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Clariant achieves 8% sales growth in a softening economic environment
F O C U S 2013, valued at $4.66 bn. These are rheology modifiers, dispersants, foam control agents, slip and rub materials, and wetting agents. Annual demand is expected to grow at a rate of 5% until 2018. Rheology modifiers are the largest additive type, accounting for around 40% production in 2013. The main rheology modifier categories are cellulosic, synthetic and inorganic. The second-largest additive type consists of dispersants, representing one-fifth of production. These include high-volume polyacrylic/polycarboxylate types for titanium dioxide and fillers in waterborne architectural paints and specialized polymeric types for specific pigment use. Foam-control additives are the third largest additive, accounting for 17% of total output. These include surfactant and polymer-based products, higherperformance silicone and mineral oiltype products. Slip and rub materials represent 13% of production, followed by wetting agents which account for 11%. Silicone and wax products are used for slip and rub. About one-third of slip and rub additives were used in inks. Wetting agents include highvolume alkoxylated surfactants, fluoro surfactants and specialized silicone, acrylic, acetylenic glycol derivatives. Original Source: Paint & Coatings Industry (PCI), Oct 2014, 30 (10), 8,10 (Website: http://www.pcimag.com) © BNP Media 2014
Frost & Sullivan analyses Southeast Asian oleochemicals market According to a new analysis from Frost & Sullivan, the products made in Southeast Asia are primarily basic oleochemicals that include fatty alcohols, glycerine, and fatty acids. The ‘Southeast Asia Oleochemicals Market’ report reveals that the 2013 revenue of the fatty acid, fatty alcohol, and refined glycerine markets was $1.26 bn, $471.6 M and $61.1 M, respectively. These revenues are projected to grow to $2.74 bn, $1.03 bn and $131.9 M, respectively, in 2020. The profit margins of producers will be affected by the increasing demand for vegetable-based raw materials, accounting for 80 to 90% of the costs of fatty alcohols or fatty acids. As a result, the oleochemicals market has been driven by the 6
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repeated price fluctuations of vegetable oils, such as coconut oil and palm oil. By integrating the raw materials and production of oleochemicals in the supply chain, producers can regulate price volatility and even stoke value creation. Original Source: Coatings World, Nov 2014, 19 (11), 20 (Website: http://www.coatingsworld.com) © Rodman Media 2014
Global oleochemicals market to reach $30.03 bn by 2020: Grand View Research The global oleochemicals market is expected to reach $30.03 bn by 2020, according to a new study by Grand View Research Inc. Fatty acids were the leading oleochemical product and accounted for 57% of total demand in 2013. Global demand for fatty acids is expected to grow at an estimated CAGR of 6.4% from 2014 to 2020. Asia Pacific was the largest regional oleochemicals market and accounted for 41.9% of total market volume in 2013. Asia Pacific is both the largest consumer and largest producer of oleochemicals. European oleochemicals demand is expected to grow at an estimated CAGR of 4.1% from 2014 to 2020. The global oleochemicals market is moderately concentrated with top four companies accounted for over 55% of the total market. Top oleochemicals market players include ADM, AkzoNobel, BASF Cognis, Cargill, Emery Oleochemicals, Evonik, Oleon, KLK Malaysia, and Wilmar International. Original Source: Grand View Research, 2014. Found on SpecialChem Plastics and Elastomers Formulation, 24 Nov 2014 (Website: http://www.specialchem4polymers.com)
COMPANY RESULTS Novozymes: interim report for the first 9 months of 2014: household care For the first nine months of 2014, Novozymes’ sales to the household care industry increased by 3% in DKR and by 5% in LCY compared with the first nine months of 2013. Sales in household care industry amounted to DKR 3262 M against DKR 3156 M for the same period in 2013. Growth was driven by increased enzyme
penetration across detergent tiers to enhance wash performance, enable low-temperature washing and replace traditional chemicals in detergent formulations. Sales in emerging markets were a significant contributor to the global sales growth despite weakness in China. Sales in 3Q 2014 grew by 6% organically compared 3Q 2013. Growth was driven by solid performance across emerging and developed markets and supported by recently launched innovations. The detergent market continued to be a competitive and dynamic space in 3Q 2014. Original Source: Novozymes, 23 Oct 2014 (Website: http://www.novozymes.com) © Novozymes 2014
Clariant achieves 8% sales growth in a softening economic environment On 30 Oct 2014, Clariant, a world leader in specialty chemicals, announced 3Q 2014 sales of SFR 1.507 bn compared to SFR 1.443 bn in 3Q 2013. This corresponds to sales growth of 8% in local currencies, driven by 7% higher volumes and average sales price increases of 1%. Clariant achieved double-digit local currency sales growth in the emerging markets, led by Latin America with a 23% sales increase followed by Asia/Pacific with 13%. In Latin America, Brazil reported singledigit growth while sales in most of the other economies in the region grew double-digit. In Asia/Pacific strong sales growth was achieved in China with 12% and in India with 38% higher sales. In the mature markets, North America reached 3% higher sales, outpacing Europe Middle East & Africa (EMEA), which grew 2%. As in the first six months, the driver for growth in EMEA was the Middle East & Africa region which achieved growth of 15%, in-line with other emerging markets. In contrast, growth was uneven across countries in Europe with good growth in the Nordic countries and in Eastern Europe, resulting in 0% sales growth in the region. At 28.8%, the gross margin improved from the 28.1% recorded in the prior-year period. EBITDA before exceptional items from continuing operations rose 8% in local currencies, reaching SFR 211 M compared to SFR 203 M in 3Q 2013. JANUARY 2015
F O C U S Exceptional items including restructuring, impairment, and transaction-related costs increased to SFR 17 M from SFR 4 M one year ago. Those items were primarily related to measures to streamline operations within the group. Net income from continuing operations of SFR 58 M was recorded, compared to SFR 129 M in the previous year. Following the normal seasonal pattern, operating cash flow turned positive in 3Q 2014 and reached SFR 126 M compared to SFR 153 M in 3Q 2013. After nine months, cash flow stood at SFR 13 M compared to SFR 40 M one year ago. Net debt stood at SFR 1.608 bn and was therefore higher than the SFR 1.5 bn recorded at end-2013. Gearing, reflecting net financial debt in relation to equity, rose to 60% from 54% at end-2013. Compared to end-1H 2014, net debt and gearing were slightly lower at end-3Q 2014. Original Source: Clariant, 30 Oct 2014 (Website: http://www.clariant.com) © Clariant 2014
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potential commercial activities. The collaboration combines Battelle’s world-class capabilities in aerosol drug delivery device development with Discovery Labs’ expertise in synthetic surfactant technology and neonatal RDS. Battelle and the company generally will share equally in the agreed costs of the device development for the Aerosurf System; Battelle received 1.5 M warrants to purchase the company’s common stock at an exercise price of $5.00, exercisable upon the achievement of certain milestones and, if the project is successful, will be entitled to future royalties on Aerosurf sales and license sales revenues. Two tables present the company’s financial results for the three and nine months ended 30 Sep 2014 and 30 Sep 2013, and for the year ended 31 Dec 2013. Original Source: Discovery Laboratories Inc, 2014. Found on PR Newswire, 6 Nov 2014 (Website: http://www.prnewswire.com)
Discovery Labs reports 3Q 2014 financial results
Henkel reports solid performance in third quarter despite difficult market environment: key figures
Discovery Laboratories Inc, a speciality biotechnology company dedicated to advancing a new standard in respiratory critical care, announced financial results for 3Q ended 30 Sep 2014, as well as recent business updates. The company reported an operating loss of $10.3 M and net cash outflows before financing activities of $10.6 M for 3Q 2014. It ended 3Q 2014 with cash and cash equivalents of $54.9 M. It was awarded $1.0 M of a Phase II Small Business Innovation Research (SBIR) Grant valued at up to $3.0 M from the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) to support the development of aerosolized KL4 surfactant as a medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury. In Oct 2014, the Company entered into a strategic collaboration with Battelle Memorial Institute (Battelle) intended to advance the design of its capillary aerosol generator (CAG) and related components (the Aerosurf System) for use in the planned phase 3 clinical program and, if approved,
Henkel’s 3Q 2014 sales increased by 1.2% to €4236 M compared to 3Q 2013. Adjusted for negative foreignexchange effects of 2.2%, sales were up 3.4%. Organic sales rose by 2.3%. The laundry & home care business unit reported solid organic sales growth of 3.5%. Beauty care posted positive organic sales growth of 0.8%. The adhesive technologies business unit reported a solid improvement in organic sales of 2.7%. Adjusted operating profit rose by 3.1%, from €672 M to €693 M. Reported operating profit (EBIT) amounted to €603 M compared to €649 M in 3Q 2013. Net income amounted to €450 M compared to €469 M in 3Q 2013. Adjusted net income increased by 6.7%, from €476 M to €508 M. Earnings per preferred share (EPS) amounted to €1.01 compared to €1.06 in 3Q 2013. After adjustment, EPS increased by 6.4% from €1.10 to €1.17. As of 30 Sep 2014, Henkel showed a net financial position of €740 M, representing an increase of €255 M year-on-year. Sales for JanSep 2014 totalled €12,302 M, 1.6% below Jan-Sep 2013. Organically, sales grew by 3.3%. Adjusted
JANUARY 2015
operating profit increased by 2.8% from €1932 M to €1986 M. Adjusted return on sales (EBIT margin) increased from 15.5 to 16.1%. Adjusted net income grew by 7.8% from €1354 M to €1459 M. At €3.37, adjusted EPS exceeded Jan-Sep 2013 figure by 7.7%. Original Source: Henkel, 11 Nov 2014 (Website: http://www.henkel.com) © Henkel AG & Co KGaA 2014
COMPANY NEWS Huntsman opens new headquarters in India Huntsman Corp has opened a new corporate office in Mumbai, India, to serve as its headquarters for the Indian subcontinent. The new 220,000-square-ft, seven-story office in Andheri, Mumbai, will house advanced laboratories and research facilities, and 300 employees, including more than 100 technical staff. Investment details for the office remained undisclosed. The firm’s Indian sales amount to around $500 M and it has 1000 associates in the country. The company manufactures textile chemicals, dyes and surfactants at its sites in Gujarat, and produces polyurethane systems in Pune. Original Source: ICIS Chemical Business, 10-16 Nov 2014, 286 (16), 8 (Website: http://www.icis.com) © Reed Business Information Limited 2014. Original Source: Chemical Weekly, 11 Nov 2014, 154 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2014
Chemaxia named distributor for the Italian market by ICT for its additives and resins Cartersvill, GA, US-based Innovative Chemical Technologies (ICT) Inc has appointed Paullo, MI, US-based Chemaxia Srl to distribute its Thetawet, Thetapel, and Thetaguard fluoro special additives and resins at C6 chain in the Italian market. ICT is a developer and manufacturer of a wide range of surface-modified additives, such as specialty surfactants and polymers. Original Source: Pitture e Vernici – European Coatings, Nov-Dec 2014, 90 (6), 79 (Website: http://www.pittureevernici.it)
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Frost & Sullivan analyses Southeast Asian oleochemicals market According to a new analysis from Frost & Sullivan, the products made in Southeast Asia are primarily basic oleochemicals that include fatty alcohols, glycerine, and fatty acids. The ‘Southeast Asia Oleochemicals Market’ report reveals that the 2013 revenue of the fatty acid, fatty alcohol, and refined glycerine markets was $1.26 bn, $471.6 M and $61.1 M, respectively. These revenues are projected to grow to $2.74 bn, $1.03 bn and $131.9 M, respectively, in 2020. The profit margins of producers will be affected by the increasing demand for vegetable-based raw materials, accounting for 80 to 90% of the costs of fatty alcohols or fatty acids. As a result, the oleochemicals market has been driven by the 6
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repeated price fluctuations of vegetable oils, such as coconut oil and palm oil. By integrating the raw materials and production of oleochemicals in the supply chain, producers can regulate price volatility and even stoke value creation. Original Source: Coatings World, Nov 2014, 19 (11), 20 (Website: http://www.coatingsworld.com) © Rodman Media 2014
Global oleochemicals market to reach $30.03 bn by 2020: Grand View Research The global oleochemicals market is expected to reach $30.03 bn by 2020, according to a new study by Grand View Research Inc. Fatty acids were the leading oleochemical product and accounted for 57% of total demand in 2013. Global demand for fatty acids is expected to grow at an estimated CAGR of 6.4% from 2014 to 2020. Asia Pacific was the largest regional oleochemicals market and accounted for 41.9% of total market volume in 2013. Asia Pacific is both the largest consumer and largest producer of oleochemicals. European oleochemicals demand is expected to grow at an estimated CAGR of 4.1% from 2014 to 2020. The global oleochemicals market is moderately concentrated with top four companies accounted for over 55% of the total market. Top oleochemicals market players include ADM, AkzoNobel, BASF Cognis, Cargill, Emery Oleochemicals, Evonik, Oleon, KLK Malaysia, and Wilmar International. Original Source: Grand View Research, 2014. Found on SpecialChem Plastics and Elastomers Formulation, 24 Nov 2014 (Website: http://www.specialchem4polymers.com)
COMPANY RESULTS Novozymes: interim report for the first 9 months of 2014: household care For the first nine months of 2014, Novozymes’ sales to the household care industry increased by 3% in DKR and by 5% in LCY compared with the first nine months of 2013. Sales in household care industry amounted to DKR 3262 M against DKR 3156 M for the same period in 2013. Growth was driven by increased enzyme
penetration across detergent tiers to enhance wash performance, enable low-temperature washing and replace traditional chemicals in detergent formulations. Sales in emerging markets were a significant contributor to the global sales growth despite weakness in China. Sales in 3Q 2014 grew by 6% organically compared 3Q 2013. Growth was driven by solid performance across emerging and developed markets and supported by recently launched innovations. The detergent market continued to be a competitive and dynamic space in 3Q 2014. Original Source: Novozymes, 23 Oct 2014 (Website: http://www.novozymes.com) © Novozymes 2014
Clariant achieves 8% sales growth in a softening economic environment On 30 Oct 2014, Clariant, a world leader in specialty chemicals, announced 3Q 2014 sales of SFR 1.507 bn compared to SFR 1.443 bn in 3Q 2013. This corresponds to sales growth of 8% in local currencies, driven by 7% higher volumes and average sales price increases of 1%. Clariant achieved double-digit local currency sales growth in the emerging markets, led by Latin America with a 23% sales increase followed by Asia/Pacific with 13%. In Latin America, Brazil reported singledigit growth while sales in most of the other economies in the region grew double-digit. In Asia/Pacific strong sales growth was achieved in China with 12% and in India with 38% higher sales. In the mature markets, North America reached 3% higher sales, outpacing Europe Middle East & Africa (EMEA), which grew 2%. As in the first six months, the driver for growth in EMEA was the Middle East & Africa region which achieved growth of 15%, in-line with other emerging markets. In contrast, growth was uneven across countries in Europe with good growth in the Nordic countries and in Eastern Europe, resulting in 0% sales growth in the region. At 28.8%, the gross margin improved from the 28.1% recorded in the prior-year period. EBITDA before exceptional items from continuing operations rose 8% in local currencies, reaching SFR 211 M compared to SFR 203 M in 3Q 2013. JANUARY 2015
F O C U S Exceptional items including restructuring, impairment, and transaction-related costs increased to SFR 17 M from SFR 4 M one year ago. Those items were primarily related to measures to streamline operations within the group. Net income from continuing operations of SFR 58 M was recorded, compared to SFR 129 M in the previous year. Following the normal seasonal pattern, operating cash flow turned positive in 3Q 2014 and reached SFR 126 M compared to SFR 153 M in 3Q 2013. After nine months, cash flow stood at SFR 13 M compared to SFR 40 M one year ago. Net debt stood at SFR 1.608 bn and was therefore higher than the SFR 1.5 bn recorded at end-2013. Gearing, reflecting net financial debt in relation to equity, rose to 60% from 54% at end-2013. Compared to end-1H 2014, net debt and gearing were slightly lower at end-3Q 2014. Original Source: Clariant, 30 Oct 2014 (Website: http://www.clariant.com) © Clariant 2014
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potential commercial activities. The collaboration combines Battelle’s world-class capabilities in aerosol drug delivery device development with Discovery Labs’ expertise in synthetic surfactant technology and neonatal RDS. Battelle and the company generally will share equally in the agreed costs of the device development for the Aerosurf System; Battelle received 1.5 M warrants to purchase the company’s common stock at an exercise price of $5.00, exercisable upon the achievement of certain milestones and, if the project is successful, will be entitled to future royalties on Aerosurf sales and license sales revenues. Two tables present the company’s financial results for the three and nine months ended 30 Sep 2014 and 30 Sep 2013, and for the year ended 31 Dec 2013. Original Source: Discovery Laboratories Inc, 2014. Found on PR Newswire, 6 Nov 2014 (Website: http://www.prnewswire.com)
Discovery Labs reports 3Q 2014 financial results
Henkel reports solid performance in third quarter despite difficult market environment: key figures
Discovery Laboratories Inc, a speciality biotechnology company dedicated to advancing a new standard in respiratory critical care, announced financial results for 3Q ended 30 Sep 2014, as well as recent business updates. The company reported an operating loss of $10.3 M and net cash outflows before financing activities of $10.6 M for 3Q 2014. It ended 3Q 2014 with cash and cash equivalents of $54.9 M. It was awarded $1.0 M of a Phase II Small Business Innovation Research (SBIR) Grant valued at up to $3.0 M from the National Heart, Lung, and Blood Institute (NHLBI) of the National Institutes of Health (NIH) to support the development of aerosolized KL4 surfactant as a medical countermeasure to mitigate acute and chronic/late-phase radiation-induced lung injury. In Oct 2014, the Company entered into a strategic collaboration with Battelle Memorial Institute (Battelle) intended to advance the design of its capillary aerosol generator (CAG) and related components (the Aerosurf System) for use in the planned phase 3 clinical program and, if approved,
Henkel’s 3Q 2014 sales increased by 1.2% to €4236 M compared to 3Q 2013. Adjusted for negative foreignexchange effects of 2.2%, sales were up 3.4%. Organic sales rose by 2.3%. The laundry & home care business unit reported solid organic sales growth of 3.5%. Beauty care posted positive organic sales growth of 0.8%. The adhesive technologies business unit reported a solid improvement in organic sales of 2.7%. Adjusted operating profit rose by 3.1%, from €672 M to €693 M. Reported operating profit (EBIT) amounted to €603 M compared to €649 M in 3Q 2013. Net income amounted to €450 M compared to €469 M in 3Q 2013. Adjusted net income increased by 6.7%, from €476 M to €508 M. Earnings per preferred share (EPS) amounted to €1.01 compared to €1.06 in 3Q 2013. After adjustment, EPS increased by 6.4% from €1.10 to €1.17. As of 30 Sep 2014, Henkel showed a net financial position of €740 M, representing an increase of €255 M year-on-year. Sales for JanSep 2014 totalled €12,302 M, 1.6% below Jan-Sep 2013. Organically, sales grew by 3.3%. Adjusted
JANUARY 2015
operating profit increased by 2.8% from €1932 M to €1986 M. Adjusted return on sales (EBIT margin) increased from 15.5 to 16.1%. Adjusted net income grew by 7.8% from €1354 M to €1459 M. At €3.37, adjusted EPS exceeded Jan-Sep 2013 figure by 7.7%. Original Source: Henkel, 11 Nov 2014 (Website: http://www.henkel.com) © Henkel AG & Co KGaA 2014
COMPANY NEWS Huntsman opens new headquarters in India Huntsman Corp has opened a new corporate office in Mumbai, India, to serve as its headquarters for the Indian subcontinent. The new 220,000-square-ft, seven-story office in Andheri, Mumbai, will house advanced laboratories and research facilities, and 300 employees, including more than 100 technical staff. Investment details for the office remained undisclosed. The firm’s Indian sales amount to around $500 M and it has 1000 associates in the country. The company manufactures textile chemicals, dyes and surfactants at its sites in Gujarat, and produces polyurethane systems in Pune. Original Source: ICIS Chemical Business, 10-16 Nov 2014, 286 (16), 8 (Website: http://www.icis.com) © Reed Business Information Limited 2014. Original Source: Chemical Weekly, 11 Nov 2014, 154 (Website: http://www.chemicalweekly.com) © Sevak Publications & Chemical Weekly Database P Ltd 2014
Chemaxia named distributor for the Italian market by ICT for its additives and resins Cartersvill, GA, US-based Innovative Chemical Technologies (ICT) Inc has appointed Paullo, MI, US-based Chemaxia Srl to distribute its Thetawet, Thetapel, and Thetaguard fluoro special additives and resins at C6 chain in the Italian market. ICT is a developer and manufacturer of a wide range of surface-modified additives, such as specialty surfactants and polymers. Original Source: Pitture e Vernici – European Coatings, Nov-Dec 2014, 90 (6), 79 (Website: http://www.pittureevernici.it)
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