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Lanxess reports ‘positive earnings performance’ for 2007
FINANCIALS
and residential housing markets. Sales by the Polymer Additives segment in 2007 were up 6.7% compared to the previous year at $334.5 million, largely through pricing initiatives. Segment income for the year was down slightly to $10.76 million compared to $10.95 million in 2006, because of the volume declines, higher raw materials costs and added costs from a manufacturing issue at the business’ plant in Bridgeport, NJ, in December. Ferro’s sales for the fourth quarter of 2007 were $570.7 million, an increase of 14.8% from 4Q 2006. Sales by the Polymer Additives segment increased 19.2% to $81.6 million for the quarter on the back of increased volumes and product prices. Quarterly income for the segment improved to $179 000 from a loss of $1.04 million in 4Q 2006. The previously noted impairment charge in the polymer additives business was recorded in the fourth quarter and was triggered by the cumulative negative effect on earnings of a cyclical downturn in certain of the company’s primary US-based end markets; anticipated additional product costs due to recent hazardous material legislation and regulations, such as the newly enacted EU REACH registration system; and higher forecast capital expenditures related to the business. Contact: Ferro Corp, Cleveland, OH, USA. Tel: +1 216 641 8580, Web: www.ferro.com
Chemtura’s 4Q 2007 sales rise 10%, but earnings ‘flat’
C
onnecticut-based additives major Chemtura Corp reported net sales of US$891 million for the fourth quarter of 2007, up 10% on $809 million for the same period in 2006. The increase in revenue was attributable to acquisitions, positive foreign exchange and higher selling prices, partially offset by a negative impact from product mix.
A loss from continuing operations of $3 million and loss on the sale of discontinued operations of $1 million were offset by income from discontinued operations of $4 million. However, this compares to a loss of $186 million for 4Q 2006. Gross profit for the quarter improved $42 million compared with the same period of 2006, boosted by higher selling prices and higher volumes, among other
May 2008
factors. Those gains were offset by $24 million in higher raw material and energy costs and $2 million of unfavourable foreign exchange impacts due to the weaker US dollar. Additionally in the fourth quarter of 2006 there was a $9 million charge for the accelerated recognition of asset retirement obligations. Operating profit, on a GAAP basis, was $24 million in 4Q 2007, compared to an operating loss of $24 million the previous year. For full year 2007, Chemtura posted net sales of $3.75 billion, up 8.3% from $3.46 billion in 2006. Operating profit was $59 million, compared to only $5 million the previous year, while the company posted a net loss of $3 million compared to a loss of $206 million in 2006. R&D costs were up slightly at $62 million in 2007 but capital expenditures for the year were down to $117 million compared to $128 million in 2006. The company currently anticipates capital expenditures to be $165 million in 2008. The Polymer Additives segment enjoyed sales growth of 5.4% for the year to reach $1.81 billion, and 5.0% for the fourth quarter, totalling $440 million. However, operating profit fell from $130 million in 2006 to $77 million last year, and the segment posted an operating loss of $2 million in 4Q 2007 compared to a profit of $17 million for the same period in 2006. Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports ‘positive earnings performance’ for 2007
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erman speciality chemicals company Lanxess AG reported significantly improved earnings before special items in 2007. EBITDA pre-exceptionals rose by 6.5% to 719 million, up from 675 million in 2006, close to the top end of its earnings guidance range. The EBITDA margin preexceptionals moved ahead to 10.9%, compared to 9.7% in 2006. ‘This positive earnings performance shows that Lanxess has definitively achieved the turnaround. Last year we came even closer to the profitability level of our competitors,’ says Lanxess chairman Axel C. Heitmann.
Net sales for 2007 were down 4.8% at 6.61 billion, compared to the 2006 figure of 6.94 billion.
Additives for Polymers
9
EQUIPMENT
However, the company says that, after adjusting for negative currency effects and portfolio changes of 9.8%, sales growth was 5.0%. The decline in sales resulted partly from the divestment of the Lustran Polymers business unit to Ineos. This also affected group net income, which dropped from 197 million in 2006 to 112 million last year primarily due to the exceptional charges related to the divestment of this ‘highly cyclical business’. Net financial debt declined further from 511 million in 2006 to 460 million. Over the year as a whole, Lanxess says it was successful in passing along all raw material cost increases to customers. Earnings in the restructured Performance Chemicals segment [ADPO, November 2007] improved significantly in 2007 on the strength of the portfolio adjustments. Sales in this segment, which includes plastics additives, flame retardants, Rhein Chemie, inorganic pigments and other speciality colorants, were down 10.7%, from 2.20 billion in 2006 to 1.97 billion last year, because of portfolio changes and negative currency effects. Adjusted for the 3.2% negative currency effects and a 9.7% decrease due to divestments, sales rose 2.2% year on year, Lanxess says. The Rhein Chemie business unit benefited from a favourable market environment in the Asia-Pacific region, while inorganic pigments recorded pleasing sales growth in the EMEA region, especially in central and eastern Europe, which offset lower demand from the US construction industry. EBITDA pre-exceptionals for the Performance Chemicals segment declined 2.1% to 285 million (291 million in 2006) because of the divestment of the Textile Processing Chemicals business unit. By contrast, the EBITDA margin pre-exceptionals showed a tangible increase from 13.2% to 14.5% following this divestment and operational improvements in the segment. For the fourth quarter of 2007, Lanxess posted operational business growth in all segments. Sales, at 1.47 billion, showed a 12.1% decline. After adjusting for currency and portfolio effects, however, sales growth was 7.6%. EBITDA pre-exceptionals climbed by 8.6% to 114 million, while quarterly net income totalled 5 million compared to 2 million for 4Q 2006. Contact: Lanxess AG, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
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Additives for Polymers
EQUIPMENT ColorMatrix develops dosing cart for hazardous liquids, opens Chinese facility
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hio-based ColorMatrix, which specializes in liquid additive and colorant technologies, has launched a full dosing management system for liquids with properties that make handling difficult. These include liquids that are corrosive or toxic and those that are unpleasant to handle, such as strong pigments and additives. The Metrix™ system provides a mobile cart solution, suitable for dosing applications in the plastics, food, chemical and pharmaceutical industries.
Designed by UK-based firm Industrial Design Consultancy (IDC), the Metrix system has been created to eliminate problems of leakage and liquid recovery. This ensures that all the liquid in the system is used with minimum wastage, a common problem with existing systems, the company says. IDC has also designed a unique container attachment that prevents air getting into the system, which results in a ‘more-robust product with flawless operation’. The dosing system takes 25 l containers and has a dosing speed range of 0.021–3.50 ml per second. According to ColorMatrix, the Metrix system is suitable for continuous use; a capacity sensor alarm sounds when liquids are running low, enabling containers to be simply exchanged while the system is running. The latest electronics and sensor technology have been incorporated into the patented system to provide highly accurate dosing for manufacturing facilities, it says. In other company news, ColorMatrix recently opened its manufacturing and office facility in Suzhou, Jiangsu Province, China, about 100 km from Shanghai. ColorMatrix Plastic Colorant, based on the Suzhou Industrial Park, occupies more than 2000 m2 and hosts a production plant, colour-matching laboratory and offices. Speaking at the opening, ColorMatrix Group CEO Gerry Corrigan said that the Suzhou facility would be ‘instrumental in ColorMatrix revolutionizing the way plastic colorants are manufactured and delivered’. The facility, which is based on the company’s proprietary
May 2008
and residential housing markets. Sales by the Polymer Additives segment in 2007 were up 6.7% compared to the previous year at $334.5 million, largely through pricing initiatives. Segment income for the year was down slightly to $10.76 million compared to $10.95 million in 2006, because of the volume declines, higher raw materials costs and added costs from a manufacturing issue at the business’ plant in Bridgeport, NJ, in December. Ferro’s sales for the fourth quarter of 2007 were $570.7 million, an increase of 14.8% from 4Q 2006. Sales by the Polymer Additives segment increased 19.2% to $81.6 million for the quarter on the back of increased volumes and product prices. Quarterly income for the segment improved to $179 000 from a loss of $1.04 million in 4Q 2006. The previously noted impairment charge in the polymer additives business was recorded in the fourth quarter and was triggered by the cumulative negative effect on earnings of a cyclical downturn in certain of the company’s primary US-based end markets; anticipated additional product costs due to recent hazardous material legislation and regulations, such as the newly enacted EU REACH registration system; and higher forecast capital expenditures related to the business. Contact: Ferro Corp, Cleveland, OH, USA. Tel: +1 216 641 8580, Web: www.ferro.com
Chemtura’s 4Q 2007 sales rise 10%, but earnings ‘flat’
C
onnecticut-based additives major Chemtura Corp reported net sales of US$891 million for the fourth quarter of 2007, up 10% on $809 million for the same period in 2006. The increase in revenue was attributable to acquisitions, positive foreign exchange and higher selling prices, partially offset by a negative impact from product mix.
A loss from continuing operations of $3 million and loss on the sale of discontinued operations of $1 million were offset by income from discontinued operations of $4 million. However, this compares to a loss of $186 million for 4Q 2006. Gross profit for the quarter improved $42 million compared with the same period of 2006, boosted by higher selling prices and higher volumes, among other
May 2008
factors. Those gains were offset by $24 million in higher raw material and energy costs and $2 million of unfavourable foreign exchange impacts due to the weaker US dollar. Additionally in the fourth quarter of 2006 there was a $9 million charge for the accelerated recognition of asset retirement obligations. Operating profit, on a GAAP basis, was $24 million in 4Q 2007, compared to an operating loss of $24 million the previous year. For full year 2007, Chemtura posted net sales of $3.75 billion, up 8.3% from $3.46 billion in 2006. Operating profit was $59 million, compared to only $5 million the previous year, while the company posted a net loss of $3 million compared to a loss of $206 million in 2006. R&D costs were up slightly at $62 million in 2007 but capital expenditures for the year were down to $117 million compared to $128 million in 2006. The company currently anticipates capital expenditures to be $165 million in 2008. The Polymer Additives segment enjoyed sales growth of 5.4% for the year to reach $1.81 billion, and 5.0% for the fourth quarter, totalling $440 million. However, operating profit fell from $130 million in 2006 to $77 million last year, and the segment posted an operating loss of $2 million in 4Q 2007 compared to a profit of $17 million for the same period in 2006. Contact: Chemtura Corp, Middlebury, CT, USA. Tel: +1 203 573 2000, Web: www.chemtura.com
Lanxess reports ‘positive earnings performance’ for 2007
G
erman speciality chemicals company Lanxess AG reported significantly improved earnings before special items in 2007. EBITDA pre-exceptionals rose by 6.5% to 719 million, up from 675 million in 2006, close to the top end of its earnings guidance range. The EBITDA margin preexceptionals moved ahead to 10.9%, compared to 9.7% in 2006. ‘This positive earnings performance shows that Lanxess has definitively achieved the turnaround. Last year we came even closer to the profitability level of our competitors,’ says Lanxess chairman Axel C. Heitmann.
Net sales for 2007 were down 4.8% at 6.61 billion, compared to the 2006 figure of 6.94 billion.
Additives for Polymers
9
EQUIPMENT
However, the company says that, after adjusting for negative currency effects and portfolio changes of 9.8%, sales growth was 5.0%. The decline in sales resulted partly from the divestment of the Lustran Polymers business unit to Ineos. This also affected group net income, which dropped from 197 million in 2006 to 112 million last year primarily due to the exceptional charges related to the divestment of this ‘highly cyclical business’. Net financial debt declined further from 511 million in 2006 to 460 million. Over the year as a whole, Lanxess says it was successful in passing along all raw material cost increases to customers. Earnings in the restructured Performance Chemicals segment [ADPO, November 2007] improved significantly in 2007 on the strength of the portfolio adjustments. Sales in this segment, which includes plastics additives, flame retardants, Rhein Chemie, inorganic pigments and other speciality colorants, were down 10.7%, from 2.20 billion in 2006 to 1.97 billion last year, because of portfolio changes and negative currency effects. Adjusted for the 3.2% negative currency effects and a 9.7% decrease due to divestments, sales rose 2.2% year on year, Lanxess says. The Rhein Chemie business unit benefited from a favourable market environment in the Asia-Pacific region, while inorganic pigments recorded pleasing sales growth in the EMEA region, especially in central and eastern Europe, which offset lower demand from the US construction industry. EBITDA pre-exceptionals for the Performance Chemicals segment declined 2.1% to 285 million (291 million in 2006) because of the divestment of the Textile Processing Chemicals business unit. By contrast, the EBITDA margin pre-exceptionals showed a tangible increase from 13.2% to 14.5% following this divestment and operational improvements in the segment. For the fourth quarter of 2007, Lanxess posted operational business growth in all segments. Sales, at 1.47 billion, showed a 12.1% decline. After adjusting for currency and portfolio effects, however, sales growth was 7.6%. EBITDA pre-exceptionals climbed by 8.6% to 114 million, while quarterly net income totalled 5 million compared to 2 million for 4Q 2006. Contact: Lanxess AG, Leverkusen, Germany. Tel: +49 214 30 33333, Web: www.lanxess.com
10
Additives for Polymers
EQUIPMENT ColorMatrix develops dosing cart for hazardous liquids, opens Chinese facility
O
hio-based ColorMatrix, which specializes in liquid additive and colorant technologies, has launched a full dosing management system for liquids with properties that make handling difficult. These include liquids that are corrosive or toxic and those that are unpleasant to handle, such as strong pigments and additives. The Metrix™ system provides a mobile cart solution, suitable for dosing applications in the plastics, food, chemical and pharmaceutical industries.
Designed by UK-based firm Industrial Design Consultancy (IDC), the Metrix system has been created to eliminate problems of leakage and liquid recovery. This ensures that all the liquid in the system is used with minimum wastage, a common problem with existing systems, the company says. IDC has also designed a unique container attachment that prevents air getting into the system, which results in a ‘more-robust product with flawless operation’. The dosing system takes 25 l containers and has a dosing speed range of 0.021–3.50 ml per second. According to ColorMatrix, the Metrix system is suitable for continuous use; a capacity sensor alarm sounds when liquids are running low, enabling containers to be simply exchanged while the system is running. The latest electronics and sensor technology have been incorporated into the patented system to provide highly accurate dosing for manufacturing facilities, it says. In other company news, ColorMatrix recently opened its manufacturing and office facility in Suzhou, Jiangsu Province, China, about 100 km from Shanghai. ColorMatrix Plastic Colorant, based on the Suzhou Industrial Park, occupies more than 2000 m2 and hosts a production plant, colour-matching laboratory and offices. Speaking at the opening, ColorMatrix Group CEO Gerry Corrigan said that the Suzhou facility would be ‘instrumental in ColorMatrix revolutionizing the way plastic colorants are manufactured and delivered’. The facility, which is based on the company’s proprietary
May 2008