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AkzoNobel 3Q 2008: Speciality Chemicals
F O C US carpet-cleaning machine. Water is added to the reservoir of the carpetcleaning machine before or after adding the water-soluble product, and the machine operated. The cleaning composition encased in the polymer comprises at least one surfactant, at least one builder and at least one super-wetter. HAPPI, Household & Personal Products Industry, Nov 2008, 45 (11), 32
Sunscreen compositions patented by Playtex Playtex Products has been awarded Patent No US 7,416,719 for a sunscreen composition that has at least one sunscreen agent and at least one lauryl glucoside surfactant emulsifier, which imparts a soft, silky feel to the formulation. The sunscreen composition also contains water and preferably at least one of the following additional components: an emulsifier other than glucoside; emollient, skinfeel additive; moisturizing agent; film former/waterproofing agent; pH adjuster/chelating agent; preservative, or any combinations thereof. The composition is a stable oil-in-water emulsion. HAPPI, Household & Personal Products Industry, Oct 2008, 45 (11), 34
MARKET REVIEWS Personal cleansers targeted at grooming-conscious men and moisture-craving women Targeted marketing seems to be the trend within the personal care market. Industry players are responding to consumer demand by offering gender-specific products targeting gender-specific needs. In the male category, P&G’s strategy of offering products with dual-functionality has led to the launch of its line of 2-in-1 body washes. The new line includes the Gillette Gentle Clean Shampoo + Body Wash, Gillette Oil Control Face + Body Wash, and the Gillette Dry Skin Hydrator + Body Wash. Unilever’s interest in the men’s personal care market has led to the 6
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creation of Vaseline Men, an adaptation of its Vaseline brand that targets the male consumers. The line includes a range of body and face and hand lotions, as well as body and face bar soap. In the female category, P&G’s multi-benefits offerings include the Olay Body Wash Plus Spa Exfoliating Ribbons, as well as Colgate’s Softsoap Spa Radiant line. Eucerin’s New Calming Body Wash is enriched with essential omega fatty acids that are said to relieve and soothe itchy and dry skin. In the market for bath and shower products, the liquid soap sector is growing at the expense of the bar soap sector. Figures from Euromonitor International show that body wash and shower gel sales reached $1.7 bn in 2007, which translates to a compound annual growth rate (CAGR) of 6.8% since 2002. Liquid soap sales grew 7.2% to $727.3 M during the same period. Bar soap sales totalled $1.2 bn in 2007, down 3.4% from $1.4 bn in 2002. HAPPI, Household & Personal Products Industry, Nov 2008, 45 (11), 90-92,94-95
Cosmetics demand expected to remain healthy The Freedonia Group forecasts US demand for cosmetic and toiletry (C&T) chemicals to climb by 5.8% to $8.8 bn in 2012, despite the economic slowdown. Volume growth will generally remain robust at 3.3%/y, but the use of higher-value ingredients will partly counteract the gains. Natural products are expected to achieve favourable growth opportunities but traditional C&T chemicals, including commodity surfactants, will experience limited gains. Chemical Week, 24 Nov 2008, (Website: http://www.chemweek.com)
I&I market update The months ahead will be challenging for the industrial and institutional (I&I) cleaning market as the US economy descends into recession, the credit crunch worsens into a crisis, and the number of unemployed increases. Kline & Co breaks down the $10.8 bn US I&I market as follows: food service with $2.1 bn; janitorial with $3.5 bn;
industrial with $3.0 bn; food processing with $1.3 bn; and laundry with $900 M. Particularly vulnerable to the economic slowdown are the food service industry, as well as the travel and lodging industry, two of the I&I market’s major end-use consumers. However, the good news is that the healthcare segment should serve as a buffer against the projected consumption decline as a result of the continuing increase in the population’s average age. Meanwhile, an array of new products has been recently launched. State launched six new floor care products. Spartan’s new offering is a range of phosphate and nonylphenol-free products called the Clothesline Fresh Laundry. HAPPI, Household & Personal Products Industry, Nov 2008, 45 (11), 97-98,100
COMPANY RESULTS Procter & Gamble has solid 3Q 2008 sales and profits The US consumer product group Procter & Gamble had a 9% rise in its 3Q 2008 sales to $22 bn. Sales volume was up by 2%. Prices contributed 3% to sales growth. Procter & Gamble achieved double digit growth in turnover in emerging markets. 3Q 2008 net profit was $3.3 bn (+12% on 3Q 2007). The group remains prudent in its full year forecasts for 2008, predicting a profit/share of between $4.14-4.25. La Tribune, 29 Oct 2008, (Website: http://www.latribune.fr) (in French)
AkzoNobel 3Q 2008: Speciality Chemicals For its 3Q 2008 (period ends 30 Sep 2008), the Speciality Chemicals segment of AkzoNobel has reported revenue of €1212 M (€1157 M for its 3Q 2007), of which Surface Chemistry accounted for €210 M (€193 M). EBITDA was €199 M (€208 M), EBIT €146 M (€150 M), and capital expenditure €63 M (€45 M). For the first nine months of 2008, this segment has reported revenue of €3630 M (€3441 M for the same JANUARY 2009
F O C US period of 2007), with Surface Chemistry accounting for €622 M (€583 M); EBITDA of €599 M (€608 M), EBIT of €439 M (€434 M), capital expenditure of €176 M (€146 M), and headcount of 11,070 (10,965). Within Surface Chemistry, revenue increased by 9% compared with 3Q 2007, driven primarily by price increases. Demand for surfactants in all regions was at a good level during the quarter, but the business was negatively impacted by two hurricanes that hit the Gulf Coast of the US. Gustav shut down key raw material suppliers, forcing the business to declare force majeure in certain product segments, while the Houston plant was later hit by Ike and was down for nine days. Nevertheless, operating performance improved significantly. The Alco and Personal Care businesses were operating slightly below the 3Q 2007 performance. Press release from: AkzoNobel, Strawinskylaan 2555, PO Box 75730, 1070 AS Amsterdam, the Netherlands, tel: +31 20 502 7555, fax: +31 20 502 7666, website: http://www.akzonobel.com (29 Oct 2008)
Rhodia 3Q 2008: Novecare For its 3Q 2008 (period ends 30 Sep 2008), the Novecare segment of Rhodia SA has reported net sales of €260 M (€227 M for its 3Q 2007), recurring EBITDA of €43 M (€25 M), and operating profit of €14 M (€31 M). For the first nine months of 2008, this segment has reported net sales of €735 M (€717 M for the same period of 2007), recurring EBITDA of €101 M (€88 M), and operating profit of €71 M (€60 M). Rhodia Novecare nearly doubled its 3Q EBITDA yearon-year. This record quarter reflects the enterprise’s reinforced pricing power and a strong growth momentum in the oilfield and agro markets. Rhodia Novecare provides high-performance products and solutions, including cationic, anionic, nonionic and amphoteric surfactants, to a wide range of industries including cosmetics, detergents, agrochemicals and oil, as well as industrial applications. Press release from: Rhodia SA, Immeuble Coeur Defense, Tour A, 110 esplanade Charles de Gaulle, 92400 Courbevoie, France, tel: +33 1 53 56 64 64, fax: +33 1 53 56 64 59, website: http://www.rhodia.com (6 Nov 2008)
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Cash-generative Croda has an air of beauty Speciality chemicals group Croda has reported consensus-busting numbers, saying pre-tax profits for 3Q 2008 were up 73% to £24.6 M and it was confident about the rest of 2008 and 2009 as well. The group supplies most of the world’s major cosmetics companies with ingredients for products such as shampoos, soaps and beauty products. The Independent, 5 Nov 2008, (Website: http://www.independent.co.uk)
Cognis first nine-months 2008: Care Chemicals For the first nine months of 2008, the Care Chemicals segment of Cognis GmbH has reported sales of €1294 M (€1180 M for the same period of 2007). Organic sales growth of 13.2% was primarily driven by volume growth and selling price increases of speciality and innovative products and the good growth in the primary surfactants business reflecting higher selling prices which over compensated for lower volumes. Cognis also reports that the sale of its stake in Cognis Oleochemicals has successfully closed.
COMPANY NEWS Henkel to sell Ecolab stake German detergents and adhesives specialist Henkel will sell the majority of its 29.4% stake (72.7 M shares) in US cleaning chemicals producer Ecolab, via a public offering. Revenues before tax and secondary costs are expected to be €1.6 bn (c $2 bn). Ecolab will directly buy back at least $300 M (€240 M) worth of its own shares from Henkel. If a bank consortium exercises its multiallocation option for the acquisition of the 5.6 M Ecolab shares still held by Henkel, Henkel would get a further $170 M. The company announced plans to withdraw from the sector in Feb 2008 [Focus on Surfactants, May 2008]. Henkel will use the proceeds to pay back debts that have arisen through the acquisition of the National Starch adhesives business, which cost the company €3.7 bn. Henkel’s debts rose to €5.3 bn as of 30 Sep 2008 as a result. ICIS Chemical Business, 17 Nov 2008, (Website: http://icischemicalbusiness.com), Chimie Pharma Hebdo, 18 Nov 2008, (444), 12 (in French) & Handelsblatt Wirtschafts- und Finanzzeitung, 14 Nov 2008, (222), 22 (in German)
Press release from: Cognis GmbH, Postfach 130164, D-40551, Düsseldorf, Germany, website: http://www.cognis.com (25 Nov 2008)
Rhodia opens its Shanghai centre
Henkel’s boss, Kasper Rorsted, wants to make his company more effective and profitable in the next four years. Sales are to rise 3-5%/y to 2012; operating margins are to reach 14%. One analyst sees these as fairly ambitious goals. Sales in 3Q 2008 were up 12% at €3.76 bn, boosted by the acquisition of National Starch (adhesives). EBIT was down 46.8% at €191 M; the company took a restructuring charge of €181 M due to the acquisition. Adjusted net profits were up 2.4% at €251 M. Sales of the Detergents/Cleaners division were up 1.4% at €1.068 bn. The Cosmetics/ Toiletries division was up 0.3% at €770 M.
Rhodia is opening its new research and development site in Shanghai, China. This centre is one of the 5 big research centres worldwide for Rhodia. The Shanghai centre is to focus on products for sale in Asia. Fields of operation are chemical engineering, engineering plastics for the electrical, electronic and automobile industries, formulation of detergents, cosmetics and industrial chemicals, and the design of rare earth products for low-energy consumption lighting and for polishing electronic products. There is already a team of 70 research workers and 15 patents applications are being processed. There are to be 150 research workers by 2010, in the enlarged centre (6500 sq m).
Handelsblatt Wirtschafts- und Finanzzeitung, 7 Nov 2008, (217), 16 (in German)
Chimie Pharma Hebdo, 24 Nov 2008, (445), 10 (in French)
Henkel boss has ambitious targets
7
Sunscreen compositions patented by Playtex Playtex Products has been awarded Patent No US 7,416,719 for a sunscreen composition that has at least one sunscreen agent and at least one lauryl glucoside surfactant emulsifier, which imparts a soft, silky feel to the formulation. The sunscreen composition also contains water and preferably at least one of the following additional components: an emulsifier other than glucoside; emollient, skinfeel additive; moisturizing agent; film former/waterproofing agent; pH adjuster/chelating agent; preservative, or any combinations thereof. The composition is a stable oil-in-water emulsion. HAPPI, Household & Personal Products Industry, Oct 2008, 45 (11), 34
MARKET REVIEWS Personal cleansers targeted at grooming-conscious men and moisture-craving women Targeted marketing seems to be the trend within the personal care market. Industry players are responding to consumer demand by offering gender-specific products targeting gender-specific needs. In the male category, P&G’s strategy of offering products with dual-functionality has led to the launch of its line of 2-in-1 body washes. The new line includes the Gillette Gentle Clean Shampoo + Body Wash, Gillette Oil Control Face + Body Wash, and the Gillette Dry Skin Hydrator + Body Wash. Unilever’s interest in the men’s personal care market has led to the 6
O N
S U R FAC TA N T S
creation of Vaseline Men, an adaptation of its Vaseline brand that targets the male consumers. The line includes a range of body and face and hand lotions, as well as body and face bar soap. In the female category, P&G’s multi-benefits offerings include the Olay Body Wash Plus Spa Exfoliating Ribbons, as well as Colgate’s Softsoap Spa Radiant line. Eucerin’s New Calming Body Wash is enriched with essential omega fatty acids that are said to relieve and soothe itchy and dry skin. In the market for bath and shower products, the liquid soap sector is growing at the expense of the bar soap sector. Figures from Euromonitor International show that body wash and shower gel sales reached $1.7 bn in 2007, which translates to a compound annual growth rate (CAGR) of 6.8% since 2002. Liquid soap sales grew 7.2% to $727.3 M during the same period. Bar soap sales totalled $1.2 bn in 2007, down 3.4% from $1.4 bn in 2002. HAPPI, Household & Personal Products Industry, Nov 2008, 45 (11), 90-92,94-95
Cosmetics demand expected to remain healthy The Freedonia Group forecasts US demand for cosmetic and toiletry (C&T) chemicals to climb by 5.8% to $8.8 bn in 2012, despite the economic slowdown. Volume growth will generally remain robust at 3.3%/y, but the use of higher-value ingredients will partly counteract the gains. Natural products are expected to achieve favourable growth opportunities but traditional C&T chemicals, including commodity surfactants, will experience limited gains. Chemical Week, 24 Nov 2008, (Website: http://www.chemweek.com)
I&I market update The months ahead will be challenging for the industrial and institutional (I&I) cleaning market as the US economy descends into recession, the credit crunch worsens into a crisis, and the number of unemployed increases. Kline & Co breaks down the $10.8 bn US I&I market as follows: food service with $2.1 bn; janitorial with $3.5 bn;
industrial with $3.0 bn; food processing with $1.3 bn; and laundry with $900 M. Particularly vulnerable to the economic slowdown are the food service industry, as well as the travel and lodging industry, two of the I&I market’s major end-use consumers. However, the good news is that the healthcare segment should serve as a buffer against the projected consumption decline as a result of the continuing increase in the population’s average age. Meanwhile, an array of new products has been recently launched. State launched six new floor care products. Spartan’s new offering is a range of phosphate and nonylphenol-free products called the Clothesline Fresh Laundry. HAPPI, Household & Personal Products Industry, Nov 2008, 45 (11), 97-98,100
COMPANY RESULTS Procter & Gamble has solid 3Q 2008 sales and profits The US consumer product group Procter & Gamble had a 9% rise in its 3Q 2008 sales to $22 bn. Sales volume was up by 2%. Prices contributed 3% to sales growth. Procter & Gamble achieved double digit growth in turnover in emerging markets. 3Q 2008 net profit was $3.3 bn (+12% on 3Q 2007). The group remains prudent in its full year forecasts for 2008, predicting a profit/share of between $4.14-4.25. La Tribune, 29 Oct 2008, (Website: http://www.latribune.fr) (in French)
AkzoNobel 3Q 2008: Speciality Chemicals For its 3Q 2008 (period ends 30 Sep 2008), the Speciality Chemicals segment of AkzoNobel has reported revenue of €1212 M (€1157 M for its 3Q 2007), of which Surface Chemistry accounted for €210 M (€193 M). EBITDA was €199 M (€208 M), EBIT €146 M (€150 M), and capital expenditure €63 M (€45 M). For the first nine months of 2008, this segment has reported revenue of €3630 M (€3441 M for the same JANUARY 2009
F O C US period of 2007), with Surface Chemistry accounting for €622 M (€583 M); EBITDA of €599 M (€608 M), EBIT of €439 M (€434 M), capital expenditure of €176 M (€146 M), and headcount of 11,070 (10,965). Within Surface Chemistry, revenue increased by 9% compared with 3Q 2007, driven primarily by price increases. Demand for surfactants in all regions was at a good level during the quarter, but the business was negatively impacted by two hurricanes that hit the Gulf Coast of the US. Gustav shut down key raw material suppliers, forcing the business to declare force majeure in certain product segments, while the Houston plant was later hit by Ike and was down for nine days. Nevertheless, operating performance improved significantly. The Alco and Personal Care businesses were operating slightly below the 3Q 2007 performance. Press release from: AkzoNobel, Strawinskylaan 2555, PO Box 75730, 1070 AS Amsterdam, the Netherlands, tel: +31 20 502 7555, fax: +31 20 502 7666, website: http://www.akzonobel.com (29 Oct 2008)
Rhodia 3Q 2008: Novecare For its 3Q 2008 (period ends 30 Sep 2008), the Novecare segment of Rhodia SA has reported net sales of €260 M (€227 M for its 3Q 2007), recurring EBITDA of €43 M (€25 M), and operating profit of €14 M (€31 M). For the first nine months of 2008, this segment has reported net sales of €735 M (€717 M for the same period of 2007), recurring EBITDA of €101 M (€88 M), and operating profit of €71 M (€60 M). Rhodia Novecare nearly doubled its 3Q EBITDA yearon-year. This record quarter reflects the enterprise’s reinforced pricing power and a strong growth momentum in the oilfield and agro markets. Rhodia Novecare provides high-performance products and solutions, including cationic, anionic, nonionic and amphoteric surfactants, to a wide range of industries including cosmetics, detergents, agrochemicals and oil, as well as industrial applications. Press release from: Rhodia SA, Immeuble Coeur Defense, Tour A, 110 esplanade Charles de Gaulle, 92400 Courbevoie, France, tel: +33 1 53 56 64 64, fax: +33 1 53 56 64 59, website: http://www.rhodia.com (6 Nov 2008)
JANUARY 2009
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S U R FAC TA N T S
Cash-generative Croda has an air of beauty Speciality chemicals group Croda has reported consensus-busting numbers, saying pre-tax profits for 3Q 2008 were up 73% to £24.6 M and it was confident about the rest of 2008 and 2009 as well. The group supplies most of the world’s major cosmetics companies with ingredients for products such as shampoos, soaps and beauty products. The Independent, 5 Nov 2008, (Website: http://www.independent.co.uk)
Cognis first nine-months 2008: Care Chemicals For the first nine months of 2008, the Care Chemicals segment of Cognis GmbH has reported sales of €1294 M (€1180 M for the same period of 2007). Organic sales growth of 13.2% was primarily driven by volume growth and selling price increases of speciality and innovative products and the good growth in the primary surfactants business reflecting higher selling prices which over compensated for lower volumes. Cognis also reports that the sale of its stake in Cognis Oleochemicals has successfully closed.
COMPANY NEWS Henkel to sell Ecolab stake German detergents and adhesives specialist Henkel will sell the majority of its 29.4% stake (72.7 M shares) in US cleaning chemicals producer Ecolab, via a public offering. Revenues before tax and secondary costs are expected to be €1.6 bn (c $2 bn). Ecolab will directly buy back at least $300 M (€240 M) worth of its own shares from Henkel. If a bank consortium exercises its multiallocation option for the acquisition of the 5.6 M Ecolab shares still held by Henkel, Henkel would get a further $170 M. The company announced plans to withdraw from the sector in Feb 2008 [Focus on Surfactants, May 2008]. Henkel will use the proceeds to pay back debts that have arisen through the acquisition of the National Starch adhesives business, which cost the company €3.7 bn. Henkel’s debts rose to €5.3 bn as of 30 Sep 2008 as a result. ICIS Chemical Business, 17 Nov 2008, (Website: http://icischemicalbusiness.com), Chimie Pharma Hebdo, 18 Nov 2008, (444), 12 (in French) & Handelsblatt Wirtschafts- und Finanzzeitung, 14 Nov 2008, (222), 22 (in German)
Press release from: Cognis GmbH, Postfach 130164, D-40551, Düsseldorf, Germany, website: http://www.cognis.com (25 Nov 2008)
Rhodia opens its Shanghai centre
Henkel’s boss, Kasper Rorsted, wants to make his company more effective and profitable in the next four years. Sales are to rise 3-5%/y to 2012; operating margins are to reach 14%. One analyst sees these as fairly ambitious goals. Sales in 3Q 2008 were up 12% at €3.76 bn, boosted by the acquisition of National Starch (adhesives). EBIT was down 46.8% at €191 M; the company took a restructuring charge of €181 M due to the acquisition. Adjusted net profits were up 2.4% at €251 M. Sales of the Detergents/Cleaners division were up 1.4% at €1.068 bn. The Cosmetics/ Toiletries division was up 0.3% at €770 M.
Rhodia is opening its new research and development site in Shanghai, China. This centre is one of the 5 big research centres worldwide for Rhodia. The Shanghai centre is to focus on products for sale in Asia. Fields of operation are chemical engineering, engineering plastics for the electrical, electronic and automobile industries, formulation of detergents, cosmetics and industrial chemicals, and the design of rare earth products for low-energy consumption lighting and for polishing electronic products. There is already a team of 70 research workers and 15 patents applications are being processed. There are to be 150 research workers by 2010, in the enlarged centre (6500 sq m).
Handelsblatt Wirtschafts- und Finanzzeitung, 7 Nov 2008, (217), 16 (in German)
Chimie Pharma Hebdo, 24 Nov 2008, (445), 10 (in French)
Henkel boss has ambitious targets
7