- Email: [email protected]
Clariant's 2012 results show benefit of repositioning
FINANCIALS
Contact: Kemira Oyj, Helsinki, Finland. Tel: +358 10 861 415, Web: www.kemira.com Or contact: Rockwood Holdings, Inc, Princeton, NJ, USA. Tel: +1 609 514 0300, Web: www.rockwoodholdings.com Or contact: Sachtleben Chemie GmbH, Duisburg, Germany. Tel: +49 20 66 22 0, Web: www.sachtleben.de
FINANCIALS Clariant’s 2012 results show benefit of repositioning
I
n its financial year ended 31 December 2012, Switzerland’s Clariant recorded sales of CHF6.038 billion (c. E4.97 billion) for its continuing businesses, an 8% increase in both Swiss francs and local currencies from CHF5.571 billion in 2011. The increase was largely due to the acquisition of Süd-Chemie in 2011, the company says, with flat organic growth and lower volumes than the previous year offset by 2% higher prices. EBITDA before exceptionals fell 4% to CHF802 million in 2012, with an EBITDA margin of 13.3%, compared to figures of CHF835 million and 15% respectively in 2011. The net result from continuing operations was CHF211 million in 2012 – boosted by a strong fourth quarter – compared to CHF220 million in the previous year. According to CEO Hariolf Kottmann, Clariant achieved ‘solid results in a demanding year’, with the majority of businesses ‘performing well’. Sales development in 2012 is described as ‘heterogeneous across all regions and businesses’. All regions achieved double-digit growth with the exception of Europe, which fell 2%. According to the company, ‘the pronounced weakness in southern Europe’ spread across the continent in the second half-year but, with roughly two-thirds of its turnover coming from outside the region, the impact of the European crisis was offset by growth in other regions. Kottmann reports that the repositioning of the company is going to plan. Five businesses have been reclassified as discontinued operations and Clariant announced in January 2013 that it has agreed to sell three of those – textile chemicals, paper specialities and emulsions – to US private equity firm SK Capital for approximately CHF502 million. The
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Additives for Polymers
transaction is expected to close by the end of 2Q 2013. The group is still considering options for the other two discontinued operations, Leather Services and Detergents & Intermediates. Clariant says its focus in 2013 will now be on growing the remaining seven core business units (BUs): Additives, Catalysis & Energy, Functional Materials, Industrial & Consumer Specialties, Masterbatches, Oil & Mining Services, and Pigments. ‘Combined with continuous cost efficiency, the reshaped Clariant is well positioned to achieve its 2015 targets’, Kottmann concludes. In 4Q 2012, the company’s net sales grew 2% in local currencies to CHF1.51 billion on the back of 3% higher volumes and 1% lower prices. Raw material costs also dipped 1% in 4Q 2012, Clariant reports. In the Masterbatches BU, 4Q 2012 sales of CHF250 million were 1% lower in local currencies compared to 4Q 2011. Sales were higher in Latin America and unchanged in Europe, where weakness persisted in Germany and southern Europe, partially offset with solid growth in the UK, Poland and the Nordic countries. The Asia-Pacific, North America and Middle East & Africa regions experienced a slight year-onyear decline. Masterbatches reported a more pronounced seasonal weakness than usual at the end of 2012. The BU’s EBITDA before exceptionals at CHF23 million was flat year-on-year. For the full year, Masterbatches posted sales of CHF1121 million (level with 2011) and EBITDA before exceptionals of CHF132 million (+2%). Sales in the Pigments BU declined 1% in Swiss francs to CHF204 million for 4Q 2012. Higher sales in Latin and North America were offset by weaker sales in Europe. Sales in Asia increased slightly as good growth in some emerging countries such as India compensated for weakness in Japan. Sales increased sharply in the Plastics Business Line, where strength in Asia-Pacific, Latin and North America compensated for the weakness in Europe. The business’s EBITDA before exceptionals fell sharply by 37% to CHF32 million in 4Q 2012. Sales in Additives of CHF84 million for 4Q 2012 were 14% lower in local currencies and in Swiss francs compared to the previous-year period. Sales declined in all geographical regions except in North America. Polymer Additives sales increased year-on-year as growth continued in Asia-Pacific and in Latin America. Demand for Waxes declined due to destocking effects at the end of the fourth quarter, overcompensating strong growth for new innovative solutions like Ceridust micronized speciality waxes and Licocene Performance Polymers. The demand for flame retardants was weak due to underlying lower demand in
April 2013
LITERATURE
the electronics industry, which was intensified by yearend destocking. However, the mid-term industry trend of replacing halogenated flame retardants by non-halogenated substitutes remains fully intact, the company reports. As a result, the BU will extend its range of applications in the future by Exolit EP, which can be used for epoxy resins designed for printed circuit boards. EBITDA before exceptionals fell 27% in Swiss francs to CHF11 million. The lower profitability was mainly due to a negative impact from costs linked to the new plant for non-halogenated flame retardants in Knapsack, Germany [ADPO, December 2012]. Contact: Clariant International Ltd, Muttenz, Switzerland. Tel: +41 61 469 6742, Web: www.clariant.com
Songwon concludes strong 2012 with positive 4Q results
S
outh Korea’s polymer additives major Songwon Industrial Group has announced unaudited total sales revenues for 4Q 2012 of KRW152 billion (c. E103 million), with gross profit of KRW31 billion and net profit of KRW4 billion. According to Songwon, this ‘solid performance’ contributed to ‘impressive’ annual figures for 2012. In its recently published unaudited results, the group posted total sales of KRW680 billion for 2012, up 8% from KRW629 billion in 2011. Gross profit was KRW132 billion (+43%) and net profit for the period KRW20 billion, double that reported in 2011. According to Songwon’s CFO Hans-Peter Wüest, the first three quarters of the year were characterized by growth and, although sales softened in 4Q 2012, profits remained strong, contributing to the doubling of profits for the year. ‘This has been achieved through judicious cost control and productivity improvements and is a function of our strategic investment in back integration, together with our ability to respond rapidly to market needs with new products’, he says. ‘To say that this has been a challenging year would be an understatement; however, I am delighted to say that the business has delivered robust results that can be attributed to the strategy we have initiated and the structure we have deployed over the last three years’, adds CEO Jongho Park.
April 2013
Songwon has since revealed plans to stabilize its financial structure and establish a firm foundation for its future growth through a new syndicated loan valued at KRW220 billion. Agreement was concluded in February with five lenders led by Korea Exchange Bank and Woori Bank. Songwon says it aims to restructure its current finances by consolidating outstanding loans extended to it by several financial institutions through this single syndicated loan. It will also decrease its proportion of short-term debt by increasing long-term borrowing, thereby providing additional stability and reducing borrowing costs. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwonind.com
LITERATURE Ceresana study forecasts dynamic growth for global TiO2
G
erman market research institute Ceresana has recently published a new market study analysing the global market for titanium dioxide (TiO2) along the entire value creation chain, from raw materials ilmenite, leucoxene and rutile through processed products to end-use application areas. The company’s market analysts expect the global TiO2 market ‘to experience dynamic growth’ and to record a volume of about 7.5 million tonnes in 2019. Global demand was reported to be about 5.3 million tonnes in 2010 [ADPO, August 2011]. Ilmenite is the most important base product in the production of TiO2 and accounted for about 47% of total market volume in 2011. It can be processed directly to TiO2 pigments or be used for the manufacturing of other base materials such as titanium slag and synthetic rutile. The supply of these raw materials is dominated by Australia, Canada and South Africa. Major consumers are the producers of pigments located in the Asia-Pacific region, North America and Western Europe. There are also differences in the application areas of various base products; Asia-Pacific mainly processes ilmenite, whereas North America and Western Europe utilize titanium slag that is of a higher quality than ilmenite and therefore more expensive.
Additives for Polymers
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Contact: Kemira Oyj, Helsinki, Finland. Tel: +358 10 861 415, Web: www.kemira.com Or contact: Rockwood Holdings, Inc, Princeton, NJ, USA. Tel: +1 609 514 0300, Web: www.rockwoodholdings.com Or contact: Sachtleben Chemie GmbH, Duisburg, Germany. Tel: +49 20 66 22 0, Web: www.sachtleben.de
FINANCIALS Clariant’s 2012 results show benefit of repositioning
I
n its financial year ended 31 December 2012, Switzerland’s Clariant recorded sales of CHF6.038 billion (c. E4.97 billion) for its continuing businesses, an 8% increase in both Swiss francs and local currencies from CHF5.571 billion in 2011. The increase was largely due to the acquisition of Süd-Chemie in 2011, the company says, with flat organic growth and lower volumes than the previous year offset by 2% higher prices. EBITDA before exceptionals fell 4% to CHF802 million in 2012, with an EBITDA margin of 13.3%, compared to figures of CHF835 million and 15% respectively in 2011. The net result from continuing operations was CHF211 million in 2012 – boosted by a strong fourth quarter – compared to CHF220 million in the previous year. According to CEO Hariolf Kottmann, Clariant achieved ‘solid results in a demanding year’, with the majority of businesses ‘performing well’. Sales development in 2012 is described as ‘heterogeneous across all regions and businesses’. All regions achieved double-digit growth with the exception of Europe, which fell 2%. According to the company, ‘the pronounced weakness in southern Europe’ spread across the continent in the second half-year but, with roughly two-thirds of its turnover coming from outside the region, the impact of the European crisis was offset by growth in other regions. Kottmann reports that the repositioning of the company is going to plan. Five businesses have been reclassified as discontinued operations and Clariant announced in January 2013 that it has agreed to sell three of those – textile chemicals, paper specialities and emulsions – to US private equity firm SK Capital for approximately CHF502 million. The
8
Additives for Polymers
transaction is expected to close by the end of 2Q 2013. The group is still considering options for the other two discontinued operations, Leather Services and Detergents & Intermediates. Clariant says its focus in 2013 will now be on growing the remaining seven core business units (BUs): Additives, Catalysis & Energy, Functional Materials, Industrial & Consumer Specialties, Masterbatches, Oil & Mining Services, and Pigments. ‘Combined with continuous cost efficiency, the reshaped Clariant is well positioned to achieve its 2015 targets’, Kottmann concludes. In 4Q 2012, the company’s net sales grew 2% in local currencies to CHF1.51 billion on the back of 3% higher volumes and 1% lower prices. Raw material costs also dipped 1% in 4Q 2012, Clariant reports. In the Masterbatches BU, 4Q 2012 sales of CHF250 million were 1% lower in local currencies compared to 4Q 2011. Sales were higher in Latin America and unchanged in Europe, where weakness persisted in Germany and southern Europe, partially offset with solid growth in the UK, Poland and the Nordic countries. The Asia-Pacific, North America and Middle East & Africa regions experienced a slight year-onyear decline. Masterbatches reported a more pronounced seasonal weakness than usual at the end of 2012. The BU’s EBITDA before exceptionals at CHF23 million was flat year-on-year. For the full year, Masterbatches posted sales of CHF1121 million (level with 2011) and EBITDA before exceptionals of CHF132 million (+2%). Sales in the Pigments BU declined 1% in Swiss francs to CHF204 million for 4Q 2012. Higher sales in Latin and North America were offset by weaker sales in Europe. Sales in Asia increased slightly as good growth in some emerging countries such as India compensated for weakness in Japan. Sales increased sharply in the Plastics Business Line, where strength in Asia-Pacific, Latin and North America compensated for the weakness in Europe. The business’s EBITDA before exceptionals fell sharply by 37% to CHF32 million in 4Q 2012. Sales in Additives of CHF84 million for 4Q 2012 were 14% lower in local currencies and in Swiss francs compared to the previous-year period. Sales declined in all geographical regions except in North America. Polymer Additives sales increased year-on-year as growth continued in Asia-Pacific and in Latin America. Demand for Waxes declined due to destocking effects at the end of the fourth quarter, overcompensating strong growth for new innovative solutions like Ceridust micronized speciality waxes and Licocene Performance Polymers. The demand for flame retardants was weak due to underlying lower demand in
April 2013
LITERATURE
the electronics industry, which was intensified by yearend destocking. However, the mid-term industry trend of replacing halogenated flame retardants by non-halogenated substitutes remains fully intact, the company reports. As a result, the BU will extend its range of applications in the future by Exolit EP, which can be used for epoxy resins designed for printed circuit boards. EBITDA before exceptionals fell 27% in Swiss francs to CHF11 million. The lower profitability was mainly due to a negative impact from costs linked to the new plant for non-halogenated flame retardants in Knapsack, Germany [ADPO, December 2012]. Contact: Clariant International Ltd, Muttenz, Switzerland. Tel: +41 61 469 6742, Web: www.clariant.com
Songwon concludes strong 2012 with positive 4Q results
S
outh Korea’s polymer additives major Songwon Industrial Group has announced unaudited total sales revenues for 4Q 2012 of KRW152 billion (c. E103 million), with gross profit of KRW31 billion and net profit of KRW4 billion. According to Songwon, this ‘solid performance’ contributed to ‘impressive’ annual figures for 2012. In its recently published unaudited results, the group posted total sales of KRW680 billion for 2012, up 8% from KRW629 billion in 2011. Gross profit was KRW132 billion (+43%) and net profit for the period KRW20 billion, double that reported in 2011. According to Songwon’s CFO Hans-Peter Wüest, the first three quarters of the year were characterized by growth and, although sales softened in 4Q 2012, profits remained strong, contributing to the doubling of profits for the year. ‘This has been achieved through judicious cost control and productivity improvements and is a function of our strategic investment in back integration, together with our ability to respond rapidly to market needs with new products’, he says. ‘To say that this has been a challenging year would be an understatement; however, I am delighted to say that the business has delivered robust results that can be attributed to the strategy we have initiated and the structure we have deployed over the last three years’, adds CEO Jongho Park.
April 2013
Songwon has since revealed plans to stabilize its financial structure and establish a firm foundation for its future growth through a new syndicated loan valued at KRW220 billion. Agreement was concluded in February with five lenders led by Korea Exchange Bank and Woori Bank. Songwon says it aims to restructure its current finances by consolidating outstanding loans extended to it by several financial institutions through this single syndicated loan. It will also decrease its proportion of short-term debt by increasing long-term borrowing, thereby providing additional stability and reducing borrowing costs. Contact: Songwon Industrial Co, Ltd, Ulsan, Korea. Tel: +82 522 739 841, Web: www.songwonind.com
LITERATURE Ceresana study forecasts dynamic growth for global TiO2
G
erman market research institute Ceresana has recently published a new market study analysing the global market for titanium dioxide (TiO2) along the entire value creation chain, from raw materials ilmenite, leucoxene and rutile through processed products to end-use application areas. The company’s market analysts expect the global TiO2 market ‘to experience dynamic growth’ and to record a volume of about 7.5 million tonnes in 2019. Global demand was reported to be about 5.3 million tonnes in 2010 [ADPO, August 2011]. Ilmenite is the most important base product in the production of TiO2 and accounted for about 47% of total market volume in 2011. It can be processed directly to TiO2 pigments or be used for the manufacturing of other base materials such as titanium slag and synthetic rutile. The supply of these raw materials is dominated by Australia, Canada and South Africa. Major consumers are the producers of pigments located in the Asia-Pacific region, North America and Western Europe. There are also differences in the application areas of various base products; Asia-Pacific mainly processes ilmenite, whereas North America and Western Europe utilize titanium slag that is of a higher quality than ilmenite and therefore more expensive.
Additives for Polymers
9