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BASF reports 3Q 2010: performance products
FOCUS activity for Vanish, and weakness in Water Softeners and Laundry Detergents. Reckitt Benckiser Results 3Q 2010, 2 Nov 2010 (Reckitt Benckiser Group plc, 103-105 Bath Road, Slough, Berkshire SL1 3UH, UK, tel: +44 1753 217800, fax: +44 1753 217899, website: http://www.reckittbenckiser.com) & The Independent, 3 Nov 2010, (Website: http://www.independent.co.uk)
Henkel posts strong 3Q growth Henkel had a clear rise in sales and profits in 3Q 2010. Sales were up 13.7% at €3.96 bn. After adjusting for currency effects and acquisitions, growth was 6.5%. EBIT was up from €290 M to €501 M and net profits from €172 M to €337 M. Adjusted EBIT was up 27% at €517 M. Analysts had expected sales of €3.8 bn, EBIT of €443 M and net profits of €285 M. All three Henkel divisions posted growth in sales and profits. Sales of the industry and adhesives division rose 9.7% to €1.9 bn. The Laundry & Home Care division recorded organic growth of 3.4% with sales of €1.12 bn and EBIT of €139 M, while Cosmetics/Toiletries again substantially outperformed market growth with a 4.6% rise in sales to €845 M and EBIT of €113 M. Handelsblatt Wirtschafts- und Finanzzeitung, 10 Nov 2010, (Website: http://www.handelsblatt.com) (in German)
Kao fabric and home care results for 1H 2010 Kao Corp’s total net sales from its fabric and home care business dropped slightly to Yen 141,015 M in 1H FY 2010 (ended Sep 2010) from Yen 141,073 M in 1H FY 2009, while operating income fell to Yen 31,415 M from Yen 31,746 M. Kao continued its efforts in Japan to nurture sales of Attack Neo concentrated liquid laundry detergent. Sales of Humming Flair fabric softener and Wide Haiter EX Power fabric bleach for colour garments were solid. Dishwashing detergents faced intense competition. Operating income fell despite cost reduction activities due to an increase in raw material prices. Kao Results 1H FY 2010, 26 Oct 2010, 8 (Kao Corp, 1-14-10 Nihonbashi Kayabacho, Chuo-ku, Tokyo 1038210, Japan, tel: +81 3 3660 7111, website: http://www.kao.co.jp/en/)
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BASF reports 3Q 2010: performance products Nearly all divisions in BASF’s Performance Products segment reported higher sales and volumes in 3Q 2010. Sales growth (+21% to €3.206 bn) was also bolstered by positive currency effects and higher prices (volumes 7%, prices 7%, currencies 7%). In 3Q 2010, there was some weakening of the additional demand that had arisen from inventory restocking in some customer industries. Nevertheless, the business environment remained strong. Income from operations before special items increased substantially (+29% to €370 M) despite high one-time charges in the Performance Chemicals division. This was due mainly to higher sales volumes as well as BASF’s successful measures to integrate Ciba and restructure the combined businesses. There continued to be limited availability of some raw materials and finished products. BASF’s earnings in the segment increased considerably compared with the weak 3Q 2009 (+202% to €377 M). Sales were high in the Care Chemicals division as demand remained strong. As a result of the limited availability of important raw materials, there were some delivery bottlenecks, particularly for hygiene products and products for detergents and cleaners. Nevertheless, sales volumes in these businesses grew substantially compared with 3Q 2009 (+25% to €682 M). In a favourable market environment, BASF’s sales prices rose and the group benefited from a stronger US dollar. As a result of the positive sales trend, earnings significantly surpassed the 3Q 2009 level. BASF Report 3Q 2010, 28 Oct 2010, (BASF SE, D67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Novozymes Inc reports strong 3Q 2010 performance Novozymes reported 17% sales growth to DKR 7320 M in the first nine months of 2010, with growth primarily driven by better than expected demand for enzymes in the detergent, biofuel and food industries. EBIT grew 35%. Detergent enzyme sales increased by 19% to DKR 2371
M, compared to Jan-Sep 2009 (DKR 1992 M). The strong development was continuously driven by increased global enzyme penetration across detergent tiers to enhance washing performance, enable low-temperature washing, and replace traditional chemicals in detergent formulations. During Jan-Sep 2010, Novozymes’ sales in Europe, the Middle East and Africa (Europe/MEA) increased by 15% in DKR compared to Jan-Sep 2009. Sales were up by 16% in North America and in Latin America by 30%. Detergent enzymes were among the strongest growth drivers in all but Latin America. For 3Q 2010, sales amounted to DKR 928 M in Europe/MEA (3Q 2009: DKR 823 M), to DKR 916 M in North America (3Q 2009: DKR 750 M), to DKR 468 M in the Asia Pacific region (3Q 2009: DKR 396 M) and to DKR 214 M in Latin America (3Q 2009: DKR 149 M). Novozymes Group Financial Statement Jan-Sep 2010, 28 Oct 2010, 3,4,14 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
COMPANY NEWS Rhodia aims to double Asian activities within 5 years Rhodia is aiming to increase its sales in Asia from €1 bn to €2 bn in less than 5 years. The group had a total turnover of €4.03 bn in 2009. Asia will account for about a third of turnover in 2010 with China (10% of total) playing a major role. More than twothirds of Rhodia’s investment budget (for capacity expansion and acquisitions) in 2010 will be allocated to China, representing around €70 M. Rhodia generates revenue of €150 M from surfactants in China. China will also play an important role for Rhodia to reach a group target of raising its annual EBITDA, excluding carbon credits, to >€1 bn in 3-5 years [Focus on Surfactants, Dec 2010]. Recent and on-going activities in China include the finalization of its $489 M acquisition of Feixiang Chemicals, expected in Nov 2010 pending regulatory approval, and the relocation of its Wuxi Novecare and JANUARY 2011
Henkel posts strong 3Q growth Henkel had a clear rise in sales and profits in 3Q 2010. Sales were up 13.7% at €3.96 bn. After adjusting for currency effects and acquisitions, growth was 6.5%. EBIT was up from €290 M to €501 M and net profits from €172 M to €337 M. Adjusted EBIT was up 27% at €517 M. Analysts had expected sales of €3.8 bn, EBIT of €443 M and net profits of €285 M. All three Henkel divisions posted growth in sales and profits. Sales of the industry and adhesives division rose 9.7% to €1.9 bn. The Laundry & Home Care division recorded organic growth of 3.4% with sales of €1.12 bn and EBIT of €139 M, while Cosmetics/Toiletries again substantially outperformed market growth with a 4.6% rise in sales to €845 M and EBIT of €113 M. Handelsblatt Wirtschafts- und Finanzzeitung, 10 Nov 2010, (Website: http://www.handelsblatt.com) (in German)
Kao fabric and home care results for 1H 2010 Kao Corp’s total net sales from its fabric and home care business dropped slightly to Yen 141,015 M in 1H FY 2010 (ended Sep 2010) from Yen 141,073 M in 1H FY 2009, while operating income fell to Yen 31,415 M from Yen 31,746 M. Kao continued its efforts in Japan to nurture sales of Attack Neo concentrated liquid laundry detergent. Sales of Humming Flair fabric softener and Wide Haiter EX Power fabric bleach for colour garments were solid. Dishwashing detergents faced intense competition. Operating income fell despite cost reduction activities due to an increase in raw material prices. Kao Results 1H FY 2010, 26 Oct 2010, 8 (Kao Corp, 1-14-10 Nihonbashi Kayabacho, Chuo-ku, Tokyo 1038210, Japan, tel: +81 3 3660 7111, website: http://www.kao.co.jp/en/)
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BASF reports 3Q 2010: performance products Nearly all divisions in BASF’s Performance Products segment reported higher sales and volumes in 3Q 2010. Sales growth (+21% to €3.206 bn) was also bolstered by positive currency effects and higher prices (volumes 7%, prices 7%, currencies 7%). In 3Q 2010, there was some weakening of the additional demand that had arisen from inventory restocking in some customer industries. Nevertheless, the business environment remained strong. Income from operations before special items increased substantially (+29% to €370 M) despite high one-time charges in the Performance Chemicals division. This was due mainly to higher sales volumes as well as BASF’s successful measures to integrate Ciba and restructure the combined businesses. There continued to be limited availability of some raw materials and finished products. BASF’s earnings in the segment increased considerably compared with the weak 3Q 2009 (+202% to €377 M). Sales were high in the Care Chemicals division as demand remained strong. As a result of the limited availability of important raw materials, there were some delivery bottlenecks, particularly for hygiene products and products for detergents and cleaners. Nevertheless, sales volumes in these businesses grew substantially compared with 3Q 2009 (+25% to €682 M). In a favourable market environment, BASF’s sales prices rose and the group benefited from a stronger US dollar. As a result of the positive sales trend, earnings significantly surpassed the 3Q 2009 level. BASF Report 3Q 2010, 28 Oct 2010, (BASF SE, D67056 Ludwigshafen, Germany, tel: +49 (0) 621 600, website: http://www.basf.com)
Novozymes Inc reports strong 3Q 2010 performance Novozymes reported 17% sales growth to DKR 7320 M in the first nine months of 2010, with growth primarily driven by better than expected demand for enzymes in the detergent, biofuel and food industries. EBIT grew 35%. Detergent enzyme sales increased by 19% to DKR 2371
M, compared to Jan-Sep 2009 (DKR 1992 M). The strong development was continuously driven by increased global enzyme penetration across detergent tiers to enhance washing performance, enable low-temperature washing, and replace traditional chemicals in detergent formulations. During Jan-Sep 2010, Novozymes’ sales in Europe, the Middle East and Africa (Europe/MEA) increased by 15% in DKR compared to Jan-Sep 2009. Sales were up by 16% in North America and in Latin America by 30%. Detergent enzymes were among the strongest growth drivers in all but Latin America. For 3Q 2010, sales amounted to DKR 928 M in Europe/MEA (3Q 2009: DKR 823 M), to DKR 916 M in North America (3Q 2009: DKR 750 M), to DKR 468 M in the Asia Pacific region (3Q 2009: DKR 396 M) and to DKR 214 M in Latin America (3Q 2009: DKR 149 M). Novozymes Group Financial Statement Jan-Sep 2010, 28 Oct 2010, 3,4,14 (Novozymes A/S, Krogshojvej 36, 2880 Bagsvaerd, Denmark, tel: +45 4446 0000, fax: +45 4446 9999, e-mail: [email protected], website: http://www.novozymes.com)
COMPANY NEWS Rhodia aims to double Asian activities within 5 years Rhodia is aiming to increase its sales in Asia from €1 bn to €2 bn in less than 5 years. The group had a total turnover of €4.03 bn in 2009. Asia will account for about a third of turnover in 2010 with China (10% of total) playing a major role. More than twothirds of Rhodia’s investment budget (for capacity expansion and acquisitions) in 2010 will be allocated to China, representing around €70 M. Rhodia generates revenue of €150 M from surfactants in China. China will also play an important role for Rhodia to reach a group target of raising its annual EBITDA, excluding carbon credits, to >€1 bn in 3-5 years [Focus on Surfactants, Dec 2010]. Recent and on-going activities in China include the finalization of its $489 M acquisition of Feixiang Chemicals, expected in Nov 2010 pending regulatory approval, and the relocation of its Wuxi Novecare and JANUARY 2011