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Polymer additives continue to boost 3Q sales for Albemarle
FINANCIALS
Contact: Cytec Industries Inc, West Paterson, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
Polymer additives continue to boost 3Q sales for Albemarle
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ouisiana-based Albemarle Corp posted net sales of US$660.5 million for the third quarter of 2008, up 13% year on year from $584.0 million in 3Q 007, and up 6% sequentially. Quarterly sales by the Polymer Additives segment were at record levels of $261.7 million, up 12% from $232.7 million in 3Q 2007 supported by strong brominated flame retardant volumes.
Net income for 3Q 2008 was $56.2 million, down 5% compared with $59.1 million in the same three-month period of 2007. Operating profit was $76.9 million for the quarter as strong performance in the company’s Fine Chemicals business segment and reductions in corporate expenses were partially offset by declines in the Catalysts and Polymer Additives business segments. Albemarle estimates the impact of Hurricanes Gustav and Ike at approximately $11 million pretax. Polymer Additives’ record net sales for 3Q 2008 were primarily the result of higher sales of flame retardants due to the positive effects of higher volumes and favourable foreign currency exchange rates. Segment income for 3Q 2008 declined 7% from 3Q 2007 to $27.4 million due primarily to higher raw material costs, partially offset by improved brominated flame retardant product volumes and improved phosphorus flame retardant product pricing and mix. Weak consumer spending and continued softness in the automotive and construction sectors continues to weigh negatively on demand for certain of the company’s Polymer Additives products. Efforts in this segment to consolidate operations and introduce new products to the market should help moderate the ongoing impact of weak markets, the company says. In other news, subsidiary Albemarle Chemicals SAS has initiated a consultation process with the relevant works council relating to the potential
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Additives for Polymers
divestiture of its plant in Port-de-Bouc, France, to International Chemical Investors (ICIG), a German group headquartered in Frankfurt. Under the proposed terms, ICIG would acquire part of the on-going business relating to fine chemical and other brominated products owned by Albemarle Chemicals SAS (to the exclusion of the flame retardant business and the bromine fine chemicals business), as well as all the land, buildings and equipment at the plant. In addition, ICIG would toll manufacture Pyrochek and certain bromine fine chemicals for Albemarle. The Port-de-Bouc facility currently employs 112 staff. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
AkzoNobel delivers ‘resilient’ performance in third quarter
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kzoNobel reported a 3% revenue increase for the third quarter of 2008, up from 3.715 billion on a pro forma basis in 3Q 2007 to 3.82 billion this year. This represents an 8% increase at constant currencies. All business areas delivered resilient EBITDA performance, the company says, although net income was down 23% to 157 million as a result of one-off items including incidental charges totalling 79 million before tax.
On a pro forma basis, sales by the Specialty Chemicals business grew 5% versus 3Q 2007, with pricing increases contributing a 12% increase and acquisitions 1%, partially offset by declines of 3% in volume and 5% due to currency effects. Although 3Q performance for the business as a whole was in line with the previous year’s result, the company reports a shortfall from the Polymer Chemicals business compared to 3Q 2007. The EBITDA margin continued to be strong at more than 16%. The company’s three business areas all achieved underlying growth, ‘solid proof of the strong positions it holds in diverse, highly attractive predominantly low-cyclical, sectors with good growth
December 2008
Contact: Cytec Industries Inc, West Paterson, NJ, USA. Tel: +1 973 357 3100, Web: www.cytec.com
Polymer additives continue to boost 3Q sales for Albemarle
L
ouisiana-based Albemarle Corp posted net sales of US$660.5 million for the third quarter of 2008, up 13% year on year from $584.0 million in 3Q 007, and up 6% sequentially. Quarterly sales by the Polymer Additives segment were at record levels of $261.7 million, up 12% from $232.7 million in 3Q 2007 supported by strong brominated flame retardant volumes.
Net income for 3Q 2008 was $56.2 million, down 5% compared with $59.1 million in the same three-month period of 2007. Operating profit was $76.9 million for the quarter as strong performance in the company’s Fine Chemicals business segment and reductions in corporate expenses were partially offset by declines in the Catalysts and Polymer Additives business segments. Albemarle estimates the impact of Hurricanes Gustav and Ike at approximately $11 million pretax. Polymer Additives’ record net sales for 3Q 2008 were primarily the result of higher sales of flame retardants due to the positive effects of higher volumes and favourable foreign currency exchange rates. Segment income for 3Q 2008 declined 7% from 3Q 2007 to $27.4 million due primarily to higher raw material costs, partially offset by improved brominated flame retardant product volumes and improved phosphorus flame retardant product pricing and mix. Weak consumer spending and continued softness in the automotive and construction sectors continues to weigh negatively on demand for certain of the company’s Polymer Additives products. Efforts in this segment to consolidate operations and introduce new products to the market should help moderate the ongoing impact of weak markets, the company says. In other news, subsidiary Albemarle Chemicals SAS has initiated a consultation process with the relevant works council relating to the potential
10
Additives for Polymers
divestiture of its plant in Port-de-Bouc, France, to International Chemical Investors (ICIG), a German group headquartered in Frankfurt. Under the proposed terms, ICIG would acquire part of the on-going business relating to fine chemical and other brominated products owned by Albemarle Chemicals SAS (to the exclusion of the flame retardant business and the bromine fine chemicals business), as well as all the land, buildings and equipment at the plant. In addition, ICIG would toll manufacture Pyrochek and certain bromine fine chemicals for Albemarle. The Port-de-Bouc facility currently employs 112 staff. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com
AkzoNobel delivers ‘resilient’ performance in third quarter
A
kzoNobel reported a 3% revenue increase for the third quarter of 2008, up from 3.715 billion on a pro forma basis in 3Q 2007 to 3.82 billion this year. This represents an 8% increase at constant currencies. All business areas delivered resilient EBITDA performance, the company says, although net income was down 23% to 157 million as a result of one-off items including incidental charges totalling 79 million before tax.
On a pro forma basis, sales by the Specialty Chemicals business grew 5% versus 3Q 2007, with pricing increases contributing a 12% increase and acquisitions 1%, partially offset by declines of 3% in volume and 5% due to currency effects. Although 3Q performance for the business as a whole was in line with the previous year’s result, the company reports a shortfall from the Polymer Chemicals business compared to 3Q 2007. The EBITDA margin continued to be strong at more than 16%. The company’s three business areas all achieved underlying growth, ‘solid proof of the strong positions it holds in diverse, highly attractive predominantly low-cyclical, sectors with good growth
December 2008