|NEXEO SOLUTIONS, INC. filed this Form 10-Q on 05/10/2018|
Certain Factors Affecting Comparability to Prior Period Financial Results
In April 2017, we completed the Ultra Chem Acquisition. Accordingly, the results of the acquired operations since the Ultra Chem Closing Date are included in our condensed consolidated results of operations, including the results for the first half of fiscal year 2018. The acquired operations are primarily included in our Chemicals line of business. See Note 3 to our condensed consolidated financial statements.
Results of Operations
Three Months Ended March 31, 2018 compared with Three Months Ended March 31, 2017
Sales and operating revenues
Sales and operating revenues for the three months ended March 31, 2018 increased $123.3 million, or 13.4%, compared to the three months ended March 31, 2017. Excluding $19.8 million in revenues from the Ultra Chem Group, or 1.9%, the increase in revenues was primarily attributable to an increase in average selling prices of 11.7% across all segments in all regions. Approximately $25.0 million of the increase was a result of strengthening exchange rates of various currencies versus the USD as compared to the same period in the prior fiscal year.
Sales and operating revenues for the Chemicals line of business for the three months ended March 31, 2018 increased $72.8 million, or 17.5%, compared to the three months ended March 31, 2017. Excluding $19.8 million in revenues from the Ultra Chem Group, the revenue increase was primarily attributable to a 10.2% increase in average selling prices and an increase in volumes of 2.3% across multiple product lines. Volume and average selling price performance was a result of continued expansion of our specialty business and recovery in the oil and gas industry, partially offset by volume decreases in Asia.