- Email: [email protected]
Ciba Specialty Chemicals ‘on track’ to meet annual targets
June 2001
Modifiers business, and from rising raw-material and energy costs, a weaker euro and higher manufacturing costs from production cutbacks to control inventory, partially offset by improved selling prices. Excluding the Phosphorus Derivatives business, the Specialty Products’ segment sales increased by 4% on a year-over-year basis. Net sales for the segment decreased by 18%, compared with the first quarter of 2000. Sales for the period reflect a full quarter of sales from the Pharmaceutical Services businesses which were acquired during February 2000, and the movement of the Phosphorus Derivatives business into the Astaris joint venture. The Specialty Products’ segment profitability declined 28% primarily through the loss of income from the Phosphorus Derivatives business. Contact: Solutia Inc, PO Box 66160, St Louis, MO 631666760, USA; tel: +I-314 674 1000; fax: t-l-314 674 2490
Ciba Specialty Chemicals ‘on track’ to meet annual targets Swiss company Ciba Specialty Chemicals has announced that its sales and profits for the first quarter of 2001 were higher than those it posted for the corresponding period of fiscal 2000. Profitability increased to 17.5% of sales, compared with 17.3% in the first quarter of 2000. The company says that it achieved this through continued efficiency improvements and volume growth. Net income reached CHF 1 I8 million, a 7% gain over the first quarter of 2000. Sales in local-currency terms rose by l%, with volume increasing by 3%. Price reductions slowed to 2% from their higher recent levels. Sales in Swiss francs totalled CHFl.926 billion, down by 2% mainly because of the increased strength of the euro. Sales in local-currency terms were substantially higher in Asia, South America and many parts of Europe which more than offset a weaker performance in the USA, particularly in the US automotive industry, and Japan, says Ciba.
02001 Elsevier Science
Additives for Polymers
The company’s Additives division (excluding Water Treatments) posted a 1% increase in local-currency sales compared with the first quarter of 2000, and a 2% decrease in Swiss francs (to CHF 653 million). Weaker conditions in the NAFTA region and Japan were offset by increasing sales elsewhere. Volume increased by 3%, and prices dropped by 2%. Profit margins improved moderately, says the company. The profitability of the Colors Division improved during the first quarter of 2001 despite a decline in sales. Sales totalled CHF629 million, which was 5% lower in Swiss francs and 2% lower in local-currency terms. However, tight cost control led to improved profitability margins, says the company. Volume rose by 1% and prices declined by nearly 3%. The Water Treatments Business Unit increased its year-over-year sales in the first quarter by 3% in local currencies. Sales in Swiss francs were stable at CHF273 million. The Consumer Care division increased sales by 3% in local-currency terms. Sales in Swiss francs were flat at CHF371 million. The company says that it sees further sales and profit growth through the remainder of 2001. Ciba maintains that sales growth should be clearly above the average market growth in its industries. Market growth is expected to be around 2%, reflecting the softer macroeconomic environment. EBITDA should grow in absolute terms and the EBITDA margin target for 2001 remains at between 17.1% and 17.6% of sales, says the company. Also, Ciba says that because of its strengthened financial position, an over-proportional increase in net income and earnings per share is expected. These forecasts are based on both a moderately softer macroeconomic environment, including an improvement in conditions in the USA during the second-half of this year, as well as the assumption that currency exchange-rates will not materially change from their current levels. Contact: Ciba Spezialitiitenchemie AG, Klybeckstr 141, Schwarzwaldallee 215, Base1 CH-4002, Switzerland: tel: +41-61 636 1111; fax: +41-61 636 1212
7
Modifiers business, and from rising raw-material and energy costs, a weaker euro and higher manufacturing costs from production cutbacks to control inventory, partially offset by improved selling prices. Excluding the Phosphorus Derivatives business, the Specialty Products’ segment sales increased by 4% on a year-over-year basis. Net sales for the segment decreased by 18%, compared with the first quarter of 2000. Sales for the period reflect a full quarter of sales from the Pharmaceutical Services businesses which were acquired during February 2000, and the movement of the Phosphorus Derivatives business into the Astaris joint venture. The Specialty Products’ segment profitability declined 28% primarily through the loss of income from the Phosphorus Derivatives business. Contact: Solutia Inc, PO Box 66160, St Louis, MO 631666760, USA; tel: +I-314 674 1000; fax: t-l-314 674 2490
Ciba Specialty Chemicals ‘on track’ to meet annual targets Swiss company Ciba Specialty Chemicals has announced that its sales and profits for the first quarter of 2001 were higher than those it posted for the corresponding period of fiscal 2000. Profitability increased to 17.5% of sales, compared with 17.3% in the first quarter of 2000. The company says that it achieved this through continued efficiency improvements and volume growth. Net income reached CHF 1 I8 million, a 7% gain over the first quarter of 2000. Sales in local-currency terms rose by l%, with volume increasing by 3%. Price reductions slowed to 2% from their higher recent levels. Sales in Swiss francs totalled CHFl.926 billion, down by 2% mainly because of the increased strength of the euro. Sales in local-currency terms were substantially higher in Asia, South America and many parts of Europe which more than offset a weaker performance in the USA, particularly in the US automotive industry, and Japan, says Ciba.
02001 Elsevier Science
Additives for Polymers
The company’s Additives division (excluding Water Treatments) posted a 1% increase in local-currency sales compared with the first quarter of 2000, and a 2% decrease in Swiss francs (to CHF 653 million). Weaker conditions in the NAFTA region and Japan were offset by increasing sales elsewhere. Volume increased by 3%, and prices dropped by 2%. Profit margins improved moderately, says the company. The profitability of the Colors Division improved during the first quarter of 2001 despite a decline in sales. Sales totalled CHF629 million, which was 5% lower in Swiss francs and 2% lower in local-currency terms. However, tight cost control led to improved profitability margins, says the company. Volume rose by 1% and prices declined by nearly 3%. The Water Treatments Business Unit increased its year-over-year sales in the first quarter by 3% in local currencies. Sales in Swiss francs were stable at CHF273 million. The Consumer Care division increased sales by 3% in local-currency terms. Sales in Swiss francs were flat at CHF371 million. The company says that it sees further sales and profit growth through the remainder of 2001. Ciba maintains that sales growth should be clearly above the average market growth in its industries. Market growth is expected to be around 2%, reflecting the softer macroeconomic environment. EBITDA should grow in absolute terms and the EBITDA margin target for 2001 remains at between 17.1% and 17.6% of sales, says the company. Also, Ciba says that because of its strengthened financial position, an over-proportional increase in net income and earnings per share is expected. These forecasts are based on both a moderately softer macroeconomic environment, including an improvement in conditions in the USA during the second-half of this year, as well as the assumption that currency exchange-rates will not materially change from their current levels. Contact: Ciba Spezialitiitenchemie AG, Klybeckstr 141, Schwarzwaldallee 215, Base1 CH-4002, Switzerland: tel: +41-61 636 1111; fax: +41-61 636 1212
7