- Email: [email protected]
Godrej Consumer Products: results for 2005–2006
F O C U S Oleochemicals, a Malaysian joint venture of Felda Palm Industries and P&G Chemicals, intends to set up a fatty acid plant at Kuantan, Malaysia, to produce 120,000 tonnes/y of vegetable oil-based fatty acids [Focus on Surfactants, May 2005]. The facility will come onstream in 2006. Among the leading oleochemicals companies is Malaysia-based Cognis Oleochemicals, which generates sales of over €690 M/y. Chemical Week, 5 Apr 2006, (Website: http://www.chemweek.com)
COMPANY RESULTS Huntsman nearly doubles operating income but ends 2005 with a net loss Huntsman Corp almost doubled its operating income in 2005 to $813.9 M, with a 13% increase in revenues to $12.961 bn. Despite the increase in operating income and revenues, the company reported a net loss of $34.6 M in 2005, down from a loss of $227.7 M in 2004. Huntsman faced a difficult 4Q 2005 with a financial fallout of around $140 M due to devastating impact of the Gulf Coast hurricanes and spiralling increases in material and energy costs. The company’s performance products unit reported increases in revenues and EBITDA by 1.7% and 72.9%, respectively. Sales volume has dropped by 28% in 4Q 2005 due to the hurricanes, while some surfactants and glycols sales also logged lower sales volume.
ON
S U R FA C TA N T S
2006” with underlying growth on the base business of 6% and a better than expected contribution from Boots Healthcare International in its first two months. Underlying growth was driven by the success of initiatives like Vanish Oxi Action Crystal White and Cillit Bang Stain and Drain supported by increasing marketing investment, Becht says. In Europe (54% of net revenues), net revenues grew 16% to £623 M. Underlying growth was 5%. The major contributors to growth were fabric care, surface care and home care. Operating profit increased by 23% to £133 M. In North America and Australia, which together account for 28% of revenues, net sales were up 11% to £326 M while operating profit was 6% higher at £47 M. Developing markets (18% of total revenues) saw 9% growth in sales to £213 M and operating profit up more than 30% to £16 M. At constant exchange rates, Fabric Care net revenues increased 9% to £291 M in 1Q 2006. The major drivers were strong continuing growth for Vanish Oxi Action fabric treatment due to the launch of Vanish Oxi Action Crystal White, and for both Woolite fine fabric and Calgon water softeners. Laundry detergent sales improved. Net revenues for dishwashing products increased 1% to £154 M. Home Care net revenues improved by 12% to £172 M and Surface Care net revenues grew 4% to £232 M. The company is optimistic of reaching its targets for 2006. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (27 Apr 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 28 Apr 2006, (83), 16 (in German)
European Paint and Resin News, Mar 2006, 44 (3), 9
Reckitt Benckiser posts strong start in 1Q 2006 Reckitt Benckiser increased its net profits by 14% in 1Q 2006 to £141 M, excluding restructuring charges, and its operating profit for the same period rose by 23% to £196 M. If restructuring charges are included, net income fell 11% to £110 M and operating profit was down 4% at £154 M. Sales in 1Q 2006 were up 18% to £1.16 bn at actual exchange rates. According to CEO Bart Becht, the company “made a strong start to 6
net profits of €186 M. Henkel’s boss is predicting a 10% rise in operating profits and profits per share in 2006. Sales are expected to grow 3-4%. Sales rose 13% in 2005 to almost €12 bn, and operating profits rose 16.7% to almost €1.2 bn. Net profits were up 2.9% at €770 M for the year. Handelsblatt Wirtschafts- und Finanzzeitung, 3 May & 10 Apr 2006, (Website: http://www.handelsblatt.com) (in German)
Godrej Consumer Products: results for 2005-2006 Godrej Consumer Products Ltd has reported a net profit of Rup 301.6 M on sales (net of excise) of Rup 1641.2 M for 4Q ended Mar 2006 (net profit of Rup 288.2 M on sales of Rup 1385 M in 4Q ended Mar 2005). During 4Q 2005-2006, the company recorded sales of Rup 985.4 M from soaps, Rup 430.2 M from hair colours, Rup 143.9 M from toiletries and Rup 44.4 M from liquid detergents businesses (sales of Rup 835.2 M from soaps, Rup 379.5 M from hair colours, Rup 73.5 M from toiletries and Rup 47.7 M from liquid detergents businesses in 4Q 2004-2005). Godrej posted a net profit of Rup 1212 M on sales (net of excise) of Rup 6573.2 M for the year ended Mar 2006 (net profit of Rup 895.9 M on sales of Rup 5626.7 M in the year ended Mar 2005). Business Line, 27 Apr 2006, 13 (116), 7
COMPANY NEWS Cognis set to review entire business group
Henkel posts strongest growth in Asia Henkel has achieved its strongest growth rates at the start of 2006 in Asia/Pacific. The company’s EBIT was up 11.7% at €295 M and net profits 10.1% at €185 M. Growth in Asia was 17%. Group sales were up 11% in 1Q 2006 at €3.05 bn. The consumer adhesives business posted growth of 20.8%, and detergents 5.4% to €1.01 bn. The toiletries division was up 8.1% at €642 M. Analysts had expected 1Q 2006 sales of €2.92 bn and EBIT of €292 M and
Investment funds Permira and GS Capital Partners, the two major shareholders in Cognis, recently engaged the services of Goldman Sachs and J-P Morgan to evaluate various strategic options for the German chemicals group. Although neither shareholder has disclosed further details, the most likely solutions are either the group’s sale or its entry onto the stock exchange. Cognis has a third shareholder, SV Life Sciences, but this company has not announced what it intends to do JUNE 2006
COMPANY RESULTS Huntsman nearly doubles operating income but ends 2005 with a net loss Huntsman Corp almost doubled its operating income in 2005 to $813.9 M, with a 13% increase in revenues to $12.961 bn. Despite the increase in operating income and revenues, the company reported a net loss of $34.6 M in 2005, down from a loss of $227.7 M in 2004. Huntsman faced a difficult 4Q 2005 with a financial fallout of around $140 M due to devastating impact of the Gulf Coast hurricanes and spiralling increases in material and energy costs. The company’s performance products unit reported increases in revenues and EBITDA by 1.7% and 72.9%, respectively. Sales volume has dropped by 28% in 4Q 2005 due to the hurricanes, while some surfactants and glycols sales also logged lower sales volume.
ON
S U R FA C TA N T S
2006” with underlying growth on the base business of 6% and a better than expected contribution from Boots Healthcare International in its first two months. Underlying growth was driven by the success of initiatives like Vanish Oxi Action Crystal White and Cillit Bang Stain and Drain supported by increasing marketing investment, Becht says. In Europe (54% of net revenues), net revenues grew 16% to £623 M. Underlying growth was 5%. The major contributors to growth were fabric care, surface care and home care. Operating profit increased by 23% to £133 M. In North America and Australia, which together account for 28% of revenues, net sales were up 11% to £326 M while operating profit was 6% higher at £47 M. Developing markets (18% of total revenues) saw 9% growth in sales to £213 M and operating profit up more than 30% to £16 M. At constant exchange rates, Fabric Care net revenues increased 9% to £291 M in 1Q 2006. The major drivers were strong continuing growth for Vanish Oxi Action fabric treatment due to the launch of Vanish Oxi Action Crystal White, and for both Woolite fine fabric and Calgon water softeners. Laundry detergent sales improved. Net revenues for dishwashing products increased 1% to £154 M. Home Care net revenues improved by 12% to £172 M and Surface Care net revenues grew 4% to £232 M. The company is optimistic of reaching its targets for 2006. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (27 Apr 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 28 Apr 2006, (83), 16 (in German)
European Paint and Resin News, Mar 2006, 44 (3), 9
Reckitt Benckiser posts strong start in 1Q 2006 Reckitt Benckiser increased its net profits by 14% in 1Q 2006 to £141 M, excluding restructuring charges, and its operating profit for the same period rose by 23% to £196 M. If restructuring charges are included, net income fell 11% to £110 M and operating profit was down 4% at £154 M. Sales in 1Q 2006 were up 18% to £1.16 bn at actual exchange rates. According to CEO Bart Becht, the company “made a strong start to 6
net profits of €186 M. Henkel’s boss is predicting a 10% rise in operating profits and profits per share in 2006. Sales are expected to grow 3-4%. Sales rose 13% in 2005 to almost €12 bn, and operating profits rose 16.7% to almost €1.2 bn. Net profits were up 2.9% at €770 M for the year. Handelsblatt Wirtschafts- und Finanzzeitung, 3 May & 10 Apr 2006, (Website: http://www.handelsblatt.com) (in German)
Godrej Consumer Products: results for 2005-2006 Godrej Consumer Products Ltd has reported a net profit of Rup 301.6 M on sales (net of excise) of Rup 1641.2 M for 4Q ended Mar 2006 (net profit of Rup 288.2 M on sales of Rup 1385 M in 4Q ended Mar 2005). During 4Q 2005-2006, the company recorded sales of Rup 985.4 M from soaps, Rup 430.2 M from hair colours, Rup 143.9 M from toiletries and Rup 44.4 M from liquid detergents businesses (sales of Rup 835.2 M from soaps, Rup 379.5 M from hair colours, Rup 73.5 M from toiletries and Rup 47.7 M from liquid detergents businesses in 4Q 2004-2005). Godrej posted a net profit of Rup 1212 M on sales (net of excise) of Rup 6573.2 M for the year ended Mar 2006 (net profit of Rup 895.9 M on sales of Rup 5626.7 M in the year ended Mar 2005). Business Line, 27 Apr 2006, 13 (116), 7
COMPANY NEWS Cognis set to review entire business group
Henkel posts strongest growth in Asia Henkel has achieved its strongest growth rates at the start of 2006 in Asia/Pacific. The company’s EBIT was up 11.7% at €295 M and net profits 10.1% at €185 M. Growth in Asia was 17%. Group sales were up 11% in 1Q 2006 at €3.05 bn. The consumer adhesives business posted growth of 20.8%, and detergents 5.4% to €1.01 bn. The toiletries division was up 8.1% at €642 M. Analysts had expected 1Q 2006 sales of €2.92 bn and EBIT of €292 M and
Investment funds Permira and GS Capital Partners, the two major shareholders in Cognis, recently engaged the services of Goldman Sachs and J-P Morgan to evaluate various strategic options for the German chemicals group. Although neither shareholder has disclosed further details, the most likely solutions are either the group’s sale or its entry onto the stock exchange. Cognis has a third shareholder, SV Life Sciences, but this company has not announced what it intends to do JUNE 2006