Great Lakes reports 10% sales rise, buoyed by strong polymer additives

Great Lakes reports 10% sales rise, buoyed by strong polymer additives

Additives for Polymers The new 6900 m2 centre houses state-of-the-art laboratories, facilities for marketing and application engineering, and technic...

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Additives for Polymers

The new 6900 m2 centre houses state-of-the-art laboratories, facilities for marketing and application engineering, and technical after-sales service, amongst others. Degussa says it is seeking to considerably step up its activities in China over the medium term, and is holding extensive talks with a series of Chinese companies in pursuit of this aim. It is also aiming to establish R&D collaborations with leading Chinese universities. Degussa increased its sales in China in 2003 by 17% to around 280 million. Contact: Degussa AG, Karl-Arnold-Platz 1a, D40474 Düsseldorf, Germany; tel: +49-21165041-0; fax: +49-211-65041-555; URL: www.degussa.de

FINANCIALS Albemarle posts strong 1Q sales growth Albemarle Corp reported first-quarter 2004 net income of US$13.6 million, including a special item of $2.9 million, compared to first-quarter 2003 net income of $16.7 million. Net sales for the 2004 period were $322.0 million, up about 20% from $266.7 million for the same quarter in 2003, due primarily to recent acquisitions (including Rhodia’s polyurethane flame retardants), volume growth in key products and foreign exchange. According to the company, first-quarter 2004 results included higher flame retardant and agricultural product shipments, increased volumes in bromine and the positive overall effects of foreign exchange. These results were offset by lower zeolite volumes, higher raw materials costs and outside legal costs. The reduction in workforce due to the company’s exit from the zeolite business was the single largest factor offsetting the generally favourable results in the quarter. The company’s Polymer Chemicals segment posted 1Q 2004 income of $21.3 million on sales of $195.4 million, up from 1Q 2003 income of $16.3 million on sales of $147.2 million. In other news, Albemarle recently established three ‘virtual’ Technology Centers, the first of a series of virtual associations designed to strengthen company positions in key chemistries and technical capabilities and to help position it as a leader in important emerging scientific fields 8

June 2004

such as nanotechnology. The Technology Centers are clusters of employees from business and manufacturing operations worldwide – including R&D, engineering, applications development and product management – led by senior-level scientists and engineers with a strong record of innovation and new product development. They will provide Albemarle with a longer-term research view and lead the company’s new product and service development efforts. The initial three groups are Bromine and Bromination, Nanotechnology and Process Safety. Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com

Great Lakes reports 10% sales rise, buoyed by strong polymer additives Great Lakes Chemical achieved first quarter 2004 net sales from continuing operations of US$368.1 million, a 10% increase compared to $334.0 million reported in the corresponding period in 2003. Excluding the effects of acquisitions and foreign currency translation, the increase was 2%. However, the company posted a loss from continuing operations of $4.1 million for the quarter, compared to income of $0.9 million for 1Q 2003, as a result of after-tax restructuring charges and certain other significant items totalling $10.8 million. The charges relate primarily to the cost-cutting plan announced last year (Additives for Polymers, November 2003), which includes a series of manufacturing consolidations, cost reductions, and other actions. First quarter 2004 net sales for the Polymer Additives business increased 6% to $197.9 million, from $185.9 million in 2003. Improved demand in key end markets helped drive sales volumes higher, the company says. The positive effects of foreign currency translation also contributed to the improvement. The segment’s operating income in the first quarter increased to $8.0 million from $2.8 million last year due to productivity gains and a stronger sales mix. In related news, Great Lakes’ 110-acre site at Newport, TN – one of three polymer additives

June 2004

facilities earmarked for closure under October’s cost-cutting plan – has been acquired by Schenectady International for an undisclosed sum. Schenectady says it has not yet determined what it will produce at the plant, but it plans a “major renovation” project that will include modifying existing equipment. Contact: Great Lakes Chemical Corp, PO Box 2200, 1 Great Lakes Boulevard, West Lafayette, Indianapolis, IN 47906-5394, USA; tel: +1765-497-6100; fax: +1-765-497-6316; URL: www.greatlakes.com

Cytec reports record 1Q sales Cytec Industries announced net earnings for 2004’s first quarter of US$31.3 million on record sales of $415 million. Net earnings for the comparable period of 2003 were $28.9 million, before special effects, on sales of $367 million. According to the company, acquisitions completed in 2003, strong volume growth in some segments and exchange rate changes all favourably impacted its sales for the quarter. In the Performance Products segment, which includes polymer additives, sales increased 17% for the quarter, with selling volumes up 2%, acquisitions adding 11% and exchange rate changes 4%, while selling prices were flat. Demand was generally up in all regions except Asia-Pacific. Operating earnings improved to $14 million principally due to acquisitions and higher sales volumes. Cytec’s latest 2004 forecast anticipates sales growth of about 10% for the segment, with about 5% of that coming from acquisitions, and operating earnings up 40% from 2003, which is a slight reduction on the previous forecast due to the continuing impact of raw material and energy costs on this segment. Contact: Cytec Industries Inc, 5 Garret Mountain Plaza, West Paterson, NJ 07424, USA; tel: +1-973-357-3100; fax: +1-973-3573060; URL: www.cytec.com

Crompton’s polymer additives sales climb 20% Crompton Corp reported first quarter net earnings of US$60.4 million, compared to net earnings of $5.8 million in the first quarter of 2003. First

Additives for Polymers

quarter sales of $624.3 million were 17% above the previous year with 8% attributable to the acquisition of the GE Specialty Chemical business in July 2003, 4% due to the favourable impact of foreign currency translation, 4% due to improved unit volume and 1% due to improved selling prices. The positive trend in unit volume and selling prices, combined with the company’s costreduction efforts, more than offset the impact of nearly $20 million in additional raw material and energy costs over the first quarter of 2003, according to president/CEO Robert L. Wood. He adds that Crompton is intently focused on improving its pricing discipline and other aspects of customer and market management. The company’s Polymer Products segment reported polymer additives sales of $363.3 million for the first quarter, up 20% from 1Q 2003. 15% was due to the acquisition of the GE Specialty Chemicals business, with 4% from currency translation and 1% from increased selling prices. Plastic additives sales were also positively affected by these three factors, rising 33%. Rubber additives sales were up 2% while urethane additives sales increased 6%. Segmental operating profit of $8.9 million was down 34% from the first quarter of 2003 mainly as a result of higher raw material and energy costs, offset in part by savings from cost-reduction initiatives and higher selling prices. In other company news, Crompton’s board of directors recently named Robert L. Wood to the additional post of chairman, succeeding Vincent A. Calarco who has retired after nearly two decades of leadership at the company. Wood already serves as president and CEO, joining Crompton from Dow Chemical in January this year to take up those positions (Additives for Polymers, February 2004). Contact: Crompton Corp, 199 Benson Road, Middlebury, CT 06749, USA; tel: +1-203-5732000; URL: www.cromptoncorp.com

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