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PolyOne achieves improved performance in 2Q 2008
FINANCIALS
Describing the results as ‘unquestionably disappointing’, Ciba’s CEO Brendan Cummins explains that the company experienced intense margin pressure from the escalation of raw material and energy costs, which went up 10% in the second quarter alone, with the heaviest impact in April and May. By mid June, Ciba was able to offset these higher costs with sales prices increases and this has continued into the third quarter, he says. The company is undertaking ‘significant action’ to reshape its portfolio and focus on areas of technological core strength in plastics, coatings and water, Cummins continues. A number of options are being evaluated for the paper and publication inks businesses, which are not performing in line with expectations, while the Middle East joint venture for plastics additives [ADPO, October 2008] and acquisitions by the coatings effects business will enhance the market positions in these segments. Ciba also plans to implement a new industryfocused operating model early in 2009 [though the subsequently announced takeover bid by BASF (see p. 3) may affect such planned strategic measures] to better exploit its core competencies and develop highermargin market potential. Among the planned changes, all the plastics businesses – which currently comprise Base Polymers and Polymer Products in the Plastic Additives segment, along with Pigments for Plastics in Coating Effects – will become one unit. There will also be a new growth platform, where a number of small, high-potential businesses will be brought together with embryonic projects and technologies. Contact: Ciba Inc, Basel, Switzerland. Tel: +41 61 636 4444, Web: www.ciba.com
Ferro reports 17% sales growth in the second quarter of 2008
O
hio-based Ferro Corp posted net sales of US$650.4 million for the quarter ended 30 June 2008, up 17% from sales of $553.7 million in 2Q 2007. Income from continuing operations for the quarter was $9.4 million, more than double the $4.6 million figure reported in 2Q 2007 as a result of the combined effects of higher gross profit driven by increased net sales, lower
November 2008
selling, general and administrative expenses and reduced interest expense, partially offset by higher restructuring charges.
Price increases and changes in foreign exchange were the most significant drivers of sales growth during the quarter, Ferro says. Changes in foreign currency exchange rates accounted for approximately 40% of the sales increase. Higher sales volumes also contributed to the sales increase, though sales volumes declined in Polymer Additives and Specialty Plastics. Gross profit percentage was 19.0% of sales for 2Q 2008, compared with 19.4% of sales in 2Q 2007. Selling, general and administrative (SG&A) expenses were $81.2 million or 12.5% of sales, down from $84.4 million (15.2% of sales) in 2Q 2007. Restructuring charges were $9.0 million for the 2008 second quarter, an increase from $0.3 million in the prior-year period. In value terms, second-quarter sales by the Polymer Additives segment grew 16% to $98.7 million, up from $85.2 million in 2Q 2007, primarily as a result of higher product pricing. Increased income in the segment was driven by product price improvements that offset raw material cost increases and improved product mix, the company says. Segmental income for 2Q 2008 was $4.6 million, up 13.5% from $4.05 million for the same period a year earlier. Ferro CEO James F. Kirsch described the results as ‘outstanding’, coming as they did in spite of slowing economic growth and unprecedented cost increases for a number of raw materials. Efforts to improve business operations and restructure manufacturing assets are generating results, and the company is making sustainable progress towards its long-term profitability goals, Kirsch says. Contact: Ferro Corp, Cleveland, OH, USA. Tel: +1 216 641 8580, Web: www.ferro.com
PolyOne achieves improved performance in 2Q 2008
F
or the second quarter of 2008, US-based polymer materials specialist PolyOne Corp has reported net income of US$8.8 million on revenues of $748.1 million, up 8.6%. The company posted a loss of $5.4 million on revenues of $688.8 million in 2Q 2007.
Additives for Polymers
9
EQUIPMENT
According to CEO Stephen D. Newlin, the second quarter results continue to demonstrate the success of the company’s transformation strategy, allowing it to report earnings growth ‘despite very challenging economic and inflationary conditions’. Operating income growth by its speciality platform – which includes the new Specialty Color, Additives and Inks segment [ADPO, September 2008] – combined with lower corporate costs largely offset a decline in the Performance Products and Solutions segment due to slowing demand in the North American housing and automotive markets. PolyOne also benefited from lower interest expense in the quarter. The International Color and Engineered Materials segment achieved sales of $172.1 million in 2Q 2008, up 14.5% from $150.3 million for the same quarter in 2007. Gross margin for the segment was $30.7 million ($25.8 million) and operating income $10.4 million ($7.8 million). The new Specialty Color, Additives and Inks segment reported sales of $60.8 million, level with the year-ago quarter on a pro-rata basis. Quarterly gross margin was $12.4 million ($11.3 million) and operating income $3.5 million ($2.6 million). PolyOne has also provided an update on its outlook for the second half of 2008. In the light of various factors – including worsening European demand and the recent weakening of the Euro against the dollar, the situation in the North American housing and automotive markets, and temporary shutdowns of two Texas plants due to Hurricane Ike – the company has revised its sales expectations. It now anticipates 2H consolidated sales growth of 8–10% versus the second half of 2007, below its previously announced expectation of 15% sales growth. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
EQUIPMENT Xaloy mixer combines high intensity with low shear and heat
U
nXmix™
S firm Xaloy has introduced the mixer, which combines high intensity with low shear and heat. The company says that it represents a
10
Additives for Polymers
‘step-change’ advance in technology for the dispersion of additives and fillers in thermoplastic polymers. Applications for the new mixer include the production of compounded resins and masterbatch, as well as in-line compounding of highly filled materials in making blown film, sheet, pipe and profiles with single-screw extrusion.
The nXmix provides thorough distributive and intense dispersive mixing action by means of a two-stage process. The first stage uses an incised rotor to generate high-shear mixing of very short duration. This breaks up agglomerates and creates a molecular structure that results in reduced viscosity in preparation for the next mixing stage, Xaloy explains. The second stage involves a specially shaped rotor and stator each having a multitude of pockets in a helical configuration. This stage produces elongational flow with thorough mixing at very low shear rates and temperatures, and consequent low energy consumption, the company says. Xaloy says that the nXmix reduces particle size and exfoliates agglomerates such as nanoclays or clumpy pigments, while avoiding degradation of heat-sensitive fillers and polymers such as wood chips and PVC. The mixer operates in line with conventional single- and twin-screw extruders. Contact: Xaloy Inc, 1399 County Line Rd, New Castle, PA 16107, USA. Tel: +1 724 656 5600, Fax: +1 724 656 5620, Web: www.xaloy.com
Colortronic improves Graviblend feeding system
T
he latest generation of Graviblend, the feeding and blending system from Colortronic Systems, now comes equipped with a fully integrated material conveying system. The company says that this means that there are fewer interfaces, it is easier to use and material changes require less time, resulting in increased savings. Due to its reduced height, the new system also takes up less room than its predecessor.
According to Colortronic, Graviblend is particularly suitable for highly demanding continuous production processes, including the compounding of masterbatches as well as extrusion of foam sheet and multilayer
November 2008
Describing the results as ‘unquestionably disappointing’, Ciba’s CEO Brendan Cummins explains that the company experienced intense margin pressure from the escalation of raw material and energy costs, which went up 10% in the second quarter alone, with the heaviest impact in April and May. By mid June, Ciba was able to offset these higher costs with sales prices increases and this has continued into the third quarter, he says. The company is undertaking ‘significant action’ to reshape its portfolio and focus on areas of technological core strength in plastics, coatings and water, Cummins continues. A number of options are being evaluated for the paper and publication inks businesses, which are not performing in line with expectations, while the Middle East joint venture for plastics additives [ADPO, October 2008] and acquisitions by the coatings effects business will enhance the market positions in these segments. Ciba also plans to implement a new industryfocused operating model early in 2009 [though the subsequently announced takeover bid by BASF (see p. 3) may affect such planned strategic measures] to better exploit its core competencies and develop highermargin market potential. Among the planned changes, all the plastics businesses – which currently comprise Base Polymers and Polymer Products in the Plastic Additives segment, along with Pigments for Plastics in Coating Effects – will become one unit. There will also be a new growth platform, where a number of small, high-potential businesses will be brought together with embryonic projects and technologies. Contact: Ciba Inc, Basel, Switzerland. Tel: +41 61 636 4444, Web: www.ciba.com
Ferro reports 17% sales growth in the second quarter of 2008
O
hio-based Ferro Corp posted net sales of US$650.4 million for the quarter ended 30 June 2008, up 17% from sales of $553.7 million in 2Q 2007. Income from continuing operations for the quarter was $9.4 million, more than double the $4.6 million figure reported in 2Q 2007 as a result of the combined effects of higher gross profit driven by increased net sales, lower
November 2008
selling, general and administrative expenses and reduced interest expense, partially offset by higher restructuring charges.
Price increases and changes in foreign exchange were the most significant drivers of sales growth during the quarter, Ferro says. Changes in foreign currency exchange rates accounted for approximately 40% of the sales increase. Higher sales volumes also contributed to the sales increase, though sales volumes declined in Polymer Additives and Specialty Plastics. Gross profit percentage was 19.0% of sales for 2Q 2008, compared with 19.4% of sales in 2Q 2007. Selling, general and administrative (SG&A) expenses were $81.2 million or 12.5% of sales, down from $84.4 million (15.2% of sales) in 2Q 2007. Restructuring charges were $9.0 million for the 2008 second quarter, an increase from $0.3 million in the prior-year period. In value terms, second-quarter sales by the Polymer Additives segment grew 16% to $98.7 million, up from $85.2 million in 2Q 2007, primarily as a result of higher product pricing. Increased income in the segment was driven by product price improvements that offset raw material cost increases and improved product mix, the company says. Segmental income for 2Q 2008 was $4.6 million, up 13.5% from $4.05 million for the same period a year earlier. Ferro CEO James F. Kirsch described the results as ‘outstanding’, coming as they did in spite of slowing economic growth and unprecedented cost increases for a number of raw materials. Efforts to improve business operations and restructure manufacturing assets are generating results, and the company is making sustainable progress towards its long-term profitability goals, Kirsch says. Contact: Ferro Corp, Cleveland, OH, USA. Tel: +1 216 641 8580, Web: www.ferro.com
PolyOne achieves improved performance in 2Q 2008
F
or the second quarter of 2008, US-based polymer materials specialist PolyOne Corp has reported net income of US$8.8 million on revenues of $748.1 million, up 8.6%. The company posted a loss of $5.4 million on revenues of $688.8 million in 2Q 2007.
Additives for Polymers
9
EQUIPMENT
According to CEO Stephen D. Newlin, the second quarter results continue to demonstrate the success of the company’s transformation strategy, allowing it to report earnings growth ‘despite very challenging economic and inflationary conditions’. Operating income growth by its speciality platform – which includes the new Specialty Color, Additives and Inks segment [ADPO, September 2008] – combined with lower corporate costs largely offset a decline in the Performance Products and Solutions segment due to slowing demand in the North American housing and automotive markets. PolyOne also benefited from lower interest expense in the quarter. The International Color and Engineered Materials segment achieved sales of $172.1 million in 2Q 2008, up 14.5% from $150.3 million for the same quarter in 2007. Gross margin for the segment was $30.7 million ($25.8 million) and operating income $10.4 million ($7.8 million). The new Specialty Color, Additives and Inks segment reported sales of $60.8 million, level with the year-ago quarter on a pro-rata basis. Quarterly gross margin was $12.4 million ($11.3 million) and operating income $3.5 million ($2.6 million). PolyOne has also provided an update on its outlook for the second half of 2008. In the light of various factors – including worsening European demand and the recent weakening of the Euro against the dollar, the situation in the North American housing and automotive markets, and temporary shutdowns of two Texas plants due to Hurricane Ike – the company has revised its sales expectations. It now anticipates 2H consolidated sales growth of 8–10% versus the second half of 2007, below its previously announced expectation of 15% sales growth. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
EQUIPMENT Xaloy mixer combines high intensity with low shear and heat
U
nXmix™
S firm Xaloy has introduced the mixer, which combines high intensity with low shear and heat. The company says that it represents a
10
Additives for Polymers
‘step-change’ advance in technology for the dispersion of additives and fillers in thermoplastic polymers. Applications for the new mixer include the production of compounded resins and masterbatch, as well as in-line compounding of highly filled materials in making blown film, sheet, pipe and profiles with single-screw extrusion.
The nXmix provides thorough distributive and intense dispersive mixing action by means of a two-stage process. The first stage uses an incised rotor to generate high-shear mixing of very short duration. This breaks up agglomerates and creates a molecular structure that results in reduced viscosity in preparation for the next mixing stage, Xaloy explains. The second stage involves a specially shaped rotor and stator each having a multitude of pockets in a helical configuration. This stage produces elongational flow with thorough mixing at very low shear rates and temperatures, and consequent low energy consumption, the company says. Xaloy says that the nXmix reduces particle size and exfoliates agglomerates such as nanoclays or clumpy pigments, while avoiding degradation of heat-sensitive fillers and polymers such as wood chips and PVC. The mixer operates in line with conventional single- and twin-screw extruders. Contact: Xaloy Inc, 1399 County Line Rd, New Castle, PA 16107, USA. Tel: +1 724 656 5600, Fax: +1 724 656 5620, Web: www.xaloy.com
Colortronic improves Graviblend feeding system
T
he latest generation of Graviblend, the feeding and blending system from Colortronic Systems, now comes equipped with a fully integrated material conveying system. The company says that this means that there are fewer interfaces, it is easier to use and material changes require less time, resulting in increased savings. Due to its reduced height, the new system also takes up less room than its predecessor.
According to Colortronic, Graviblend is particularly suitable for highly demanding continuous production processes, including the compounding of masterbatches as well as extrusion of foam sheet and multilayer
November 2008