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Below is a cache of http://www.lyondell.com/NR/rdonlyres/D7F263C8-130E-498D-80A1-164EDA666EF1/0/mch2001ar.pdf. It's a snapshot of the page taken as our search engine crawled the Web.
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. NYSE: MCH www.millenniumchem.com NYSE: MCH www.millenniumchem.com C C o o n n n n e e c c tt tt o o a a w w o o rr ll d d o o ff s s o o ll u u tt ii o o n n s s MillenniumAR_32318_Cvrs 4/5/02 1:15 AM Page 2 Chairmans Message Last year I spoke about the challenging economic environment we were confronted with in 2001. That prediction turned out to be, if anything, an understatement of the difficulty we faced. Results2001 I also noted in last years message, the necessity to concentrate on our continuing cost-cutting initiatives, both manufacturing and Selling, Development and Administrative expenses. I am extremely
pleased at the progress we have made in these areas. The women and men of Millennium came through in a big way in 2001. Using our Titanium Dioxide (TiO 2 ) business as a proxy for all of Millenniums manufacturing, our quarterly trend on manufacturing cost per metric ton of TiO 2 demonstrated consistent improvement through the year, as the accompanying graph shows. This result is especially impressive in that it came
about despite the cost penalty of operating at reduced rates for much of 2001 to better match
production with lower-than-expected demand. We have also made the necessary and significant cutbacks in Selling, Development and Administrative costs required to be competitive with our peers. As the accompanying graph illustrates, aggressive action has reduced our spending rate on overhead costs to about $140 million a year. This means were spending an impressive $60 million less
per year than we were before the internal reorganization put into effect in March of 2001, which is
described later in this message. 1Q 2Q 3Q YTD 4Q 2000 2001 S,D&A Costs (Dollars in Millions) 46 43 50 57 35 35 47 33 200 146 90 95 100 1Q01 2Q01 3Q01 4Q01 Index Global Indexed TiO 2 Manufacturing Costs I am pleased to report that these cost-reduction initiatives and actions were not achieved by compromising our commitment to Responsible Care
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. NYSE: MCH www.millenniumchem.com NYSE: MCH www.millenniumchem.com C C o o n n n n e e c c tt tt o o a a w w o o rr ll d d o o ff s s o o ll u u tt ii o o n n s s MillenniumAR_32318_Cvrs 4/5/02 1:15 AM Page 2 Chairmans Message Last year I spoke about the challenging economic environment we were confronted with in 2001. That prediction turned out to be, if anything, an understatement of the difficulty we faced. Results2001 I also noted in last years message, the necessity to concentrate on our continuing cost-cutting initiatives, both manufacturing and Selling, Development and Administrative expenses. I am extremely
pleased at the progress we have made in these areas. The women and men of Millennium came through in a big way in 2001. Using our Titanium Dioxide (TiO 2 ) business as a proxy for all of Millenniums manufacturing, our quarterly trend on manufacturing cost per metric ton of TiO 2 demonstrated consistent improvement through the year, as the accompanying graph shows. This result is especially impressive in that it came
about despite the cost penalty of operating at reduced rates for much of 2001 to better match
production with lower-than-expected demand. We have also made the necessary and significant cutbacks in Selling, Development and Administrative costs required to be competitive with our peers. As the accompanying graph illustrates, aggressive action has reduced our spending rate on overhead costs to about $140 million a year. This means were spending an impressive $60 million less
per year than we were before the internal reorganization put into effect in March of 2001, which is
described later in this message. 1Q 2Q 3Q YTD 4Q 2000 2001 S,D&A Costs (Dollars in Millions) 46 43 50 57 35 35 47 33 200 146 90 95 100 1Q01 2Q01 3Q01 4Q01 Index Global Indexed TiO 2 Manufacturing Costs I am pleased to report that these cost-reduction initiatives and actions were not achieved by compromising our commitment to Responsible Care
