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Clariant posts strong sales and EBITDA growth in 1Q 2017
FINANCIALS
Chromaflo establishes colorants and chemical dispersions facility in India
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hio-based Chromaflo Technologies has announced the opening of a new manufacturing facility in India. Operated by Chromaflo India, the plant will produce the company’s colorants and chemical dispersions for thermoset plastics, as well as for the paints and coatings industries. According to Chromaflo Technologies’ CEO Scott Becker, the company is ‘excited about this opportunity for expansion’, with the new plant representing the first step in the company’s endeavour to bring ‘world-class production and products’ to customers in India. ‘The investment in people, laboratories and machinery will allow us to offer our global technologies throughout the Indian subcontinent’, he says. It will also help expand the capacity and capabilities of Chromaflo Technologies globally, the company notes. The expansion project was led by Srinivasa Rao, Chromaflo’s country manager for the subcontinent. Headquartered in Ashtabula, OH, USA, Chromaflo Technologies is an independent global supplier of colorant systems, and chemical and pigment dispersions. It has production facilities in the USA, Canada, The Netherlands, Finland, Australia, South Africa and China, and now India. The company was acquired last year by American Securities [ADPO, December 2016].
Contact: American Securities LLC, New York, USA. Tel: +1 212 476 8000, Web: www.american-securities.com Or contact: Chromaflo Technologies Corp, Ashtabula, OH, USA. Tel: +1 440 997 5137, Web: www.chromaflo.com
Sibelco sells Belgian talc operation to IMI Fabi
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ndustrial minerals company Sibelco has divested its talc operations located in Uikhoven, Belgium, to Italian mining and minerals company IMI Fabi SpA, which specializes in the production of talc. The terms of the transaction agreement have not been disclosed.
June 2017
According to the two companies, the entire transaction is consistent with Sibelco’s sharpening focus on its core business, while the Uikhoven operation fits optimally with IMI Fabi’s portfolio. The Italian company supplies high-quality talc products globally, providing a wide range of items suitable for different industrial applications, including plastics, paper, paints and ceramics. The firm’s business policy is based on the development of unique assets and targeted investments aimed at preserving strategic resources, it says. Elsewhere, the refurbishment of IMI Fabi’s processing facility at its Mount Seabrook talc mine in Western Australia has been successfully completed, the company reports. The new, state-of-the-art processing plant, based on the latest sorting technologies, will enable the production of high brightness and high purity lamellar talc with an annual capacity of more than 100 000 tonnes, it says. The talc company has also recently opened a new sales office in São Paulo, Brazil, to support customers and business development in the Latin American region. Contact: IMI Fabi SpA, Postalesio (SO), Italy. Tel: +39 0342 490311, Web: www.imifabi.com Or contact: SCR-Sibelco NV, Antwerp, Belgium. Tel: +32 14 837 231, Web: www.sibelco.eu
FINANCIALS Clariant posts strong sales and EBITDA growth in 1Q 2017
F
or the first quarter of 2017, Clariant achieved sales of CHF1.602 billion (E1.471 billion), an increase of 9% in local currency terms and 8% in Swiss francs compared to sales of CHF1.478 billion in 1Q 2016. The sales growth was driven by higher volumes across all business areas, with acquisitions contributing 3%, the company reports. EBITDA before exceptional items rose by 10% in local currencies to CHF250 million. In 1Q 2017, local currency sales growth was strong in Europe at 12%, Asia (11%) and the Middle East & Africa (7%), while North America grew by 11% as a result of acquisitions. In Latin America, demand declined by 5% in local currencies against a strong 1Q 2016 level and as a
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result of the weaker economic environment in the region, mainly in Brazil, according to the company. Quarterly EBITDA before exceptional items rose ‘significantly’ by 10% in local currencies (9% in Swiss francs), reaching CHF250 million compared to CHF229 million a year earlier. This improvement in absolute profitability was driven by all business areas, Clariant reports. The associated margin increased slightly to 15.6% from 15.5% in 1Q 2016; all business areas delivered EBITDA margins in line with expectations. Sales in the Plastics & Coatings business area increased by 6% in local currency terms (5% in Swiss francs) to CHF673 million in 1Q 2017 against a ‘very strong previous year’ at CHF639 million. There was a particularly strong regional development in Europe, the company says. The improvement in Masterbatches was propelled by higher sales in most regions, especially in Europe and North America. The Pigments business continued to develop solidly, with particularly strong sales in Europe and China; higher sales in the Plastics and Special Applications segments were the primary growth drivers. There was also a strong sales improvement in the Additives business, attributable to increased demand for all three business lines, Flame Retardants, Polymer Additives and Waxes. The business area’s EBITDA before exceptionals increased by 7% in local currencies (5% in Swiss francs) to CHF110 million despite a strong quarter in the previous year. This improvement on an absolute basis is largely the result of higher capacity utilization and the ‘continued positive effect’ of the differentiated business steering, Clariant reports. The associated margin was 16.3%. Plastics & Coatings continues to develop customized solutions and products for the needs of its end markets, the company says. These offerings in combination with the focus on differentiated business steering, further maximization of the operating leverage and cash flow generation ‘should further enhance growth possibilities and overall performance in the businesses’, Clariant concludes. According to CEO Hariolf Kottmann, Clariant achieved ‘a very good start into the year’ with good volume growth and higher profitability in 1Q 2017. The company’s focus on local currency growth and profitability improvement is ‘clearly reflected in these encouraging results’, he comments. Clariant is on ‘a solid path’ towards achieving its sales expansion targets, a continued progression in absolute EBITDA and EBITDA margin before exceptional items as well as operating cash flow generation, in spite of what continues to be ‘a challenging market environment in specific business areas’, Kottmann says.
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Contact: Clariant International, Muttenz, Switzerland. Tel: +41 61 469 6742, Web: www.clariant.com
Huntsman reports first quarter sales and income gains
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n the first three months of 2017, Huntsman Corp achieved revenues of US$2.47 billion, up 5% compared to $2.35 billion in 1Q 2016. Quarterly net income was $92 million compared to $62 million for the same period in 2016, a rise of almost 50%. Adjusted EBITDA also increased substantially, from $274 million in 1Q 2016 to $329 million this year. According to CEO Peter R. Huntsman, the company saw positive business trends develop in the first quarter such that earnings for all divisions exceeded early quarter expectations. He also notes that the combined non-pigment businesses experienced year-over-year EBITDA growth. As a result of the strong first quarter earnings and ‘improving outlook’ for the remainder of the year, the company now expects to generate more than $450 million of free cash flow in 2017, Huntsman reports. ‘We continue our efforts to separate our Pigments and Additives division (known as Venator) and are targeting an initial public offering (IPO) or spin-off during this upcoming summer’, he confirms. Looking in more detail at the Pigments and Additives division, first-quarter 2017 revenues were essentially unchanged compared to the same period of 2016 at $537 million, as higher average local currency selling prices were offset by lower sales volumes from the fire at the Pori titanium dioxide (TiO2) facility in Finland [ADPO, May 2017]. Average selling prices increased primarily due to improved business conditions for TiO2, the company reports. Sales volumes also increased within the performance additives business. The division’s increase in adjusted EBITDA to $69 million (from $15 million in 1Q 2016) was primarily due to higher average selling prices for TiO2 and lower costs resulting from restructuring savings, partially offset by approximately $15 million in lower EBITDA resulting from the Pori fire, Huntsman explains. Huntsman reiterated its intention to pursue a possible IPO of Venator. This is the preferred route to separate Venator as it is intended to provide ‘significantly more value’ for Huntsman shareholders by allowing for ‘greater deleveraging of Huntsman’, the company explains. However, it
June 2017
Chromaflo establishes colorants and chemical dispersions facility in India
O
hio-based Chromaflo Technologies has announced the opening of a new manufacturing facility in India. Operated by Chromaflo India, the plant will produce the company’s colorants and chemical dispersions for thermoset plastics, as well as for the paints and coatings industries. According to Chromaflo Technologies’ CEO Scott Becker, the company is ‘excited about this opportunity for expansion’, with the new plant representing the first step in the company’s endeavour to bring ‘world-class production and products’ to customers in India. ‘The investment in people, laboratories and machinery will allow us to offer our global technologies throughout the Indian subcontinent’, he says. It will also help expand the capacity and capabilities of Chromaflo Technologies globally, the company notes. The expansion project was led by Srinivasa Rao, Chromaflo’s country manager for the subcontinent. Headquartered in Ashtabula, OH, USA, Chromaflo Technologies is an independent global supplier of colorant systems, and chemical and pigment dispersions. It has production facilities in the USA, Canada, The Netherlands, Finland, Australia, South Africa and China, and now India. The company was acquired last year by American Securities [ADPO, December 2016].
Contact: American Securities LLC, New York, USA. Tel: +1 212 476 8000, Web: www.american-securities.com Or contact: Chromaflo Technologies Corp, Ashtabula, OH, USA. Tel: +1 440 997 5137, Web: www.chromaflo.com
Sibelco sells Belgian talc operation to IMI Fabi
I
ndustrial minerals company Sibelco has divested its talc operations located in Uikhoven, Belgium, to Italian mining and minerals company IMI Fabi SpA, which specializes in the production of talc. The terms of the transaction agreement have not been disclosed.
June 2017
According to the two companies, the entire transaction is consistent with Sibelco’s sharpening focus on its core business, while the Uikhoven operation fits optimally with IMI Fabi’s portfolio. The Italian company supplies high-quality talc products globally, providing a wide range of items suitable for different industrial applications, including plastics, paper, paints and ceramics. The firm’s business policy is based on the development of unique assets and targeted investments aimed at preserving strategic resources, it says. Elsewhere, the refurbishment of IMI Fabi’s processing facility at its Mount Seabrook talc mine in Western Australia has been successfully completed, the company reports. The new, state-of-the-art processing plant, based on the latest sorting technologies, will enable the production of high brightness and high purity lamellar talc with an annual capacity of more than 100 000 tonnes, it says. The talc company has also recently opened a new sales office in São Paulo, Brazil, to support customers and business development in the Latin American region. Contact: IMI Fabi SpA, Postalesio (SO), Italy. Tel: +39 0342 490311, Web: www.imifabi.com Or contact: SCR-Sibelco NV, Antwerp, Belgium. Tel: +32 14 837 231, Web: www.sibelco.eu
FINANCIALS Clariant posts strong sales and EBITDA growth in 1Q 2017
F
or the first quarter of 2017, Clariant achieved sales of CHF1.602 billion (E1.471 billion), an increase of 9% in local currency terms and 8% in Swiss francs compared to sales of CHF1.478 billion in 1Q 2016. The sales growth was driven by higher volumes across all business areas, with acquisitions contributing 3%, the company reports. EBITDA before exceptional items rose by 10% in local currencies to CHF250 million. In 1Q 2017, local currency sales growth was strong in Europe at 12%, Asia (11%) and the Middle East & Africa (7%), while North America grew by 11% as a result of acquisitions. In Latin America, demand declined by 5% in local currencies against a strong 1Q 2016 level and as a
Additives for Polymers
9
FINANCIALS
result of the weaker economic environment in the region, mainly in Brazil, according to the company. Quarterly EBITDA before exceptional items rose ‘significantly’ by 10% in local currencies (9% in Swiss francs), reaching CHF250 million compared to CHF229 million a year earlier. This improvement in absolute profitability was driven by all business areas, Clariant reports. The associated margin increased slightly to 15.6% from 15.5% in 1Q 2016; all business areas delivered EBITDA margins in line with expectations. Sales in the Plastics & Coatings business area increased by 6% in local currency terms (5% in Swiss francs) to CHF673 million in 1Q 2017 against a ‘very strong previous year’ at CHF639 million. There was a particularly strong regional development in Europe, the company says. The improvement in Masterbatches was propelled by higher sales in most regions, especially in Europe and North America. The Pigments business continued to develop solidly, with particularly strong sales in Europe and China; higher sales in the Plastics and Special Applications segments were the primary growth drivers. There was also a strong sales improvement in the Additives business, attributable to increased demand for all three business lines, Flame Retardants, Polymer Additives and Waxes. The business area’s EBITDA before exceptionals increased by 7% in local currencies (5% in Swiss francs) to CHF110 million despite a strong quarter in the previous year. This improvement on an absolute basis is largely the result of higher capacity utilization and the ‘continued positive effect’ of the differentiated business steering, Clariant reports. The associated margin was 16.3%. Plastics & Coatings continues to develop customized solutions and products for the needs of its end markets, the company says. These offerings in combination with the focus on differentiated business steering, further maximization of the operating leverage and cash flow generation ‘should further enhance growth possibilities and overall performance in the businesses’, Clariant concludes. According to CEO Hariolf Kottmann, Clariant achieved ‘a very good start into the year’ with good volume growth and higher profitability in 1Q 2017. The company’s focus on local currency growth and profitability improvement is ‘clearly reflected in these encouraging results’, he comments. Clariant is on ‘a solid path’ towards achieving its sales expansion targets, a continued progression in absolute EBITDA and EBITDA margin before exceptional items as well as operating cash flow generation, in spite of what continues to be ‘a challenging market environment in specific business areas’, Kottmann says.
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Additives for Polymers
Contact: Clariant International, Muttenz, Switzerland. Tel: +41 61 469 6742, Web: www.clariant.com
Huntsman reports first quarter sales and income gains
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n the first three months of 2017, Huntsman Corp achieved revenues of US$2.47 billion, up 5% compared to $2.35 billion in 1Q 2016. Quarterly net income was $92 million compared to $62 million for the same period in 2016, a rise of almost 50%. Adjusted EBITDA also increased substantially, from $274 million in 1Q 2016 to $329 million this year. According to CEO Peter R. Huntsman, the company saw positive business trends develop in the first quarter such that earnings for all divisions exceeded early quarter expectations. He also notes that the combined non-pigment businesses experienced year-over-year EBITDA growth. As a result of the strong first quarter earnings and ‘improving outlook’ for the remainder of the year, the company now expects to generate more than $450 million of free cash flow in 2017, Huntsman reports. ‘We continue our efforts to separate our Pigments and Additives division (known as Venator) and are targeting an initial public offering (IPO) or spin-off during this upcoming summer’, he confirms. Looking in more detail at the Pigments and Additives division, first-quarter 2017 revenues were essentially unchanged compared to the same period of 2016 at $537 million, as higher average local currency selling prices were offset by lower sales volumes from the fire at the Pori titanium dioxide (TiO2) facility in Finland [ADPO, May 2017]. Average selling prices increased primarily due to improved business conditions for TiO2, the company reports. Sales volumes also increased within the performance additives business. The division’s increase in adjusted EBITDA to $69 million (from $15 million in 1Q 2016) was primarily due to higher average selling prices for TiO2 and lower costs resulting from restructuring savings, partially offset by approximately $15 million in lower EBITDA resulting from the Pori fire, Huntsman explains. Huntsman reiterated its intention to pursue a possible IPO of Venator. This is the preferred route to separate Venator as it is intended to provide ‘significantly more value’ for Huntsman shareholders by allowing for ‘greater deleveraging of Huntsman’, the company explains. However, it
June 2017