- Email: [email protected]
Lanxess continues profitable growth with 11% income rise
NEWS
Asia posted the strongest organic growth of 11%, driven particularly by strong performances in China (+27%), India and Pakistan. Europe achieved 3% growth in local currency terms. The Americas achieved 3% growth with a solid contribution from Latin America offsetting a 2% drop from the USA, where the construction and automotive businesses slowed and the plastics business was also weaker compared to the high levels seen in 2006.
Contact: Ferro Corp, 1000 Lakeside Avenue, Cleveland, OH 44114-7000, USA. Tel: +1 216 641 8580, Web: www.ferro.com
Contact: Clariant International Ltd, Rothausstrasse 61, CH-4132 Muttenz, Switzerland. Tel: +41 61 469 6969, Fax: +41 61 469 6999, Web: www.clariant.com
Lanxess continues profitable growth with 11% income rise
Ferro reports first-quarter results
F
erro Corp posted sales for the quarter ended 31 March 2007 of US$530 million, up 5% from $505 million recorded in 1Q 2006. Increased product pricing and the effects of favourable foreign currency exchange rates were the primary drivers of sales growth for 1Q 2007, though partially offset by volume declines.
Quarterly income from continuing operations was $6.2 million compared with $8.4 million for 1Q 2006. The decline was primarily as a result of higher interest expense and restructuring charges of about $4.3 million before tax. For the Polymer Additives segment, sales were nearly flat at $82.5 million and segment income was reduced from $4.5 million in 1Q 2006 to $3.1 million this year, largely due to weaker demand in the US housing and automotive markets. Commenting on the results, CEO James F. Kirsch says that the strength of Ferro’s worldwide business and breadth of products have supported the business despite weaker demand from certain US markets. ‘We are working hard to complement these strengths with improvements in our cost structure as we execute our restructuring programmes, reduce our debt levels and focus on achieving operational excellence.’ For the second quarter, Ferro expected European and Asian demand for its products to remain relatively strong, while the weakness in the US housing and automotive markets was expected to continue. • In other news, Ferro has recruited Tom Austin as VP of operations with responsibility for environmental,
August 2007
health and safety performance and security processes and systems. He previously spent 30 years at Dow Chemical in various manufacturing and plant management roles.
L
anxess AG once again posted a year-on-year earnings increase in the first quarter, traditionally the strongest three-month period in the year. Net income improved by 11% to 91 million in 1Q March 2007 (82 million in 1Q 2006) while EBITDA pre-exceptionals grew by 6.8%, from 205 million in 1Q 2006 to 219 million. ‘With this further improvement in profitability, we have laid a solid foundation for further growth,’ says Lanxess chairman Axel C. Heitmann. Reported sales declined by 6.8% as expected to 1.711 billion from 1.836 billion for the same quarter of 2006
as a result of divestments and shifts in exchange rates. Adjusted for these effects, sales grew by 3.1%. Net debt declined to 448 million while, against a background of planned corporate growth, capital expenditures were increased by nearly a third to 47 million. After adjustments, Lanxess’ sales rose in all regions. In Europe (excluding Germany), the Middle East and Africa (EMEA), quarterly sales were 590 million (619 million in 1Q 2006). After adjustments this represents a 1.8% rise in sale for the region thanks to expanding markets for the company’s products in Eastern Europe and the Middle East. In Lanxess’ home market of Germany sales shrank by 1.4% to 411 million, due solely to portfolio changes. Adjusted for this effect, sales rose by >1.5%. The company posted sales of 410 million in North and Latin America in 1Q 2007, which is a 3.2% rise after adjustments. Sales in the Asia-Pacific region advanced by 7.9% on an adjusted basis to 300 million. Due to portfolio changes and currency effects, firstquarter sales of the Performance Chemicals segment came in 22.6% lower year-on-year, at 400 million. On an adjusted basis, 1Q sales were at the previous year’s
Additives for Polymers
9
NEWS
level. Business in the Functional Chemicals unit, which includes plastics additives and colorants, was negatively impacted by an operational incident at the hydrazine hydrate production facility in Weifang, China. The segment’s EBITDA pre-exceptionals shrank by 13% to 60 million. The Chemical Intermediates segment, which includes inorganic pigments, posted 3.3% growth in sales to 408 million in 1Q 2007 and an 11.3% rise in EBITDA pre-exceptionals to 79 million. Following its recent successes in restructuring and consolidation, Lanxess is increasing its R&D budget for 2007 by 15% to around 100 million. With that investment, the company will target future high-growth markets as well as future technologies that promise a rapid return on investment. Lanxess says that it aims to make its investments in research as efficient as possible while maintaining a consistent market focus. To this end, the company emphasizes close cooperation with customers, suppliers and academic research. Around a quarter of current R&D projects focus on process research because the continuous improvement of production processes is of great importance in times of high energy and raw material costs, as now. Around 80% of research projects should lead to market-ready products within two years, Lanxess says. Contact: Lanxess, Bld K10, D-51369 Leverkusen, Germany. Tel: +49 214 30 33333, Email: [email protected], Web: www.lanxess.com
NEWS AND VIEWS Clariant announces strategic appointments
T
o further strengthen its commitment to achieving world-class performance (ADPO, January 2007], Clariant has announced a comprehensive series of senior management appointments. The aim is to create a leadership team that blends highly experienced, longstanding Clariant executives with outside talent, all of whom have excellent track records in driving change and achieving outstanding results.
10
Additives for Polymers
This also marks a major step forwards in developing a culture characterized by a customer and market orientation, entrepreneurship, innovation and strong accountability, the company says.
Among the changes, Okke Koo has been appointed to lead the Pigments & Additives Division. Until recently, Koo was CEO of Avebe, a Netherlandsbased starch manufacturer with offices in 20 countries and approximately 2000 employees. He will take up his duties on 1 August. The Textile, Leather & Paper Chemicals Division also has a new head in Philippe Royer, who joins the company from Alcoa. The current heads of these two divisions, Uwe Nickel and Peter Piringer, will be leaving the company after short transition periods to pursue their careers elsewhere. Renaud Spitz has been appointed head of the newly formed Group Operational Excellence (GOE) reporting to the CEO. The GOE team is focused on supporting and enhancing change management initiatives and continuous improvement processes across the company. Spitz has until recently been country president for France. And to enable Clariant to manage its European businesses in an increasingly cohesive and efficient manner, Hans Schmidt, currently country president for Germany, has been appointed as region president Europe. Clariant Masterbatches also recently appointed Steve Duckworth as head of its global consumer goods segment, based in Muttenz. Duckworth has more than 25 years’ experience in the polymers industry, working at GE Plastics, DSM and most recently at PolyOne. Contact: Clariant International Ltd, Rothausstrasse 61, CH-4132 Muttenz, Switzerland. Tel: +41 61 469 6969, Fax: +41 61 469 6999, Web: www.clariant.com
Lehigh Technologies to triple capacity
U
S manufacturer of engineered rubber powders Lehigh Technologies reports that it is on track to triple production capacity for its ultra-fine
August 2007
Asia posted the strongest organic growth of 11%, driven particularly by strong performances in China (+27%), India and Pakistan. Europe achieved 3% growth in local currency terms. The Americas achieved 3% growth with a solid contribution from Latin America offsetting a 2% drop from the USA, where the construction and automotive businesses slowed and the plastics business was also weaker compared to the high levels seen in 2006.
Contact: Ferro Corp, 1000 Lakeside Avenue, Cleveland, OH 44114-7000, USA. Tel: +1 216 641 8580, Web: www.ferro.com
Contact: Clariant International Ltd, Rothausstrasse 61, CH-4132 Muttenz, Switzerland. Tel: +41 61 469 6969, Fax: +41 61 469 6999, Web: www.clariant.com
Lanxess continues profitable growth with 11% income rise
Ferro reports first-quarter results
F
erro Corp posted sales for the quarter ended 31 March 2007 of US$530 million, up 5% from $505 million recorded in 1Q 2006. Increased product pricing and the effects of favourable foreign currency exchange rates were the primary drivers of sales growth for 1Q 2007, though partially offset by volume declines.
Quarterly income from continuing operations was $6.2 million compared with $8.4 million for 1Q 2006. The decline was primarily as a result of higher interest expense and restructuring charges of about $4.3 million before tax. For the Polymer Additives segment, sales were nearly flat at $82.5 million and segment income was reduced from $4.5 million in 1Q 2006 to $3.1 million this year, largely due to weaker demand in the US housing and automotive markets. Commenting on the results, CEO James F. Kirsch says that the strength of Ferro’s worldwide business and breadth of products have supported the business despite weaker demand from certain US markets. ‘We are working hard to complement these strengths with improvements in our cost structure as we execute our restructuring programmes, reduce our debt levels and focus on achieving operational excellence.’ For the second quarter, Ferro expected European and Asian demand for its products to remain relatively strong, while the weakness in the US housing and automotive markets was expected to continue. • In other news, Ferro has recruited Tom Austin as VP of operations with responsibility for environmental,
August 2007
health and safety performance and security processes and systems. He previously spent 30 years at Dow Chemical in various manufacturing and plant management roles.
L
anxess AG once again posted a year-on-year earnings increase in the first quarter, traditionally the strongest three-month period in the year. Net income improved by 11% to 91 million in 1Q March 2007 (82 million in 1Q 2006) while EBITDA pre-exceptionals grew by 6.8%, from 205 million in 1Q 2006 to 219 million. ‘With this further improvement in profitability, we have laid a solid foundation for further growth,’ says Lanxess chairman Axel C. Heitmann. Reported sales declined by 6.8% as expected to 1.711 billion from 1.836 billion for the same quarter of 2006
as a result of divestments and shifts in exchange rates. Adjusted for these effects, sales grew by 3.1%. Net debt declined to 448 million while, against a background of planned corporate growth, capital expenditures were increased by nearly a third to 47 million. After adjustments, Lanxess’ sales rose in all regions. In Europe (excluding Germany), the Middle East and Africa (EMEA), quarterly sales were 590 million (619 million in 1Q 2006). After adjustments this represents a 1.8% rise in sale for the region thanks to expanding markets for the company’s products in Eastern Europe and the Middle East. In Lanxess’ home market of Germany sales shrank by 1.4% to 411 million, due solely to portfolio changes. Adjusted for this effect, sales rose by >1.5%. The company posted sales of 410 million in North and Latin America in 1Q 2007, which is a 3.2% rise after adjustments. Sales in the Asia-Pacific region advanced by 7.9% on an adjusted basis to 300 million. Due to portfolio changes and currency effects, firstquarter sales of the Performance Chemicals segment came in 22.6% lower year-on-year, at 400 million. On an adjusted basis, 1Q sales were at the previous year’s
Additives for Polymers
9
NEWS
level. Business in the Functional Chemicals unit, which includes plastics additives and colorants, was negatively impacted by an operational incident at the hydrazine hydrate production facility in Weifang, China. The segment’s EBITDA pre-exceptionals shrank by 13% to 60 million. The Chemical Intermediates segment, which includes inorganic pigments, posted 3.3% growth in sales to 408 million in 1Q 2007 and an 11.3% rise in EBITDA pre-exceptionals to 79 million. Following its recent successes in restructuring and consolidation, Lanxess is increasing its R&D budget for 2007 by 15% to around 100 million. With that investment, the company will target future high-growth markets as well as future technologies that promise a rapid return on investment. Lanxess says that it aims to make its investments in research as efficient as possible while maintaining a consistent market focus. To this end, the company emphasizes close cooperation with customers, suppliers and academic research. Around a quarter of current R&D projects focus on process research because the continuous improvement of production processes is of great importance in times of high energy and raw material costs, as now. Around 80% of research projects should lead to market-ready products within two years, Lanxess says. Contact: Lanxess, Bld K10, D-51369 Leverkusen, Germany. Tel: +49 214 30 33333, Email: [email protected], Web: www.lanxess.com
NEWS AND VIEWS Clariant announces strategic appointments
T
o further strengthen its commitment to achieving world-class performance (ADPO, January 2007], Clariant has announced a comprehensive series of senior management appointments. The aim is to create a leadership team that blends highly experienced, longstanding Clariant executives with outside talent, all of whom have excellent track records in driving change and achieving outstanding results.
10
Additives for Polymers
This also marks a major step forwards in developing a culture characterized by a customer and market orientation, entrepreneurship, innovation and strong accountability, the company says.
Among the changes, Okke Koo has been appointed to lead the Pigments & Additives Division. Until recently, Koo was CEO of Avebe, a Netherlandsbased starch manufacturer with offices in 20 countries and approximately 2000 employees. He will take up his duties on 1 August. The Textile, Leather & Paper Chemicals Division also has a new head in Philippe Royer, who joins the company from Alcoa. The current heads of these two divisions, Uwe Nickel and Peter Piringer, will be leaving the company after short transition periods to pursue their careers elsewhere. Renaud Spitz has been appointed head of the newly formed Group Operational Excellence (GOE) reporting to the CEO. The GOE team is focused on supporting and enhancing change management initiatives and continuous improvement processes across the company. Spitz has until recently been country president for France. And to enable Clariant to manage its European businesses in an increasingly cohesive and efficient manner, Hans Schmidt, currently country president for Germany, has been appointed as region president Europe. Clariant Masterbatches also recently appointed Steve Duckworth as head of its global consumer goods segment, based in Muttenz. Duckworth has more than 25 years’ experience in the polymers industry, working at GE Plastics, DSM and most recently at PolyOne. Contact: Clariant International Ltd, Rothausstrasse 61, CH-4132 Muttenz, Switzerland. Tel: +41 61 469 6969, Fax: +41 61 469 6999, Web: www.clariant.com
Lehigh Technologies to triple capacity
U
S manufacturer of engineered rubber powders Lehigh Technologies reports that it is on track to triple production capacity for its ultra-fine
August 2007