- Email: [email protected]
PolyOne records strong profit gains as sales dip in 2015
FINANCIALS
reducing fuel consumption and carbon dioxide emissions, NXT silane can play a large role in delivering benefits such as rolling resistance, traction and fuel economy in tyres’, says Rich Owins, VP, Silanes. Contact: Momentive Performance Materials, Waterford, NY, USA. Tel: +1 704 805 6226, Web: www.momentive.com
FINANCIALS Rockwood acquisition boosts Albemarle’s annual sales and profits in 2015
A
lbemarle Corp posted full-year 2015 earnings of US$334.9 million on net sales of $3.65 billion. This compares to earnings of $133.3 million on net sales of $2.45 billion in 2014. The increase in annual sales was driven primarily by the acquisition of Rockwood, partly offset by the impact of lower sales volumes, unfavourable price and mix impacts in certain businesses, and unfavourable currency exchange impacts, the company reports. The businesses acquired from Rockwood in January 2015 [ADPO, March 2015] exceeded profitability expectations for the year, resulting in adjusted EBITDA for the company of $959 million and 6% pro forma growth over 2014, reveals Albemarle’s president and CEO Luke Kissam. ‘Cash generation was as expected, and the $60 million of synergies achieved exceeded our goal at the beginning of the year’, he says. The company achieved its goals for 2015, including the sale of two non-core businesses, and is well positioned to grow in 2016, according to Kissam. For the fourth quarter of 2015, Albemarle’s earnings were $174.3 million compared to a loss of $18.5 million in 4Q 2014. The company posted net sales of $930.4 million in 4Q 2015, up from reported net sales of $598.6 million a year earlier. However, on a pro forma basis, quarterly sales fell 2.1% due to negative foreign exchange effects. The Performance Chemicals segment achieved net sales of $385.5 million in 4Q 2015, a decrease of 1.2% from 4Q 2014 pro forma net sales of $390 million due to unfavourable currency impacts. Adjusted EBITDA for the segment was $120.1 million, a decrease of 2.8% from 4Q 2014 pro forma results of $123.6 million.
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Additives for Polymers
In other news concerning the Performance Chemicals segment, a long-term agreement relating to the supply of polymeric flame retardants has been signed between Albemarle and Israel’s ICL. The product is manufactured at ICL’s facilities in the Netherlands and in Israel using technology licensed from Dow Global Technologies, and is marketed by Albemarle and ICL under the GreenCrest® and FR122P brand names, respectively [ibid., October 2014]. The polymeric products are sustainable alternatives for customers transitioning from hexabromocyclododecane (HBCDD)based flame retardants currently used by the building industry in extruded polystyrene (XPS) and expanded polystyrene (EPS) foam insulation products (see also p. 11). Subject to the approval of Israel’s Antitrust Authority, the new deal between the two companies stipulates that Albemarle will supply ICL with bromine for the production of GreenCrest, associated with the agreement. Albemarle has bromine resources in Magnolia, AR, USA, and the Dead Sea. In a further development, Albemarle has recently completed the previously announced sale of its Martinswerk mineralbased flame retardants and speciality chemicals businesses to Huber Engineered Materials [ibid., February 2016]. The financial terms of the transaction have not been revealed. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com Or contact: ICL Industrial Products, Beer Sheva, Israel. Tel: +972 8 629 7057, Web: www.icl-ip.com
PolyOne records strong profit gains as sales dip in 2015
F
or full-year 2015, polymer materials, services and solutions provider PolyOne Corp reported sales of US$3.38 billion, down about 12% from the figure of $3.84 billion achieved in 2014. Fourth quarter sales were also down year on year, from $869 million in 4Q 2014 to $776 million last year. The company reports that significant unfavourable foreign exchange effects were compounded by revenue declines as a result of the ongoing integration of Spartech and lower selling prices in Distribution and Performance Products and Solutions due to lower raw material costs. However, operating income and net income improved in both reporting periods in 2015. The company’s 2015 oper-
April 2016
ENVIRONMENT
ating income was $251 million, a 62% increase from $155 million a year earlier, while net income of $145 million was up some 87% compared to $77 million in 2014. A similar pattern was also demonstrated in the fourth quarter with a net loss of $15 million in 4Q 2014 being converted to a net income of $3 million in 4Q 2015. The company’s adjusted earnings per share increased by 8% to $0.39 in 4Q 2015 and reached an all-time record of $1.96 for full-year 2015. PolyOne reports that, on a constant currency basis, its Color, Additives and Inks, and Engineered Materials segments increased operating income by 17% and 13%, respectively, in 2015 versus the previous year. Both segments reached new record levels of profitability, demonstrating the value of specialization, the company says. The Color, Additives and Inks segment posted annual sales of $811 million in 2015, a 4.7% decline from $851 million a year earlier. Full-year operating income was $135 million compared to $125 million in 2014. In the fourth quarter, the segment’s sales and operating income were $185 million (-3%) and $27.5 million (+3%), respectively. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
ENVIRONMENT, HEALTH AND SAFETY ISSUES European Commission grants short-term authorizations for two applications of HBCDD
T
he European Commission has granted temporary authorizations to 13 companies in Europe for two applications of the brominated flame retardant chemical hexabromocyclododecane (HBCDD). The flame retardant is a candidate for authorization under the EC’s REACH regula-
April 2016
tion. The review period of the authorizations will expire on 21 August 2017. The temporary authorizations relate to the formulation of flame-retarded expanded polystyrene (EPS) to solid unexpanded pellets, using HBCDD as the flame retardant additive, for onward use in building applications; and the production of the flame-retarded EPS articles themselves for use in building applications. During the temporary authorization period, the Commission requires the authorization holders to submit a report every three months on the available quantities of the alternative polymeric flame retardant (namely, the polymeric product based on Dow Chemical’s active ingredient and manufactured under licence by ICLIP, Albemarle and Chemtura) on the market and on their progress towards substitution of HBCDD. Submission of the first such review report was required by 21 February this year. Commission documents available from the European Chemicals Agency website show the companies involved are three subsidiaries of Ineos Styrenics, Synthos Dwory, Synthos Kralupy, Bewi Styrochem, Monotez, RP Compounds, Synbra Technology, Sunpor Kunststoff, Dunastyr Polystyrene Manufacturing, Versalis and Unipol Holland. In reaching these decisions, the EC followed advice from its Socio-Economic Analysis and Risk Assessment Committees that, in accordance with Article 60(4) of Regulation (EC) No 1907/2006 (that is, the REACH regulation), the socio-economic benefits of HBCDD in these two applications ‘outweigh the risk to the environment’ arising from the uses of the substance and that there are no suitable alternative substances or technologies available in sufficient quantities. However, the documentation (available at eur-lex.europa.eu) notes that, ‘once successful testing and certification has been completed’, the polymeric alternative is expected to become a feasible substitute for HBCDD and to be available in sufficient quantities to meet projected demand by 2017, when the temporary authorizations are due to elapse. Contact: European Chemicals Agency (ECHA), Helsinki, Finland. Tel: +358 9 686180, Web: echa.europa.eu
Additives for Polymers
11
reducing fuel consumption and carbon dioxide emissions, NXT silane can play a large role in delivering benefits such as rolling resistance, traction and fuel economy in tyres’, says Rich Owins, VP, Silanes. Contact: Momentive Performance Materials, Waterford, NY, USA. Tel: +1 704 805 6226, Web: www.momentive.com
FINANCIALS Rockwood acquisition boosts Albemarle’s annual sales and profits in 2015
A
lbemarle Corp posted full-year 2015 earnings of US$334.9 million on net sales of $3.65 billion. This compares to earnings of $133.3 million on net sales of $2.45 billion in 2014. The increase in annual sales was driven primarily by the acquisition of Rockwood, partly offset by the impact of lower sales volumes, unfavourable price and mix impacts in certain businesses, and unfavourable currency exchange impacts, the company reports. The businesses acquired from Rockwood in January 2015 [ADPO, March 2015] exceeded profitability expectations for the year, resulting in adjusted EBITDA for the company of $959 million and 6% pro forma growth over 2014, reveals Albemarle’s president and CEO Luke Kissam. ‘Cash generation was as expected, and the $60 million of synergies achieved exceeded our goal at the beginning of the year’, he says. The company achieved its goals for 2015, including the sale of two non-core businesses, and is well positioned to grow in 2016, according to Kissam. For the fourth quarter of 2015, Albemarle’s earnings were $174.3 million compared to a loss of $18.5 million in 4Q 2014. The company posted net sales of $930.4 million in 4Q 2015, up from reported net sales of $598.6 million a year earlier. However, on a pro forma basis, quarterly sales fell 2.1% due to negative foreign exchange effects. The Performance Chemicals segment achieved net sales of $385.5 million in 4Q 2015, a decrease of 1.2% from 4Q 2014 pro forma net sales of $390 million due to unfavourable currency impacts. Adjusted EBITDA for the segment was $120.1 million, a decrease of 2.8% from 4Q 2014 pro forma results of $123.6 million.
10
Additives for Polymers
In other news concerning the Performance Chemicals segment, a long-term agreement relating to the supply of polymeric flame retardants has been signed between Albemarle and Israel’s ICL. The product is manufactured at ICL’s facilities in the Netherlands and in Israel using technology licensed from Dow Global Technologies, and is marketed by Albemarle and ICL under the GreenCrest® and FR122P brand names, respectively [ibid., October 2014]. The polymeric products are sustainable alternatives for customers transitioning from hexabromocyclododecane (HBCDD)based flame retardants currently used by the building industry in extruded polystyrene (XPS) and expanded polystyrene (EPS) foam insulation products (see also p. 11). Subject to the approval of Israel’s Antitrust Authority, the new deal between the two companies stipulates that Albemarle will supply ICL with bromine for the production of GreenCrest, associated with the agreement. Albemarle has bromine resources in Magnolia, AR, USA, and the Dead Sea. In a further development, Albemarle has recently completed the previously announced sale of its Martinswerk mineralbased flame retardants and speciality chemicals businesses to Huber Engineered Materials [ibid., February 2016]. The financial terms of the transaction have not been revealed. Contact: Albemarle Corp, Baton Rouge, LA, USA. Tel: +1 225 388 7402, Web: www.albemarle.com Or contact: ICL Industrial Products, Beer Sheva, Israel. Tel: +972 8 629 7057, Web: www.icl-ip.com
PolyOne records strong profit gains as sales dip in 2015
F
or full-year 2015, polymer materials, services and solutions provider PolyOne Corp reported sales of US$3.38 billion, down about 12% from the figure of $3.84 billion achieved in 2014. Fourth quarter sales were also down year on year, from $869 million in 4Q 2014 to $776 million last year. The company reports that significant unfavourable foreign exchange effects were compounded by revenue declines as a result of the ongoing integration of Spartech and lower selling prices in Distribution and Performance Products and Solutions due to lower raw material costs. However, operating income and net income improved in both reporting periods in 2015. The company’s 2015 oper-
April 2016
ENVIRONMENT
ating income was $251 million, a 62% increase from $155 million a year earlier, while net income of $145 million was up some 87% compared to $77 million in 2014. A similar pattern was also demonstrated in the fourth quarter with a net loss of $15 million in 4Q 2014 being converted to a net income of $3 million in 4Q 2015. The company’s adjusted earnings per share increased by 8% to $0.39 in 4Q 2015 and reached an all-time record of $1.96 for full-year 2015. PolyOne reports that, on a constant currency basis, its Color, Additives and Inks, and Engineered Materials segments increased operating income by 17% and 13%, respectively, in 2015 versus the previous year. Both segments reached new record levels of profitability, demonstrating the value of specialization, the company says. The Color, Additives and Inks segment posted annual sales of $811 million in 2015, a 4.7% decline from $851 million a year earlier. Full-year operating income was $135 million compared to $125 million in 2014. In the fourth quarter, the segment’s sales and operating income were $185 million (-3%) and $27.5 million (+3%), respectively. Contact: PolyOne Corp, Avon Lake, OH, USA. Tel: +1 440 930 1000, Web: www.polyone.com
ENVIRONMENT, HEALTH AND SAFETY ISSUES European Commission grants short-term authorizations for two applications of HBCDD
T
he European Commission has granted temporary authorizations to 13 companies in Europe for two applications of the brominated flame retardant chemical hexabromocyclododecane (HBCDD). The flame retardant is a candidate for authorization under the EC’s REACH regula-
April 2016
tion. The review period of the authorizations will expire on 21 August 2017. The temporary authorizations relate to the formulation of flame-retarded expanded polystyrene (EPS) to solid unexpanded pellets, using HBCDD as the flame retardant additive, for onward use in building applications; and the production of the flame-retarded EPS articles themselves for use in building applications. During the temporary authorization period, the Commission requires the authorization holders to submit a report every three months on the available quantities of the alternative polymeric flame retardant (namely, the polymeric product based on Dow Chemical’s active ingredient and manufactured under licence by ICLIP, Albemarle and Chemtura) on the market and on their progress towards substitution of HBCDD. Submission of the first such review report was required by 21 February this year. Commission documents available from the European Chemicals Agency website show the companies involved are three subsidiaries of Ineos Styrenics, Synthos Dwory, Synthos Kralupy, Bewi Styrochem, Monotez, RP Compounds, Synbra Technology, Sunpor Kunststoff, Dunastyr Polystyrene Manufacturing, Versalis and Unipol Holland. In reaching these decisions, the EC followed advice from its Socio-Economic Analysis and Risk Assessment Committees that, in accordance with Article 60(4) of Regulation (EC) No 1907/2006 (that is, the REACH regulation), the socio-economic benefits of HBCDD in these two applications ‘outweigh the risk to the environment’ arising from the uses of the substance and that there are no suitable alternative substances or technologies available in sufficient quantities. However, the documentation (available at eur-lex.europa.eu) notes that, ‘once successful testing and certification has been completed’, the polymeric alternative is expected to become a feasible substitute for HBCDD and to be available in sufficient quantities to meet projected demand by 2017, when the temporary authorizations are due to elapse. Contact: European Chemicals Agency (ECHA), Helsinki, Finland. Tel: +358 9 686180, Web: echa.europa.eu
Additives for Polymers
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