Stepan reports 2Q 2013 results

Stepan reports 2Q 2013 results

F O C U S industry while increasing competition for foreign entrants. Original Source: SPC, Soap, Perfumery and Cosmetics, Jun 2013, 86 (6), 17 (Websi...

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F O C U S industry while increasing competition for foreign entrants. Original Source: SPC, Soap, Perfumery and Cosmetics, Jun 2013, 86 (6), 17 (Website: © HPCi Media Ltd 2013

Making the most of marketing: trends affecting the cosmetics industry During the in-cosmetics 2013 presentations on marketing trends, various trends and issues affecting the cosmetics business were discussed. Kline & Company valued the global market for personal care at $300 bn and reported that it is growing by 4.5%/y, while the market for ingredients for personal care is valued at between $14 bn and $18 bn. While a big portion of sales is represented by Europe and the USA, the growth in these regions is actually behind Japan, China, southeast Asia and India. In Europe, growth rates for unpopular antimicrobials, ‘harsh’ surfactants, silicones and parabens are being dominated by inorganic UV absorbers, natural emollients and alternatives to parabens. While the global beauty industry is valued at $16 bn, premium brands are powering ahead to reach $4 bn. In future, the beauty industry is expected to see more foam formulations. A presentation by Mintel tackled the importance of fragrance in cosmetics. The manufacturers’ need for linking scent to functionality is highlighted. Issues in health and sustainability were analysed, including ecolabel usage in cosmetics and household detergents. Concerns in ingredients include biocidals and benzophenone-2. Debates on sustainable water usage in the cosmetics industry and the new Standard ISO 14046 were held. Original Source: SPC, Soap, Perfumery and Cosmetics, Jun 2013, 86 (6), 57-58,61 (Website: © HPCi Media Ltd 2013

COMPANY RESULTS Stepan reports 2Q 2013 results US-based Stepan reported higher 2Q 2013 net income of $22.7 M, up 6% year on year from $21.4 M in 2Q OCTOBER 2013



2012. However, excluding deferred compensation plan income, 2Q net income declined 10% year on year. Net sales of $474.4 M were up 1% for the quarter. Sales volumes across all three businesses rose by 4% and selling prices decreased by 3%. The company’s surfactant sales volume rose by 5%, with all regions contributing. However, gross profit for the business declined by 7% to $48.3 M in 2Q 2013. Polymer sales volume grew 1% and gross profit 15% to $19.9 M. For the speciality products segment, 2Q gross profit rose 19% to $6.6 M. Original Source: Stepan Company, 2013. Found on PR Newswire, 24 Jul 2013, (Website: Original Source: ICIS Chemical Business, 29 Jul-11 Aug 2013, 284 (3), (Website: © Reed Business Information Limited 2013

Huntsman releases 2Q 2013 results Huntsman Corp reported 2Q 2013 results with revenues of $2830 M, down 3% from $2914 M in 2Q 2012. Adjusted EBITDA of $304 M was down $72 M from $376 M in 2Q 2012, primarily as a result of the decrease in its Pigments division, but up $84 M (or 38%) compared to $220 M in 1Q 2013. Net income attributable to Huntsman was $47 M in 2Q 2013, compared to net income of $124 M in 2Q 2012 and a net loss of $24 M in 1Q 2013. The company expects to see an improving second half of the year. The Performance Products division - home to the company’s surfactants business - posted 2Q 2013 sales revenues of $777 M, essentially unchanged from the previous year. Adjusted EBITDA increased 28% year on year to $111 M, primarily due to higher margins in maleic anhydride and US ethylene derivatives. Original Source: Huntsman Corporation, 2013. Found on PR Newswire, 31 Jul 2013, (Website:

Croda’s 2Q operating profit rises by 4.4% The 2Q 2013 operating profit from continuing operations of UK-based speciality chemicals company Croda International grew by 4.4% year on year to £71.1 M ($109.4 M). Its three reporting segments, consumer care, performance technologies and

industrial chemicals, posted gains. Compared to 2Q 2012, sales increased by 2.3% to £279.6 M in 2Q 2013. In other news, Croda has bought a 65% stake in China’s Sichuan Sipo Chemical Co for £38.2 M, including a £8 M debt. The company, with 300 employees, produces speciality derivatives from natural raw materials, including primary amides, novel fatty acids and speciality esters. Original Source: ICIS Chemical Business, 29 Jul-11 Aug 2013, 284 (3), (Website: © Reed Business Information Limited 2013. Original Source: Plastics and Rubber Weekly, 2 Aug 2013, (Website: © Crain Communications Inc 2013

Henkel: sales and earnings performance in 2Q 2013 Henkel made up for the economic crisis in southern Europe with growth in the world’s emerging regions. Thanks to its flourishing detergents and cosmetics businesses, sales and profits were up in 2Q 2013. The adhesives division also saw a return to growth. 2Q sales were up 1.9% at €4.286 bn. Organic sales, which exclude the impact of foreign exchange and acquisitions/ divestments, rose by 4.0%. The share of sales attributable to the emerging markets increased from 43% in 2Q 2012 to 45%. Reported operating profit (EBIT) was €607 M compared to €583 M in 2Q 2012. Reported return on sales amounted to 14.2% compared to 13.9% in the prior-year quarter. Net profit was up from €394 M to €418 M. The full-year forecast has been confirmed, with organic sales growth of 3-5% expected. The Laundry & Home Care business recorded strong sales growth in 2Q 2013 and a very strong increase in adjusted return on sales. The business sector also succeeded in further expanding its share of its relevant markets. Organically, sales rose by 5.8% year on year. Nominal sales increased by 3.4% to €1186 M. This strong organic sales performance was driven primarily by the emerging markets, in which the division achieved a double-digit percentage increase overall. Despite the unrest, this applies also for the Africa/Middle East region. Eastern Europe also recorded very strong sales growth, driven mainly by 5