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Songwon achieves strong profit growth in 1Q 2018
FINANCIALS
in the USA with the acquisition of Adtec Colorant in Arlington, TX, in 2015 [ibid., October 2015] and said to be planning further investments to add several small- to medium-sized colour masterbatch producers to extend its reach across the USA over the next few years. More information: www.tosaf.com
AkzoNobel Specialty Chemicals is increasing Indian organic peroxides capacity
G
round-breaking has taken place on a project to upgrade and expand production capacity at AkzoNobel Specialty Chemicals’ organic peroxides facility in Mahad, India. The company reports that it is investing €4 million to increase capacity at the site by 80%. The additional capacity will provide a platform to meet growing demand from customers in India and the Middle East, it says. The expansion is expected to be completed by the end of this year. The project also involves the installation of a new waste water management system to make the process more environmentally sustainable, the company reports. The latest in an on-going series of organic peroxide investments [for example, ADPO, March 2018], the expansion at Mahad will allow AkzoNobel to build on its strong presence in numerous organic peroxide market segments, particularly in polyvinyl chloride, acrylics and thermoset resins, comments Johan Landfors, member of the executive committee responsible for Polymer Chemicals. The Mahad project also demonstrates the company’s commitment to the Indian market and supports the country’s efforts to strengthen its manufacturing sector through increased investment from global organizations, adds AkzoNobel Specialty Chemicals CEO Werner Fuhrmann. Over the past three years, the Polymer Chemistry business has invested more than €100 million to serve its customers in the polymer industry better, upgrading technologies, increasing capacity and repositioning its global manufacturing footprint at sites in Mexico, the Netherlands, Belgium, China, Italy, Brazil and the USA. For the first quarter of 2018, AkzoNobel Specialty Chemicals posted net sales of €1.25 billion, down 3% year on year from €1.29 million in 1Q 2017 as positive price/ mix effects were more than offset by adverse currencies and
July 2018
lower volumes. Industrial Chemicals benefited from strong pricing, the company says. Adjusted operating income was €150 million, a 10% decline from €166 million. Restructuring costs of €32 million (related to the projects optimizing the manufacturing network) and adverse currencies were partly offset by stronger price/mix effects and productivity improvements, AkzoNobel reports. More information: www.akzonobel.com
FINANCIALS Songwon achieves strong profit growth in 1Q 2018
F
or the quarter ended 31 March 2018, South Korea’s Songwon Industrial Group generated sales of KRW190.5 billion (c. E146 million), an 8.9% increase compared to sales of KRW175.0 billion in 1Q 2017. Operating profit for the period was KRW15.3 billion, up 17.6% from KRW13.0 billion a year earlier, while EBITDA increased by 11.7% to KRW23.7 billion. Net profit for the quarter was KRW11.5 billion, representing a substantial 39.3% increase compared to KRW8.3 billion in 1Q 2017. The company reports that business performance throughout the quarter was in line with its expectations, especially for its polymer stabilizers portfolio where demand remained strong across all regions. Volumes and revenues also continued to display growth at above-average rates for the market during the quarter, despite a slowdown in both China and Korea during the period due to the Chinese New Year celebrations in February, it says. In contrast, 1Q 2018 sales in Europe (+15.9%) and the Middle East (+14.6%) showed clear signs of growth compared to 1Q 2017. Sales of Songwon’s core polymer stabilizers increased by 17.1% year on year, from KRW113.6 billion in 1Q 2017 to KRW133.1 billion this year. Sales growth was also experienced in its tin intermediates, alkylphenols and intermediates, and ‘others’ product lines but sales in all other segments declined during 1Q 2018. Songwon notes that the price increases it initiated in 4Q 2017 are now showing a positive impact, offsetting the increase in the cost of raw materials. However, unfavourable foreign
Additives for Polymers
9
FINANCIALS
currency exchange rate developments continue to have a negative impact on the company’s results, mainly due to the weaker US dollar compared to the South Korean won. Following this positive start to the year, Songwon says it is ‘cautiously optimistic’ looking ahead. The second and third quarters have historically always been strong quarters for the company, and it foresees continued steady growth in the general demand for its products across the portfolio despite on-going uncertainties relating to foreign exchange rates, political instabilities and unpredictable regional economic developments. However, the company says it will continue to remain cautious and exercise prudent capital management, pressing forward on a variety of initiatives to secure profitability and support future growth. The group will also continue to implement price increases to offset the ever-increasing cost of raw materials. Tight supply/demand situations for its key products may possibly result in the imposition of further price increases, it says. In other news, Songwon has appointed Bodo Möller Chemie Russia LLC as the exclusive distributor of its comprehensive range of polymer stabilizers in Russia, Belarus, Ukraine and Kazakhstan, effective from 1 May 2018. Based in Moscow, Bodo Mӧller Chemie Russia is part of the Bodo Möller Chemie Group, a leading distributor of speciality chemicals for plastics, adhesives, coatings and other industrial sectors. ‘Selecting such an experienced partner signals another important step in developing Songwon’s market position in Eastern Europe’, comments global sales director Paolo Arnaboldi. Bodo Möller Chemie is headquartered in Offenbach am Main, Germany, and has 28 subsidiaries in Europe, Africa, Asia and America.
amounted to E2.88 million in 1Q 2018, up 29.3% from E2.23 million a year earlier. The Functional Fillers product segment, which produces alumina trihydrate (ATH) flame retardants for the plastics and wire & cable industries, and other additives, generated revenues of E29.3 million in the 2018 first quarter, up 1.0% from E29.0 million in the same period of the previous year. The increase was attributed largely to positive pricing effects aided by changes in product mix, which were partly offset by the relative weakness of the US dollar compared to the previous year’s level. The segment’s EBITDA declined 5% from E4.93 million in 1Q 2017 to E4.68 million this year. The Specialty Alumina segment, which produces materials for ceramics, posted revenues of E15.9 million, and EBITDA of E2.58 million. ‘We consider the first quarter of 2018 to be a success both for the industry and for us: the market drivers are intact, the messages we are getting from customers indicate a positive future development and our financial data speaks for itself’, comments Nabaltec’s CEO Johannes Heckmann. The company views 2018 as a ‘year of transition’ due to the resumption of production at its US subsidiary Nashtec. This will drag down margins and earnings particularly in the start-up phase in the second and third quarters, it notes. However, revenue growth ‘in the mid-single digits’ is expected for the year as a whole. Nabaltec generated revenues of E168.6 million in 2017, up 5.9% on the previous year, and EBIT up 50% to a record figure of E18.3 million.
More information: www.songwon.com More information: www.bm-chemie.com
Chemours doubles first-quarter earnings in 2018
Growth continues for Nabaltec in first quarter of 2018
G
erman flame retardants and fillers producer Nabaltec AG reported record-high quarterly revenues of E45.2 million in the first quarter of 2018, up 3.7% from the same period in 2017. The highest growth in regional terms was reported in Europe. Operating profit (EBIT) for the threemonth period was E4.3 million, up 7.5% from E4.0 million in 1Q 2017, while EBITDA gained 7.4% to reach E7.3 million. Net earnings after tax
10
Additives for Polymers
More information: www.nabaltec.de
T
he Chemours Company reported net sales of US$1.7 billion in the first quarter of 2018, representing a year-on-year increase of 20% from net sales of US$1.4 billion in the same period of the previous year. Net income for 1Q 2018 was $297 million, virtually double (+98%) the quarterly net income of $150 million generated by the company a year earlier. Adjusted EBITDA improved by 64% from $285 million in 1Q 2017 to $468 million this year. Several factors contributed to the revenue growth experienced in the three months to the end of March 2018, Chemours reports. Volume growth across all three segments
July 2018
in the USA with the acquisition of Adtec Colorant in Arlington, TX, in 2015 [ibid., October 2015] and said to be planning further investments to add several small- to medium-sized colour masterbatch producers to extend its reach across the USA over the next few years. More information: www.tosaf.com
AkzoNobel Specialty Chemicals is increasing Indian organic peroxides capacity
G
round-breaking has taken place on a project to upgrade and expand production capacity at AkzoNobel Specialty Chemicals’ organic peroxides facility in Mahad, India. The company reports that it is investing €4 million to increase capacity at the site by 80%. The additional capacity will provide a platform to meet growing demand from customers in India and the Middle East, it says. The expansion is expected to be completed by the end of this year. The project also involves the installation of a new waste water management system to make the process more environmentally sustainable, the company reports. The latest in an on-going series of organic peroxide investments [for example, ADPO, March 2018], the expansion at Mahad will allow AkzoNobel to build on its strong presence in numerous organic peroxide market segments, particularly in polyvinyl chloride, acrylics and thermoset resins, comments Johan Landfors, member of the executive committee responsible for Polymer Chemicals. The Mahad project also demonstrates the company’s commitment to the Indian market and supports the country’s efforts to strengthen its manufacturing sector through increased investment from global organizations, adds AkzoNobel Specialty Chemicals CEO Werner Fuhrmann. Over the past three years, the Polymer Chemistry business has invested more than €100 million to serve its customers in the polymer industry better, upgrading technologies, increasing capacity and repositioning its global manufacturing footprint at sites in Mexico, the Netherlands, Belgium, China, Italy, Brazil and the USA. For the first quarter of 2018, AkzoNobel Specialty Chemicals posted net sales of €1.25 billion, down 3% year on year from €1.29 million in 1Q 2017 as positive price/ mix effects were more than offset by adverse currencies and
July 2018
lower volumes. Industrial Chemicals benefited from strong pricing, the company says. Adjusted operating income was €150 million, a 10% decline from €166 million. Restructuring costs of €32 million (related to the projects optimizing the manufacturing network) and adverse currencies were partly offset by stronger price/mix effects and productivity improvements, AkzoNobel reports. More information: www.akzonobel.com
FINANCIALS Songwon achieves strong profit growth in 1Q 2018
F
or the quarter ended 31 March 2018, South Korea’s Songwon Industrial Group generated sales of KRW190.5 billion (c. E146 million), an 8.9% increase compared to sales of KRW175.0 billion in 1Q 2017. Operating profit for the period was KRW15.3 billion, up 17.6% from KRW13.0 billion a year earlier, while EBITDA increased by 11.7% to KRW23.7 billion. Net profit for the quarter was KRW11.5 billion, representing a substantial 39.3% increase compared to KRW8.3 billion in 1Q 2017. The company reports that business performance throughout the quarter was in line with its expectations, especially for its polymer stabilizers portfolio where demand remained strong across all regions. Volumes and revenues also continued to display growth at above-average rates for the market during the quarter, despite a slowdown in both China and Korea during the period due to the Chinese New Year celebrations in February, it says. In contrast, 1Q 2018 sales in Europe (+15.9%) and the Middle East (+14.6%) showed clear signs of growth compared to 1Q 2017. Sales of Songwon’s core polymer stabilizers increased by 17.1% year on year, from KRW113.6 billion in 1Q 2017 to KRW133.1 billion this year. Sales growth was also experienced in its tin intermediates, alkylphenols and intermediates, and ‘others’ product lines but sales in all other segments declined during 1Q 2018. Songwon notes that the price increases it initiated in 4Q 2017 are now showing a positive impact, offsetting the increase in the cost of raw materials. However, unfavourable foreign
Additives for Polymers
9
FINANCIALS
currency exchange rate developments continue to have a negative impact on the company’s results, mainly due to the weaker US dollar compared to the South Korean won. Following this positive start to the year, Songwon says it is ‘cautiously optimistic’ looking ahead. The second and third quarters have historically always been strong quarters for the company, and it foresees continued steady growth in the general demand for its products across the portfolio despite on-going uncertainties relating to foreign exchange rates, political instabilities and unpredictable regional economic developments. However, the company says it will continue to remain cautious and exercise prudent capital management, pressing forward on a variety of initiatives to secure profitability and support future growth. The group will also continue to implement price increases to offset the ever-increasing cost of raw materials. Tight supply/demand situations for its key products may possibly result in the imposition of further price increases, it says. In other news, Songwon has appointed Bodo Möller Chemie Russia LLC as the exclusive distributor of its comprehensive range of polymer stabilizers in Russia, Belarus, Ukraine and Kazakhstan, effective from 1 May 2018. Based in Moscow, Bodo Mӧller Chemie Russia is part of the Bodo Möller Chemie Group, a leading distributor of speciality chemicals for plastics, adhesives, coatings and other industrial sectors. ‘Selecting such an experienced partner signals another important step in developing Songwon’s market position in Eastern Europe’, comments global sales director Paolo Arnaboldi. Bodo Möller Chemie is headquartered in Offenbach am Main, Germany, and has 28 subsidiaries in Europe, Africa, Asia and America.
amounted to E2.88 million in 1Q 2018, up 29.3% from E2.23 million a year earlier. The Functional Fillers product segment, which produces alumina trihydrate (ATH) flame retardants for the plastics and wire & cable industries, and other additives, generated revenues of E29.3 million in the 2018 first quarter, up 1.0% from E29.0 million in the same period of the previous year. The increase was attributed largely to positive pricing effects aided by changes in product mix, which were partly offset by the relative weakness of the US dollar compared to the previous year’s level. The segment’s EBITDA declined 5% from E4.93 million in 1Q 2017 to E4.68 million this year. The Specialty Alumina segment, which produces materials for ceramics, posted revenues of E15.9 million, and EBITDA of E2.58 million. ‘We consider the first quarter of 2018 to be a success both for the industry and for us: the market drivers are intact, the messages we are getting from customers indicate a positive future development and our financial data speaks for itself’, comments Nabaltec’s CEO Johannes Heckmann. The company views 2018 as a ‘year of transition’ due to the resumption of production at its US subsidiary Nashtec. This will drag down margins and earnings particularly in the start-up phase in the second and third quarters, it notes. However, revenue growth ‘in the mid-single digits’ is expected for the year as a whole. Nabaltec generated revenues of E168.6 million in 2017, up 5.9% on the previous year, and EBIT up 50% to a record figure of E18.3 million.
More information: www.songwon.com More information: www.bm-chemie.com
Chemours doubles first-quarter earnings in 2018
Growth continues for Nabaltec in first quarter of 2018
G
erman flame retardants and fillers producer Nabaltec AG reported record-high quarterly revenues of E45.2 million in the first quarter of 2018, up 3.7% from the same period in 2017. The highest growth in regional terms was reported in Europe. Operating profit (EBIT) for the threemonth period was E4.3 million, up 7.5% from E4.0 million in 1Q 2017, while EBITDA gained 7.4% to reach E7.3 million. Net earnings after tax
10
Additives for Polymers
More information: www.nabaltec.de
T
he Chemours Company reported net sales of US$1.7 billion in the first quarter of 2018, representing a year-on-year increase of 20% from net sales of US$1.4 billion in the same period of the previous year. Net income for 1Q 2018 was $297 million, virtually double (+98%) the quarterly net income of $150 million generated by the company a year earlier. Adjusted EBITDA improved by 64% from $285 million in 1Q 2017 to $468 million this year. Several factors contributed to the revenue growth experienced in the three months to the end of March 2018, Chemours reports. Volume growth across all three segments
July 2018