- Email: [email protected]
Shenhua, Dow Chemical to sign agreement on China coal-to-chemicals project
FOCUS Promising results from Henkel in 1Q 2007 German consumer goods manufacturer Henkel Group achieved a 6.2% rise in turnover to €3.24 bn in 1Q 2007 due to special promotions to celebrate the 100-year anniversary of the washing detergents brand Persil. Organic sales growth was 9.1%. The operating result improved by 9.2% to €323 M and the operating margin increased slightly to 10%. Henkel achieved a net profit of €205 M in 1Q 2007 (up 13.3% from €181 M in 1Q 2006). Sales by the Laundry & Home Care business sector rose by 12% due particularly to extensive activity related to the Persil centenary. Regional analysis shows that Europe/Africa/Middle East posted a strong increase in sales of 10.9% to €2.12 bn, to which all the business sectors contributed. In Eastern Europe, sales again underwent a double-digit percentage increase, with further encouraging sales improvements also being registered in Western Europe and Germany. In all, the share of sales accounted for by this region increased slightly to 65%. Due to foreign exchange effects, sales in the North America region (which accounted for 20%) of global sales fell by 4.7%. The Latin America region posted a sales increase of 5.1% to €164 M, maintaining its 5% share of overall sales. Business performance in the Asia-Pacific region (8% of company sales) was likewise encouraging, rising 4.1% to €247 M. Neue Zuercher Zeitung, 3 May 2007, 228 (101), 12 (in German)
Clariant 1Q 2007 For its 1Q 2007 Clariant International Ltd has reported sales of SFR 2156 M (SFR 2048 M for its 1Q 2006), EBITDA of €210 M (€219 M), operating income of SFR 139 M (SFR 154 M), net income from continuing operations of SFR 86 M (SFR 96 M), and headcount of 21,614 (21,748). Looking at the regional picture, Asia posted the strongest organic growth of 11%, driven by an impressive 27% increase from China. Europe achieved 3% growth in local currency terms, while the Americas achieved a robust 3% growth, with a solid contribution from Latin America JULY 2007
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offsetting a 2% drop from the US. Functional Chemicals achieved a 4% rise in organic growth in 1Q 2007 with solid demand across most businesses. Significant price increases offset rising raw material costs. Growth was particularly strong in detergents, performance and oilfield chemicals. The division’s operating margins before exceptionals declined to 8.5% from 8.8%, impacted by higher freight and marketing costs. Press release from: Clariant International Ltd, Rothaustrasse 61, CH-4132 Muttenz 1, Switzerland. Website: http://www.clariant.com (8 May 2007)
COMPANY NEWS New Unilever chairman against splitting organization Unilever’s new chairman says there is no reason for the conglomerate to split into a food division and a washing powder/deodorants division. The question of splitting the organization is relevant as analysts and investors are seeing Unilever being surpassed by rivals such as Nestle and Procter & Gamble because of the considerable diversity of their products.
Shenhua, Dow Chemical to sign agreement on China coal-to-chemicals project The Shenhua Group, a wholly stateowned energy enterprise, and The Dow Chemical Co will sign a cooperation agreement and announce plans for a detailed feasibility study, bringing the two parties one step closer to building a world-scale coalto-chemicals complex in Shaanxi Province, People’s Republic of China. The project will use ‘clean coal’ technologies that convert coal to methanol to produce ethylene and propylene, the building blocks to make various plastics and chemical products. The complex, which will most likely be located at Yulin, will include a chlor-alkali unit, enabling the production of products such as caustic soda, vinyl chloride monomer and chlorinated organics. Other derivative products planned for the complex include glycols, surfactants, acrylic acid and derivatives, and propylene derivatives. The wide-ranging feasibility study is expected to take about two years. Press release from: The Dow Chemical Co, 2030, Dow Center, Midland, MI 48642, USA. Tel: +1 989 636 1000. Fax: +1 989 636 3518. Website: http://www.dow.com (14 May 2007)
Het Financieele Dagblad, 14 May 2007, (Website: http://www.fd.nl/) (in Dutch)
Godrej Consumer Products expanding global footprint
Cleveland-based State Industrial Products acquires Ohio Soap Products
Godrej Consumer Products Ltd plans to expand aggressively with the focus on household and personal care products, particularly hair colours, as part of its plan to globalize. The company has a 31.3% share in the Indian hair colour market. It has already forayed into several overseas markets through acquisitions, such as that of the UK-based £15 M Key Line brands and the acquisition of South Africa-based Rapidol. Godrej Consumer Products, which registered a compound annual growth rate of 35% in 2006-2007, spends nearly 25% of its turnover on advertising and promotions. The company derives 63% of its turnover from soaps and 26% from hair colours.
Cleveland-based State Industrial Products, which operates manufacturing and distribution centres throughout North America, has acquired Ohio Soap Products of Parma, OH, a Cleveland suburb. Ohio Soap is a manufacturer and distributor of institutional ware washing equipment and cleaning products with $10 M/y in sales and 100 employees. Founded in 1911, privately-owned State Industrial Products has become a national leader in the cleaning and sanitation industry. Press release from: State Industrial Products, 3100 Hamilton Avenue, Cleveland, OH 44114, USA. Tel: +1 800 321 8180. Fax: +1 888 771 9670. E-mail: [email protected]. Website: http://www.stateindustrial.com (17 May 2007)
Business Line, 16 May 2007, 14 (135), 5
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Clariant 1Q 2007 For its 1Q 2007 Clariant International Ltd has reported sales of SFR 2156 M (SFR 2048 M for its 1Q 2006), EBITDA of €210 M (€219 M), operating income of SFR 139 M (SFR 154 M), net income from continuing operations of SFR 86 M (SFR 96 M), and headcount of 21,614 (21,748). Looking at the regional picture, Asia posted the strongest organic growth of 11%, driven by an impressive 27% increase from China. Europe achieved 3% growth in local currency terms, while the Americas achieved a robust 3% growth, with a solid contribution from Latin America JULY 2007
ON
S U R FAC TA N T S
offsetting a 2% drop from the US. Functional Chemicals achieved a 4% rise in organic growth in 1Q 2007 with solid demand across most businesses. Significant price increases offset rising raw material costs. Growth was particularly strong in detergents, performance and oilfield chemicals. The division’s operating margins before exceptionals declined to 8.5% from 8.8%, impacted by higher freight and marketing costs. Press release from: Clariant International Ltd, Rothaustrasse 61, CH-4132 Muttenz 1, Switzerland. Website: http://www.clariant.com (8 May 2007)
COMPANY NEWS New Unilever chairman against splitting organization Unilever’s new chairman says there is no reason for the conglomerate to split into a food division and a washing powder/deodorants division. The question of splitting the organization is relevant as analysts and investors are seeing Unilever being surpassed by rivals such as Nestle and Procter & Gamble because of the considerable diversity of their products.
Shenhua, Dow Chemical to sign agreement on China coal-to-chemicals project The Shenhua Group, a wholly stateowned energy enterprise, and The Dow Chemical Co will sign a cooperation agreement and announce plans for a detailed feasibility study, bringing the two parties one step closer to building a world-scale coalto-chemicals complex in Shaanxi Province, People’s Republic of China. The project will use ‘clean coal’ technologies that convert coal to methanol to produce ethylene and propylene, the building blocks to make various plastics and chemical products. The complex, which will most likely be located at Yulin, will include a chlor-alkali unit, enabling the production of products such as caustic soda, vinyl chloride monomer and chlorinated organics. Other derivative products planned for the complex include glycols, surfactants, acrylic acid and derivatives, and propylene derivatives. The wide-ranging feasibility study is expected to take about two years. Press release from: The Dow Chemical Co, 2030, Dow Center, Midland, MI 48642, USA. Tel: +1 989 636 1000. Fax: +1 989 636 3518. Website: http://www.dow.com (14 May 2007)
Het Financieele Dagblad, 14 May 2007, (Website: http://www.fd.nl/) (in Dutch)
Godrej Consumer Products expanding global footprint
Cleveland-based State Industrial Products acquires Ohio Soap Products
Godrej Consumer Products Ltd plans to expand aggressively with the focus on household and personal care products, particularly hair colours, as part of its plan to globalize. The company has a 31.3% share in the Indian hair colour market. It has already forayed into several overseas markets through acquisitions, such as that of the UK-based £15 M Key Line brands and the acquisition of South Africa-based Rapidol. Godrej Consumer Products, which registered a compound annual growth rate of 35% in 2006-2007, spends nearly 25% of its turnover on advertising and promotions. The company derives 63% of its turnover from soaps and 26% from hair colours.
Cleveland-based State Industrial Products, which operates manufacturing and distribution centres throughout North America, has acquired Ohio Soap Products of Parma, OH, a Cleveland suburb. Ohio Soap is a manufacturer and distributor of institutional ware washing equipment and cleaning products with $10 M/y in sales and 100 employees. Founded in 1911, privately-owned State Industrial Products has become a national leader in the cleaning and sanitation industry. Press release from: State Industrial Products, 3100 Hamilton Avenue, Cleveland, OH 44114, USA. Tel: +1 800 321 8180. Fax: +1 888 771 9670. E-mail: [email protected]. Website: http://www.stateindustrial.com (17 May 2007)
Business Line, 16 May 2007, 14 (135), 5
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