunk Line Co.
Lipton said manufacturers in the industry have been producing too much inventory for the market to consume, which is raising costs unnecessarily. Lipton said consolidation is critical to the success of the polyethylene industry and, while the company has rejected a recent takeover offer, it continues to seek one or two companies with whom to form partnerships.Ī joint venture would be more attractive than a takeover or buyout, Lipton said, but if one doesn't materialize Nova will likely look to spin off its styrenics assets. will continue to get bigger and better for the rest of the decade." We are surprised to hear so many negative views. "We believe many pessimistic views on new supply are inaccurate. "On the whole, we see strong demand and reasonable-to-low inventories," said Lipton. Meanwhile, Lipton said world polyethylene markets remain strong, particularly in Asia, where the company has made recent shipments. In breaking down its finances, Nova said its fourth-quarter loss from operations, excluding the restructuring charge, was $12 million, against a net profit of $83 million in the 2006 third quarter. "Our major bankers see the writedown as a positive move and support the direction we have taken, said Larry MacDonald, the company's senior vice-president and CFO.
#WRITEDOWN IN PREMIUM FULL#
dollars, said three-month revenues rose to US$1.6 billion from about $1.4 billion.įor the full year, the company reported a net loss of $703 million, nearly seven times its loss of $101 million for 2005. The latest red ink compares with a net loss of $66 million or 80 cents a share for the 2005 fourth quarter. The maker of styrene and olefins – the building blocks of numerous plastic products – reported early Wednesday it lost $9.46 a share for the three months ended Dec. He said the board of the Canadian-American chemical and plastics producer approved the non-cash, after-tax charge Tuesday night. We've stopped the bleeding," president and CEO Jeff Lipton told analysts on a conference call Tuesday. (TSX: NCX) has posted a huge US$781-million loss in the fourth quarter after taking a $772-million restructuring writedown. PITTSBURGH – After seeing its styrenics business unit melt away, beleaguered Nova Chemicals Corp.
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