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Reckitt Benckiser increases 2006 forecast
FOCUS from evaluation, validation and acceptance of alternatives to animal testing. The participating companies include BASF, Bayer, Henkel Phenion, Johnson & Johnson, L’Oreal, Pfizer, P&G and Unilever. The associates involved include The European Chemical Industry Council, The European Crop Protection Association, The European Association for Bioindustries, The European Cosmetic Toiletry and Perfumery Association, The European Federation of Pharmaceutical Industries and Associations, the International Association for Soaps, Detergents and Maintenance Products (AISE) and the International Federation for Animal Health Europe. ICIS Chemical Business, 26 Jun 2006, (Website: http://icischemicalbusiness.com)
COMPANY RESULTS Stepan reports 2Q 2006 results Stepan Co reported results for 2Q and 1H ended Jun 2006. Net income for 2Q 2006 was $3.1 M (net income of $6.2 M in 2Q 2005). Net sales increased 5% to $292 M during 2Q 2006 ($278.43 M in 2Q 2005) due to higher selling prices (11%), partially offset by lower sales volume (6%). Net income for 1H 2006 was $6.1 M (net income of $9.4 M in 1H 2005). Net sales increased 7% to $581.6 M during 1H 2006, due to higher selling prices (9%), partially offset by lower sales volume (2%). Research, development and technical service expenses were $7.313 M during 2Q 2006 and $14.493 M during 1H 2006 ($7.570 M in 2Q 2005 and $15.197 M in 1H 2005). Within the surfactants segment, net sales were $219.1 M for the second quarter, up 6%, and $444.4 M for 1H 2006, up 9%. Gross profit for the segment improved on a favourable mix of higher margin products and higher biodiesel sales volume (reaching $10.9 M during 2Q 2006 compared to $6.5 M in 2Q 2005), which more than offset an overall 8% decline in volume brought about by lower commodity laundry products in North America. Higher value added surfactant product sales 6
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volume improved. European earnings remained unchanged as improved profitability in the UK was offset by weaker results in France. Latin America posted higher earnings due to continued growth in fabric softener sales volume. According to Stepan, surfactants earnings should improve in the second half on a favourable product mix, despite continued lower commodity volumes in North America. Fabric softeners volume will continue to grow. The new fabric softener plant at Stepan’s Philippine joint venture was completed in 2Q 2006 and commercial operations have started. Press release from: Stepan Co, 22 West Frontage Road, Northfield, IL 60093, USA. Tel: +1 847 446 7500. Fax: +1 847 501 2100. Website: http://www.stepan.com (19 Jul 2006)
Reckitt Benckiser increases 2006 forecast Reckitt Benckiser posted net revenues of £1.22 bn in 2Q 2006, up 19% on 2Q 2005 at actual exchange rates (up 17% at constant exchange rates). For 1H 2006, revenues grew 18% to £2.39 bn. The underlying business, excluding the Boots Healthcare International (BHI) acquisition, grew 7%. Reported net income was £151 M for the quarter, up 5%, and £261 M for the first six months of 2006, down 3%. If the restructuring charges as a result of the BHI acquisition are excluded, net profits rose 13% in both 2Q and 1H to £162 M and £303 M, respectively, while operating profits rose 23% in both periods. There was a surprisingly strong rise in margins in 1H 2006 to 17.8%, with cost reductions contributing. In Fabric Care, 1H net revenues grew 7% to £592 M. Vanish Oxi Action grew strongly due to Vanish Oxi Action Crystal White in Europe and was further boosted by the roll out of Vanish Oxi Action Wow in developing markets and by a strong performance by Vanish carpet cleaners. Woolite grew behind the roll-out of Woolite Pro-Care. Laundry detergent net revenues recovered from a low base last year. In Surface Care, 1H net revenues grew 3% to £451 M. The major category growth driver was the roll-out of Cillit Bang Stain & Drain in
Europe and the continuing roll out of Easy Off Bang in North America and developing markets. Disinfectant cleaners also grew due to Lysol/Dettol multipurpose cleaners and Lysol wipes. Dishwashing net revenues grew 1% to £295 M in 1H 2006. The company’s market share grew in Europe and worldwide helped by the launch of Finish/Calgonit 5in1 and Finish/Calgonit Quantum, but net revenues were held back by higher promotional investment. Reckitt also announced a number of product launches for the second half of the year, including Vanish Oxi Action Multi – which is claimed to provide one solution for any stain, on any fabric, any colour at any temperature – Woolite Color in Europe and North America and Easy Off Stain & Drain in North America. North America will also see the launch of Lysol Wipes with Microlock Fibres, Lysol 3in1 Multipurpose Cleaner and Lysol Food Surface Sanitizer, while Finish/Calgonit 5in1is being introduced to additional markets outside Europe in 2H 2006. Commenting on the results, CEO Bart Becht said the company had a strong first half, with the success of the underlying business driven mainly by new products such as Vanish Oxi Action Crystal White, Airwick Freshmatic, Cillit Bang Stain & Drain and Finish 5in1, while BHI contributed ahead of expectation. The integration of BHI is going according to plan, he said. Reckitt has increased its forecast for profits growth in 2006 to 14% at actual exchange rates. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough, SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (24 Jul 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 25 Jul 2006, (141), 17 (in German)
Akzo Nobel results in 2Q 2006 For its 2Q 2006 (ends 30 Jun 2006), Akzo Nobel NV posted a 7% rise in revenues to €3.6 bn with net income nearly doubling to €361 M. Autonomous growth was 8%, with all segments contributing. Volume growth was 6% and selling prices increased by 2%. Restructuring and impairment charges of €20 M were taken, related to various restructuring activities at Coatings and Chemicals. The Chemicals division achieved 7% SEPTEMBER 2006
COMPANY RESULTS Stepan reports 2Q 2006 results Stepan Co reported results for 2Q and 1H ended Jun 2006. Net income for 2Q 2006 was $3.1 M (net income of $6.2 M in 2Q 2005). Net sales increased 5% to $292 M during 2Q 2006 ($278.43 M in 2Q 2005) due to higher selling prices (11%), partially offset by lower sales volume (6%). Net income for 1H 2006 was $6.1 M (net income of $9.4 M in 1H 2005). Net sales increased 7% to $581.6 M during 1H 2006, due to higher selling prices (9%), partially offset by lower sales volume (2%). Research, development and technical service expenses were $7.313 M during 2Q 2006 and $14.493 M during 1H 2006 ($7.570 M in 2Q 2005 and $15.197 M in 1H 2005). Within the surfactants segment, net sales were $219.1 M for the second quarter, up 6%, and $444.4 M for 1H 2006, up 9%. Gross profit for the segment improved on a favourable mix of higher margin products and higher biodiesel sales volume (reaching $10.9 M during 2Q 2006 compared to $6.5 M in 2Q 2005), which more than offset an overall 8% decline in volume brought about by lower commodity laundry products in North America. Higher value added surfactant product sales 6
ON
S U R FAC TA N T S
volume improved. European earnings remained unchanged as improved profitability in the UK was offset by weaker results in France. Latin America posted higher earnings due to continued growth in fabric softener sales volume. According to Stepan, surfactants earnings should improve in the second half on a favourable product mix, despite continued lower commodity volumes in North America. Fabric softeners volume will continue to grow. The new fabric softener plant at Stepan’s Philippine joint venture was completed in 2Q 2006 and commercial operations have started. Press release from: Stepan Co, 22 West Frontage Road, Northfield, IL 60093, USA. Tel: +1 847 446 7500. Fax: +1 847 501 2100. Website: http://www.stepan.com (19 Jul 2006)
Reckitt Benckiser increases 2006 forecast Reckitt Benckiser posted net revenues of £1.22 bn in 2Q 2006, up 19% on 2Q 2005 at actual exchange rates (up 17% at constant exchange rates). For 1H 2006, revenues grew 18% to £2.39 bn. The underlying business, excluding the Boots Healthcare International (BHI) acquisition, grew 7%. Reported net income was £151 M for the quarter, up 5%, and £261 M for the first six months of 2006, down 3%. If the restructuring charges as a result of the BHI acquisition are excluded, net profits rose 13% in both 2Q and 1H to £162 M and £303 M, respectively, while operating profits rose 23% in both periods. There was a surprisingly strong rise in margins in 1H 2006 to 17.8%, with cost reductions contributing. In Fabric Care, 1H net revenues grew 7% to £592 M. Vanish Oxi Action grew strongly due to Vanish Oxi Action Crystal White in Europe and was further boosted by the roll out of Vanish Oxi Action Wow in developing markets and by a strong performance by Vanish carpet cleaners. Woolite grew behind the roll-out of Woolite Pro-Care. Laundry detergent net revenues recovered from a low base last year. In Surface Care, 1H net revenues grew 3% to £451 M. The major category growth driver was the roll-out of Cillit Bang Stain & Drain in
Europe and the continuing roll out of Easy Off Bang in North America and developing markets. Disinfectant cleaners also grew due to Lysol/Dettol multipurpose cleaners and Lysol wipes. Dishwashing net revenues grew 1% to £295 M in 1H 2006. The company’s market share grew in Europe and worldwide helped by the launch of Finish/Calgonit 5in1 and Finish/Calgonit Quantum, but net revenues were held back by higher promotional investment. Reckitt also announced a number of product launches for the second half of the year, including Vanish Oxi Action Multi – which is claimed to provide one solution for any stain, on any fabric, any colour at any temperature – Woolite Color in Europe and North America and Easy Off Stain & Drain in North America. North America will also see the launch of Lysol Wipes with Microlock Fibres, Lysol 3in1 Multipurpose Cleaner and Lysol Food Surface Sanitizer, while Finish/Calgonit 5in1is being introduced to additional markets outside Europe in 2H 2006. Commenting on the results, CEO Bart Becht said the company had a strong first half, with the success of the underlying business driven mainly by new products such as Vanish Oxi Action Crystal White, Airwick Freshmatic, Cillit Bang Stain & Drain and Finish 5in1, while BHI contributed ahead of expectation. The integration of BHI is going according to plan, he said. Reckitt has increased its forecast for profits growth in 2006 to 14% at actual exchange rates. Press release from: Reckitt Benckiser plc, 103-105 Bath Road, Slough, SL1 3UH, UK. Tel: +44 1753 217800. Fax: +44 1753 217899. Website: http://www.reckittbenckiser.com (24 Jul 2006) & Handelsblatt Wirtschafts- und Finanzzeitung, 25 Jul 2006, (141), 17 (in German)
Akzo Nobel results in 2Q 2006 For its 2Q 2006 (ends 30 Jun 2006), Akzo Nobel NV posted a 7% rise in revenues to €3.6 bn with net income nearly doubling to €361 M. Autonomous growth was 8%, with all segments contributing. Volume growth was 6% and selling prices increased by 2%. Restructuring and impairment charges of €20 M were taken, related to various restructuring activities at Coatings and Chemicals. The Chemicals division achieved 7% SEPTEMBER 2006