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Cognis in good form in 1H 2004
FOCUS for nine months of 2004 ($8.3 M in nine months of 2003). Surfactant earnings were down $800,000, due to lower margins and volume in Europe that more than offset improved earnings in North America for 3Q 2004. Polymer earnings rose $1.5 M on a 13% increase in volume for 3Q 2004. Specialty product earnings declined $700,000 for 3Q 2004 on lower volume of high margin products. R&D costs increased 11% due to the testing and registration of biocidal products, as well as increasing costs related to developing poly-amino technology in Stepan’s surfactant product lines. Stepan 3Q and nine months of 2004 results, 20 Oct 2004 (Stepan Co, 22, West Frontage Road, Northfield, IL 60093, USA. Tel: +1 847 446 7500. Fax: +1 847 501 2100. Website: http://www.stepan.com)
Cognis in good form in 1H 2004 For 1H 2004 German company Cognis posted a 3% increase in its turnover to €1.559 bn, despite the negative effects of exchange rates. Adjusted earnings before interest, tax, depreciation, amortization and exceptional elements were up by 13.2% to €197 M. According to the group’s president, the improvement was due to restructuring as well as the good commercial environment in the US and Asia. In Apr 2004 the group transferred its primary surfactants and fatty alcohols operations from its Oleochemicals division to the Care Chemicals division. The Nutrition and Health, Functional Products and Care Chemicals divisions posted turnovers of €148 M, €392 M and €577 M respectively, representing growth of 5.7%, 12.7% and 3%. Turnover from Functional Products was boosted by the acquisition of Laporte Performance Chemicals in Apr 2003. Meanwhile Cognis’ Process Chemicals and Oleochemicals divisions registered decreases of 1.8% and 2.8% in turnover to €217 M and €211 M respectively. Chimie Pharma Hebdo, 4 Oct 2004, (270), 9 (in French)
Akzo Nobel profits down in 3Q 2004 In 3Q 2004 Akzo Nobel reported a net profit of €174.6 M, excluding extraordinary items, compared with 6
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€178 M in 3Q 2003. Net income for 3Q 2004 excluding nonrecurring items was €213 million, up 20% compared with 3Q 2003, while total net income amounted to €521 million due to a net nonrecurring gain of €308 million, mainly generated from divestments. The operating result was down from €304 M to €288.4 M. Sale of the Catalysts and Phosphorus Chemicals operation resulted in an accounting profit of €400 M in 3Q 2004 and the divestment of Coating Resins in 4Q is expected to yield a smaller book profit. The company says its continuing chemicals operations delivered autonomous 3Q sales growth of 8%, and operating income for the division jumped 36% as a result of cost savings programs and higher demand and prices. Akzo Nobel predicts that net profit in 2004, excluding extraordinary items, will be lower than the €741 M reported in 2003; this includes the divestment of the chemicals division. Full year net income is predicted to be level with 2003. Het Financieele Dagblad, 18 Oct 2004 (Website: http://www.fd.nl/) (in Dutch) & press release from: Akzo Nobel nv, PO Box 9300, 6800 SB Arnhem, The Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://www.akzonobel.com (19 Oct 2004)
Reckitt Benckiser is a core holding On 19 Oct 2004 Reckitt Benckiser reported a 22% jump in profits for 3Q 2004 and said it expected full-year revenue growth of 9%, up from its previous 7% target. This news came despite unhelpful market conditions of rising raw material costs and a slump in consumer spending across many of its markets. Competitors are having to throw additional funds behind their brands at the expense of profits. But Reckitt has overcome these problems thanks to good product innovation and a tight control of costs. Its 15 core brands, such as Airwick, Harpic, Calgon and Dettol, are growing at 13%, and outstripping the rest of the company’s products. Vanish Oxi fabric cleaner was the main driver behind a 9% growth in its fabric care revenues. Reckitt Benckiser expects to have a 20% operating margin across the group in 2006. The Independent, 20 Oct 2004 (Website: http://www.independent.co.uk)
P&G sales increase 13% for 3Q 2004 The Procter & Gamble Co announced growth in unit volume of 12% for JulSep 2004. Developing markets led the volume growth, increasing over 20%, while developed market volume increased by mid-single digits for JulSep 2004. Organic volume, which excludes acquisitions and divestitures, increased 8% for Jul-Sep 2004. Net sales increased 13% to $13.7 bn including 3% from favourable foreign exchange. Net earnings increased 14% to $2 bn due to strong top-line growth and the net gain from the juice business divestiture for Jul-Sep 2004. The beauty care and fabric and home care businesses grew sales by double digits for Jul-Sep 2004. For Oct-Dec 2004 quarter and fiscal year 2004, the company is comfortable with the current range of analysts’ earnings/share estimates despite an environment of increasing costs. Net sales for Oct-Dec 2004 are expected to increase 5-7%. Net sales for fiscal 2004 are expected to increase towards the upper end of the company’s long-term target range of 4-6%, which excludes the impact of foreign exchange. The Procter & Gamble Co Jul-Sep quarter 2004 results, 27 Oct 2004 (The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com)
Novozymes’ latest results Novozymes’ results for the first three quarters of 2004 were better than expected. The outlook for full-year 2004 is being adjusted upwards. Nine-month sales were 3% higher at DKR 4520 M (DKR 4373 M in the first three quarters of 2003). Profit aftertax rose by 13% to DKR 608 M for the first three quarters of 2004 from DKR 539 M in first three quarters of 2003. The outlook for growth in operating profit is being adjusted upwards to about 11%, despite exchange rate movements for 2004. Growth in profit after-tax is now expected to be 8% rather than 7% for 2004. Net turnover was 3% higher at DKR 4520 M for the first three quarters of 2004. Sales of technical enzymes were 2% higher, sales of detergent enzymes were 1% higher and sales of microorganisms rose by 14% for the nine-month DECEMBER 2004
Cognis in good form in 1H 2004 For 1H 2004 German company Cognis posted a 3% increase in its turnover to €1.559 bn, despite the negative effects of exchange rates. Adjusted earnings before interest, tax, depreciation, amortization and exceptional elements were up by 13.2% to €197 M. According to the group’s president, the improvement was due to restructuring as well as the good commercial environment in the US and Asia. In Apr 2004 the group transferred its primary surfactants and fatty alcohols operations from its Oleochemicals division to the Care Chemicals division. The Nutrition and Health, Functional Products and Care Chemicals divisions posted turnovers of €148 M, €392 M and €577 M respectively, representing growth of 5.7%, 12.7% and 3%. Turnover from Functional Products was boosted by the acquisition of Laporte Performance Chemicals in Apr 2003. Meanwhile Cognis’ Process Chemicals and Oleochemicals divisions registered decreases of 1.8% and 2.8% in turnover to €217 M and €211 M respectively. Chimie Pharma Hebdo, 4 Oct 2004, (270), 9 (in French)
Akzo Nobel profits down in 3Q 2004 In 3Q 2004 Akzo Nobel reported a net profit of €174.6 M, excluding extraordinary items, compared with 6
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€178 M in 3Q 2003. Net income for 3Q 2004 excluding nonrecurring items was €213 million, up 20% compared with 3Q 2003, while total net income amounted to €521 million due to a net nonrecurring gain of €308 million, mainly generated from divestments. The operating result was down from €304 M to €288.4 M. Sale of the Catalysts and Phosphorus Chemicals operation resulted in an accounting profit of €400 M in 3Q 2004 and the divestment of Coating Resins in 4Q is expected to yield a smaller book profit. The company says its continuing chemicals operations delivered autonomous 3Q sales growth of 8%, and operating income for the division jumped 36% as a result of cost savings programs and higher demand and prices. Akzo Nobel predicts that net profit in 2004, excluding extraordinary items, will be lower than the €741 M reported in 2003; this includes the divestment of the chemicals division. Full year net income is predicted to be level with 2003. Het Financieele Dagblad, 18 Oct 2004 (Website: http://www.fd.nl/) (in Dutch) & press release from: Akzo Nobel nv, PO Box 9300, 6800 SB Arnhem, The Netherlands. Tel: +31 26 3665760. Fax: +31 26 3665850. Website: http://www.akzonobel.com (19 Oct 2004)
Reckitt Benckiser is a core holding On 19 Oct 2004 Reckitt Benckiser reported a 22% jump in profits for 3Q 2004 and said it expected full-year revenue growth of 9%, up from its previous 7% target. This news came despite unhelpful market conditions of rising raw material costs and a slump in consumer spending across many of its markets. Competitors are having to throw additional funds behind their brands at the expense of profits. But Reckitt has overcome these problems thanks to good product innovation and a tight control of costs. Its 15 core brands, such as Airwick, Harpic, Calgon and Dettol, are growing at 13%, and outstripping the rest of the company’s products. Vanish Oxi fabric cleaner was the main driver behind a 9% growth in its fabric care revenues. Reckitt Benckiser expects to have a 20% operating margin across the group in 2006. The Independent, 20 Oct 2004 (Website: http://www.independent.co.uk)
P&G sales increase 13% for 3Q 2004 The Procter & Gamble Co announced growth in unit volume of 12% for JulSep 2004. Developing markets led the volume growth, increasing over 20%, while developed market volume increased by mid-single digits for JulSep 2004. Organic volume, which excludes acquisitions and divestitures, increased 8% for Jul-Sep 2004. Net sales increased 13% to $13.7 bn including 3% from favourable foreign exchange. Net earnings increased 14% to $2 bn due to strong top-line growth and the net gain from the juice business divestiture for Jul-Sep 2004. The beauty care and fabric and home care businesses grew sales by double digits for Jul-Sep 2004. For Oct-Dec 2004 quarter and fiscal year 2004, the company is comfortable with the current range of analysts’ earnings/share estimates despite an environment of increasing costs. Net sales for Oct-Dec 2004 are expected to increase 5-7%. Net sales for fiscal 2004 are expected to increase towards the upper end of the company’s long-term target range of 4-6%, which excludes the impact of foreign exchange. The Procter & Gamble Co Jul-Sep quarter 2004 results, 27 Oct 2004 (The Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com)
Novozymes’ latest results Novozymes’ results for the first three quarters of 2004 were better than expected. The outlook for full-year 2004 is being adjusted upwards. Nine-month sales were 3% higher at DKR 4520 M (DKR 4373 M in the first three quarters of 2003). Profit aftertax rose by 13% to DKR 608 M for the first three quarters of 2004 from DKR 539 M in first three quarters of 2003. The outlook for growth in operating profit is being adjusted upwards to about 11%, despite exchange rate movements for 2004. Growth in profit after-tax is now expected to be 8% rather than 7% for 2004. Net turnover was 3% higher at DKR 4520 M for the first three quarters of 2004. Sales of technical enzymes were 2% higher, sales of detergent enzymes were 1% higher and sales of microorganisms rose by 14% for the nine-month DECEMBER 2004