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AkzoNobel job reductions exceed 3500
F O C U S since Singapore is a primary shipping centre and has farreaching dry docking, port and anchorage facilities. European Paint and Resin News, Sep 2009, 47 (9), 13
DuPont delivers strong results in 3Q 2009 EI du Pont de Nemours and Co (DuPont) reported its financial results for 3Q and nine months ended Sep 2009. Net income attributable to DuPont for 3Q 2009 was $409 M (net income of $367 M in 3Q 2008). DuPont’s 3Q 2009 earnings were $0.45/share (earnings of $0.4/share in 3Q 2008). The 3Q 2009 consolidated net sales of $6 bn were 18% lower than 3Q 2008, reflecting 12% lower volume, 2% lower local prices, a 3% negative impact from currency exchange rates and a net 1% reduction due to portfolio changes. During 3Q 2009: Agriculture and Nutrition sales were $1.2 bn, down 5%, reflecting unfavourable currency impact, partly offset by agriculture market share gains and strong seed pricing; Coatings and Colour Technologies sales were $1.5 bn, down 16%, primarily reflecting continued weakness in motor vehicle markets; Electronic and Communication Technologies sales were $919 M, down 13%, reflecting 10% lower volume and 3% lower selling prices. Performance Materials sales; and Safety and Protection sales details are also included. Net sales were $19,690 M for nine months of 2009 ($24,709 M in nine months of 2008). Net income was 1324 M for nine months of 2009 ($2646 M in nine months of 2008). Research and development expense was $335,000 during 3Q 2009 ($360,000 in 3Q 2008) and $989,000 during nine months of 2009 ($1.050 M in nine months of 2008). DuPont revised its full-year 2009 earnings outlook to a range of $1.95 to $2.05/share, excluding significant items. The full-year free cash flow target remains $2.5 bn. Founded in 1802, DuPont puts DECEMBER 2009
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science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation. The financial figures for the company are presented in tables. EI du Pont de Nemours Financial Results 3Q and Nine Months 2009, 20 Oct 2009, (DuPont Building, 1007, Market Street, Wilmington, DE 19898, USA, website: http://www.dupont.com)
DuPont’s earnings rise on lower costs, but sales down: regional US chemical firm DuPont posted a net income of $409 M in 3Q 2009, up 11.5% from $367 M in 3Q 2008 because of considerably lower costs. Global net sales, however, declined by 18% year on year to $6 bn due to lower volumes and weak prices as well as because of the negative effects of exchange rates and portfolio changes. Sales dropped in all business units, notably in the safety and protection, and performance materials segments, which posted sales down 32% to $1 bn and 24% to $1.3 bn, respectively. Sales of the coatings and colour technologies unit fell by 16% to $1.5 bn. BNAmericas Petrochemicals News, 20 Oct 2009, (Business News Americas Ltd, website: http://www.bnamericas.com)
Asian Paints: results for 2Q 20092010 Asian Paints Ltd has recorded a profit-after-tax of Rup 254.32 crores on net sales/income from operations of Rup 1386.46 crores, on a stand alone basis, for 2Q ended Sep 2009 (profit-after-tax of Rup 121.71 crores on net sales/income from operations of Rup 1168.97 crores in 2Q ended Sep 2008). During 2Q 2009-2010, the company derived revenues of Rup 1381.64 crores from its paints business (revenues of Rup
C OAT I N G S 1147.20 crores in 2Q 2008-2009). The financial figures for the company are presented in the table. (1 crore = 10 M, 1 lakh = 100,000). Business Standard, 23 Oct 2009, 12 (97), I.9
Economic woes put a damper on deals Mergers and acquisition activities have pushed several companies up in the Billion-Dollar Club rankings for 2009. Basell made the top 10 with its purchase of Lyondell Chemical, and Akzo Nobel took the top 15 spot with its acquisition of ICI. Those deals were completed in 1H 2008, before the onset of the global economic sump. Economic conditions after the deals have urged the companies to cut costs or file for bankruptcy protection. Decorative paints maker AkzoNobel drew up a cost savings plan of €340 M/y ($507 M) when it agreed to purchase ICI. The company has since announced further cost savings of €200 M via several initiatives including plant closures to counter the decline in sales and profits. LyondellBasell had to file for bankruptcy in Jan 2009 because of the economic decline and heavy debt brought about by Basell’s acquisition of Lyondell in 2007. Dow Chemical, meanwhile, had to sell several assets after spending $19 bn to acquire Rohm and Haas in Mar 2009, with $4 bn in committed asset sales and more than $20 bn in total possible asset sales. Chemical Week, 19 Oct 2009, (Website: http://www.chemweek.com)
AkzoNobel job reductions exceed 3500 AkzoNobel will exceed its 3500 planned job reductions; it currently has 58,000 employees worldwide. So far in 2009 (late Oct) 3210 jobs have gone. AkzoNobel is targeting cost savings of €540 M by 2011 but has already achieved savings of €530 M. €340 M of 3
F O C U S the €540 M will be saved through synergy benefits from the takeover of ICI. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
AkzoNobel results 3Q 2009 In 3Q 2009 AkzoNobel nv recorded an ebitda of €549 M, compared with €527 M in 3Q 2008. Analysts had predicted €513 M. Turnover was down from €4.05 bn to €3.64 bn; the forecast was €3.69 bn. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
AkzoNobel results 3Q 2009 for Performance Coatings and Speciality Chemicals In 3Q 2009 AkzoNobel’s Performance Coatings reported an ebitda of €166 M, compared with €148 M in 3Q 2008. Turnover was down 12% but the ebitda margin was up from 3.4% to 16.1%. For Speciality Chemicals ebitda was down from €242 M to €220 M and the margin was down from 16.8% to 16.7%; turnover fell by 8%. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
Dow Powder Coatings reaffirms its commitment to the Spanish market and moves to a new location in Onda (Castellon), Spain By the end of 2009, Dow Powder Coatings’ production facility and warehouse will move from its current site at Almazora (Castellon), Spain, to a new site in Onda (Castellon). Xavier Susterac, General Manager Europe for Dow Powder Coatings, states: “Despite the challenges of the current economic climate, we are demonstrating our commitment to the very important Spanish powder coatings market. This new site will give us the flexibility needed in the Spanish market, to better serve our customers, be more competitive 4
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and gain market share in this very competitive market place.” Press release from: Dow Chemical Co, 2030, Dow Centre, Midland, MI 48642, USA, tel: +1 989 636 1000, fax: +1 989 636 3518, website: http://www.dow.com (28 Oct 2009)
PPG Architectural Coatings announces 2010 pricing action PPG Industries Inc (PPG) announced that its Architectural Coatings business unit would execute price increases across distribution channels in Jan 2010 in response to a resurging escalation of raw material costs. PPG Architectural Coatings supplies architectural paint and coatings for residential, commercial and industrial uses through home centres, companyowned paint stores and independent dealers nationwide. Pittsburgh-based PPG Industries is a global supplier of paints, coatings, chemicals, optical products, speciality materials, glass and fibreglass. Press release from: PPG Industries Inc, One PPG Place, Pittsburgh, PA 15272, USA, tel: +1 412 434 3131, website: http://www.ppg.com (3 Nov 2009)
DuPont details plan for delivering growth in 2010 and beyond; company expects 2010 earnings to grow to range of $2.10 to $2.40/share DuPont CEO Ellen Kullman and the company’s leadership team detailed how DuPont expects to build on its core competitive advantage of market-driven scientific innovation and its strong position in targeted global growth markets to deliver 20% compound annual earnings growth for the 2009-2012 period. By executing on its priorities, DuPont expects to generate about 10% top-line compound annual growth for the 2009-2012 period. The company also plans to capture $1 bn in fixed cost productivity and $1 bn in working capital productivity gains during the 2010-2012 timeframe. DuPont expects to deliver, on average, 20%
C OAT I N G S earnings/share growth, from 2009 estimated full-year earnings on a year-over-year basis through 2012. The company said that it expects to grow earnings in 2010 – despite anticipated declines in pharmaceutical royalties after patents expire in 2010 – to a range of $2.10 to $2.40/share. DuPont also reaffirmed its full year 2009 earnings outlook of $1.95 to $2.05/share, excluding significant items which are estimated to be $0.15/share for full-year 2009 or $1.80 to $1.90 per share on a reported basis. At the meeting with investors, DuPont leaders described differentiated actions the company’s business segments are taking which are expected to contribute to the company’s 2009-2012 growth objectives by: Agriculture & Nutrition (Pioneer Hi-Bred, Crop Protection, Nutrition & Health) – Generating more than $2 bn in top-line growth through 2012 by growing North America corn and soy volumes and market share; extending international seed markets leadership; launching innovative crop protection products; capitalizing on emerging food and nutrition opportunities; and continuing investments in product and technology innovations; Electronics & Communications – Improving margins and delivering top-line growth by leveraging established leadership position in fast-growth segments – like photovoltaics and displays; introducing key products and capitalizing on recovery opportunities; and providing operational discipline with a lean business structure; Performance Coatings – Restoring pre-tax operating margins to low double digits by 2012 by delivering $300 M in fixed and variable cost productivity, while expanding and leveraging its leadership in refinish products and growing the portfolio in emerging markets; Performance Materials (Performance Polymers and Packaging & Industrial Polymers) – Focusing on earnings growth and cash generation by capitalizing on recovery DECEMBER 2009
DuPont delivers strong results in 3Q 2009 EI du Pont de Nemours and Co (DuPont) reported its financial results for 3Q and nine months ended Sep 2009. Net income attributable to DuPont for 3Q 2009 was $409 M (net income of $367 M in 3Q 2008). DuPont’s 3Q 2009 earnings were $0.45/share (earnings of $0.4/share in 3Q 2008). The 3Q 2009 consolidated net sales of $6 bn were 18% lower than 3Q 2008, reflecting 12% lower volume, 2% lower local prices, a 3% negative impact from currency exchange rates and a net 1% reduction due to portfolio changes. During 3Q 2009: Agriculture and Nutrition sales were $1.2 bn, down 5%, reflecting unfavourable currency impact, partly offset by agriculture market share gains and strong seed pricing; Coatings and Colour Technologies sales were $1.5 bn, down 16%, primarily reflecting continued weakness in motor vehicle markets; Electronic and Communication Technologies sales were $919 M, down 13%, reflecting 10% lower volume and 3% lower selling prices. Performance Materials sales; and Safety and Protection sales details are also included. Net sales were $19,690 M for nine months of 2009 ($24,709 M in nine months of 2008). Net income was 1324 M for nine months of 2009 ($2646 M in nine months of 2008). Research and development expense was $335,000 during 3Q 2009 ($360,000 in 3Q 2008) and $989,000 during nine months of 2009 ($1.050 M in nine months of 2008). DuPont revised its full-year 2009 earnings outlook to a range of $1.95 to $2.05/share, excluding significant items. The full-year free cash flow target remains $2.5 bn. Founded in 1802, DuPont puts DECEMBER 2009
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science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation. The financial figures for the company are presented in tables. EI du Pont de Nemours Financial Results 3Q and Nine Months 2009, 20 Oct 2009, (DuPont Building, 1007, Market Street, Wilmington, DE 19898, USA, website: http://www.dupont.com)
DuPont’s earnings rise on lower costs, but sales down: regional US chemical firm DuPont posted a net income of $409 M in 3Q 2009, up 11.5% from $367 M in 3Q 2008 because of considerably lower costs. Global net sales, however, declined by 18% year on year to $6 bn due to lower volumes and weak prices as well as because of the negative effects of exchange rates and portfolio changes. Sales dropped in all business units, notably in the safety and protection, and performance materials segments, which posted sales down 32% to $1 bn and 24% to $1.3 bn, respectively. Sales of the coatings and colour technologies unit fell by 16% to $1.5 bn. BNAmericas Petrochemicals News, 20 Oct 2009, (Business News Americas Ltd, website: http://www.bnamericas.com)
Asian Paints: results for 2Q 20092010 Asian Paints Ltd has recorded a profit-after-tax of Rup 254.32 crores on net sales/income from operations of Rup 1386.46 crores, on a stand alone basis, for 2Q ended Sep 2009 (profit-after-tax of Rup 121.71 crores on net sales/income from operations of Rup 1168.97 crores in 2Q ended Sep 2008). During 2Q 2009-2010, the company derived revenues of Rup 1381.64 crores from its paints business (revenues of Rup
C OAT I N G S 1147.20 crores in 2Q 2008-2009). The financial figures for the company are presented in the table. (1 crore = 10 M, 1 lakh = 100,000). Business Standard, 23 Oct 2009, 12 (97), I.9
Economic woes put a damper on deals Mergers and acquisition activities have pushed several companies up in the Billion-Dollar Club rankings for 2009. Basell made the top 10 with its purchase of Lyondell Chemical, and Akzo Nobel took the top 15 spot with its acquisition of ICI. Those deals were completed in 1H 2008, before the onset of the global economic sump. Economic conditions after the deals have urged the companies to cut costs or file for bankruptcy protection. Decorative paints maker AkzoNobel drew up a cost savings plan of €340 M/y ($507 M) when it agreed to purchase ICI. The company has since announced further cost savings of €200 M via several initiatives including plant closures to counter the decline in sales and profits. LyondellBasell had to file for bankruptcy in Jan 2009 because of the economic decline and heavy debt brought about by Basell’s acquisition of Lyondell in 2007. Dow Chemical, meanwhile, had to sell several assets after spending $19 bn to acquire Rohm and Haas in Mar 2009, with $4 bn in committed asset sales and more than $20 bn in total possible asset sales. Chemical Week, 19 Oct 2009, (Website: http://www.chemweek.com)
AkzoNobel job reductions exceed 3500 AkzoNobel will exceed its 3500 planned job reductions; it currently has 58,000 employees worldwide. So far in 2009 (late Oct) 3210 jobs have gone. AkzoNobel is targeting cost savings of €540 M by 2011 but has already achieved savings of €530 M. €340 M of 3
F O C U S the €540 M will be saved through synergy benefits from the takeover of ICI. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
AkzoNobel results 3Q 2009 In 3Q 2009 AkzoNobel nv recorded an ebitda of €549 M, compared with €527 M in 3Q 2008. Analysts had predicted €513 M. Turnover was down from €4.05 bn to €3.64 bn; the forecast was €3.69 bn. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
AkzoNobel results 3Q 2009 for Performance Coatings and Speciality Chemicals In 3Q 2009 AkzoNobel’s Performance Coatings reported an ebitda of €166 M, compared with €148 M in 3Q 2008. Turnover was down 12% but the ebitda margin was up from 3.4% to 16.1%. For Speciality Chemicals ebitda was down from €242 M to €220 M and the margin was down from 16.8% to 16.7%; turnover fell by 8%. Het Financieele Dagblad, 27 Oct 2009, (Website: http://www.fd.nl/) (in Dutch)
Dow Powder Coatings reaffirms its commitment to the Spanish market and moves to a new location in Onda (Castellon), Spain By the end of 2009, Dow Powder Coatings’ production facility and warehouse will move from its current site at Almazora (Castellon), Spain, to a new site in Onda (Castellon). Xavier Susterac, General Manager Europe for Dow Powder Coatings, states: “Despite the challenges of the current economic climate, we are demonstrating our commitment to the very important Spanish powder coatings market. This new site will give us the flexibility needed in the Spanish market, to better serve our customers, be more competitive 4
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and gain market share in this very competitive market place.” Press release from: Dow Chemical Co, 2030, Dow Centre, Midland, MI 48642, USA, tel: +1 989 636 1000, fax: +1 989 636 3518, website: http://www.dow.com (28 Oct 2009)
PPG Architectural Coatings announces 2010 pricing action PPG Industries Inc (PPG) announced that its Architectural Coatings business unit would execute price increases across distribution channels in Jan 2010 in response to a resurging escalation of raw material costs. PPG Architectural Coatings supplies architectural paint and coatings for residential, commercial and industrial uses through home centres, companyowned paint stores and independent dealers nationwide. Pittsburgh-based PPG Industries is a global supplier of paints, coatings, chemicals, optical products, speciality materials, glass and fibreglass. Press release from: PPG Industries Inc, One PPG Place, Pittsburgh, PA 15272, USA, tel: +1 412 434 3131, website: http://www.ppg.com (3 Nov 2009)
DuPont details plan for delivering growth in 2010 and beyond; company expects 2010 earnings to grow to range of $2.10 to $2.40/share DuPont CEO Ellen Kullman and the company’s leadership team detailed how DuPont expects to build on its core competitive advantage of market-driven scientific innovation and its strong position in targeted global growth markets to deliver 20% compound annual earnings growth for the 2009-2012 period. By executing on its priorities, DuPont expects to generate about 10% top-line compound annual growth for the 2009-2012 period. The company also plans to capture $1 bn in fixed cost productivity and $1 bn in working capital productivity gains during the 2010-2012 timeframe. DuPont expects to deliver, on average, 20%
C OAT I N G S earnings/share growth, from 2009 estimated full-year earnings on a year-over-year basis through 2012. The company said that it expects to grow earnings in 2010 – despite anticipated declines in pharmaceutical royalties after patents expire in 2010 – to a range of $2.10 to $2.40/share. DuPont also reaffirmed its full year 2009 earnings outlook of $1.95 to $2.05/share, excluding significant items which are estimated to be $0.15/share for full-year 2009 or $1.80 to $1.90 per share on a reported basis. At the meeting with investors, DuPont leaders described differentiated actions the company’s business segments are taking which are expected to contribute to the company’s 2009-2012 growth objectives by: Agriculture & Nutrition (Pioneer Hi-Bred, Crop Protection, Nutrition & Health) – Generating more than $2 bn in top-line growth through 2012 by growing North America corn and soy volumes and market share; extending international seed markets leadership; launching innovative crop protection products; capitalizing on emerging food and nutrition opportunities; and continuing investments in product and technology innovations; Electronics & Communications – Improving margins and delivering top-line growth by leveraging established leadership position in fast-growth segments – like photovoltaics and displays; introducing key products and capitalizing on recovery opportunities; and providing operational discipline with a lean business structure; Performance Coatings – Restoring pre-tax operating margins to low double digits by 2012 by delivering $300 M in fixed and variable cost productivity, while expanding and leveraging its leadership in refinish products and growing the portfolio in emerging markets; Performance Materials (Performance Polymers and Packaging & Industrial Polymers) – Focusing on earnings growth and cash generation by capitalizing on recovery DECEMBER 2009