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Cabot’s carbon black sales down 11% in 4Q 2001
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F O C US competition from textile suppliers based in Mexico, the Caribbean region and China. Dystar is jointly owned by Bayer, BASF and Aventis. Chimie Hebdo, 24 Dec 2001, (155), 7 (in French)
COMPANIES Agrofert buys Czech Government stake in Unipetrol Further consolidation in the Czech chemical industry: Agrofert has purchased the Government’s majority holding in the Unipetrol conglomerate. Unipetrol owns: Chemopetrol (a key source of ethylene and polyolefins), Spolana (the country’s leading producer of polyvinyl chloride, PVC) and Kaucuk (the synthetic rubber producer). Agrofert is the majority shareholder in Precolor, which controls Precheza (the only Czech producer of TiO2 and iron oxide pigments). Agrofert also controls Deza (which operates the carbon black plant at Valasske Mezirici as a joint venture with Cabot). Agrofert’s other holdings include Lovochemia (the fertiliser supplier) and AliaChem (the speciality chemicals supplier). Last year, Agrofert reported total turnover as KCz 40 bn, while Unipetrol’s turnover was KCz 65 bn. Chemical Market Reporter, 24 Dec 2001 (Website: http://www.chemexpo.com/cmronline)
Cabot’s carbon black sales down 11% in 4Q 2001 For the quarter to end-Dec 2001, Cabot Corp reported diluted earnings per share of $0.53 compared against $0.37 in the equivalent quarter of the previous year. The improvement was mainly thanks to the tantalum business, more than offsetting profit declines in the carbon black and fumed metal oxide sectors. Cabot, the world’s leading supplier, reported an 11% drop in carbon black sales volume worldwide, with all regions suffering declines. In North America, sales volume was down 9% and operating profit fell by $3 M. In Latin America, sales volume was 7% down and operating profit fell by $3 M. The Brazilian energy crisis and Argentinian economic situation have led to unstable business
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environments and reduced demand for rubber blacks. There was a steep fall in sales to European markets – down 17% – partly because of general economic conditions and partly because of pressure from imports. Feedstock costs in Cabot’s European carbon black operations were higher in the quarter to end-Dec 2001 than in the corresponding quarter of 2000. Cabot’s operating profit on carbon black in Europe was down $7 M. Meanwhile, in the Asia/Pacific region, Cabot’s carbon black sales volume dropped by 3% and its operating profit in this region was down $1 M. Cabot’s global sales of fumed metal oxides dropped by 15%. Demand from the electronic and fibre optic sectors was much lower in the quarter to end-Dec 2001, while demand from the traditional end-use sectors (silicone rubber, composites and adhesives) showed little change on the previous year. The company’s inkjet colorants business was said to have continued to make progress with the growth of its existing commercial products and the development of new products. Increased research and development costs and lower volumes resulted in a $1 M decrease in operating profit in 1Q fiscal 2002, ended 31 Dec 2001. 1Q fiscal 2001/02 financial results from: Cabot Corp, Bilerica, MA, USA. Website http://www.cabotcorp.com
Heubach buys Bayer’s light-resistant pigment business Heubach (of Langelsheim, Germany) has acquired Bayer’s business in light-resistant pigments, including production facilities, formulations, product knowhow and patents. The acquisition did not include the complex inorganic colours facility at Leverkusen. Heubach, which now has 1000 employees, generated sales of EUR 150 M in 2001 and it is anticipating a 20% sales increase in 2002. Chemische Rundschau, 8 Feb 2002, 55 (3), 6 () (in German)
Huntsman to buy-out ICI’s stake in Tioxide by 3Q 2003 Huntsman Corp paid ICI £500 M to acquire a controlling stake in Tioxide
in Jul 1999. At the same time, Huntsman also acquired controlling stakes in ICI’s global polyurethanes business and in various ICI petrochemical operations. Ownership of these businesses was transferred to the newly created Huntsman-ICI Holdings, in which Huntsman had a 60% interest and ICI a 30% interest, the remaining 10% being held by various financial institutions. As part of the original agreement, Huntsman was due to buy-out ICI’s residual 30% shareholding by mid-2002. In Nov 2000, terms were agreed for the transfer of ICI’s 30% shareholding – $365 M plus interest accruing onwards from the end of Nov 2000 until the date of completion, which was expected to be some time before 30 June 2001. In recognition of the impending change of ownership, Huntsman-ICI Holdings changed its name to Huntsman International. However, with the onset of a sharp downturn in world petrochemical markets, Huntsman Corp found it increasingly difficult to service its debts and to fund the acquisition of the ICI’s shareholding. Completion of the transaction was postponed to allow Huntsman time to negotiate amendments to its credit facilities. Eventually, it was announced towards the end of Dec 2001 that Huntsman Specialty Chemicals Corp (HSCC, a wholly-owned subsidiary of Huntsman Corp) would buy the ICI shareholding in or before 3Q 2003 for $365 M plus an amount equivalent to interest calculated as owing from Dec 2001. HSCC will be liable to pay an extra $32.7 M if it fails to complete the transaction before 1 Oct 2003. On the other hand, the price paid could be reduced by up to $20 M in the event of completion before 3Q 2003. Under certain circumstances, if Huntsman cannot complete the transaction, ICI could receive a 30% stake in Huntsman International: this would effectively reverse the current ownership position, making Huntsman Corp the minority partner. Meanwhile, Huntsman has embarked on a number of cost-saving measures, including the installation of an SAP enterprise resource planning system. Huntsman Tioxide intends to reduce its global workforce from 3000 to 2900 people. It has also postponed the planned expansion of its Spanish
MARCH 2002
23/4/02 2:29 pm
Page 6
(Black plate)
F O C US competition from textile suppliers based in Mexico, the Caribbean region and China. Dystar is jointly owned by Bayer, BASF and Aventis. Chimie Hebdo, 24 Dec 2001, (155), 7 (in French)
COMPANIES Agrofert buys Czech Government stake in Unipetrol Further consolidation in the Czech chemical industry: Agrofert has purchased the Government’s majority holding in the Unipetrol conglomerate. Unipetrol owns: Chemopetrol (a key source of ethylene and polyolefins), Spolana (the country’s leading producer of polyvinyl chloride, PVC) and Kaucuk (the synthetic rubber producer). Agrofert is the majority shareholder in Precolor, which controls Precheza (the only Czech producer of TiO2 and iron oxide pigments). Agrofert also controls Deza (which operates the carbon black plant at Valasske Mezirici as a joint venture with Cabot). Agrofert’s other holdings include Lovochemia (the fertiliser supplier) and AliaChem (the speciality chemicals supplier). Last year, Agrofert reported total turnover as KCz 40 bn, while Unipetrol’s turnover was KCz 65 bn. Chemical Market Reporter, 24 Dec 2001 (Website: http://www.chemexpo.com/cmronline)
Cabot’s carbon black sales down 11% in 4Q 2001 For the quarter to end-Dec 2001, Cabot Corp reported diluted earnings per share of $0.53 compared against $0.37 in the equivalent quarter of the previous year. The improvement was mainly thanks to the tantalum business, more than offsetting profit declines in the carbon black and fumed metal oxide sectors. Cabot, the world’s leading supplier, reported an 11% drop in carbon black sales volume worldwide, with all regions suffering declines. In North America, sales volume was down 9% and operating profit fell by $3 M. In Latin America, sales volume was 7% down and operating profit fell by $3 M. The Brazilian energy crisis and Argentinian economic situation have led to unstable business
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environments and reduced demand for rubber blacks. There was a steep fall in sales to European markets – down 17% – partly because of general economic conditions and partly because of pressure from imports. Feedstock costs in Cabot’s European carbon black operations were higher in the quarter to end-Dec 2001 than in the corresponding quarter of 2000. Cabot’s operating profit on carbon black in Europe was down $7 M. Meanwhile, in the Asia/Pacific region, Cabot’s carbon black sales volume dropped by 3% and its operating profit in this region was down $1 M. Cabot’s global sales of fumed metal oxides dropped by 15%. Demand from the electronic and fibre optic sectors was much lower in the quarter to end-Dec 2001, while demand from the traditional end-use sectors (silicone rubber, composites and adhesives) showed little change on the previous year. The company’s inkjet colorants business was said to have continued to make progress with the growth of its existing commercial products and the development of new products. Increased research and development costs and lower volumes resulted in a $1 M decrease in operating profit in 1Q fiscal 2002, ended 31 Dec 2001. 1Q fiscal 2001/02 financial results from: Cabot Corp, Bilerica, MA, USA. Website http://www.cabotcorp.com
Heubach buys Bayer’s light-resistant pigment business Heubach (of Langelsheim, Germany) has acquired Bayer’s business in light-resistant pigments, including production facilities, formulations, product knowhow and patents. The acquisition did not include the complex inorganic colours facility at Leverkusen. Heubach, which now has 1000 employees, generated sales of EUR 150 M in 2001 and it is anticipating a 20% sales increase in 2002. Chemische Rundschau, 8 Feb 2002, 55 (3), 6 () (in German)
Huntsman to buy-out ICI’s stake in Tioxide by 3Q 2003 Huntsman Corp paid ICI £500 M to acquire a controlling stake in Tioxide
in Jul 1999. At the same time, Huntsman also acquired controlling stakes in ICI’s global polyurethanes business and in various ICI petrochemical operations. Ownership of these businesses was transferred to the newly created Huntsman-ICI Holdings, in which Huntsman had a 60% interest and ICI a 30% interest, the remaining 10% being held by various financial institutions. As part of the original agreement, Huntsman was due to buy-out ICI’s residual 30% shareholding by mid-2002. In Nov 2000, terms were agreed for the transfer of ICI’s 30% shareholding – $365 M plus interest accruing onwards from the end of Nov 2000 until the date of completion, which was expected to be some time before 30 June 2001. In recognition of the impending change of ownership, Huntsman-ICI Holdings changed its name to Huntsman International. However, with the onset of a sharp downturn in world petrochemical markets, Huntsman Corp found it increasingly difficult to service its debts and to fund the acquisition of the ICI’s shareholding. Completion of the transaction was postponed to allow Huntsman time to negotiate amendments to its credit facilities. Eventually, it was announced towards the end of Dec 2001 that Huntsman Specialty Chemicals Corp (HSCC, a wholly-owned subsidiary of Huntsman Corp) would buy the ICI shareholding in or before 3Q 2003 for $365 M plus an amount equivalent to interest calculated as owing from Dec 2001. HSCC will be liable to pay an extra $32.7 M if it fails to complete the transaction before 1 Oct 2003. On the other hand, the price paid could be reduced by up to $20 M in the event of completion before 3Q 2003. Under certain circumstances, if Huntsman cannot complete the transaction, ICI could receive a 30% stake in Huntsman International: this would effectively reverse the current ownership position, making Huntsman Corp the minority partner. Meanwhile, Huntsman has embarked on a number of cost-saving measures, including the installation of an SAP enterprise resource planning system. Huntsman Tioxide intends to reduce its global workforce from 3000 to 2900 people. It has also postponed the planned expansion of its Spanish
MARCH 2002