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DuPont's 3Q 2003 profits fall 66%
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INDUSTRY NEWS Akzo may sell more chemical businesses Akzo says it could sell chemical businesses over and above those already up for sale. The company recently said it would sell chemical activities with sales totalling €1 bn/y, around 22% of overall sales. The company rejects speculation that it is to withdraw from chemicals, though it does admit that the planned divestments will cut chemicals’ share in the portfolio significantly. More detailed plans for the chemicals businesses will be announced in May 2004. Akzo says it is adopting measures to resist the trend towards commoditization in several of its chemical segments. It says pulp and paper chemicals are one example. Here, there is an opportunity for it to be a leader. In the meantime, Akzo is working to complete the disposal of its catalysts, coating resins and flame-retardants businesses. Catalysts and coating resins each have sales of around €400 M/y, flame-retardants €200 M/y. Chemical Week, 29 Oct 2003, 165 (39)
DuPont’s 3Q 2003 profits fall 66% DuPont attributes its poor 3Q 2003 performance to weak European and US economies. DuPont posted 3Q 2003 profits of $135 M, down 66%, despite increased sales of $6.14 bn, up 12%. DuPont’s global volumes increased by 4% while local currency prices fell 1%. US volumes were up 1%, European volumes were flat, Asian Pacific volumes were up 14% and South American volumes were up 9%. In 3Q 2003 DuPont took a $987 M charge for its interiors and textiles business Invista. DuPont is currently negotiating the sale of
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Invista to Koch Industries. Aftertax operating fell in the following sectors: coatings and colour technologies -29%. electronic and communication technologies -52%, performance materials -57%. DuPont’s Safety and Protection division saw operating income increase by 2% and the Pharmaceuticals division increased operating income by 18%. DuPont’s Agriculture and Nutrition business posted a loss of $142 M and its Textiles and Interiors business posted a loss of $8 M. Chemical Market Reporter, 27 Oct 2003 (Website: http://www.chemicalmarketreporter.com)
Atofina’s Kynar continues to grow Atofina Chemicals’ Kynar 500 polyvinylidene fluoride (PVDF) coatings resins continue to show solid growth despite having been on the market for years. In Aug 2003, the company issued a licence to Rohm and Haas Company for the production of powder coatings using Kynar 500 PC PVDF resin. Atofina has also added capacity in Pierre Benite, France, for non-coatings grades of Kynar. The resins are growing strongly in Asia, displacing rival materials and technologies. The resins have a range of end uses, mostly in metal extrusions and roofing, wall panels and column covers. Chemical Market Reporter, 3 Nov 2003 (Website: http://www.chemicalmarketreporter.com)
Akzo Nobel posts 23% decline in 3Q 2003 net profits In 3Q 2003 Akzo Nobel saw its net profits fall by 23% to €178 M as a result of the appreciation of the Euro against the Dollar, high retirement costs and competition from generic drugs (which together had a negative impact of €62 M). Analysts had expected the group to register net losses of
C OAT I N G S €173-190 M. Akzo Nobel’s operating profits dropped by 20% in 3Q to €204 M and its turnover by 7% to €3.254 bn. 3Q was particularly difficult for the group’s pharmaceuticals division which registered a 10% decline in turnover (including 6% because of unfavourable exchange rates) to €877 M and a 34% decrease in operating profits to €120 M. Most of the decline was due to competition from generic versions of the antidepressant Remeron in the US. 2004 will probably be another difficult year for the division. However there are no plans for restructuring or further jobs losses. The division has already shed 800 jobs during 2003 and Akzo Nobel has decided to increase promotion of new products such as the contraceptive ring. For 3Q Akzo Nobel’s paints division registered a 5% decline in turnover to €1.339 bn (although it would have posted a 2% increase in turnover given unchanged parameters and exchange rates). The division’s operating profits were down 6% to €128 M (but showed a small increase excluding exchange rate variations and exceptional costs). Akzo Nobel has already begun a restructuring programme in this sector which will entail the loss of 1000 jobs. For 3Q 2003 the chemicals division registered decreases of 5% and 6% in its operating profits and turnover to €73 M and €1.071 bn respectively. Exchange rates cut turnover by 6% whereas recent acquisitions (notably of ECI Electro-Chemie) increased it by 1%. A restructuring programme has already involved the loss of 830 jobs and the closure of a salt unit in Stade, Germany. Akzo Nobel predicts that its whole year net profits will be significantly lower than the €892 M registered in 2002 (possibly by as much as 20%). A large part of the €320 M savings (including €120 M in the pharmaceuticals division)
NOVEMBER 2003
INDUSTRY NEWS Akzo may sell more chemical businesses Akzo says it could sell chemical businesses over and above those already up for sale. The company recently said it would sell chemical activities with sales totalling €1 bn/y, around 22% of overall sales. The company rejects speculation that it is to withdraw from chemicals, though it does admit that the planned divestments will cut chemicals’ share in the portfolio significantly. More detailed plans for the chemicals businesses will be announced in May 2004. Akzo says it is adopting measures to resist the trend towards commoditization in several of its chemical segments. It says pulp and paper chemicals are one example. Here, there is an opportunity for it to be a leader. In the meantime, Akzo is working to complete the disposal of its catalysts, coating resins and flame-retardants businesses. Catalysts and coating resins each have sales of around €400 M/y, flame-retardants €200 M/y. Chemical Week, 29 Oct 2003, 165 (39)
DuPont’s 3Q 2003 profits fall 66% DuPont attributes its poor 3Q 2003 performance to weak European and US economies. DuPont posted 3Q 2003 profits of $135 M, down 66%, despite increased sales of $6.14 bn, up 12%. DuPont’s global volumes increased by 4% while local currency prices fell 1%. US volumes were up 1%, European volumes were flat, Asian Pacific volumes were up 14% and South American volumes were up 9%. In 3Q 2003 DuPont took a $987 M charge for its interiors and textiles business Invista. DuPont is currently negotiating the sale of
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Invista to Koch Industries. Aftertax operating fell in the following sectors: coatings and colour technologies -29%. electronic and communication technologies -52%, performance materials -57%. DuPont’s Safety and Protection division saw operating income increase by 2% and the Pharmaceuticals division increased operating income by 18%. DuPont’s Agriculture and Nutrition business posted a loss of $142 M and its Textiles and Interiors business posted a loss of $8 M. Chemical Market Reporter, 27 Oct 2003 (Website: http://www.chemicalmarketreporter.com)
Atofina’s Kynar continues to grow Atofina Chemicals’ Kynar 500 polyvinylidene fluoride (PVDF) coatings resins continue to show solid growth despite having been on the market for years. In Aug 2003, the company issued a licence to Rohm and Haas Company for the production of powder coatings using Kynar 500 PC PVDF resin. Atofina has also added capacity in Pierre Benite, France, for non-coatings grades of Kynar. The resins are growing strongly in Asia, displacing rival materials and technologies. The resins have a range of end uses, mostly in metal extrusions and roofing, wall panels and column covers. Chemical Market Reporter, 3 Nov 2003 (Website: http://www.chemicalmarketreporter.com)
Akzo Nobel posts 23% decline in 3Q 2003 net profits In 3Q 2003 Akzo Nobel saw its net profits fall by 23% to €178 M as a result of the appreciation of the Euro against the Dollar, high retirement costs and competition from generic drugs (which together had a negative impact of €62 M). Analysts had expected the group to register net losses of
C OAT I N G S €173-190 M. Akzo Nobel’s operating profits dropped by 20% in 3Q to €204 M and its turnover by 7% to €3.254 bn. 3Q was particularly difficult for the group’s pharmaceuticals division which registered a 10% decline in turnover (including 6% because of unfavourable exchange rates) to €877 M and a 34% decrease in operating profits to €120 M. Most of the decline was due to competition from generic versions of the antidepressant Remeron in the US. 2004 will probably be another difficult year for the division. However there are no plans for restructuring or further jobs losses. The division has already shed 800 jobs during 2003 and Akzo Nobel has decided to increase promotion of new products such as the contraceptive ring. For 3Q Akzo Nobel’s paints division registered a 5% decline in turnover to €1.339 bn (although it would have posted a 2% increase in turnover given unchanged parameters and exchange rates). The division’s operating profits were down 6% to €128 M (but showed a small increase excluding exchange rate variations and exceptional costs). Akzo Nobel has already begun a restructuring programme in this sector which will entail the loss of 1000 jobs. For 3Q 2003 the chemicals division registered decreases of 5% and 6% in its operating profits and turnover to €73 M and €1.071 bn respectively. Exchange rates cut turnover by 6% whereas recent acquisitions (notably of ECI Electro-Chemie) increased it by 1%. A restructuring programme has already involved the loss of 830 jobs and the closure of a salt unit in Stade, Germany. Akzo Nobel predicts that its whole year net profits will be significantly lower than the €892 M registered in 2002 (possibly by as much as 20%). A large part of the €320 M savings (including €120 M in the pharmaceuticals division)
NOVEMBER 2003