Millennium Restatement, Lyondell Fourth Quarter 2004 Earnings Guidance, and Webcast Schedule Announced
February 01 2005 - 11:07PM
PR Newswire (US)
Millennium Restatement, Lyondell Fourth Quarter 2004 Earnings
Guidance, and Webcast Schedule Announced HOUSTON, Feb. 1
/PRNewswire-FirstCall/ -- Millennium Chemicals Inc. today announced
that it will restate its financial statements for the five-year
period ending December 31, 2003, and the first three quarters of
2004, to recognize an increase currently estimated to be $59
million in its recorded liabilities for environmental remediation.
Millennium does not expect to incur the majority of the cash
expenditures relating to this liability until later in the decade.
This adjustment will not affect the earnings of Lyondell Chemical
Company (NYSE:LYO) for any period. Millennium was acquired by
Lyondell on November 30, 2004, and is now a wholly owned
subsidiary. Lyondell Fourth-Quarter 2004 Earnings Guidance and
Purchase Accounting Impacts Lyondell announced today that its
current estimate of Lyondell's fourth- quarter earnings is $10
million to $20 million or 5 cents to 10 cents per share. This
estimate includes a non-cash charge currently estimated to be $64
million to account for purchased in-process research and
development as required by generally accepted accounting
principles. This charge is related to the purchase accounting
resulting from the acquisition of Millennium, and is not subject to
tax. Based on approximately 208 million average outstanding shares
in the fourth quarter, this charge reduces diluted fourth-quarter
earnings by 31 cents per share. Lyondell's fourth-quarter estimates
also include the following pretax charges: $12 million related to
the early retirement of Lyondell debt, and $12 million reflecting a
portion of future insurance premiums expected to be paid to
industry mutual insurance consortia. Acquisition-related costs of
$70 million incurred by Millennium were accrued by Millennium prior
to the November 30, 2004 close of the transaction. These costs will
be reflected by Lyondell as an assumed liability in the acquisition
and will not impact Lyondell's fourth-quarter 2004 consolidated
earnings. Additionally, $20 million of transaction costs incurred
by Lyondell have been included in Lyondell's purchase costs for the
acquisition of Millennium and will not impact Lyondell's
fourth-quarter 2004 results. A discussion of Lyondell operating
results will be held as previously scheduled at 11:30 a.m. EST on
February 3, 2005, after Lyondell's fourth- quarter earnings have
been announced. ABOUT LYONDELL Lyondell Chemical Company,
headquartered in Houston, Texas, is North America's third-largest
independent, publicly traded chemical company. Lyondell is a major
global manufacturer of basic chemicals and derivatives including
ethylene, propylene, titanium dioxide, styrene, polyethylene,
propylene oxide and acetyls. It also is a significant producer of
gasoline blending components. The company has a 58.75 percent
interest in LYONDELL- CITGO Refining LP, a refiner of heavy,
high-sulfur crude oil. As a result of Lyondell's November 30, 2004
acquisition of Millennium Chemicals Inc., Millennium and Equistar
Chemicals, LP are wholly owned subsidiaries of Lyondell. Lyondell
is a global company operating on five continents and employs
approximately 10,000 people worldwide. FORWARD LOOKING STATEMENTS
The statements in this release and the related teleconference
relating to matters that are not historical facts are
forward-looking statements, including, but not limited to,
Lyondell's earnings guidance, and the information regarding the
restatement of Millennium's financial statements for prior periods
and the impact thereof. Forward-looking statements are subject to
risks and uncertainties. Actual results could differ materially
based on factors including, but not limited to, the timing and
nature of the final resolution of the accounting matters discussed
in this release and the related teleconference. Until the
restatement of Millennium's financial statements for prior periods
has been completed, no assurance can be given with respect to the
financial statement adjustments, the impacts resulting from such
adjustments or the periods affected by such adjustments. Other
factors that may affect actual results include the following:
availability, cost and price volatility of raw materials and
utilities; uncertainties associated with the U.S. and worldwide
economies; current and potential governmental regulatory actions;
terrorist acts; international political unrest; operating
interruptions; legal, tax and environmental proceedings; cyclical
nature of the chemical and refining industries; competitive
products and pricing; industry production capacities and operating
rates; supply/demand balances; risks of doing business outside of
the U.S.; access to capital markets; technological developments;
and other risk factors. All of such forward- looking statements are
based upon the current beliefs and expectations of management, and
are subject to significant risks and uncertainties. Additional
factors that could cause results to differ materially from those
described in the forward-looking statements can be found in the
Lyondell and Millennium Annual Reports on Form 10-K for the year
ended December 31, 2003 (in the case of Millennium, as amended),
the Lyondell and Millennium Quarterly Reports on Form 10-Q for the
quarter ended September 30, 2004, and the Lyondell and Millennium
Annual Reports on Form 10-K for the year ended December 31, 2004,
which will be filed with the SEC in March 2005. DATASOURCE:
Lyondell Chemical Company; Millennium Chemicals Inc. CONTACT:
Investors: Doug Pike, +1-713-309-4590, or Media: Susan Moore,
+1-713-309-4645, both for Lyondell Chemical Company and Millennium
Chemicals Inc. Web site: http://www.lyondell.com/
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