Plains All American discloses ‘solid quarter’ despite revenue dip

Profits slipped for Houston pipeline operator Plains All American Pipeline LP during the third quarter.

In a statement issued after the market’s close, Plains reported posting a $449 million profit (55 cents a share) on nearly $7.9 billion of revenue during the third quarter. The figures were down compared to the $710 million profit (91 cents) on nearly $8.8 billion of revenue during the third quarter of 2018.

Plains missed Wall Street revenue expectations of $7.98 billion but beat expectations for earnings per share of 43 cents.

In a statement, the company’s CEO Willie Chiang described the third quarter as a “solid quarter” where pre-tax earnings grew compared to the same time period last year.

“We remain focused on allocating capital in a disciplined manner,” Chiang said.

Westlake Chemical profits plunge amid trade wars

Westlake Chemical saw its profits plunge nearly 50 percent as the ongoing trade war with China continues to hit the bottom line of the petrochemical sector.

The Houston chemical maker reported third-quarter profit of $158 million, down from $308 million in the year-ago period. Westlake’s $2.1 billion in quarterly revenue was off more than 8 percent from the year prior.

The chemical sector is highly dependent on growing demand in Asian markets that have experienced the fastest-growing population and middle class bases in recent years. However, U.S. trade wars with China and others have dented global economic growth, especially in Asia.

“We are experiencing slower global economic growth in 2019, which has been impacted by international trade tensions, resulting in a difficult pricing environment,” said Westlake Chief Executive Albert Chao. “In this challenging environment we are focused on cost control, and we are investing in a number of initiatives around the world which are expected to drive long-term value for our shareholders.”

Westlake reported shrinking profits in virtually all of its segments, including chemicals, plastics and vinyls.

LGI Homes sets sales volume record with expansion

LGI Homes said continued demand for affordable housing coupled with lower interest rates led to a record-setting third quarter, with home closings up 25 percent over a year ago and revenue up 27 percent.

The company posted thirdquarter revenue of $483 million, an increase of $103 million over the third quarter of 2018. Net income was $49.3 million, or $1.93 per share, compared with $37.7 million ($1.52), last year.

Increases were largely due to geographic expansion. At the end of the quarter, the company was selling in 103 communities, up from 81 a year ago. The average sales price during the quarter was $241,179, up 1.5 percent.

“In addition to a record-setting 2,003 home closings, the quarter was also highlighted by recordsetting results across home sales revenues, average home sales price, community count and net income,” Chairman and CEO Eric Lipar said Tuesday in an earnings report.