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Novozymes has some way to go in developing second-generation bioethanol
FOCUS Johnson Matthey with stronger growth prospects and a strong cash pile. In 1H 2006-2007 financial year, the company has reported sales growth of 17% excluding precious metal trading. Profits in its catalysts division have increased by 9%, with an 11% increase in operating profits. The divestment will allow the company to focus on the highly profitable catalysts sector and reenter the pharmaceuticals sector. Analyst’s projection shows that the demand growth for catalysts will be higher that the growth rate of the global auto industry due to the introduction of new emission control laws. Demand for engine exhaust catalysts will be spurred by the increased sales of diesel cars in Europe and increased diesel use in North America. ICIS Chemical Business, 29 Jan 2007 (Website: http://icischemicalbusiness.com)
Johnson Matthey 1H 2006: operations: catalysts division For its 1H 2006 (period ends 30 Sep 2006), the catalysts division of Johnson Matthey plc has reported turnover of £996 M (+48% on its 1H 2005) and operating profit of £70.8 M (+9%). Environmental Catalysts and Technologies (ECT) had a good first half with sales and operating profit well ahead of last year. The division achieved strong growth in Europe and Asia which more than offset further weakness in the North American market. Results for Europe benefited from a significant increase in sales of CSFs for light duty diesel vehicles as well as some initial sales of heavy duty diesel (HDD) catalysts to original equipment manufacturers. Process Catalysts and Technologies (PCT) delivered good growth in sales and profits in the half year. The ammonia, methanol, oil and gas (AMOG) business was well ahead of last year with continued strong demand for catalysts and purification materials for industries where hydrogen or synthesis gas are key intermediates. The catalysts & chemicals business performed well with increased sales of sponge nickel catalysts. Sales of catalysts into the pharmaceutical and fine chemicals sector also continued to grow. Research chemicals benefited from the contribution from its new jv in China which was established in 2005/06. Demand in
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Europe was also well up with the new catalogue stimulating increased orders. Davy Process Technology (DPT), which was acquired in Feb 2006, performed well in 1H 2006. DPT develops and licenses chemical process technologies and successfully concluded two major contracts in the first half of 2006/07. Tracerco, PCTs oil services business, acquired the process diagnostics business of Quest TruTec in Apr 2006 for £3.8 M which has expanded Tracercos coverage principally in the US. The fuel cells business achieved strong growth in sales, from a small base, with significantly increased orders for membrane electrode assemblies for direct methanol fuel cells (DMFCs). Most of these sales were for portable fuel cells which are sold to European consumers. The company is continuing to work with a number of major electronics companies which are developing small DMFC units for use in mobile phone chargers and laptop computers. Johnson Matthey Interim results for the six months ended 30 Sep 2006, 22 Nov 2006, 4-6 (Johnson Matthey Plc, 2-4 Cockspur Street, Trafalgar Square, London, SW1Y 5BQ, UK. Tel: +44 20 7269 8400. Fax: +44 20 7269 8433. Website: http://www.matthey.com)
Novozymes announces 2006 year-end results The year 2006 was a very satisfactory year for Novozymes. Its reported growth of 11% in earnings, 8% in sales and free cash flow of DKR 1058 M, were fully in line with expectations. Growth is expected to continue in 2007. Sales for 2006 increased 8% to DKR 6802 M (DKR 6281 M in 2005). Net profit climbed 6% to DKR 911 M (DKR 861 M in 2005). Growth in sales is expected to be 7-9% in 2007. Net profit for the year 2007 is expected to increase by 5-7%. Share buy-backs of up to DKR 500 M are expected in 2007. A dividend of DKR 4.5/share for 2006 will be proposed to the Annual General Meeting of Shareholders. The company aims to achieve sales of DKR 10 bn in 2010. This is a very ambitious vision, requiring organic growth of 8-9% within the enzyme and microorganisms business, as well as further acquisitions. Novozymes 2006 financials, 2007 outlook, 25 Jan 2007 (Novozymes A/S, Krogshoejvej 36, Bagsvaerd 2880, Denmark. Website: http://www.novozymes.com) & Dagbladet Borsen, 22 Jan 2007 & 25 Jan 2007 (Website: http://www.borsen.dk)(in Danish)
Novozymes sees growth in EU biofuels proposal The EU is presently dealing with a proposal on biofuels and it looks as if the final target will be for biofuels to account for 10% of the fuel used in cars by 2010. This is good news for Novozymes which is the world’s biggest supplier of enzyme for the production of bioethanol and builds on the existing goal of 5.75% by 2010. Novozymes believes the new proposal will also persuade the Danish government to invest more in second generation bioethanol which uses straw and waste rather than foodstuffs as raw material. Dagbladet Borsen, 10 Jan 2007 (Website: http://www.borsen.dk) (in Danish)
Novozymes has some way to go in developing second-generation bioethanol According to Okonomisk Ugebrev, Novozymes is up to 5 years away from achieving its goal of generating earnings from its major ethanol project. The main enzymes involved in second-generation bioethanol have proved difficult to adapt to profitable large scale production and are still five times too expensive. Despite Novozymes having worked for several years on developing enzymes for the conversion of agricultural waste to fuel ethanol, a core to secondgeneration ethanol production is still lacking and a profitable process for ethanol production has still not been found. However, Novozymes is convinced it can reduce overall costs and has therefore invested huge amounts in developing the process so that profitable industrial production will be possible within the next 5 years. Dagbladet Borsen, 15 Jan 2007 (Website: http://www.borsen.dk) (in Danish)
Novozymes and Broin to develop ethanol from cellulosic biomass Broin and Novozymes will collaborate on the next steps needed to bring cost-effective ethanol derived from corn stover to market. The collaboration, an extension of the partnership between the two companies, enables Novozymes to put its biotechnology platform to work
MARCH 2007
Johnson Matthey 1H 2006: operations: catalysts division For its 1H 2006 (period ends 30 Sep 2006), the catalysts division of Johnson Matthey plc has reported turnover of £996 M (+48% on its 1H 2005) and operating profit of £70.8 M (+9%). Environmental Catalysts and Technologies (ECT) had a good first half with sales and operating profit well ahead of last year. The division achieved strong growth in Europe and Asia which more than offset further weakness in the North American market. Results for Europe benefited from a significant increase in sales of CSFs for light duty diesel vehicles as well as some initial sales of heavy duty diesel (HDD) catalysts to original equipment manufacturers. Process Catalysts and Technologies (PCT) delivered good growth in sales and profits in the half year. The ammonia, methanol, oil and gas (AMOG) business was well ahead of last year with continued strong demand for catalysts and purification materials for industries where hydrogen or synthesis gas are key intermediates. The catalysts & chemicals business performed well with increased sales of sponge nickel catalysts. Sales of catalysts into the pharmaceutical and fine chemicals sector also continued to grow. Research chemicals benefited from the contribution from its new jv in China which was established in 2005/06. Demand in
4
ON
C ATA LY S T S
Europe was also well up with the new catalogue stimulating increased orders. Davy Process Technology (DPT), which was acquired in Feb 2006, performed well in 1H 2006. DPT develops and licenses chemical process technologies and successfully concluded two major contracts in the first half of 2006/07. Tracerco, PCTs oil services business, acquired the process diagnostics business of Quest TruTec in Apr 2006 for £3.8 M which has expanded Tracercos coverage principally in the US. The fuel cells business achieved strong growth in sales, from a small base, with significantly increased orders for membrane electrode assemblies for direct methanol fuel cells (DMFCs). Most of these sales were for portable fuel cells which are sold to European consumers. The company is continuing to work with a number of major electronics companies which are developing small DMFC units for use in mobile phone chargers and laptop computers. Johnson Matthey Interim results for the six months ended 30 Sep 2006, 22 Nov 2006, 4-6 (Johnson Matthey Plc, 2-4 Cockspur Street, Trafalgar Square, London, SW1Y 5BQ, UK. Tel: +44 20 7269 8400. Fax: +44 20 7269 8433. Website: http://www.matthey.com)
Novozymes announces 2006 year-end results The year 2006 was a very satisfactory year for Novozymes. Its reported growth of 11% in earnings, 8% in sales and free cash flow of DKR 1058 M, were fully in line with expectations. Growth is expected to continue in 2007. Sales for 2006 increased 8% to DKR 6802 M (DKR 6281 M in 2005). Net profit climbed 6% to DKR 911 M (DKR 861 M in 2005). Growth in sales is expected to be 7-9% in 2007. Net profit for the year 2007 is expected to increase by 5-7%. Share buy-backs of up to DKR 500 M are expected in 2007. A dividend of DKR 4.5/share for 2006 will be proposed to the Annual General Meeting of Shareholders. The company aims to achieve sales of DKR 10 bn in 2010. This is a very ambitious vision, requiring organic growth of 8-9% within the enzyme and microorganisms business, as well as further acquisitions. Novozymes 2006 financials, 2007 outlook, 25 Jan 2007 (Novozymes A/S, Krogshoejvej 36, Bagsvaerd 2880, Denmark. Website: http://www.novozymes.com) & Dagbladet Borsen, 22 Jan 2007 & 25 Jan 2007 (Website: http://www.borsen.dk)(in Danish)
Novozymes sees growth in EU biofuels proposal The EU is presently dealing with a proposal on biofuels and it looks as if the final target will be for biofuels to account for 10% of the fuel used in cars by 2010. This is good news for Novozymes which is the world’s biggest supplier of enzyme for the production of bioethanol and builds on the existing goal of 5.75% by 2010. Novozymes believes the new proposal will also persuade the Danish government to invest more in second generation bioethanol which uses straw and waste rather than foodstuffs as raw material. Dagbladet Borsen, 10 Jan 2007 (Website: http://www.borsen.dk) (in Danish)
Novozymes has some way to go in developing second-generation bioethanol According to Okonomisk Ugebrev, Novozymes is up to 5 years away from achieving its goal of generating earnings from its major ethanol project. The main enzymes involved in second-generation bioethanol have proved difficult to adapt to profitable large scale production and are still five times too expensive. Despite Novozymes having worked for several years on developing enzymes for the conversion of agricultural waste to fuel ethanol, a core to secondgeneration ethanol production is still lacking and a profitable process for ethanol production has still not been found. However, Novozymes is convinced it can reduce overall costs and has therefore invested huge amounts in developing the process so that profitable industrial production will be possible within the next 5 years. Dagbladet Borsen, 15 Jan 2007 (Website: http://www.borsen.dk) (in Danish)
Novozymes and Broin to develop ethanol from cellulosic biomass Broin and Novozymes will collaborate on the next steps needed to bring cost-effective ethanol derived from corn stover to market. The collaboration, an extension of the partnership between the two companies, enables Novozymes to put its biotechnology platform to work
MARCH 2007