- Email: [email protected]
Chemtura ‘successfully emerged’ from Chapter 11 during 4Q 2010
FINANCIALS
FINANCIALS
spending in this area in 2011. BASF currently has more than 9600 R&D employees working on about 3000 projects.
BASF enjoys record earnings and sales in 2010, hikes R&D spend
Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com
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hemicals major BASF SE achieved a profit of E1.1 billion in 2010, more than double the figure of E455 million for 2009, on sales up 26% to E63.9 billion. The chemicals business, in particular, was able to take advantage of the unexpectedly strong economic recovery in 2010. Income from operations (EBIT) before special items increased 68% year on year to E8.1 billion for 2010. Positive impetus from all regions contributed to the doubledigit sales growth, the company says. In Europe sales grew by 16% compared with 2009 to reach E35.2 billion while income from operations more than doubled to E5.2 billion. In the chemicals business, European sales even exceeded the pre-crisis level, BASF comments. In North America, sales rose by 41% to E13.2 billion in 2010, with income from operations reaching a new record of E1.1 billion. Sales in the Asia Pacific region increased by 46% to E11.6 billion, while income from operations was a record E1.3 billion. Sales in South America, Africa and the Middle East increased by 31% above the 2009 level to E3.8 billion but income from operations declined by E104 million to E177 million. During 2010 the Performance Products segment benefited from the economic recovery as well as the quick and successful integration of Ciba and the restructuring of the combined businesses, BASF reports. Demand and sales grew in all divisions. Measures to reduce fixed costs and the realization of synergies from the integration of Ciba led to a strong improvement in income from operations. The segment’s portfolio has been further optimized through the acquisition of Cognis [ADPO, August 2010]. BASF expects to achieve E275 million of additional EBIT by 2015 as a result of the integration of Cognis, with one-time integration costs of about E290 million by the end of 2013. It has announced an overall reduction of 450 posts as a result of the integration and the closure/consolidation of a number of former Cognis sites, including two production facilities. In 2010, BASF’s R&D expenditure reached a new record level, rising to nearly E1.5 billion from E1.4 billion in 2009. Research executive director Dr Andreas Kreimeyer emphasizes that R&D are ‘the foundations’ to secure BASF’s future, announcing that the company will therefore also increase its
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Additives for Polymers
Chemtura ‘successfully emerged’ from Chapter 11 during 4Q 2010
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uring the fourth quarter of 2010, Chemtura Corp emerged from its Chapter 11 restructuring ‘leaner, fitter and with a much stronger balance sheet’, according to CEO Craig Rogerson. Debt has been significantly reduced, creditors’ allowed claims satisfied, cost structure improved and a considerable number of environmental and other liabilities resolved, he says. Despite posting a quarterly net loss from continuing operations on a GAAP basis of US$367 million, compared to a net loss of $94 million in 4Q 2009, Rogerson says that the company exceeded its financial targets for 4Q and full-year 2010 and laid the ‘foundation for further improvement in 2011’. Reorganization items totalled $223 million in 4Q 2010 compared to $31 million the previous year. For the company as a whole, net sales rose 14% in 4Q 2010 to $680 million from $598 million for the same period in 2009. The increase was attributable to increased sales volumes and selling prices. For full-year 2010, Chemtura posted a net loss of $586 million compared to a net loss of $293 million in 2009. Net sales rose 20% to $2.76 billion in 2010 from $2.3 billion the previous year. Industrial Performance Products’ net sales increased 9% to $303 million in 4Q 2010. Higher sales volume in the quarter was due to increased demand across customers’ industry segments, as well as strong growth in the Asia Pacific region, Chemtura comments. Operating profit declined $7 million to $20 million as the benefits of higher volume and higher selling prices were offset by the greater impact of higher raw material and energy costs, higher distribution costs and the sale of the sodium sulfonate business. Net sales for Industrial Engineered Products increased 33% in 4Q 2010 to $191 million, while operating profit increased $6 million to $13 million. Both segments achieved substantially improved sales and operating profit for full-year 2010.
May 2011
FINANCIALS
Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports strong year-end figures for 2010
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or full-year 2010, The Dow Chemical Company had sales of US$53.7 billion, up 26% versus 2009, with sequential sales gains throughout the year. Net income from continuing operations was $2.32 billion, up from $566 million the previous year. Sales in the emerging geographies were $16 billion in 2010, a record for the company. In the Asia Pacific region, annual sales exceeded $9 billion for the first time in Dow’s history, and were up 25%. Volumes rose 12% at the company level, with gains reported in all operating segments and across all geographic areas. Prices were up 14% and more than offset a $5 billion increase in purchased feedstock and energy costs. EBITDA totalled $7.5 billion, a 36% increase versus 2009 on a pro forma basis. R&D expenses rose 6% versus pro forma spending in 2009, reaching nearly $1.7 billion, while SG&A expenses fell 5%. The company achieved sales of $13.8 billion in 4Q 2010, a 22% increase compared with the same period last year. Net income from continuing operations excluding certain items was $625 million, more than double the $286 million result the previous year. Dow says that it has achieved its synergy commitments related to the acquisition of Rohm and Haas [ADPO, May & October 2009] and reduced structural costs a full quarter ahead of schedule, with realized savings of $2.4 billion and an annual run-rate of $2.5 billion.
ermany’s speciality chemicals company Lanxess posted strong 2010 year-end results. Sales in the 12-month period grew 41% year-on-year to E7.1 billion, driven by both vigorous volume growth and price increases. Net income jumped nearly tenfold from E40 million in 2009 to E379 million last year, while EBITDA pre-exceptionals nearly doubled to E918 million, above the company’s own forecast. Lanxess was also able to lift sales and earnings in 4Q 2010 in comparison to a very strong quarter a year earlier. Year on year, sales rose 32% to E1.8 billion, EBITDA preexceptionals grew 19% to E172 million and net income increased 86% to E26 million. The Latin America region showed the strongest growth in 2010, with sales rising 85% to E955 million, while North American sales increased by 50% to E1.2 billion. In the Asia Pacific sales rose 43% to E1.6 billion. Europe (excluding Germany), the Middle East and Africa remained the group’s largest region accounting for 29% of group sales. Regional sales grew 31% to E2.0 billion in 2010, with Russia, Turkey and South Africa the countries with the strongest sales growth in percentage terms. In Germany annual sales rose by 24% to E1.3 billion. Sales in the four BRIC countries were up 60% to E1.6 billion and represented 23% of group sales in 2010 in comparison to 20% in 2009. Mirroring the company’s recently announced ambitious growth strategy [ADPO, November 2010], the global workforce rose by 310 to 14 648 at the end of 2010 with most new employees hired in the Asia Pacific region. Performance Polymers was the company’s largest segment in 2010, with sales rising 58% to E3.8 billion. Sales by Performance Chemicals rose 29% to E2.0 billion, with all seven businesses showing strong volume gains especially those with exposure to the automotive industry.
Contact: The Dow Chemical Company, Midland, MI, USA. Tel: +1 989 636 1000, Web: www.dow.com
Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
Dow’s 2010 results boosted by sales record in emerging regions
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May 2011
Additives for Polymers
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FINANCIALS
spending in this area in 2011. BASF currently has more than 9600 R&D employees working on about 3000 projects.
BASF enjoys record earnings and sales in 2010, hikes R&D spend
Contact: BASF SE, Ludwigshafen, Germany. Tel: +49 621 60 0, Web: www.basf.com
C
hemicals major BASF SE achieved a profit of E1.1 billion in 2010, more than double the figure of E455 million for 2009, on sales up 26% to E63.9 billion. The chemicals business, in particular, was able to take advantage of the unexpectedly strong economic recovery in 2010. Income from operations (EBIT) before special items increased 68% year on year to E8.1 billion for 2010. Positive impetus from all regions contributed to the doubledigit sales growth, the company says. In Europe sales grew by 16% compared with 2009 to reach E35.2 billion while income from operations more than doubled to E5.2 billion. In the chemicals business, European sales even exceeded the pre-crisis level, BASF comments. In North America, sales rose by 41% to E13.2 billion in 2010, with income from operations reaching a new record of E1.1 billion. Sales in the Asia Pacific region increased by 46% to E11.6 billion, while income from operations was a record E1.3 billion. Sales in South America, Africa and the Middle East increased by 31% above the 2009 level to E3.8 billion but income from operations declined by E104 million to E177 million. During 2010 the Performance Products segment benefited from the economic recovery as well as the quick and successful integration of Ciba and the restructuring of the combined businesses, BASF reports. Demand and sales grew in all divisions. Measures to reduce fixed costs and the realization of synergies from the integration of Ciba led to a strong improvement in income from operations. The segment’s portfolio has been further optimized through the acquisition of Cognis [ADPO, August 2010]. BASF expects to achieve E275 million of additional EBIT by 2015 as a result of the integration of Cognis, with one-time integration costs of about E290 million by the end of 2013. It has announced an overall reduction of 450 posts as a result of the integration and the closure/consolidation of a number of former Cognis sites, including two production facilities. In 2010, BASF’s R&D expenditure reached a new record level, rising to nearly E1.5 billion from E1.4 billion in 2009. Research executive director Dr Andreas Kreimeyer emphasizes that R&D are ‘the foundations’ to secure BASF’s future, announcing that the company will therefore also increase its
10
Additives for Polymers
Chemtura ‘successfully emerged’ from Chapter 11 during 4Q 2010
D
uring the fourth quarter of 2010, Chemtura Corp emerged from its Chapter 11 restructuring ‘leaner, fitter and with a much stronger balance sheet’, according to CEO Craig Rogerson. Debt has been significantly reduced, creditors’ allowed claims satisfied, cost structure improved and a considerable number of environmental and other liabilities resolved, he says. Despite posting a quarterly net loss from continuing operations on a GAAP basis of US$367 million, compared to a net loss of $94 million in 4Q 2009, Rogerson says that the company exceeded its financial targets for 4Q and full-year 2010 and laid the ‘foundation for further improvement in 2011’. Reorganization items totalled $223 million in 4Q 2010 compared to $31 million the previous year. For the company as a whole, net sales rose 14% in 4Q 2010 to $680 million from $598 million for the same period in 2009. The increase was attributable to increased sales volumes and selling prices. For full-year 2010, Chemtura posted a net loss of $586 million compared to a net loss of $293 million in 2009. Net sales rose 20% to $2.76 billion in 2010 from $2.3 billion the previous year. Industrial Performance Products’ net sales increased 9% to $303 million in 4Q 2010. Higher sales volume in the quarter was due to increased demand across customers’ industry segments, as well as strong growth in the Asia Pacific region, Chemtura comments. Operating profit declined $7 million to $20 million as the benefits of higher volume and higher selling prices were offset by the greater impact of higher raw material and energy costs, higher distribution costs and the sale of the sodium sulfonate business. Net sales for Industrial Engineered Products increased 33% in 4Q 2010 to $191 million, while operating profit increased $6 million to $13 million. Both segments achieved substantially improved sales and operating profit for full-year 2010.
May 2011
FINANCIALS
Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports strong year-end figures for 2010
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or full-year 2010, The Dow Chemical Company had sales of US$53.7 billion, up 26% versus 2009, with sequential sales gains throughout the year. Net income from continuing operations was $2.32 billion, up from $566 million the previous year. Sales in the emerging geographies were $16 billion in 2010, a record for the company. In the Asia Pacific region, annual sales exceeded $9 billion for the first time in Dow’s history, and were up 25%. Volumes rose 12% at the company level, with gains reported in all operating segments and across all geographic areas. Prices were up 14% and more than offset a $5 billion increase in purchased feedstock and energy costs. EBITDA totalled $7.5 billion, a 36% increase versus 2009 on a pro forma basis. R&D expenses rose 6% versus pro forma spending in 2009, reaching nearly $1.7 billion, while SG&A expenses fell 5%. The company achieved sales of $13.8 billion in 4Q 2010, a 22% increase compared with the same period last year. Net income from continuing operations excluding certain items was $625 million, more than double the $286 million result the previous year. Dow says that it has achieved its synergy commitments related to the acquisition of Rohm and Haas [ADPO, May & October 2009] and reduced structural costs a full quarter ahead of schedule, with realized savings of $2.4 billion and an annual run-rate of $2.5 billion.
ermany’s speciality chemicals company Lanxess posted strong 2010 year-end results. Sales in the 12-month period grew 41% year-on-year to E7.1 billion, driven by both vigorous volume growth and price increases. Net income jumped nearly tenfold from E40 million in 2009 to E379 million last year, while EBITDA pre-exceptionals nearly doubled to E918 million, above the company’s own forecast. Lanxess was also able to lift sales and earnings in 4Q 2010 in comparison to a very strong quarter a year earlier. Year on year, sales rose 32% to E1.8 billion, EBITDA preexceptionals grew 19% to E172 million and net income increased 86% to E26 million. The Latin America region showed the strongest growth in 2010, with sales rising 85% to E955 million, while North American sales increased by 50% to E1.2 billion. In the Asia Pacific sales rose 43% to E1.6 billion. Europe (excluding Germany), the Middle East and Africa remained the group’s largest region accounting for 29% of group sales. Regional sales grew 31% to E2.0 billion in 2010, with Russia, Turkey and South Africa the countries with the strongest sales growth in percentage terms. In Germany annual sales rose by 24% to E1.3 billion. Sales in the four BRIC countries were up 60% to E1.6 billion and represented 23% of group sales in 2010 in comparison to 20% in 2009. Mirroring the company’s recently announced ambitious growth strategy [ADPO, November 2010], the global workforce rose by 310 to 14 648 at the end of 2010 with most new employees hired in the Asia Pacific region. Performance Polymers was the company’s largest segment in 2010, with sales rising 58% to E3.8 billion. Sales by Performance Chemicals rose 29% to E2.0 billion, with all seven businesses showing strong volume gains especially those with exposure to the automotive industry.
Contact: The Dow Chemical Company, Midland, MI, USA. Tel: +1 989 636 1000, Web: www.dow.com
Contact: Lanxess, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
Dow’s 2010 results boosted by sales record in emerging regions
F
May 2011
Additives for Polymers
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