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Acquisitions boost Ferro Corp's 2001 sales to record levels
April 2002
To further foster innovation, the company is also introducing an annual CHFlO million Ciba Specialty Chemicals Research Fund for longterm projects for new products and technologies. Ciba has also confirmed that initiatives to provide integrated customer solutions and services - such as Corporate Colors Management and Expert ServicesTMfor the polymer industry - will be continued and expanded. In Ciba’s Plastic Additives Segment, slower sales in base polymers and polymer products were compensated by strong sales growth in lubricant additives, resulting in overall stable volumes. Total sales for the segment were down 3% at CHFl834 million for 2001. Prices decreased 2% due to continuing competitive pressure and a slower economic environment in major customer industries. Continued high volumes, stable raw material prices and tight cost controls in production resulted in a largely stable EBITDA margin (earnings before interest, taxes, depreciation and amortization) of 2 1.1% of sales for the segment. Looking ahead, the company expects the recession to persist through the first quarter of 2002 and probably the second quarter as well, leading to weaker sales and margins in these quarters. For the full year of 2002, however, Ciba Specialty Chemicals expects both sales and earnings to be above last year’s levels, assuming an economic recovery later in the year in the USA and afterwards in Europe. Contact: Ciba Specialty Chemicals, CH-4002 Basel, Switzerland; tel: +41-61-636-4444; fax: +41-61-636-3019; URL: www.cibasc.com
Acquisitions boost Ferro Corp’s 2001 sales to record levels Ferro Corporation, of Cleveland, OH, USA, has posted record sales for both the fourth quarter and the full year 200 1. Sales for the year were US$l.50 billion, compared with $1.45 billion in 2000, and sales in the final quarter were $409.9 million, up 13.5% compared with $36 1.2 million for the same period the previous year. Increased volumes from acquisitions, particularly that of dmc2 (see September 2001 issue, p. 4), helped
02002 Elsevier Science
Additives for Polymers
offset declines in market demand due to the economic conditions in the USA and Europe, the company says. Net income for the year 2001 was $39.2 million - to which the fourth quarter contributed $6.0 million - compared with $73.1 million in 2000. Earnings reflect lower production rates due mainly to significantly reduced market demand in the USA throughout the year, and in Europe in the fourth quarter, Ferro says. The fourth quarter was also impacted when customers extended scheduled holiday shutdowns late in the quarter. “Economic conditions worldwide, but especially in the United States, clearly affected our financial results in 2001”, says Hector R. Ortino, chairman and CEO. “Despite challenging conditions, we took significant actions in the year to position Ferro for long-term, profitable growth. These include the dmd acquisition, our constant efforts to control costs, and our emphasis on generating free cash flow to aggressively reduce debt.” Ferro reports that it reduced total indebtedness by more than $90 million in the fourth quarter 200 1, following a $50 million reduction in the third quarter. The company’s two main business segments are Coatings and Performance Chemicals. In the Coatings segment sales were $278.1 million in the fourth quarter of 2001, and $920.7 million for the full year, both up on comparable 2000 figures. Sales in the Performance Chemicals segment for fourth quarter 2001 were $13 1.8 million, compared with $146.8 million in the same quarter last year. Segment sales for the full year totalled $580.4 million in 2001, compared with $568.7 million the prior year. Acquisitions made late in 2000 boosted current year sales in this segment. Operating income for the segment was $39.1 million for the year compared with $55.0 million in 2000. The declines in sales and earnings reflect lower production rates as automotive and industrial production rates remained weak, and demand for durable goods and building and renovation products remained soft, Ferro reports. According to Ortino some positive signs can now be seen in certain markets, although it is “unclear whether these apparent signs of recovery
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are sustainable”. As the timing and rate of an economic recovery are uncertain, Ferro will continue to take measures to reduce costs and aggressively manage operations to maximize cash flow, Grtino says. Ferro Corp rn~ufa~~es a broad range of additives for plastics, including colorants, heat and light stabilizers, plasticizers, lubricants and biocides. Contact: Ferro Corporation, 1000 Lakeside Avenue, Cleveland, Ohio 441 I4- 7000, USA; tel: +-l-216-641-8580; URL: www.ferr5.com
Great Lakes Chemical suffers fourth quarter loss Great Lakes Chemical Corporation reported a net loss of US$lO million for the fourth quarter ended 3 1 December 2001. This compares to net income of $19 million a year ago. The company posted fourth quarter sales of $343 million, down some 13% compared to $405 million in the co~espond~g period last year. During the quarter, Great Lakes recognized net pre-tax special charges and other one-time items totalling $28 million, relating to its restructuring plan which entails a series of manufacturing consolidations, cost reductions and other steps. Including these items, the company reported a net loss of $32 million in the fourth quarter. For 2001 as a whole, the company reported sales of $1.595 billion, a 5% decrease, compared to $1.670 billion for the year 2000. Net income for the year, excluding special charges and other one-time items, was $21 million. This compares with $113 million last year ago, a fall of more than 80%. Mark Buhiss, Great Lakes’ chairman and CEO co~ents, “Having ~ti~ipa~d a licit year, we planned an aggressive series of actions during the first quarter 2001 and began our implementation in the second quarter. We took decisive steps to consolidate facilities and streamline the organization, resulting in the largest restructuring in the company’s history. These actions improve our cost base while leaving our research and development and commercial structure intact.” The company also successfully continued to improve business processes with the aim of
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reducing working capital and maximizing free cash flow, Buhiss adds. He concludes that the combined benefits of the restructuring, growth in new products and improved productivity and efficiency allow the company to be optimistic ~once~g its long-term future despite the current ~~~eng~g market conditions. Great Lakes’ Polymer Additives business unit, the company’s largest unit, reported sales of $13 1.2 million for the fourth quarter, a 19% decrease from $161.2 million for the same period last year. This business, which includes flame retardants and polymer stabilizers, continues to be affected by adverse economic conditions in several key end markets. The operating loss for the final quarter was $11.6 million (compared with a profit of $5.4 million for the comparable 2000 quarter) but the company says this is a sequential improvement from the third quarter on slightly lower sales levels due to productivity increases, restructuring benefits and reduced raw material costs. Sales in all other business units were also down for the quarter. For the full year, sales of polymer additives reached $581.7 million, down from $690.1 million in 2000 on a loss of $29.2 million. The company reports total charges of $40.3 million against the polymer additives unit for 200 1 covering inventory write-down, environmental remediation costs, announced plant shutdown operating ~e~~ien~ies, and an adjus~ent to refIect the c~ulative pension liabili~ for UK pension plans. Contact: Great Lakes Chemical Carp, PO Box 2200, 1 Great Lakes Boulevard, West Lafayette, Indianapolis, IN 47906-5394, USA; tel: +I76.5-497-6100;fbx: +-l-765-497-6316
Engelhard’s full-year earnings fall in line with estimates Engelhard Corporation has reported net earnings for the full-year ended 3 1 December 2001 of US$226 million compared with $247 million last year, a decline of 8.5%. Sales for the year fell 7.3% to $5.1 billion, compared with $5.5 billion a year ago. For the fourth quarter of 2001 the company chalked up net earnings of $60.5 million,
02002 Elsevier Science
To further foster innovation, the company is also introducing an annual CHFlO million Ciba Specialty Chemicals Research Fund for longterm projects for new products and technologies. Ciba has also confirmed that initiatives to provide integrated customer solutions and services - such as Corporate Colors Management and Expert ServicesTMfor the polymer industry - will be continued and expanded. In Ciba’s Plastic Additives Segment, slower sales in base polymers and polymer products were compensated by strong sales growth in lubricant additives, resulting in overall stable volumes. Total sales for the segment were down 3% at CHFl834 million for 2001. Prices decreased 2% due to continuing competitive pressure and a slower economic environment in major customer industries. Continued high volumes, stable raw material prices and tight cost controls in production resulted in a largely stable EBITDA margin (earnings before interest, taxes, depreciation and amortization) of 2 1.1% of sales for the segment. Looking ahead, the company expects the recession to persist through the first quarter of 2002 and probably the second quarter as well, leading to weaker sales and margins in these quarters. For the full year of 2002, however, Ciba Specialty Chemicals expects both sales and earnings to be above last year’s levels, assuming an economic recovery later in the year in the USA and afterwards in Europe. Contact: Ciba Specialty Chemicals, CH-4002 Basel, Switzerland; tel: +41-61-636-4444; fax: +41-61-636-3019; URL: www.cibasc.com
Acquisitions boost Ferro Corp’s 2001 sales to record levels Ferro Corporation, of Cleveland, OH, USA, has posted record sales for both the fourth quarter and the full year 200 1. Sales for the year were US$l.50 billion, compared with $1.45 billion in 2000, and sales in the final quarter were $409.9 million, up 13.5% compared with $36 1.2 million for the same period the previous year. Increased volumes from acquisitions, particularly that of dmc2 (see September 2001 issue, p. 4), helped
02002 Elsevier Science
Additives for Polymers
offset declines in market demand due to the economic conditions in the USA and Europe, the company says. Net income for the year 2001 was $39.2 million - to which the fourth quarter contributed $6.0 million - compared with $73.1 million in 2000. Earnings reflect lower production rates due mainly to significantly reduced market demand in the USA throughout the year, and in Europe in the fourth quarter, Ferro says. The fourth quarter was also impacted when customers extended scheduled holiday shutdowns late in the quarter. “Economic conditions worldwide, but especially in the United States, clearly affected our financial results in 2001”, says Hector R. Ortino, chairman and CEO. “Despite challenging conditions, we took significant actions in the year to position Ferro for long-term, profitable growth. These include the dmd acquisition, our constant efforts to control costs, and our emphasis on generating free cash flow to aggressively reduce debt.” Ferro reports that it reduced total indebtedness by more than $90 million in the fourth quarter 200 1, following a $50 million reduction in the third quarter. The company’s two main business segments are Coatings and Performance Chemicals. In the Coatings segment sales were $278.1 million in the fourth quarter of 2001, and $920.7 million for the full year, both up on comparable 2000 figures. Sales in the Performance Chemicals segment for fourth quarter 2001 were $13 1.8 million, compared with $146.8 million in the same quarter last year. Segment sales for the full year totalled $580.4 million in 2001, compared with $568.7 million the prior year. Acquisitions made late in 2000 boosted current year sales in this segment. Operating income for the segment was $39.1 million for the year compared with $55.0 million in 2000. The declines in sales and earnings reflect lower production rates as automotive and industrial production rates remained weak, and demand for durable goods and building and renovation products remained soft, Ferro reports. According to Ortino some positive signs can now be seen in certain markets, although it is “unclear whether these apparent signs of recovery
7
Additivesf5r P5lymers
are sustainable”. As the timing and rate of an economic recovery are uncertain, Ferro will continue to take measures to reduce costs and aggressively manage operations to maximize cash flow, Grtino says. Ferro Corp rn~ufa~~es a broad range of additives for plastics, including colorants, heat and light stabilizers, plasticizers, lubricants and biocides. Contact: Ferro Corporation, 1000 Lakeside Avenue, Cleveland, Ohio 441 I4- 7000, USA; tel: +-l-216-641-8580; URL: www.ferr5.com
Great Lakes Chemical suffers fourth quarter loss Great Lakes Chemical Corporation reported a net loss of US$lO million for the fourth quarter ended 3 1 December 2001. This compares to net income of $19 million a year ago. The company posted fourth quarter sales of $343 million, down some 13% compared to $405 million in the co~espond~g period last year. During the quarter, Great Lakes recognized net pre-tax special charges and other one-time items totalling $28 million, relating to its restructuring plan which entails a series of manufacturing consolidations, cost reductions and other steps. Including these items, the company reported a net loss of $32 million in the fourth quarter. For 2001 as a whole, the company reported sales of $1.595 billion, a 5% decrease, compared to $1.670 billion for the year 2000. Net income for the year, excluding special charges and other one-time items, was $21 million. This compares with $113 million last year ago, a fall of more than 80%. Mark Buhiss, Great Lakes’ chairman and CEO co~ents, “Having ~ti~ipa~d a licit year, we planned an aggressive series of actions during the first quarter 2001 and began our implementation in the second quarter. We took decisive steps to consolidate facilities and streamline the organization, resulting in the largest restructuring in the company’s history. These actions improve our cost base while leaving our research and development and commercial structure intact.” The company also successfully continued to improve business processes with the aim of
8
A~~12002
reducing working capital and maximizing free cash flow, Buhiss adds. He concludes that the combined benefits of the restructuring, growth in new products and improved productivity and efficiency allow the company to be optimistic ~once~g its long-term future despite the current ~~~eng~g market conditions. Great Lakes’ Polymer Additives business unit, the company’s largest unit, reported sales of $13 1.2 million for the fourth quarter, a 19% decrease from $161.2 million for the same period last year. This business, which includes flame retardants and polymer stabilizers, continues to be affected by adverse economic conditions in several key end markets. The operating loss for the final quarter was $11.6 million (compared with a profit of $5.4 million for the comparable 2000 quarter) but the company says this is a sequential improvement from the third quarter on slightly lower sales levels due to productivity increases, restructuring benefits and reduced raw material costs. Sales in all other business units were also down for the quarter. For the full year, sales of polymer additives reached $581.7 million, down from $690.1 million in 2000 on a loss of $29.2 million. The company reports total charges of $40.3 million against the polymer additives unit for 200 1 covering inventory write-down, environmental remediation costs, announced plant shutdown operating ~e~~ien~ies, and an adjus~ent to refIect the c~ulative pension liabili~ for UK pension plans. Contact: Great Lakes Chemical Carp, PO Box 2200, 1 Great Lakes Boulevard, West Lafayette, Indianapolis, IN 47906-5394, USA; tel: +I76.5-497-6100;fbx: +-l-765-497-6316
Engelhard’s full-year earnings fall in line with estimates Engelhard Corporation has reported net earnings for the full-year ended 3 1 December 2001 of US$226 million compared with $247 million last year, a decline of 8.5%. Sales for the year fell 7.3% to $5.1 billion, compared with $5.5 billion a year ago. For the fourth quarter of 2001 the company chalked up net earnings of $60.5 million,
02002 Elsevier Science