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PolyOne sees quarterly sales rise 5%
September 2005
increase of $176 million or 54% compared to 2004, due in large part to acquisitions and significant pricing improvement across each segment. Net income for the first half of 2005 was $54.2 million, excluding special items, on sales of $1.01 billion, compared to net income of $35.8 million on sales of $0.65 billion in 2004. Polymer Additives segment net sales in 2Q 2005 were $204.4 million, up $24.4 million versus 2004. Operating profit, including joint ventures, improved 30% to $29.4 million, driven by strong performance in brominated flame retardants and overall gains in pricing. These results represent record sales and profit performance for the segment. Commenting on the results, Albemarle president/CEO Mark C. Rohr said the performance of a number of the newly introduced flame retardants and additives was particularly pleasing. The segment’s profitability has improved as pricing initiatives more than offset the underlying raw material and energy inflation, resulting in the record quarter performance, he said. Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com
Chemtura posts improved second quarter results Chemtura Corp, formed on 1 July 2005 by the merger of Crompton Corp and Great Lakes Chemical Corp, reported earnings from continuing operations for 2Q 2005 of US$10.2 million versus a loss of $0.9 million in 2Q 2004. Including discontinued operations, net earnings for the quarter were $17.0 million compared to $1.1 million in the same period of 2004. 2Q 2005 net sales were $602.3 million, 4% above $581.4 million in 2004. The increase was the result of a 14% increase from higher selling prices and a 2% increase from favourable foreign currency translation. The increase was partially offset by a 6% decrease from lower volume and a 6% decrease due to the deconsolidation of the Davis-Standard business. These reported results for Chemtura reflect the standalone operations of the former Crompton; the
Additives for Polymers
stand-alone results for the former Great Lakes are reported below. Within the Polymer Products division, the polymer additives segment achieved 2Q 2005 sales of $403.2 million, up 9% from $369.8 million for the same quarter in 2004. Operating profit for the segment was $47.8 million, compared to $7.9 million in 2004. Robert L. Wood, chairman, president and CEO reports that merger integration is progressing “exceptionally well” and that the company’s “intense focus” on restoring acceptable sustainable operating earnings is continuing to yield results. However, the former Great Lakes operations posted a 2Q net loss of $88.0 million from continuing operations, which includes pre-tax charges of $135.9 million for merger costs, partially offset by a $5.0 million benefit from the termination of the company’s management incentive programme. The company posted a profit of $13.6 million in 2Q 2004. Great Lakes’ 2Q 2005 net sales of $491.4 million were 11% above the previous year. The increase in sales was due to a 10% increase from improved selling prices and a 2% increase due to favourable foreign currency, partially offset by a 1% decrease from lower volume. “Results from Great Lakes’ second quarter were improved but did not meet our expectations,” Wood says. A recovery plan has been put in place. Pro forma results, calculated as if the merger had occurred at the beginning of the quarter, gives 2Q 2005 net sales for the combined company of $1093.7 million and operating profit of $88.5 million, compared to net sales of $1024.6 million and operating profit of $39.9 million for the same period in 2004. Contact: Chemtura, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1203-573-2800; URL: www.chemtura.com
PolyOne sees quarterly sales rise 5% PolyOne Corp reported sales from continuing operations of US$583.4 million for the second quarter ended 30 June 2005, an increase of $25.6 million or 5% compared with 2Q 2004. Net
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Additives for Polymers
income for the quarter was $31.3 million, a significant improvement over $21.5 million in 2Q 2004. Operating income from continuing operations was $42.5 million for 2Q 2005, a $1.5 million increase over the same period in 2004, and a $3.8 million improvement over 1Q 2005. While revenues for the quarter increased, shipments declined 9% from the same quarter in 2004 and 1.6% from the first quarter of 2005. This slowness in the second quarter, which is normally seasonally stronger than the first quarter, was attributable primarily to a slowdown in North American plastics product industrial production and to continued weak demand in Europe. The company believes customers may have been utilizing inventories built up during prior periods as potential hedges against prospective higher raw material prices. The North American Color segment reported a 2% improvement in quarterly volume compared with 2Q 2004 and nearly 5% compared with the first quarter of 2005, primarily from new business in construction and wire and cable applications. Higher average selling prices and new captured business helped drive a 12% year-to-date sales improvement. For the International Color and Engineered Materials segment, volume decreased year over year. The May 2004 divestment of Melos accounted for the majority of the 19% volume decline in the second quarter with the rest due to general weakness in European plastics markets, PolyOne says. This weakness in Europe was partially offset by strengthening demand in Asia. During the second quarter, the company’s newly completed manufacturing facility in Shenzhen, China, successfully commenced operations [ADPO, August]. Favourable exchange rates and higher average selling prices contributed to an international sales increase of 9% in the second quarter and 6% year to date. The company expects at least a modest improvement in demand for its products in 3Q 2005. Contact: PolyOne Corp, 33587 Walker Rd, PolyOne Center, Avon Lake, OH 44012, USA; tel: +1-440-930-1000; fax: +1-440-930-3064; URL: www.polyone.com
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September 2005
NEWS AND VIEWS Milliken expands technical service offering in Europe To support its further growth plans, Milliken & Co recently commissioned a state-of-the-art compounding line for its European applications lab in Gent, Belgium. The company says the versatile set-up of the new compounding line allows the incorporation of its additives technologies (clarifiers, nucleators, antimicrobial agents, UV absorbers) in a broad range of polymer materials (PP, PE, PA, PS), covering a wide scope of end-use applications (automotive, packaging, housewares, appliances, and more). The new investment covers the installation of a fully equipped Leistritz twin-screw extruder with Brabender gravimetric feeding technology and Rieter strand pelletizing unit. Besides one main feeder and one flex-wall feeder, the twinscrew extruder also has a high-accuracy additive feeder. In addition, the side-feeding capability will enable the production of highly filled polymer compounds (up to 70 wt%). The line has an output of about 40 kg/hour allowing the production of substantial pilot batch quantities. According to Milliken, its own R&D community, direct customers and downstream collaboration partners will have access to this equipment, which will help to speed up developments and introduction to market. Contact: Milliken Europe NV, 18-24 Ham, B9000 Gent, Belgium; tel: +32-9-265-1131; fax: +32-9-265-1195; URL: www.millikenchemical.com
Sun Chemical focuses on product innovation for performance pigments Sun Chemical Performance Pigments has formed a new Advanced Technology Group that will focus more resources on innovative product development. The new team will be located predominantly in Cincinnati, OH, USA but will have members at other Sun Chemical sites. The company says it will augment R&D already underway in Sun Chemical’s core research laboratories of St Mary Cray, UK, and Carlstadt, NJ, USA.
increase of $176 million or 54% compared to 2004, due in large part to acquisitions and significant pricing improvement across each segment. Net income for the first half of 2005 was $54.2 million, excluding special items, on sales of $1.01 billion, compared to net income of $35.8 million on sales of $0.65 billion in 2004. Polymer Additives segment net sales in 2Q 2005 were $204.4 million, up $24.4 million versus 2004. Operating profit, including joint ventures, improved 30% to $29.4 million, driven by strong performance in brominated flame retardants and overall gains in pricing. These results represent record sales and profit performance for the segment. Commenting on the results, Albemarle president/CEO Mark C. Rohr said the performance of a number of the newly introduced flame retardants and additives was particularly pleasing. The segment’s profitability has improved as pricing initiatives more than offset the underlying raw material and energy inflation, resulting in the record quarter performance, he said. Contact: Albemarle Corp, 451 Florida Street, Baton Rouge, LA 70801-1765, USA; tel: +1225-388-7402; fax: +1-225-388-7848; URL: www.albemarle.com
Chemtura posts improved second quarter results Chemtura Corp, formed on 1 July 2005 by the merger of Crompton Corp and Great Lakes Chemical Corp, reported earnings from continuing operations for 2Q 2005 of US$10.2 million versus a loss of $0.9 million in 2Q 2004. Including discontinued operations, net earnings for the quarter were $17.0 million compared to $1.1 million in the same period of 2004. 2Q 2005 net sales were $602.3 million, 4% above $581.4 million in 2004. The increase was the result of a 14% increase from higher selling prices and a 2% increase from favourable foreign currency translation. The increase was partially offset by a 6% decrease from lower volume and a 6% decrease due to the deconsolidation of the Davis-Standard business. These reported results for Chemtura reflect the standalone operations of the former Crompton; the
Additives for Polymers
stand-alone results for the former Great Lakes are reported below. Within the Polymer Products division, the polymer additives segment achieved 2Q 2005 sales of $403.2 million, up 9% from $369.8 million for the same quarter in 2004. Operating profit for the segment was $47.8 million, compared to $7.9 million in 2004. Robert L. Wood, chairman, president and CEO reports that merger integration is progressing “exceptionally well” and that the company’s “intense focus” on restoring acceptable sustainable operating earnings is continuing to yield results. However, the former Great Lakes operations posted a 2Q net loss of $88.0 million from continuing operations, which includes pre-tax charges of $135.9 million for merger costs, partially offset by a $5.0 million benefit from the termination of the company’s management incentive programme. The company posted a profit of $13.6 million in 2Q 2004. Great Lakes’ 2Q 2005 net sales of $491.4 million were 11% above the previous year. The increase in sales was due to a 10% increase from improved selling prices and a 2% increase due to favourable foreign currency, partially offset by a 1% decrease from lower volume. “Results from Great Lakes’ second quarter were improved but did not meet our expectations,” Wood says. A recovery plan has been put in place. Pro forma results, calculated as if the merger had occurred at the beginning of the quarter, gives 2Q 2005 net sales for the combined company of $1093.7 million and operating profit of $88.5 million, compared to net sales of $1024.6 million and operating profit of $39.9 million for the same period in 2004. Contact: Chemtura, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1203-573-2800; URL: www.chemtura.com
PolyOne sees quarterly sales rise 5% PolyOne Corp reported sales from continuing operations of US$583.4 million for the second quarter ended 30 June 2005, an increase of $25.6 million or 5% compared with 2Q 2004. Net
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Additives for Polymers
income for the quarter was $31.3 million, a significant improvement over $21.5 million in 2Q 2004. Operating income from continuing operations was $42.5 million for 2Q 2005, a $1.5 million increase over the same period in 2004, and a $3.8 million improvement over 1Q 2005. While revenues for the quarter increased, shipments declined 9% from the same quarter in 2004 and 1.6% from the first quarter of 2005. This slowness in the second quarter, which is normally seasonally stronger than the first quarter, was attributable primarily to a slowdown in North American plastics product industrial production and to continued weak demand in Europe. The company believes customers may have been utilizing inventories built up during prior periods as potential hedges against prospective higher raw material prices. The North American Color segment reported a 2% improvement in quarterly volume compared with 2Q 2004 and nearly 5% compared with the first quarter of 2005, primarily from new business in construction and wire and cable applications. Higher average selling prices and new captured business helped drive a 12% year-to-date sales improvement. For the International Color and Engineered Materials segment, volume decreased year over year. The May 2004 divestment of Melos accounted for the majority of the 19% volume decline in the second quarter with the rest due to general weakness in European plastics markets, PolyOne says. This weakness in Europe was partially offset by strengthening demand in Asia. During the second quarter, the company’s newly completed manufacturing facility in Shenzhen, China, successfully commenced operations [ADPO, August]. Favourable exchange rates and higher average selling prices contributed to an international sales increase of 9% in the second quarter and 6% year to date. The company expects at least a modest improvement in demand for its products in 3Q 2005. Contact: PolyOne Corp, 33587 Walker Rd, PolyOne Center, Avon Lake, OH 44012, USA; tel: +1-440-930-1000; fax: +1-440-930-3064; URL: www.polyone.com
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September 2005
NEWS AND VIEWS Milliken expands technical service offering in Europe To support its further growth plans, Milliken & Co recently commissioned a state-of-the-art compounding line for its European applications lab in Gent, Belgium. The company says the versatile set-up of the new compounding line allows the incorporation of its additives technologies (clarifiers, nucleators, antimicrobial agents, UV absorbers) in a broad range of polymer materials (PP, PE, PA, PS), covering a wide scope of end-use applications (automotive, packaging, housewares, appliances, and more). The new investment covers the installation of a fully equipped Leistritz twin-screw extruder with Brabender gravimetric feeding technology and Rieter strand pelletizing unit. Besides one main feeder and one flex-wall feeder, the twinscrew extruder also has a high-accuracy additive feeder. In addition, the side-feeding capability will enable the production of highly filled polymer compounds (up to 70 wt%). The line has an output of about 40 kg/hour allowing the production of substantial pilot batch quantities. According to Milliken, its own R&D community, direct customers and downstream collaboration partners will have access to this equipment, which will help to speed up developments and introduction to market. Contact: Milliken Europe NV, 18-24 Ham, B9000 Gent, Belgium; tel: +32-9-265-1131; fax: +32-9-265-1195; URL: www.millikenchemical.com
Sun Chemical focuses on product innovation for performance pigments Sun Chemical Performance Pigments has formed a new Advanced Technology Group that will focus more resources on innovative product development. The new team will be located predominantly in Cincinnati, OH, USA but will have members at other Sun Chemical sites. The company says it will augment R&D already underway in Sun Chemical’s core research laboratories of St Mary Cray, UK, and Carlstadt, NJ, USA.