Kraton Corporation Announces Q4 and Full Year 2017 Results
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of Kraton Corporation (“Kraton”).
The investigation concerns whether Kraton (NYSE: KRA) and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On February 20, 2018, Kraton Corporation, “a leading global producer of styrenic block copolymers, specialty polymers and high-value performance products derived from pine wood pulping co-products,” announced its financial results for Q4 and the year ended December 31, 2017.
KRA’s President and CEO, Kevin M. Fogarty, stated:
“While our fourth quarter and full-year 2017 results are in line with the updated view for the year we provided in October, reflecting an increase in Adjusted EBITDA of 11% and 6% compared to the fourth quarter and full-year 2016 respectively, our fourth quarter 2017 results include a $7.6 million negative pre-tax impact arising from customer-observed Cariflex processing issues. Specifically, and as previously discussed, in the third quarter of 2017 we initiated the “direct-connect” manufacturing process for our Cariflex products at our manufacturing facility in Paulinia, Brazil. Although material produced from this new process has met technical specifications, during the fourth quarter 2017 certain customers notified us that they were experiencing issues processing the material. We are working with our customers to fully resolve the issue and, to date, we have implemented a number of manufacturing stabilization actions that we believe will address our customers’ processing concerns’ . . .. (Emphasis added)
The slide presentation used in conjunction with KRA’s earnings announcement can be viewed by clicking Kraton Corporation Slied Presentation, February 21, 2018.
On this news, KRA’s stock price fell sharply during intraday trading on February 21, 2018, closing down 15.14% to $43.10 from its previous stock closing price of $50.79.
Kraton Corporation Investors & Shareholders
If you purchased, or otherwise acquired, KRA stock shares and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].