HOUSTON, April 20 /PRNewswire-FirstCall/ -- Westlake Chemical Corporation (NYSE: WLK) announced today that it is filing a preliminary prospectus supplement with the Securities and Exchange Commission relating to a proposed public offering by TTWF LP, its controlling stockholder, of 5.5 million shares of the Company's currently outstanding common stock. The offering will be made through underwriters led by JPMorgan, Credit Suisse, and Deutsche Bank Securities. TTWF will grant the underwriters an option to purchase up to 825,000 shares from TTWF to cover over-allotments, if any. TTWF will receive all the proceeds from the sale of the stock, including any over-allotment shares.
The Company has stated in the preliminary prospectus supplement that, while it has not finally determined its results of operations for the quarter ended March 31, 2006, it expects its fully diluted earnings for that quarter to be in the range of from $0.75 to $0.78 per diluted share, which includes the negative effect of debt retirement costs of $0.25 per diluted share. The Company accordingly expects fully diluted earnings, excluding the effect of the debt retirement costs, to be in the range of from $1.00 to $1.03 per diluted share. This compares to $0.94 per diluted share for the first quarter of 2005 and $1.13 per diluted share for the fourth quarter of 2005. The favorable first quarter 2006 results, when compared to the first quarter of 2005, are attributable primarily to higher margins for the Company's products, partially offset by lower production volumes in some products. In the first quarter of 2006, the Company also estimates that earnings were negatively affected by the utilization of first-in, first-out (FIFO) inventory accounting as compared with utilizing the last-in, first-out (LIFO) method used by some companies in the industry, due to decreases in raw-material and product prices. These estimates are subject to the risks, uncertainties and assumptions referred to below.
A prospectus relating to these securities may be obtained from JPMorgan Securities Inc., Prospectus Department, One Chase Manhattan Plaza, Floor 5B, New York, NY 10081, (212) 552-6164 or firstname.lastname@example.org . These documents are being filed with the Securities and Exchange Commission and will be available over the Internet at the SEC's Web site at http://www.sec.gov . A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and fabricated products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC and PVC pipe, windows and fence. For more information, visit the company's Web site at http://www.westlakechemical.com .
Statements in this press release contain "forward-looking" information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a number of risks and uncertainties, including the completion of the Company's financial statements for the first quarter of 2006, investor response to the proposed offering, the trading prices for the Company's common stock during the offering period, other conditions in the financial markets and customary closing conditions. Please see the Company's filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed in February 2006, for a discussion of other factors that may affect forward-looking information.
SOURCE: Westlake Chemical Corporation CONTACT: David R. Hansen, Media Relations or Steven Bender, Investor Relations both of Westlake Chemical Corporation, +1-713-960-9111 Web site: http://www.westlakechemical.com