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Hindustan Lever results for 2Q and 1H 2005
F O C US home care unit, volume increased 8% in the April to June quarter. Developing market volume increased by mid-teens behind the continued growth of Tide and Ariel. Net sales increased 10% to $3.85 bn, including a positive foreign exchange impact of 2%. Pricing actions on select brands in the US, Latin America, Eastern Europe, China and certain Western European countries added 1% to sales growth. The mix effect of strong developing market growth reduced sales by 1%. Net earnings were $458 M, a decrease of 11%. For the fiscal year, sales reached a record $56.74 bn. All regions delivered mid-single digit volume growth or better, with developing market volume growth in the highteens. Net earnings in fiscal 2005 increased 12% to $7.26 bn. For P&G Beauty, net sales were $19.48 bn (+14%) and net earnings $2.85 bn (+22%). Fiscal year unit volume increased by 9% in fabric care and home care, with developing markets showing double-digit volume growth, led by Greater China and the continued success of Tide. Net sales increased 10% to $15.26 bn while net earnings were $2.13 bn, a decrease of 2% compared to the previous year. Press release from: The Procter & Gamble Company, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com (1 Aug 2005)
Novozymes finances for 1H 2005 Novozymes A/S announced net turnover for 1H ended Jun 2005 of DKR 3.037 bn, up 3%. Sales of enzymes rose by 3%, while sales of micro-organisms were 5% lower, compared with 1H 2004. An increasing share of the growth in sales came from Europe. Sales to North America were lower for 1H 2005 than in 1H 2004. Growth in Asia Pacific remained very satisfactory but a negative trend was seen in sales to Latin America. Overall, sales of technical enzymes rose by 2% during 1H 2005, and sales of detergent enzymes for the institutional and household cleaning segment were 4% lower than in 1H 2004. Growth in sales of other technical enzymes remains very satisfactory. Lower sales within the detergent industry and growth in sales of enzymes for starch and fuel ethanol applications OCTOBER 2005
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have had the greatest impact on trends during 2Q 2005. Sales of food enzymes rose 8% while sales of feed enzymes were 1% lower than in 1H 2004. The geographical distribution of sales has increased, and sales outside the US are showing healthy rates of growth. Net profit rose to DKR 440 M for 1H 2005 (net profit of DKR 350 M in 1H 2004). Novozymes 2Q & 1H 2005 results, 11 Aug 2005, (Novozymes A/S, Krogshoejvej 36, Bagsvaerd 2880, Denmark. Website: http://www.novozymes.com)
Hindustan Lever results for 2Q and 1H 2005 Hindustan Lever Ltd (HLL) has recorded a net profit of Rup 2.8165 bn on net sales of Rup 28.3632 bn for 2Q ended Jun 2005 (net profit of Rup 2.4449 bn on net sales of Rup 25.7164 bn in 2Q ended Jun 2004). The company derived revenues of Rup 12.8758 bn from its soaps and detergents business, Rup 7.4743 bn from personal care products and Rup 3.2247 bn from exports for 2Q 2005 (revenues of Rup 11.7763 bn from soaps and detergents, Rup 6.3676 bn from personal care products and Rup 3.2944 bn from exports in 2Q 2004). During 1H ended Jun 2005, HLL reported a net profit of Rup 5318.9 M on net sales of Rup 53.427 bn (net profit of Rup 5393.7 M on net sales of Rup 49.2498 bn in 1H ended Jun 2004). Business Line, 1 Aug 2005, 12 (212), 3
COMPANY NEWS Pilot Chemical reorganizes management; moves to Ohio Specialities and surfactants manufacturer Pilot Chemical is to reorganize its corporate management and functions into three groups: operations; commercial; and finance and administration. In Jan 2006 the company will relocate its corporate office to Cincinnati, Ohio. The company aims to become a leading player in the global surfactant chemicals market. Chemical Week, 17 Aug 2005, 167 (27) (Website: http://www.chemweek.com)
Vashisti Detergents may be merged with Hind Lever Hindustan Lever Ltd (HLL) plans to merge Vashisti Detergents Ltd, in which it holds a 32.90% stake, with itself. The swap ratio is likely to be one share of Hind Lever for every 10 shares of Vashisti Detergents, a contract manufacturer of soaps and detergents for Hind Lever. Business Line, 10 Aug 2005, 12 (221), 2
Unilever closes Nepalese plant after threats Unilever has closed a plant at Basamadi, Nepal, which manufactured soap, toothpaste and cosmetics, following threats by Maoist guerrillas. Five facilities of other manufacturers and suppliers in the same region were subsequently closed. The Maoists threatened action if Unilever Nepal, which is 80% owned by Unilever’s Indian daughter company Hindustan Lever (HLL), did not comply with 15 demands from a trades union associated with the rebels and not officially recognized. These demands included the stipulation that any workers laid off because of reduced production must be kept in employment. In addition Unilever Nepal had to sack all foreign workers and increase wages by 25% every two years. Unilever said other stipulations were not related to the workplace but to the political situation in Nepal. The nature of the threat was not disclosed but arson and bomb attacks were thought possible. Unilever felt it was impossible to meet the Maoists’ demands, which would be tantamount to giving in to blackmail. Moreover, it would have meant breaking Nepalese laws, in part through committing fraud, and infringing the company’s own code of conduct. Het Financieele Dagblad, 22 Aug 2005, (196), 1 (in Dutch)
Rohm and Haas wins suit In China, a lawsuit brought by Rohm and Haas against Shanghai Cognis Oleochemicals Co alleging unfair competition has been settled. The suit involved products manufactured by Rohm and Haas that contained alkylphenolethoxylate (APE). China Chemical Reporter, 6 Aug 2005, 16 (22), 11
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Novozymes finances for 1H 2005 Novozymes A/S announced net turnover for 1H ended Jun 2005 of DKR 3.037 bn, up 3%. Sales of enzymes rose by 3%, while sales of micro-organisms were 5% lower, compared with 1H 2004. An increasing share of the growth in sales came from Europe. Sales to North America were lower for 1H 2005 than in 1H 2004. Growth in Asia Pacific remained very satisfactory but a negative trend was seen in sales to Latin America. Overall, sales of technical enzymes rose by 2% during 1H 2005, and sales of detergent enzymes for the institutional and household cleaning segment were 4% lower than in 1H 2004. Growth in sales of other technical enzymes remains very satisfactory. Lower sales within the detergent industry and growth in sales of enzymes for starch and fuel ethanol applications OCTOBER 2005
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S U R FA C TA N T S
have had the greatest impact on trends during 2Q 2005. Sales of food enzymes rose 8% while sales of feed enzymes were 1% lower than in 1H 2004. The geographical distribution of sales has increased, and sales outside the US are showing healthy rates of growth. Net profit rose to DKR 440 M for 1H 2005 (net profit of DKR 350 M in 1H 2004). Novozymes 2Q & 1H 2005 results, 11 Aug 2005, (Novozymes A/S, Krogshoejvej 36, Bagsvaerd 2880, Denmark. Website: http://www.novozymes.com)
Hindustan Lever results for 2Q and 1H 2005 Hindustan Lever Ltd (HLL) has recorded a net profit of Rup 2.8165 bn on net sales of Rup 28.3632 bn for 2Q ended Jun 2005 (net profit of Rup 2.4449 bn on net sales of Rup 25.7164 bn in 2Q ended Jun 2004). The company derived revenues of Rup 12.8758 bn from its soaps and detergents business, Rup 7.4743 bn from personal care products and Rup 3.2247 bn from exports for 2Q 2005 (revenues of Rup 11.7763 bn from soaps and detergents, Rup 6.3676 bn from personal care products and Rup 3.2944 bn from exports in 2Q 2004). During 1H ended Jun 2005, HLL reported a net profit of Rup 5318.9 M on net sales of Rup 53.427 bn (net profit of Rup 5393.7 M on net sales of Rup 49.2498 bn in 1H ended Jun 2004). Business Line, 1 Aug 2005, 12 (212), 3
COMPANY NEWS Pilot Chemical reorganizes management; moves to Ohio Specialities and surfactants manufacturer Pilot Chemical is to reorganize its corporate management and functions into three groups: operations; commercial; and finance and administration. In Jan 2006 the company will relocate its corporate office to Cincinnati, Ohio. The company aims to become a leading player in the global surfactant chemicals market. Chemical Week, 17 Aug 2005, 167 (27) (Website: http://www.chemweek.com)
Vashisti Detergents may be merged with Hind Lever Hindustan Lever Ltd (HLL) plans to merge Vashisti Detergents Ltd, in which it holds a 32.90% stake, with itself. The swap ratio is likely to be one share of Hind Lever for every 10 shares of Vashisti Detergents, a contract manufacturer of soaps and detergents for Hind Lever. Business Line, 10 Aug 2005, 12 (221), 2
Unilever closes Nepalese plant after threats Unilever has closed a plant at Basamadi, Nepal, which manufactured soap, toothpaste and cosmetics, following threats by Maoist guerrillas. Five facilities of other manufacturers and suppliers in the same region were subsequently closed. The Maoists threatened action if Unilever Nepal, which is 80% owned by Unilever’s Indian daughter company Hindustan Lever (HLL), did not comply with 15 demands from a trades union associated with the rebels and not officially recognized. These demands included the stipulation that any workers laid off because of reduced production must be kept in employment. In addition Unilever Nepal had to sack all foreign workers and increase wages by 25% every two years. Unilever said other stipulations were not related to the workplace but to the political situation in Nepal. The nature of the threat was not disclosed but arson and bomb attacks were thought possible. Unilever felt it was impossible to meet the Maoists’ demands, which would be tantamount to giving in to blackmail. Moreover, it would have meant breaking Nepalese laws, in part through committing fraud, and infringing the company’s own code of conduct. Het Financieele Dagblad, 22 Aug 2005, (196), 1 (in Dutch)
Rohm and Haas wins suit In China, a lawsuit brought by Rohm and Haas against Shanghai Cognis Oleochemicals Co alleging unfair competition has been settled. The suit involved products manufactured by Rohm and Haas that contained alkylphenolethoxylate (APE). China Chemical Reporter, 6 Aug 2005, 16 (22), 11
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