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Ciba Specialty Chemicals delivers solid performance
October 2001
The company plans to demolish 35 production buildings on the 87-acre site and will work with federal, state and local authorities to decommission the site in accordance with all environmental regulations. Other plants to be closed as part of the restructuring are Edison, Newark and Nutley in New Jersey, and Huddersfield and Luton in the UK. Contact: Crmnpton Corporation, I American Lane, Gwemvich, CT 06831-2559, USA; tel: +I-203-552-2000
FINANCIALS Bayer’s first half sales rise but earnings fall Sales from Bayer’s continuing operations rose 8% in the first half of 2001 compared with the same period last year, totalling e15.6 billion. However, net income fell 3% to El.0 billion earnings. The decline is attributed to temporary production problems for some biological products, the sustained high cost of raw materials ~ especially in the Polymers segment - and a drop in demand from major customer sectors such as the automotive, electrical and construction industries. Company chairman Dr Manfred Schneider anticipates that full-year profits will be significantly below target as the anticipated economic recovery has not materialized. The company has launched a number of programmes aimed at savings of cl.5 billion by 2005. In the Polymers segment, which includes Bayer’s colorants products as well as coatings, plastics, rubbers and fibres, sales for the six months were up 9% to e5.7 billion. But high raw material costs and lower production volumes combined to reduce operating earnings to eO.4 billion, down 28% compared to the same period in 2000. All the business groups in this segment have embarked on aggressive programmes to improve margins which will lead to annual savings of up to c700 million a year by 2005. The raw materials situation is predicted to ease slightly before the end of the year, and the economic climate should improve early in 2002.
02001 Elsevier Science
Additives,f&
Polymers
Sales for the Chemicals segment grew 19% to e2.5 billion and operating earnings were up 18% to eO.3 billion. Within this segment, the Specialty Products Business Group, which includes Bayer’s polymer additives operations, posted 22% higher sales, largely due to acquisitions. Contact: Buyer ilG, Wtv-k Leverhuen, D-51368 Leverkusen, Germun~~; tel: +49-21-335123788: f&x: +49-21-33.51-23323.
Ciba Specialty Chemicals delivers solid performance Ciba Specialty Chemicals achieved a 3% increase in net income to CHF222 million (cl 50 million) for the first half of 200 1, despite the difftcult economic environment and less favourable currency rates. Compared to the record first half of 2000, sales for the six months were 1% lower in local currencies, and 4% lower in Swiss francs at CHF3.856 billion. However, the volume of sales was maintained. The company reported that sales in some regions and end-markets were weak across the first half, with Europe showing some areas of weakness towards the end of the second quarter. However, it expects net income for the full year to reach or exceed the previous year. Looking further ahead, the company has set new financial goals for the years 2002 to 2005, including an average annual sales growth of 6% and improved profitability by 2005. As with most companies in the chemicals sector, Ciba Specialty Chemicals has initiated various measures within the six month period to improve efficiency. This included a realignment of its business operational activities alongside customer industries, forming five segments. The former divisional layer has thus been eliminated, and efficiency is being improved by harmonizing several support areas. Levels of expenditure on R&D have been maintained. The newly created Plastic Additives Segment outperformed the market during the first half of 2001, both in sales and profitability, in spite of weak market conditions in key global markets, the company says. The Segment achieved the same high sales in local currencies as during the first half of 2000. Sales in Swiss francs totaled
5
Additives,
for-Polyws
CHF969 million, 2% down on last year. Segment profitability improved in the first half of 2001, due primarily to an increase in productivity. The other four Segments in the new structure are: Coating Effects, Water and Paper Treatment, Textile Effects, and Home and Personal Care. Contact: Cihu Special[v Chemicals, CH-4002 Basrl. Sw?tzerlund; tel: +41-61-636-4444; ,fin: +4/-61-636-3019; URL: wwx:cibasc.conl
Noveon takes stock after first full quarter of trading Noveon Inc, headquartered in Cleveland, Ohio, USA has posted its first full-quarter results, for the second quarter ended 30 June 2001. The company achieved sales of US$271.1 million and gross earnings (before interest, taxes, depreciation and amortization, EBITDA) of $42.3 million. Noveon was created by the sale on 28 February 200 1 of BFGoodrich’s Performance Materials Division to an investor group comprised of AEA Investors Inc. and affiliates of DLJ Merchant Banking Partners and DB Capital Partners Inc. For the comparable quarter of 2000 The BFGoodrich Company reported sales for the division of $298.4 million and EBITDA of $54.3 million; these results include certain businesses that were not part of Noveon’s acquisition of Performance Materials. Commenting on the results, Steve Demetriou, Noveon president and chief executive officer, said, “Despite the decline in operating performance, our efforts have resulted in robust free cash flow performance during our tenure as a new company. In this difficult and challenging economic environment, we are focused on taking actions necessary to make Noveon a stronger company, including cost controls, growth and technology initiatives and improvements in working capital management.” In this respect, the company reduced its worldwide workforce by about 10% in the second quarter and also discontinued its flush pigment and colour former product lines, which together should save $12-15 million annually. Noveon operates three groups - Polymer Specialties and Solutions, Consumer Performance Coatings ~ which together employ about 2900 staff at 42 facilities. Sales for the
6
October 2001
Polymer Solutions group, which includes the company’s polymer additives and thermoplastic polyurethane businesses, declined 8.2% from $105.9 million for the second quarter of 2000, to $97.2 million. This was due to volume reductions in products sold to automotive related industries and the impact of the weaker Euro. Operating income decreased by $8.1 million from $16.8 million to $8.7 million. During the quarter, the Consumer Specialties Group, which includes personal care and pharmaceutical businesses, reported a sales increase of 5%, from $62.8 million to $66.0 million. Operating income declined by $1.9 million, from $6.2 million to $4.3 million. Finally, the Performance Coatings Group saw sales fall 16.8%, from $129.7 million to $107.9 million, because of volume declines related to lower demand from customers in the paper and packaging, textile and automotive industries. Contuct: Noveon Inc, 991 I Brecks\ille Roud, OH 44141, USA; tcl: +I-216-447-
Cladand,
TOR Minerals retur ned to profit in second quarter TOR Minerals International ., headquartered in Corpus Christi, Texas recorded earnings of US$9000 for the second quarter ended 30 June 2001, compared with a loss of $490 000 in the first quarter of the year. Earnings of S 15 1 000 in the second quarter of 2000 were followed by four consecutive quarters of losses. The six months to June this year showed a loss of $48 1 000. Sales for the first six months were up slightly to $7.57 million compared with $7.46 million for the same period a year ago. TOR produces natural titanium dioxide pigments and speciality aluminas used in the manufacture of plastics, coatings, inks, paper and other products. Richard Bowers, president and CEO, said that the improved earnings were a result of lower energy costs, reductions in manufacturing and administrative overheads and lower interest expenses. He added that TOR was focusing on increasing production of its HITOX’K’ titanium dioxide pigment in Malaysia, where a second production line was successfully commissioned in the second quarter. It is also building up its alumina business in the Netherlands and in
6200 1 Elsevier Science
The company plans to demolish 35 production buildings on the 87-acre site and will work with federal, state and local authorities to decommission the site in accordance with all environmental regulations. Other plants to be closed as part of the restructuring are Edison, Newark and Nutley in New Jersey, and Huddersfield and Luton in the UK. Contact: Crmnpton Corporation, I American Lane, Gwemvich, CT 06831-2559, USA; tel: +I-203-552-2000
FINANCIALS Bayer’s first half sales rise but earnings fall Sales from Bayer’s continuing operations rose 8% in the first half of 2001 compared with the same period last year, totalling e15.6 billion. However, net income fell 3% to El.0 billion earnings. The decline is attributed to temporary production problems for some biological products, the sustained high cost of raw materials ~ especially in the Polymers segment - and a drop in demand from major customer sectors such as the automotive, electrical and construction industries. Company chairman Dr Manfred Schneider anticipates that full-year profits will be significantly below target as the anticipated economic recovery has not materialized. The company has launched a number of programmes aimed at savings of cl.5 billion by 2005. In the Polymers segment, which includes Bayer’s colorants products as well as coatings, plastics, rubbers and fibres, sales for the six months were up 9% to e5.7 billion. But high raw material costs and lower production volumes combined to reduce operating earnings to eO.4 billion, down 28% compared to the same period in 2000. All the business groups in this segment have embarked on aggressive programmes to improve margins which will lead to annual savings of up to c700 million a year by 2005. The raw materials situation is predicted to ease slightly before the end of the year, and the economic climate should improve early in 2002.
02001 Elsevier Science
Additives,f&
Polymers
Sales for the Chemicals segment grew 19% to e2.5 billion and operating earnings were up 18% to eO.3 billion. Within this segment, the Specialty Products Business Group, which includes Bayer’s polymer additives operations, posted 22% higher sales, largely due to acquisitions. Contact: Buyer ilG, Wtv-k Leverhuen, D-51368 Leverkusen, Germun~~; tel: +49-21-335123788: f&x: +49-21-33.51-23323.
Ciba Specialty Chemicals delivers solid performance Ciba Specialty Chemicals achieved a 3% increase in net income to CHF222 million (cl 50 million) for the first half of 200 1, despite the difftcult economic environment and less favourable currency rates. Compared to the record first half of 2000, sales for the six months were 1% lower in local currencies, and 4% lower in Swiss francs at CHF3.856 billion. However, the volume of sales was maintained. The company reported that sales in some regions and end-markets were weak across the first half, with Europe showing some areas of weakness towards the end of the second quarter. However, it expects net income for the full year to reach or exceed the previous year. Looking further ahead, the company has set new financial goals for the years 2002 to 2005, including an average annual sales growth of 6% and improved profitability by 2005. As with most companies in the chemicals sector, Ciba Specialty Chemicals has initiated various measures within the six month period to improve efficiency. This included a realignment of its business operational activities alongside customer industries, forming five segments. The former divisional layer has thus been eliminated, and efficiency is being improved by harmonizing several support areas. Levels of expenditure on R&D have been maintained. The newly created Plastic Additives Segment outperformed the market during the first half of 2001, both in sales and profitability, in spite of weak market conditions in key global markets, the company says. The Segment achieved the same high sales in local currencies as during the first half of 2000. Sales in Swiss francs totaled
5
Additives,
for-Polyws
CHF969 million, 2% down on last year. Segment profitability improved in the first half of 2001, due primarily to an increase in productivity. The other four Segments in the new structure are: Coating Effects, Water and Paper Treatment, Textile Effects, and Home and Personal Care. Contact: Cihu Special[v Chemicals, CH-4002 Basrl. Sw?tzerlund; tel: +41-61-636-4444; ,fin: +4/-61-636-3019; URL: wwx:cibasc.conl
Noveon takes stock after first full quarter of trading Noveon Inc, headquartered in Cleveland, Ohio, USA has posted its first full-quarter results, for the second quarter ended 30 June 2001. The company achieved sales of US$271.1 million and gross earnings (before interest, taxes, depreciation and amortization, EBITDA) of $42.3 million. Noveon was created by the sale on 28 February 200 1 of BFGoodrich’s Performance Materials Division to an investor group comprised of AEA Investors Inc. and affiliates of DLJ Merchant Banking Partners and DB Capital Partners Inc. For the comparable quarter of 2000 The BFGoodrich Company reported sales for the division of $298.4 million and EBITDA of $54.3 million; these results include certain businesses that were not part of Noveon’s acquisition of Performance Materials. Commenting on the results, Steve Demetriou, Noveon president and chief executive officer, said, “Despite the decline in operating performance, our efforts have resulted in robust free cash flow performance during our tenure as a new company. In this difficult and challenging economic environment, we are focused on taking actions necessary to make Noveon a stronger company, including cost controls, growth and technology initiatives and improvements in working capital management.” In this respect, the company reduced its worldwide workforce by about 10% in the second quarter and also discontinued its flush pigment and colour former product lines, which together should save $12-15 million annually. Noveon operates three groups - Polymer Specialties and Solutions, Consumer Performance Coatings ~ which together employ about 2900 staff at 42 facilities. Sales for the
6
October 2001
Polymer Solutions group, which includes the company’s polymer additives and thermoplastic polyurethane businesses, declined 8.2% from $105.9 million for the second quarter of 2000, to $97.2 million. This was due to volume reductions in products sold to automotive related industries and the impact of the weaker Euro. Operating income decreased by $8.1 million from $16.8 million to $8.7 million. During the quarter, the Consumer Specialties Group, which includes personal care and pharmaceutical businesses, reported a sales increase of 5%, from $62.8 million to $66.0 million. Operating income declined by $1.9 million, from $6.2 million to $4.3 million. Finally, the Performance Coatings Group saw sales fall 16.8%, from $129.7 million to $107.9 million, because of volume declines related to lower demand from customers in the paper and packaging, textile and automotive industries. Contuct: Noveon Inc, 991 I Brecks\ille Roud, OH 44141, USA; tcl: +I-216-447-
Cladand,
TOR Minerals retur ned to profit in second quarter TOR Minerals International ., headquartered in Corpus Christi, Texas recorded earnings of US$9000 for the second quarter ended 30 June 2001, compared with a loss of $490 000 in the first quarter of the year. Earnings of S 15 1 000 in the second quarter of 2000 were followed by four consecutive quarters of losses. The six months to June this year showed a loss of $48 1 000. Sales for the first six months were up slightly to $7.57 million compared with $7.46 million for the same period a year ago. TOR produces natural titanium dioxide pigments and speciality aluminas used in the manufacture of plastics, coatings, inks, paper and other products. Richard Bowers, president and CEO, said that the improved earnings were a result of lower energy costs, reductions in manufacturing and administrative overheads and lower interest expenses. He added that TOR was focusing on increasing production of its HITOX’K’ titanium dioxide pigment in Malaysia, where a second production line was successfully commissioned in the second quarter. It is also building up its alumina business in the Netherlands and in
6200 1 Elsevier Science