- Email: [email protected]
Albemarle reports 69% growth in first-quarter income
Additives for Polymers
Plasticolors completes lab expansion Plasticolors Inc reports that it has recently completed a 4200 ft2 (c. 400 m2) laboratory expansion at its headquarters in Ashtabula, OH, USA. The company says that the stateof-the-art expansion will enable it to broaden its colorant and additive product offering, expand its service capabilities and help customers differentiate themselves in the competitive marketplace. Plasticolors serves the thermoset plastics, coatings, paint, caulk and sealants industries. The technical expansion consists of laboratory space with eight work stations for the growing technical team. In addition, Plasticolors has added new office space, a conference room for the technical team, and a new process development area containing pilot-scale milling and production equipment where new technologies can be tested to ensure they can be reproduced and manufactured efficiently on a consistent scale. “All of these enhancements allow us to grow technically and bring new products to market faster,” says Plasticolors’ technical director Selby Brannon. “Our technical team is positioned for progressive product development – enabling the company as a whole to provide greater support to customers.” Contact: Plasticolors Inc, 2600 Michigan Avenue, PO Box 816, Ashtabula, OH 440050816, USA; tel: +1-440-997-5137; fax: +1440-992-3613; URL: www.plasticolors.com
New oxo operations in the pipeline for China, India In China, the Tianjin Soda Plant of Tianjin Bohai Chemical Industry Co Ltd is building a globalscale facility for the production of oxo alcohols. For the production process, the company has selected the LP Oxo SELECTOR 10 Technology cooperatively offered by Davy Process Technology Ltd (DPT), a Johnson Matthey company, and Dow Technology Licensing, a Dow Chemical business unit. This low-pressure hydroformylation technology offers low feedstock and energy requirements as well as low environmental impact, according to
6
June 2007
a Dow representative. Design and engineering for the new plant was scheduled to begin in March 2007 and start-up is expected in June 2009. The new LP oxo plant, which will be the largest of its kind in China, is slated to produce 250 000 tonnes per annum of 2-ethylhexanol (2EH), for the subsequent manufacture of DEHP plasticizers for PVC, and normal- and iso-butanol solvents. Demand for these products is expected to increase by 7% over the next few years, driven by a robust Chinese economy. Elsewhere, India’s Essar Chemicals Ltd and Eastman Chemical Co have signed a memorandum of understanding following the completion of a joint feasibility study regarding potential opportunities for the production of oxo chemicals and derivatives for the domestic market in India. The feasibility study includes plans for a worldscale 150 000 t/year plant for oxo aldehyde and its derivatives to be established at Essar’s refinery site at Vadinar in Gujarat; the refinery would supply the main feedstock propylene. Oxo and oxo derivatives are part of Eastman’s performance chemicals and intermediates segment. According to Robert J. Preston, VP and managing director of Eastman’s Asia Pacific Region, the integrated feedstock supply offered by this project will ensure that both partners secure the margins needed from this investment. Contact: The Dow Chemical Company, 47 Building, Midland, MI 48667, USA; tel: +1989-636-1000; fax: +1-989-636-7238; URL: www.dow.com Eastman Chemical Company, 100 North Eastman Road, PO Box 511, Kingsport, TN 37662-5075, USA; tel: +1-423-229-2000; URL: www.eastman.com
FINANCIALS Albemarle reports 69% growth in first-quarter income Albemarle Corp reported first-quarter 2007 net income of US$58.1 million, up 69% from $34.4 million for first-quarter 2006, due to strong performance in each of the company’s three business segments. Net 1Q sales totalled $589
June 2007
million in 2007 compared to 1Q 2006 net sales of $607 million. The company’s Polymer Additives segment recorded 1Q net sales of $214.3 million in 2007, a 3% decrease from $221.9 million for the same period last year. The flame retardant portfolio benefited from higher year-over-year pricing; however, net sales declined due primarily to reduced volumes in the company’s tetrabrom product line. Quarterly segment income grew 14% to $35.7 million in 1Q 2007 ($31.2 million in 1Q 2006) due to improved pricing, offset in part by lower tetrabrom volumes and increased raw materials and other costs. According to Mark C. Rohr, Albemarle’s president/CEO, the strong quarterly results, with increased profitability in every segment, were delivered despite lower volumes and a net increase in raw material and energy costs of more than $9 million compared to the previous year. “I am extremely pleased with the performance of our company this quarter,” Rohr says. “Our strengths in technology, innovation and customer service enabled us to deliver these strong results and we will continue to focus in these three areas as we strive to deliver value throughout 2007 to our customers and shareholders.” Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com
Rohm and Haas posts 1Q sales up 5% Rohm and Haas Co reported sales for the first quarter of 2007 of US$2.160 billion, up 5% from $2.058 billion for the same period in 2006. Higher demand accounted for 2%, favourable currency effects 2% and higher selling prices 1% of the increase. Earnings for the quarter from continuing operations were $190 million, down 8% from record earnings of $207 million for the first quarter of 2006. North American sales of $1.094 billion were down a modest 1%, reflecting weaker than expected demand across many segments in the US building and construction market. Sales in Europe for the quarter were $560 million, up 14% from the prior year period, due to the favourable impact of
Additives for Polymers
currencies and higher volumes. Asia-Pacific sales of $422 million were up 9%, with increased penetration of Specialty Materials and Performance Materials product lines in the emerging markets of China, India and Southeast Asia. Sales in Latin America of $84 million were up approximately 11%, driven by higher demand across the Specialty Materials and Performance Materials businesses. “Given the weak US building and construction market, this was a solid performance for the quarter, and provides further evidence of our balanced and globally well-positioned portfolio that helped us buffer the short-term economic weaknesses in a key market, and important region of our business,” says Raj Gupta, chairman, president and CEO. He also noted the company’s steady progress in implementing its Vision 2010 strategy and that the first quarter results reflect the transition phase anticipated as Rohm and Haas accelerates value-creation. Several initiatives to strengthen the company’s portfolio and enhance its technology base were announced in the first quarter and these, together with the financial performance, “give us confidence we can deliver excellent performance on a sustained basis,” he says. The Specialty Materials Group, which, following the company’s business reorganization [see ADPO, December 2006], includes additives for polymers used in building, construction and packaging applications, reported modest sales growth of 1% in the quarter (after intersegment elimination). This was despite the weaker than expected conditions in the North American building and construction market, which was more than offset by robust sales growth in all regions outside the USA. Specialty Materials earnings of $28 million were also negatively impacted by weak demand in the USA and by increased raw material costs, declining about 25% compared to 1Q 2006. Within the group, sales for the Packaging and Building unit were $449 million in 1Q 2007, down 1% from the prior year period for the abovegiven reasons. While many of the segments served by this business experienced softness, demand for plastics additives was particularly weak in the US vinyl siding and windows profile markets, the company reports. In addition, the year-on-year comparison is adversely impacted by an exceptionally strong 1Q 2006. To address the lower
7
Plasticolors completes lab expansion Plasticolors Inc reports that it has recently completed a 4200 ft2 (c. 400 m2) laboratory expansion at its headquarters in Ashtabula, OH, USA. The company says that the stateof-the-art expansion will enable it to broaden its colorant and additive product offering, expand its service capabilities and help customers differentiate themselves in the competitive marketplace. Plasticolors serves the thermoset plastics, coatings, paint, caulk and sealants industries. The technical expansion consists of laboratory space with eight work stations for the growing technical team. In addition, Plasticolors has added new office space, a conference room for the technical team, and a new process development area containing pilot-scale milling and production equipment where new technologies can be tested to ensure they can be reproduced and manufactured efficiently on a consistent scale. “All of these enhancements allow us to grow technically and bring new products to market faster,” says Plasticolors’ technical director Selby Brannon. “Our technical team is positioned for progressive product development – enabling the company as a whole to provide greater support to customers.” Contact: Plasticolors Inc, 2600 Michigan Avenue, PO Box 816, Ashtabula, OH 440050816, USA; tel: +1-440-997-5137; fax: +1440-992-3613; URL: www.plasticolors.com
New oxo operations in the pipeline for China, India In China, the Tianjin Soda Plant of Tianjin Bohai Chemical Industry Co Ltd is building a globalscale facility for the production of oxo alcohols. For the production process, the company has selected the LP Oxo SELECTOR 10 Technology cooperatively offered by Davy Process Technology Ltd (DPT), a Johnson Matthey company, and Dow Technology Licensing, a Dow Chemical business unit. This low-pressure hydroformylation technology offers low feedstock and energy requirements as well as low environmental impact, according to
6
June 2007
a Dow representative. Design and engineering for the new plant was scheduled to begin in March 2007 and start-up is expected in June 2009. The new LP oxo plant, which will be the largest of its kind in China, is slated to produce 250 000 tonnes per annum of 2-ethylhexanol (2EH), for the subsequent manufacture of DEHP plasticizers for PVC, and normal- and iso-butanol solvents. Demand for these products is expected to increase by 7% over the next few years, driven by a robust Chinese economy. Elsewhere, India’s Essar Chemicals Ltd and Eastman Chemical Co have signed a memorandum of understanding following the completion of a joint feasibility study regarding potential opportunities for the production of oxo chemicals and derivatives for the domestic market in India. The feasibility study includes plans for a worldscale 150 000 t/year plant for oxo aldehyde and its derivatives to be established at Essar’s refinery site at Vadinar in Gujarat; the refinery would supply the main feedstock propylene. Oxo and oxo derivatives are part of Eastman’s performance chemicals and intermediates segment. According to Robert J. Preston, VP and managing director of Eastman’s Asia Pacific Region, the integrated feedstock supply offered by this project will ensure that both partners secure the margins needed from this investment. Contact: The Dow Chemical Company, 47 Building, Midland, MI 48667, USA; tel: +1989-636-1000; fax: +1-989-636-7238; URL: www.dow.com Eastman Chemical Company, 100 North Eastman Road, PO Box 511, Kingsport, TN 37662-5075, USA; tel: +1-423-229-2000; URL: www.eastman.com
FINANCIALS Albemarle reports 69% growth in first-quarter income Albemarle Corp reported first-quarter 2007 net income of US$58.1 million, up 69% from $34.4 million for first-quarter 2006, due to strong performance in each of the company’s three business segments. Net 1Q sales totalled $589
June 2007
million in 2007 compared to 1Q 2006 net sales of $607 million. The company’s Polymer Additives segment recorded 1Q net sales of $214.3 million in 2007, a 3% decrease from $221.9 million for the same period last year. The flame retardant portfolio benefited from higher year-over-year pricing; however, net sales declined due primarily to reduced volumes in the company’s tetrabrom product line. Quarterly segment income grew 14% to $35.7 million in 1Q 2007 ($31.2 million in 1Q 2006) due to improved pricing, offset in part by lower tetrabrom volumes and increased raw materials and other costs. According to Mark C. Rohr, Albemarle’s president/CEO, the strong quarterly results, with increased profitability in every segment, were delivered despite lower volumes and a net increase in raw material and energy costs of more than $9 million compared to the previous year. “I am extremely pleased with the performance of our company this quarter,” Rohr says. “Our strengths in technology, innovation and customer service enabled us to deliver these strong results and we will continue to focus in these three areas as we strive to deliver value throughout 2007 to our customers and shareholders.” Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com
Rohm and Haas posts 1Q sales up 5% Rohm and Haas Co reported sales for the first quarter of 2007 of US$2.160 billion, up 5% from $2.058 billion for the same period in 2006. Higher demand accounted for 2%, favourable currency effects 2% and higher selling prices 1% of the increase. Earnings for the quarter from continuing operations were $190 million, down 8% from record earnings of $207 million for the first quarter of 2006. North American sales of $1.094 billion were down a modest 1%, reflecting weaker than expected demand across many segments in the US building and construction market. Sales in Europe for the quarter were $560 million, up 14% from the prior year period, due to the favourable impact of
Additives for Polymers
currencies and higher volumes. Asia-Pacific sales of $422 million were up 9%, with increased penetration of Specialty Materials and Performance Materials product lines in the emerging markets of China, India and Southeast Asia. Sales in Latin America of $84 million were up approximately 11%, driven by higher demand across the Specialty Materials and Performance Materials businesses. “Given the weak US building and construction market, this was a solid performance for the quarter, and provides further evidence of our balanced and globally well-positioned portfolio that helped us buffer the short-term economic weaknesses in a key market, and important region of our business,” says Raj Gupta, chairman, president and CEO. He also noted the company’s steady progress in implementing its Vision 2010 strategy and that the first quarter results reflect the transition phase anticipated as Rohm and Haas accelerates value-creation. Several initiatives to strengthen the company’s portfolio and enhance its technology base were announced in the first quarter and these, together with the financial performance, “give us confidence we can deliver excellent performance on a sustained basis,” he says. The Specialty Materials Group, which, following the company’s business reorganization [see ADPO, December 2006], includes additives for polymers used in building, construction and packaging applications, reported modest sales growth of 1% in the quarter (after intersegment elimination). This was despite the weaker than expected conditions in the North American building and construction market, which was more than offset by robust sales growth in all regions outside the USA. Specialty Materials earnings of $28 million were also negatively impacted by weak demand in the USA and by increased raw material costs, declining about 25% compared to 1Q 2006. Within the group, sales for the Packaging and Building unit were $449 million in 1Q 2007, down 1% from the prior year period for the abovegiven reasons. While many of the segments served by this business experienced softness, demand for plastics additives was particularly weak in the US vinyl siding and windows profile markets, the company reports. In addition, the year-on-year comparison is adversely impacted by an exceptionally strong 1Q 2006. To address the lower
7