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Henkel sheds 3000 jobs
F O C U S
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S U R FAC TA N T S
Akzo Nobel Chemicals 2007: surfactants revenues up 6%
Premium products lift Hindustan Unilever
For its fiscal 2007 (period ends 31 Dec 2007), the Akzo Nobel Chemicals division of Akzo Nobel NV has reported revenues of €3639 M (€3522 M for its fiscal 2006), of which: pulp & paper chemicals accounted for 27%, base chemicals 23%, functional chemicals 21%, surfactants 15%, and polymer chemicals 14%. The division reported EBITDA of €610 M (€558 M), EBIT of €408 M (€339 M), capital and expenditures of €191 M (€223 M). Headcount at year end was 8900, down from 9300 a year earlier, of which the US & Canada accounted for 1430, Latin America 680, Asia 970, the Netherlands 2150, Germany 720, Sweden 2130, the UK 40, and other European countries 760. For fiscal year 2007, the company’s Surfactants segment reported revenues of €556 M, up 6.3% on €523 M for its fiscal 2006. For the fourth quarter of 2007, the Chemicals division reported year-on-year revenue growth of 7%; both volumes and prices rose 6%. Before incidentals, EBITDA increased 5% to €137 million. The Surfactants segment was reported to be operating at ‘a significantly improved level’ compared with the same quarter in 2006. Akzo Nobel is seeing strong synergies between its speciality chemical division and the former ICI businesses being retained by the company after its acquisition of the UK coatings and speciality chemical group ICI in Jan 2008. Akzo Nobel’s chemical business intends to sell ICI’s starch business, while retaining the speciality polymers division, which generates sales of €400 M. Among the units that fit well with Akzo Nobel’s speciality chemical portfolio, the Alco Chemical business, which includes chemicals for water treatment and detergents, complements Akzo Nobel’s functional chemicals and surfactants.
Hindustan Unilever Ltd (HUL) has recorded a 23.5% hike in net profit at Rup 6314.4 M on net sales of Rup 36.874 bn for 4Q ended Dec 2007 (net profit of Rup 5111.8 M on net sales of Rup 31.561 bn in 4Q ended Dec 2006). The net profit for 4Q 2007 includes an exceptional item of Rup 774.5 M (exceptional item of Rup 277.5 M in 4Q 2006). The improved performance is attributed to the 18.4% growth in home and personal care products (mainly due to soaps and detergent products). The premium products of the company like Ponds top end range and Dove hair care received a good response from the market. During the year ended Dec 2007, HUL posted a net profit of Rup 19.2547 bn on sales of Rup 137.17 bn (net profit of Rup 18.55 bn on sales of Rup 121.03 bn in the year ended Dec 2006). The soaps and detergents business, which accounts for 47% of the company’s turnover, grew by 13.9% for 2007 to Rup 63.745 bn. HUL’s detergent brand Surf recorded a turnover of Rup 10 bn. The personal products business brought in 2007 revenues of Rup 36.718 bn.
Akzo Nobel Annual Report 2007: Year of Transformation, 19 Mar 2008, 52-55, 68-69 (Akzo Nobel NV, Velperweg 76, PO Box 9300, 6800 SB Arnhem, The Netherlands. Tel: +31 26 366 4343. Fax: +31 26 366 4940. Website: http://www.akzonobel.com) & ICIS Chemical Business, 17 Mar 2008, (Website: http://icischemicalbusiness.com)
MAY 2008
Business Line, 14 Feb 2008, 15 (44), 2 & Business Standard, 20 Mar 2008, 10 (225), I.4
COMPANY NEWS Henkel sheds 3000 jobs Despite an 8% rise in profits in 2007, consumer product group Henkel is to shed 3000 jobs worldwide – or 5-6% of its current workforce – in a costsaving programme. Up to 600 could go in Germany. This is the third jobcutting exercise since 2001. The latest programme will affect jobs in its 3 divisions (detergents and household products, cosmetics and toiletries, and adhesives) worldwide. Savings of around €150 M/y are the target from 2011 but the measures will initially cost around €500 M to implement. Henkel had an operating margin of 10.3% in 2007 which is lower than its major rivals. Further job cuts are looming with Henkel’s
acquisition of National Starch in Apr 2008, which raised the group’s debts by €3.8 bn. Henkel is operating in difficult conditions. Raw material costs are escalating and markets are stagnating in W Europe and N America. Henkel is also facing concerns in France. The cartel authorities are said to be close to completing an investigation into price fixing in toiletries by companies such as Henkel, Unilever, SC Johnson, and Colgate-Palmolive (see p 5). Henkel had sales up 2.6% in 2007 at €13.074 bn; EBIT was up 3.5% at €1.344 bn and net profits were up 7.7% at €921 M. The cash-flow amounted to €1.3 bn in 2007 and indebtedness will decrease rapidly after the planned sale of the minority stake in Ecolab (see p 5). All 3 divisions achieved an internal growth rate of 5.5% each in 2007. Detergents/cleaners sales were up 0.8% at €4.148 bn, cosmetics/toiletries up 3.8% at €2.972 bn, and adhesives technologies up 61.6% at €5.711 bn. Handelsblatt Wirtschafts- und Finanzzeitung, 28 Feb 2008, (42), 11 (in German) & Neue Zuercher Zeitung, 28 Feb 2008, 229 (49), 12 (in German) & La Tribune, 28 Feb 2008, (3860), 9 (in French)
BASF and Sinopec submit feasibility study for Nanjing site expansion BASF and Sinopec Corp are planning to invest $900 M in an expansion of their joint petrochemical facilities in Nanjing, China. A technical and commercial feasibility study has been submitted to the Chinese government for approval. The site is operated by their joint venture BASF-YPC Co Ltd (BYC). The capacity of the steam cracker will be expanded from 600,000 tonne/y to about 750,000 tonne/y ethylene. The ethylene oxide (EO) plant will also be expanded and the production of EO derivatives enhanced with nonionic surfactants for detergents and butyl glycol ether solvent. Additional projects include the production of amines for surfactants and dimethylamine for flocculants. Some of the expansions will be completed in 2008, but the cracker expansion is not scheduled to be completed until 2009 or 2010. Press release from: BASF Group, Germany. Website: http://media.basf.com (19 Mar 2008) & China Chemical Reporter, 26 Mar 2008, 19 (9), 10 & Chemie Technik (Heidelberg), 31 Mar 2008, (Website: http://www/chemietechnik.de) (in German)
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O N
S U R FAC TA N T S
Akzo Nobel Chemicals 2007: surfactants revenues up 6%
Premium products lift Hindustan Unilever
For its fiscal 2007 (period ends 31 Dec 2007), the Akzo Nobel Chemicals division of Akzo Nobel NV has reported revenues of €3639 M (€3522 M for its fiscal 2006), of which: pulp & paper chemicals accounted for 27%, base chemicals 23%, functional chemicals 21%, surfactants 15%, and polymer chemicals 14%. The division reported EBITDA of €610 M (€558 M), EBIT of €408 M (€339 M), capital and expenditures of €191 M (€223 M). Headcount at year end was 8900, down from 9300 a year earlier, of which the US & Canada accounted for 1430, Latin America 680, Asia 970, the Netherlands 2150, Germany 720, Sweden 2130, the UK 40, and other European countries 760. For fiscal year 2007, the company’s Surfactants segment reported revenues of €556 M, up 6.3% on €523 M for its fiscal 2006. For the fourth quarter of 2007, the Chemicals division reported year-on-year revenue growth of 7%; both volumes and prices rose 6%. Before incidentals, EBITDA increased 5% to €137 million. The Surfactants segment was reported to be operating at ‘a significantly improved level’ compared with the same quarter in 2006. Akzo Nobel is seeing strong synergies between its speciality chemical division and the former ICI businesses being retained by the company after its acquisition of the UK coatings and speciality chemical group ICI in Jan 2008. Akzo Nobel’s chemical business intends to sell ICI’s starch business, while retaining the speciality polymers division, which generates sales of €400 M. Among the units that fit well with Akzo Nobel’s speciality chemical portfolio, the Alco Chemical business, which includes chemicals for water treatment and detergents, complements Akzo Nobel’s functional chemicals and surfactants.
Hindustan Unilever Ltd (HUL) has recorded a 23.5% hike in net profit at Rup 6314.4 M on net sales of Rup 36.874 bn for 4Q ended Dec 2007 (net profit of Rup 5111.8 M on net sales of Rup 31.561 bn in 4Q ended Dec 2006). The net profit for 4Q 2007 includes an exceptional item of Rup 774.5 M (exceptional item of Rup 277.5 M in 4Q 2006). The improved performance is attributed to the 18.4% growth in home and personal care products (mainly due to soaps and detergent products). The premium products of the company like Ponds top end range and Dove hair care received a good response from the market. During the year ended Dec 2007, HUL posted a net profit of Rup 19.2547 bn on sales of Rup 137.17 bn (net profit of Rup 18.55 bn on sales of Rup 121.03 bn in the year ended Dec 2006). The soaps and detergents business, which accounts for 47% of the company’s turnover, grew by 13.9% for 2007 to Rup 63.745 bn. HUL’s detergent brand Surf recorded a turnover of Rup 10 bn. The personal products business brought in 2007 revenues of Rup 36.718 bn.
Akzo Nobel Annual Report 2007: Year of Transformation, 19 Mar 2008, 52-55, 68-69 (Akzo Nobel NV, Velperweg 76, PO Box 9300, 6800 SB Arnhem, The Netherlands. Tel: +31 26 366 4343. Fax: +31 26 366 4940. Website: http://www.akzonobel.com) & ICIS Chemical Business, 17 Mar 2008, (Website: http://icischemicalbusiness.com)
MAY 2008
Business Line, 14 Feb 2008, 15 (44), 2 & Business Standard, 20 Mar 2008, 10 (225), I.4
COMPANY NEWS Henkel sheds 3000 jobs Despite an 8% rise in profits in 2007, consumer product group Henkel is to shed 3000 jobs worldwide – or 5-6% of its current workforce – in a costsaving programme. Up to 600 could go in Germany. This is the third jobcutting exercise since 2001. The latest programme will affect jobs in its 3 divisions (detergents and household products, cosmetics and toiletries, and adhesives) worldwide. Savings of around €150 M/y are the target from 2011 but the measures will initially cost around €500 M to implement. Henkel had an operating margin of 10.3% in 2007 which is lower than its major rivals. Further job cuts are looming with Henkel’s
acquisition of National Starch in Apr 2008, which raised the group’s debts by €3.8 bn. Henkel is operating in difficult conditions. Raw material costs are escalating and markets are stagnating in W Europe and N America. Henkel is also facing concerns in France. The cartel authorities are said to be close to completing an investigation into price fixing in toiletries by companies such as Henkel, Unilever, SC Johnson, and Colgate-Palmolive (see p 5). Henkel had sales up 2.6% in 2007 at €13.074 bn; EBIT was up 3.5% at €1.344 bn and net profits were up 7.7% at €921 M. The cash-flow amounted to €1.3 bn in 2007 and indebtedness will decrease rapidly after the planned sale of the minority stake in Ecolab (see p 5). All 3 divisions achieved an internal growth rate of 5.5% each in 2007. Detergents/cleaners sales were up 0.8% at €4.148 bn, cosmetics/toiletries up 3.8% at €2.972 bn, and adhesives technologies up 61.6% at €5.711 bn. Handelsblatt Wirtschafts- und Finanzzeitung, 28 Feb 2008, (42), 11 (in German) & Neue Zuercher Zeitung, 28 Feb 2008, 229 (49), 12 (in German) & La Tribune, 28 Feb 2008, (3860), 9 (in French)
BASF and Sinopec submit feasibility study for Nanjing site expansion BASF and Sinopec Corp are planning to invest $900 M in an expansion of their joint petrochemical facilities in Nanjing, China. A technical and commercial feasibility study has been submitted to the Chinese government for approval. The site is operated by their joint venture BASF-YPC Co Ltd (BYC). The capacity of the steam cracker will be expanded from 600,000 tonne/y to about 750,000 tonne/y ethylene. The ethylene oxide (EO) plant will also be expanded and the production of EO derivatives enhanced with nonionic surfactants for detergents and butyl glycol ether solvent. Additional projects include the production of amines for surfactants and dimethylamine for flocculants. Some of the expansions will be completed in 2008, but the cracker expansion is not scheduled to be completed until 2009 or 2010. Press release from: BASF Group, Germany. Website: http://media.basf.com (19 Mar 2008) & China Chemical Reporter, 26 Mar 2008, 19 (9), 10 & Chemie Technik (Heidelberg), 31 Mar 2008, (Website: http://www/chemietechnik.de) (in German)
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