- Email: [email protected]
BASF returns to profit in fourth quarter 2009
FINANCIALS
2008. During the first half of 2009, PolyOne focused on reducing costs and working capital and achieved substantial gross margin expansion and improved cash flow as a result, according to PolyOne CEO Stephen Newlin. ‘With demonstrated sustainable earnings improvement, we were able to increase our focus on winning profitable new business and growing the top line during the second half of the year’, he says. Newlin says that PolyOne’s focus on becoming a speciality company is ‘unwavering’, while not abandoning core markets such as housing and automotive. ‘We believe that going forward we stand to benefit from the continued execution of our speciality strategy, and at the same time realize earnings leverage as housing and automotive recover from the unsustainably low levels of 2009’, he explains. The speciality platform consists of International Color and Engineered Materials; Specialty Engineered Materials; and Specialty Color, Additives and Inks. The company has also implemented a series of ‘major organizational improvements’ to help better serve global customers, drive earnings growth, better execute company strategy, and leverage its strong geographic footprint, Newlin says. The organization of the speciality platform is being changed from regional to global and the sourcing function is also being globalized. Regional presidents in Europe and Asia will coordinate and direct activities within those geographies, allowing the company to deliver ‘global solutions with a local touch’. Effective from 1 January 2010, John V. Van Hulle has become president of Global Color, Additives and Inks. Craig M. Nikrant similarly becomes president of Global Specialty Engineered Materials. Bernard Baert is now president of Europe and International, responsible for driving performance and ensuring consistency within all platforms in Europe and Latin America, as well as for increasing PolyOne’s presence in Latin America and the Middle East and supporting its Asian operations. Dr Willie Chien becomes president of Asia, the company’s highest growth region. Thomas Kedrowski, senior VP, supply chain and operations will assume direct responsibility for global sourcing, as well as leading the global implementation of the company’s lean six sigma initiative. As a result of its new organization structure, PolyOne now has five reportable segments: Global Color, Additives and Inks; Global Specialty Engineered Materials; Performance Products and Solutions; Distribution; and SunBelt, its equity investment joint venture.
May 2010
Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
BASF returns to profit in fourth quarter 2009
C
hemicals giant BASF reported net income of E455 million for the fourth quarter of 2009 compared with a loss of E313 million for the same period in 2008. Sales for the quarter were down 8% year on year but rose 2.9% from 3Q 2009 levels. Income from operations (EBIT) before special items was up 181% compared with 4Q 2008. For the year as a whole, the company posted sales of E50.7 billion, a decline of 19% compared with 2008. All segments posted lower sales with the exception of Performance Products and Agricultural Solutions. EBIT before special items of E4.9 billion was down 29% on 2008, with all segments declining apart from Agricultural Solutions and Plastics. The return to profit in the final quarter was attributed to improvements in the global economy and the company’s cost-saving measures. ‘We have shown that we have the right strategy’, says BASF’s chairman Dr Jürgen Hambrecht. Demand for BASF’s products grew in several key market areas including the automotive, IT and electronics sectors. Yearly sales fell in all geographical regions but earnings in Asia and North America showed strong improvement. ‘The slow recovery is continuing. The fourth quarter of 2009 was encouraging and gives us grounds for confidence. The worst is behind us, even though dark clouds remain’, Hambrecht comments. In the Performance Products segment, sales increased as a result of the Ciba acquisition. Volumes and prices declined, however, in all divisions. EBIT before special items was lower due to the effects of the crisis in nearly all customer industries. At E700 million, however, it was clearly positive and only 9% less than in 2008. EBIT was negatively impacted by high expenses for the integration of Ciba.
Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com
Additives for Polymers
11
2008. During the first half of 2009, PolyOne focused on reducing costs and working capital and achieved substantial gross margin expansion and improved cash flow as a result, according to PolyOne CEO Stephen Newlin. ‘With demonstrated sustainable earnings improvement, we were able to increase our focus on winning profitable new business and growing the top line during the second half of the year’, he says. Newlin says that PolyOne’s focus on becoming a speciality company is ‘unwavering’, while not abandoning core markets such as housing and automotive. ‘We believe that going forward we stand to benefit from the continued execution of our speciality strategy, and at the same time realize earnings leverage as housing and automotive recover from the unsustainably low levels of 2009’, he explains. The speciality platform consists of International Color and Engineered Materials; Specialty Engineered Materials; and Specialty Color, Additives and Inks. The company has also implemented a series of ‘major organizational improvements’ to help better serve global customers, drive earnings growth, better execute company strategy, and leverage its strong geographic footprint, Newlin says. The organization of the speciality platform is being changed from regional to global and the sourcing function is also being globalized. Regional presidents in Europe and Asia will coordinate and direct activities within those geographies, allowing the company to deliver ‘global solutions with a local touch’. Effective from 1 January 2010, John V. Van Hulle has become president of Global Color, Additives and Inks. Craig M. Nikrant similarly becomes president of Global Specialty Engineered Materials. Bernard Baert is now president of Europe and International, responsible for driving performance and ensuring consistency within all platforms in Europe and Latin America, as well as for increasing PolyOne’s presence in Latin America and the Middle East and supporting its Asian operations. Dr Willie Chien becomes president of Asia, the company’s highest growth region. Thomas Kedrowski, senior VP, supply chain and operations will assume direct responsibility for global sourcing, as well as leading the global implementation of the company’s lean six sigma initiative. As a result of its new organization structure, PolyOne now has five reportable segments: Global Color, Additives and Inks; Global Specialty Engineered Materials; Performance Products and Solutions; Distribution; and SunBelt, its equity investment joint venture.
May 2010
Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
BASF returns to profit in fourth quarter 2009
C
hemicals giant BASF reported net income of E455 million for the fourth quarter of 2009 compared with a loss of E313 million for the same period in 2008. Sales for the quarter were down 8% year on year but rose 2.9% from 3Q 2009 levels. Income from operations (EBIT) before special items was up 181% compared with 4Q 2008. For the year as a whole, the company posted sales of E50.7 billion, a decline of 19% compared with 2008. All segments posted lower sales with the exception of Performance Products and Agricultural Solutions. EBIT before special items of E4.9 billion was down 29% on 2008, with all segments declining apart from Agricultural Solutions and Plastics. The return to profit in the final quarter was attributed to improvements in the global economy and the company’s cost-saving measures. ‘We have shown that we have the right strategy’, says BASF’s chairman Dr Jürgen Hambrecht. Demand for BASF’s products grew in several key market areas including the automotive, IT and electronics sectors. Yearly sales fell in all geographical regions but earnings in Asia and North America showed strong improvement. ‘The slow recovery is continuing. The fourth quarter of 2009 was encouraging and gives us grounds for confidence. The worst is behind us, even though dark clouds remain’, Hambrecht comments. In the Performance Products segment, sales increased as a result of the Ciba acquisition. Volumes and prices declined, however, in all divisions. EBIT before special items was lower due to the effects of the crisis in nearly all customer industries. At E700 million, however, it was clearly positive and only 9% less than in 2008. EBIT was negatively impacted by high expenses for the integration of Ciba.
Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com
Additives for Polymers
11