TORONTO, July 29 /CNW/ - Chemtrade Logistics Income Fund (TSX: CHE.UN)
today announced results for the three months ended June 30, 2008. The
continuing high price for sulphuric acid was the main driver of significant
increases in revenue and earnings for Chemtrade's Sulphur Products &
Performance Chemicals and International segments, which were the primary
contributors to the second quarter's strong results.
Cash flows from operating activities for the second quarter were
$33.7 million (2007: $8.5 million) and Distributable cash after maintenance
capital expenditures for the period was $24.1 million, or $0.72 per unit
(2007: $10.5 million, or $0.31 per unit), generated from revenue of $274.3
million (2007: $130.2 million) and earnings before interest, income taxes,
depreciation and amortization ("EBITDA") of $29.8 million (2007: $16.3
million). Net earnings for the second quarter were $13.8 million compared with
$5.0 million in the same period in 2007. The results for the second quarter of
2008 include higher unrealized losses on natural gas and foreign exchange
hedges and lower realized foreign exchange gains, partially offset by lower
accruals related to the Fund's long-term incentive program.
For the six months ended June 30, 2008 cash flows from operating
activities were $39.8 million (2007: $14.3 million), and Distributable cash
after maintenance capital expenditures was $42.0 million (2007: $17.2
million), or $1.25 per unit (2007: $0.51). EBITDA was $52.0 million (2007:
$27.3 million), and revenue was $492.1 million (2007: $258.8 million). Net
earnings for the first six months of 2008 were $23.3 million (2007: $4.5
million). The numbers for the year-to-date include a recovery of restructuring
costs of $1.2 million in 2008 whereas there was an expense of $2.0 million
recorded in 2007 relating to the cessation of powder SHS production at the
Leeds plant.
Mark Davis, President and Chief Executive Officer of Chemtrade, said,
"All of our businesses reported higher earnings in the second quarter,
although, as with the first quarter of this year, it was the continuing high
margins for sulphuric acid in our Sulphur Products & Performance Chemicals and
International segments that were the primary contributors to the improved
results."
Sulphur Products & Performance Chemicals ("SPPC") generated revenue of
$127.0 million and EBITDA of $23.9 million compared with $78.0 million and
$14.9 million, respectively, in 2007. The higher revenue reflected
substantially higher prices for merchant acid and sulphur. These were
partially offset by the effect of the stronger Canadian dollar. The higher
EBITDA was due primarily to improved margins on sulphuric acid. Higher acid
prices more than offset higher sulphur costs and foreign exchange impact. As
well, Chemtrade's two major regen plants took maintenance turnarounds in the
first quarter last year, whereas in 2008 part of the turnaround of Chemtrade's
largest plant took place in the second quarter.
Pulp Chemicals reported second quarter revenue of $14.4 million compared
with $14.6 million in 2007. EBITDA was $5.0 million compared with $4.4 million
reflecting lower costs for salt which last year were high due to the
transition to a new supplier.
International reported revenue of $132.9 million for the second quarter,
compared with $37.5 million in 2007. This was a result of significantly higher
prices and volume for sulphuric acid, and significantly higher prices for
sulphur. Spot sales of uncommitted small volumes of sulphuric acid and sulphur
resulted in high margins due to the continuing tightness in global markets.
Also, during the volatile market conditions prevalent in 2008, this segment
was able to leverage its market knowledge and infrastructure to significantly
add value to suppliers and customers and thereby earn incremental margin.
International generated EBITDA for the quarter of $8.8 million compared with
$1.8 million last year.
Mr. Davis said, "Our ongoing initiatives to strengthen our business and
improve our operations have enabled us to take advantage of the robust market
for sulphur products and expand our margins in each of the last three
quarters. We expect the sulphuric acid market to remain buoyant through at
least 2008 and 2009 and that our margins will continue to expand. Although we
anticipate increased maintenance capital spending, we expect to generate
substantially similar Distributable cash after maintenance capital expenditure
over the next 12 months relative to the 12 month period ended June 30, 2008."
Distributions
Distributions declared in the second quarter totalled $0.30 per unit,
comprised of monthly distributions of $0.10 per unit.
Chemtrade operates a diversified business providing industrial chemicals
and services to customers in North America and around the world. Chemtrade is
one of the world's largest suppliers of sulphuric acid, liquid sulphur dioxide
and sodium hydrosulphite, and a leading processor of spent acid. Chemtrade is
also a leading regional supplier of sulphur, sodium chlorate, phosphorous
pentasulphide, and zinc oxide.
This news release contains certain statements which may constitute
"forward-looking" statements within the meaning of certain securities laws,
including the "safe harbour" provisions of the Securities Act (Ontario). The
use of any of the words "anticipate", "continue", estimate", "expect", "may",
"will", "project", "should", "believe" and similar expressions are intended to
identify forward-looking statements.
This news release contains forward-looking statements about the
objectives, strategies, financial condition, results of operations and
businesses of the Fund. These statements are "forward-looking" as they are
based on current expectations about our business and the markets we operate
in, and on various estimates and assumptions.
- Forward-looking statements in this news release describe our
expectations as of the date of this news release.
- Our actual results could be materially different from our
expectations if known or unknown risks affect our business, or if our
estimates or assumptions turn out to be inaccurate. As a result, we
cannot guarantee that any forward-looking statement will materialize.
- Forward-looking statements do not take into account the effect that
transactions or non-recurring items announced or occurring after the
statements are made may have on our business.
- We disclaim any intention or obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason.
- Risks that could cause our actual results to differ materially from
our current expectations are discussed in the RISKS AND Uncertainties
section of our MD&A.
Further information can be found in the disclosure documents filed by
Chemtrade Logistics Income Fund with the securities regulatory authorities,
available at www.sedar.com.
A conference call to review the second quarter 2008 results will be
webcast live on www.chemtradelogistics.com and www.newswire.ca/webcast on
Wednesday, July 30, 2008 at 10:00 a.m.
CHEMTRADE LOGISTICS INCOME FUND
Consolidated Balance Sheets
(in thousands of dollars)
June 30, December 31,
2008 2007
-------------------------------------------------------------------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 17,432 $ 11,804
Accounts receivable 125,441 76,203
Inventories (note 2) 33,190 24,331
Prepaid expenses and other assets (note 10) 9,729 5,942
-------------------------------------------------------------------------
185,792 118,280
Notes receivable (note 3) 2,523 -
Property, plant and equipment 148,701 148,942
Other assets 1,544 1,413
Future tax asset 10,979 10,272
Intangibles (note 4) 135,831 143,968
Goodwill 89,095 87,700
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$ 574,465 $ 510,575
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LIABILITIES AND UNITHOLDERS' EQUITY
Current liabilities
Operating line of credit $ 34,066 $ 41,113
Accounts payable 72,983 42,509
Accrued and other liabilities (note 10) 52,685 26,496
Distributions payable 3,358 3,358
Income taxes payable 3,520 1,563
-------------------------------------------------------------------------
166,612 115,039
Long-term debt (note 6) 157,764 155,206
Other long-term liabilities (note 10) 7,709 5,081
Post-employment benefits 4,164 3,767
Future tax liability 26,206 25,396
Unitholders' equity
Units (note 7) 412,957 412,957
Deficit (150,415) (153,566)
Accumulated other comprehensive income (loss) (50,532) (53,305)
-------------------------------------------------------------------------
212,010 206,086
-------------------------------------------------------------------------
$ 574,465 $ 510,575
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See accompanying notes to consolidated financial statements
CHEMTRADE LOGISTICS INCOME FUND
Consolidated Statements of Operations
(in thousands of dollars, except net earnings per unit amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------------------------------------------------------------------
Revenue $ 274,276 $ 130,163 $ 492,066 $ 258,824
Cost of sales and services
(excluding depreciation
disclosed below) 230,432 103,291 413,375 211,945
-------------------------------------------------------------------------
Gross profit 43,844 26,872 78,691 46,879
Selling, general,
administrative and other
costs 14,004 10,093 27,888 17,595
Restructuring costs
(note 5) - 490 (1,238) 1,971
-------------------------------------------------------------------------
Earnings before the
under-noted 29,840 16,289 52,041 27,313
Depreciation and
amortization (note 2) 10,145 9,792 19,990 20,017
Net interest and accretion
expense 2,795 3,162 5,826 6,222
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Earnings before income
taxes and minority
interest 16,900 3,335 26,225 1,074
Income taxes
Current 1,961 350 3,331 494
Future 1,092 (2,021) (407) (3,879)
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3,053 (1,671) 2,924 (3,385)
-------------------------------------------------------------------------
Earnings before minority
interest 13,847 5,006 23,301 4,459
Minority interest - (2) - (4)
-------------------------------------------------------------------------
Net earnings $ 13,847 $ 5,008 $ 23,301 $ 4,463
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings per unit
(note 7)
Basic $ 0.41 $ 0.15 $ 0.69 $ 0.13
Diluted $ 0.41 $ 0.15 $ 0.69 $ 0.13
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cost of sales and services for the three months and the six months ended
June 30, 2008 does not include $4,874 and $9,497 respectively (2007 -
$5,086 and $10,391 respectively) of depreciation relating to plant
buildings and equipment (note 2).
See accompanying notes to consolidated financial statements
CHEMTRADE LOGISTICS INCOME FUND
Consolidated Statements of Changes in Unitholders' Equity
(in thousands of dollars)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------------------------------------------------------------------
Units
Balance, beginning of
period $ 412,957 $ 412,957 $ 412,957 $ 412,944
Issued on conversion of
debentures - - - 13
-------------------------------------------------------------------------
Balance, end of period $ 412,957 $ 412,957 $ 412,957 $ 412,957
-------------------------------------------------------------------------
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Equity component of
convertible debentures
Balance, beginning of
period $ - $ - $ - $ 160
Redemption of debentures - - - (160)
-------------------------------------------------------------------------
Balance, end of period $ - $ - $ - $ -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Deficit
Balance, beginning of
period $(154,187) $(145,032) $(154,040) $(134,579)
Changes in accounting
policies (note 2) - 549 474 556
-------------------------------------------------------------------------
Balance, beginning of
period, as adjusted (154,187) (144,483) (153,566) (134,023)
Redemption of debentures - - - 160
Net earnings 13,847 5,008 23,301 4,463
Distributions (10,075) (10,075) (20,150) (20,150)
-------------------------------------------------------------------------
Balance, end of period $(150,415) $(149,550) $(150,415) $(149,550)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other
comprehensive income
(loss) (note 8)
Balance, beginning of
period $ (50,700) $ (31,342) $ (53,305) $ (31,426)
Changes in accounting
policies - - - 1,783
-------------------------------------------------------------------------
Balance, beginning of
period, as adjusted (50,700) (31,342) (53,305) (29,643)
Other comprehensive
income (loss) 168 (10,595) 2,773 (12,294)
-------------------------------------------------------------------------
Balance, end of period $ (50,532) $ (41,937) $ (50,532) $ (41,937)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to consolidated financial statements
Consolidated Statements of Comprehensive Income
(in thousands of dollars)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------------------------------------------------------------------
Net earnings $ 13,847 $ 5,008 $ 23,301 $ 4,463
Change in unrealized loss
on translation of self-
sustaining foreign
operations (1,110) (11,129) 3,604 (12,443)
Change in unrealized gain
(loss) on derivatives
designated as cash flow
hedges 1,278 534 (831) 149
-------------------------------------------------------------------------
Other comprehensive (loss) 168 (10,595) 2,773 (12,294)
-------------------------------------------------------------------------
Comprehensive income
(loss) $ 14,015 $ (5,587) $ 26,074 $ (7,831)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to consolidated financial statements
CHEMTRADE LOGISTICS INCOME FUND
Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
-------------------------------------------------------------------------
Cash provided by (used in):
Operating activities:
Net earnings $ 13,847 $ 5,008 $ 23,301 $ 4,463
Items not affecting cash:
Depreciation and
amortization (note 2) 10,145 9,792 19,990 20,017
Future income taxes 1,092 (2,021) (407) (3,879)
Minority interest - (2) - (4)
Accretion expense 182 167 387 363
(Gain) on sale of
property, plant and
equipment (60) (160) (60) (160)
Early settlement of
debt - - - 29
Change in fair value
of derivatives and
unrealized foreign
exchange loss (gains) 1,896 (950) 3,793 (950)
Non-cash restructuring
costs - 23 - 48
-------------------------------------------------------------------------
27,102 11,857 47,004 19,927
Decrease (increase) in
working capital 6,643 (3,338) (7,250) (5,672)
-------------------------------------------------------------------------
33,745 8,519 39,754 14,255
Financing activities:
Distributions to
unitholders (10,075) (10,075) (20,150) (20,821)
Redemption of convertible
debentures - - - (16,378)
(Decrease) increase in
operating line of credit (7,731) 4,420 (7,047) 29,248
Financing transaction
costs (628) - (628) (317)
(Decrease) increase in
other long-term
liabilities (473) 2,528 2,612 2,543
-------------------------------------------------------------------------
(18,907) (3,127) (25,213) (5,725)
Investing activities:
Additions to property,
plant and equipment (4,396) (1,514) (6,650) (2,993)
Acquisitions - (6,909) - (6,909)
Proceed from disposal
of assets 79 220 79 220
Notes receivable (2,523) - (2,523) -
-------------------------------------------------------------------------
(6,840) (8,203) (9,094) (9,682)
Effect of exchange rates
on cash held in foreign
currencies 90 28 181 45
-------------------------------------------------------------------------
Increase (decrease) in cash
and cash equivalents 8,088 (2,783) 5,628 (1,107)
Cash and cash equivalents -
beginning of period 9,344 7,823 11,804 6,147
-------------------------------------------------------------------------
Cash and cash equivalents -
end of period $ 17,432 $ 5,040 $ 17,432 $ 5,040
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplemental information:
Cash taxes paid $ 640 $ 207 $ 1,374 $ 1,368
Cash interest paid $ 2,841 $ 2,920 $ 5,676 $ 6,764
See accompanying notes to consolidated financial statements
CHEMTRADE LOGISTICS INCOME FUND
Notes to Consolidated Financial Statements
(in thousands of dollars, except amounts per tonne)
(unaudited)
June 30, 2008
-------------------------------------------------------------------------
1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS:
Chemtrade Logistics Income Fund ("the Fund") commenced operations on
July 18, 2001 when it completed an Initial Public Offering and the
acquisition of certain sulphur related assets and operations. The
Fund operates in four business segments: Sulphur Products and
Performance Chemicals, Pulp Chemicals, International and Corporate.
For additional information regarding the Fund's business segments see
note 9.
These interim consolidated financial statements of the Fund have been
prepared by management in accordance with accounting principles
generally accepted in Canada. These interim consolidated financial
statements include the accounts of the Fund and its wholly-owned
subsidiaries. Inter-company transactions and balances have been
eliminated. These interim consolidated financial statements have been
prepared following the same accounting policies and methods of
computation as the annual consolidated financial statements of the
Fund for the year ended December 31, 2007, except as disclosed in
note 2. These interim consolidated financial statements do not
contain all disclosures required by generally accepted accounting
principles and accordingly should be read in conjunction with the
annual consolidated financial statements and the notes thereto.
2. CHANGES IN ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS:
(a) Changes in accounting policies:
(i) Capital disclosures
Effective January 1, 2008, the Fund adopted the recommendations of
the Canadian Institute of Chartered Accountants ("CICA") Handbook
Section 1535, Capital Disclosures. This section establishes standards
for disclosing information about an entity's capital and how it is
managed. The entity's disclosure should include information about its
objectives, policies and processes for managing capital and disclose
whether or not it has complied and the consequences of non-compliance
with any capital requirements to which it is subject. This new
section relates to disclosure and did not have an impact on the
Fund's financial results. These disclosures are contained in note 11.
(ii) Inventories
Effective January 1, 2008, the Fund adopted the recommendations of
CICA Handbook Section 3031, Inventories. Under the new section,
inventories are required to be measured at the "lower of cost and net
realizable value", which is different from the previous guidance of
the "lower of cost and market". The new section requires the reversal
of any write-downs previously recognized, if applicable. Certain
minimum disclosures are also required, including the accounting
policies used, carrying amounts, amounts recognized as an expense,
write-downs, and the amount of any reversal of any write-downs
recognized as a reduction in expenses.
The new section also clarifies the definition of cost to include all
costs of purchase, costs of conversion and other costs incurred to
bring inventories to their present location and condition. Costs of
conversion include a systematic allocation of fixed and variable
production overheads that are incurred in converting materials into
finished goods. The allocation of fixed production overheads is based
on normal production capacity of the production facilities.
The new section requires that depreciation be included in the fixed
costs of conversion when costing inventories. Previously, the Fund
had excluded depreciation from its cost of inventory. The Fund has
elected to apply this section retrospectively and has adjusted the
comparative figures to comply with the new section. As a result, the
opening deficit balances as of January 1, 2008 and 2007 have been
decreased by $474 and $556 respectively and as of April 1, 2008 and
2007 have decreased by $469 and $548 respectively. The closing
inventory and deficit balances as at December 31, 2007 have also been
adjusted by $474 to comply with the new section. Depreciation and
amortization expense for the three months and the six months ended
June 30, 2008, includes the depreciation expense related to cost of
sales and services of $4,874 and $9,497 respectively (2007 - $5,086
and $10,391 respectively).
(iii) Financial instruments
Effective January 1, 2008, the Fund adopted the recommendations of
CICA Handbook Sections 3862, Financial Instruments - Disclosures, and
3863, Financial Instruments - Presentation. Section 3862 modifies the
disclosure requirements of Section 3861, Financial Instruments -
Disclosure and Presentation, including required disclosure of the
assessment of the significance of financial instruments for an
entity's financial position and performance and of the extent of
risks arising from financial instruments to which the Fund is exposed
and how the Fund manages those risks, whereas Section 3863 carries
forward the presentation related requirements of Section 3861. These
new sections relate to disclosure and presentation only and did not
have an impact on the Fund's financial results. These disclosures are
contained in note 10.
(b) Recent accounting pronouncements:
(i) Convergence to international financial reporting standards
("IFRS")
In January 2006, the CICA Accounting Standards Board ("AcSB") adopted
a strategic plan for the direction of accounting standards in Canada.
The AcSB has recently confirmed that accounting standards in Canada
for public companies are to converge with IFRS effective for fiscal
periods beginning on or after January 1, 2011. The Fund has assembled
an IFRS transition team which has started to assess the impact of the
convergence of Canadian GAAP and IFRS, and will implement the new
IFRS standards.
(ii) Goodwill and intangible assets
In February 2008, the CICA issued Handbook Section 3064, Goodwill and
Intangible Assets. Section 3064 states that upon their initial
identification, intangible assets are to be recognized as assets only
if they meet the definition of an intangible asset and the
recognition criteria. This section also provides further information
on the recognition of internally generated intangible assets
(including research and development costs). As for subsequent
measurement of intangible assets, goodwill, and disclosure, Section
3064 carries forward the requirements of the old Section 3062,
Goodwill and Other Intangible Assets. The new section will become
effective on January 1, 2009 for the Fund. The Fund is currently
evaluating the effect of the adoption of this new section on the
consolidated financial statements.
3. NOTES RECEIVABLE:
During the second quarter, the Fund invested US$2.5 million in
Meranol S.A.C.I. ("Meranol"). Meranol is based in Buenos Aires,
Argentina and is a leading Argentine producer of sulphuric acid and
other sulphur products. The investment was made in the form of
convertible notes, convertible into 10% of the equity of Meranol. The
notes bear an interest rate of 10% per annum. The Fund also has
options over a specified period of time, to increase its investment
to up to 45% of Meranol's common stock at a pre-determined price.
4. INTANGIBLES:
During the first quarter of 2008, the Fund renewed its agreement with
Vale Inco Limited for the marketing of all sulphur by-products
produced by the Vale Inco smelter in Sudbury, Ontario. The new 10-
year contract, which contains similar terms to the existing
agreements between the parties, is effective as of January 1, 2008.
At the time of the Fund's IPO, it had recorded intangibles of $29,157
related to the Vale Inco Limited agreement and these intangibles were
considered to have an indefinite life. Management has revised its
estimate of the useful life of this relationship to 10 years in line
with the current agreement term. As a result, the Fund has begun
amortizing these intangibles on a straight-line basis over 10 years
beginning January 1, 2008. Consequently, for the three months and the
six months ended June 30, 2008, the Fund recorded amortization of
$729 and $1,458 respectively.
5. RESTRUCTURING COSTS:
During the fourth quarter of 2006, the Fund decided to discontinue
production of powder SHS and costs of $2,706 related to that decision
were recorded in that quarter. These costs included a provision for a
penalty on a long-term supply agreement. During the first quarter of
2008, the Fund had substantially concluded negotiations with the
supplier and the penalty was waived. As a result, the Fund reversed
the penalty provision previously recorded.
6. LONG-TERM DEBT:
During the second quarter of 2008, the Fund extended its senior
credit facilities with its principal bankers to August 2, 2011. This
is a two year extension to the current term, on substantially the
same terms as the existing agreement. The Fund incurred transaction
costs of $628 related to this extension. As the Fund is treating this
extension as a modification of the debt, rather than an
extinguishment, these transaction costs have been added to the
remaining unamortized transaction costs from the pre-existing
agreements. These transaction costs will be recorded as net interest
and accretion expense using the effective interest method over the
life of the extended debt.
The Fund also entered into new swap arrangements with its principal
banker, which will fix interest rates on all of its U.S. dollar term
debt and Canadian dollar denominated term debt from August 2009, the
previous maturity date of the Fund's credit facility, until August
2010.
7. UNITS:
(a) Units outstanding:
Number
of Units Amount
---------------------------------------------------------------------
Units
Balance - December 31, 2007 and
June 30, 2008 33,582,936 $ 412,957
---------------------------------------------------------------------
---------------------------------------------------------------------
(b) Net earnings per unit:
Net earnings per unit has been calculated on the basis of the
weighted average number of units outstanding for the three months and
the six months ended June 30, 2008 which amounted to 33,582,936 units
and 33,582,936 units respectively (2007 - 33,582,936 units and
33,582,758 units respectively).
(c) Distributions:
Distributions paid for the three months and the six months ended
June 30, 2008 were $10,075 and $20,150 respectively (2007 - $10,075
and $20,821 respectively). All of the Fund's distributions are
discretionary.
8. OTHER COMPREHENSIVE INCOME (LOSS):
The components of accumulated other comprehensive income (loss) as at
June 30, 2008 and other comprehensive income (loss) for the six
months then ended were as follows:
Opening Ending Opening
Accumulated other balance balance balance
comprehensive December 31, June 30, December 31,
income (loss) 2007 Net change 2008 2006
-------------------------------------------------------------------------
Unrealized (loss)
gain on
translation of
self-sustaining
foreign
operations $ (52,867) $ 3,604 $(49,263)(1) $ (31,426)
Unrealized (loss)
gain on
derivatives
designated as
cash flow hedges (438) (831) (1,269)(2) -
-------------------------------------------------------------------------
Accumulated other
comprehensive
income (loss) $ (53,305) $ 2,773 $ (50,532) $ (31,426)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Ending
Accumulated other Change in balance
comprehensive accounting June 30,
income (loss) policies Net change 2007
-----------------------------------------------------------
Unrealized (loss)
gain on
translation of
self-sustaining
foreign
operations $ - $ (12,443) $(43,869)(1)
Unrealized (loss)
gain on
derivatives
designated as
cash flow hedges 1,783 149 1,932(2)
-----------------------------------------------------------
Accumulated other
comprehensive
income (loss) $ 1,783 $ (12,294) $ (41,937)
-----------------------------------------------------------
-----------------------------------------------------------
(1) Net of income tax expense of $nil (2007 - $nil).
(2) Net of cumulative income tax recovery of $798 (2007 - expense $995).
9. BUSINESS SEGMENTS:
The Fund operates in four business segments: Sulphur Products and
Performance Chemicals ("SPPC"), Pulp Chemicals ("Pulp"),
International ("Intl") and Corporate ("Corp").
SPPC markets, removes and/or produces five major products - merchant
and regenerated sulphuric acid, liquid sulphur dioxide, sodium
hydrosulphite, elemental sulphur and phosphorous pentasulphide. These
products are marketed primarily to North American customers.
Pulp operations produce sodium chlorate and crude tall oil. These
products are marketed primarily to Canadian customers.
International operations provide removal and marketing services for
two products - elemental sulphur and sulphuric acid.
