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Stepan reports 2Q and 1H earnings
FOCUS number of personal care companies to go beyond the natural and provide green and sustainable solutions with high performance and value-added benefits. In a separate but related report, data from Mintel showed that sales of the US natural/organic personal care (NOPC) market dipped 2% to $462 M in 2009 after growing at double-digit rates in 2007 and 2008. The NOPC market was not the only sector that receded, as other personal care segments also deteriorated. Analysts, personal care firms and suppliers all agree that the green sector showed its staying power when it weathered the economic slump. Mintel predicts that the NOPC market will grow by 21% to $650 M by 2010 from the 2009 level, driven by new fields. Chemistry and Industry (London), 21 Jun 2010, (12), 18-20 (Website: http://www.chemind.org) & HAPPI, Household & Personal Products Industry, Jun 2010, 47 (6), 51-52,54,56
COMPANY RESULTS Stepan reports 2Q and 1H earnings Stepan Co reported net sales for 2Q 2010 of $366.5 M (+14% over $321.2 M in 2Q 2009) and for 1H 2010 of $703.5 M (+10%). Net income for 2Q 2010 was $17.05 M (-13%) and for 1H 2010 $37.7 M (+9%). Gross profit for 2Q 2010 declined 3% to $63.5 M. The company’s net debt levels increased by $4.2 M for 2Q 2010 and by $26.3 M for 1H 2010. The research, development and technical services expenses for 2Q 2010 were $10.0 M, up 12%, while for 1H 2010 these expenses rose 13%. The net sales for the company’s surfactants segment in 2Q 2010 were up 11% to $264.6 M while for the six months to end Jun 2010 they rose 6% to $526.9 M. Sales volumes for the segment rose 4% for 2Q 2010 but gross profit declined 4%. Stepan has made recent investments in Singapore, Poland and the Philippines (see p 2) to deliver long-term growth for the company. The company’s 1H 2010 volume gains were generated by improved market demand, market share gains and greater penetration of new end-use markets. The SEPTEMBER 2010
ON
S U R FAC TA N T S
company says these opportunities for growth will continue for the balance of 2010 and into 2011. Stepan Co financials 2Q and 1H 2010, 27 Jul 2010, (Stepan Co, 22 W, Frontage Road, Northfield, IL 60093, USA, tel: +1 847 446 7500, fax: +1 847 501 2100, website: http://www.stepan.com)
Reckitt Benckiser reports increased profits in 2Q 2010 The Anglo-Dutch household product, hygiene and health group Reckitt Benckiser has reported a 23% rise in net result for 2Q 2010. Its net profit was £380 M (€455 M), above analyst forecasts of £363.4 M and the group’s own forecast of £365 M. Reckitt Benckiser attributes the improved performance to strong growth in developing markets and to new products. The group posted a 10% increase in turnover to £2.06 bn and a 21% rise in operating profit. The company recently agreed a £2.5 bn deal for SSL, the consumer goods group behind Durex and Scholl footcare, to boost its health and personal care arm. The takeover of SSL is expected to increase the division’s net revenues by 36% to around £2.8 bn, or a third of total group sales. SSL has operations in more than 30 countries, with manufacturing in India, Thailand and China, in addition to its UK sites. The group saw pre-tax profits leap 51% to £115.3 M in the year to 31 Mar as sales soared, thanks to growth in burgeoning markets such as China a market in which Reckitt wants to expand. La Tribune, 26 Jul 2010, (Website: http://www.latribune.fr) (in French) & The Independent, 21 Jul 2010, (Website: http://www.independent.co.uk)
material farnesene [Focus on Surfactants, Jun 2010]. Farnesene is used for a range of chemical products, including emollients, flavours, fragrances, surfactants, isoprene, industrial and automotive oils and lubricants. Biofene will be used in some of P&G’s speciality chemical products and as a renewable raw material in M&G’s PET. Amyris and P&G have also signed a supply agreement on conditions that specific technical and commercial milestones are met. Total recently disclosed plans to buy 17% of Amyris’ equity. Chemical Week, 12 Jul 2010, (Website: http://www.chemweek.com) & Chemical and Engineering News, 28 Jun 2010, 88 (26), 23 (Website: http://www.cen-online.org)
P&G eyes India for expansion P&G is looking at India as an excellent prospect for growth, as the firm anticipates its fabric care sales in the country to increase six-fold in 2010 from 2003 levels. India plays a major role in the company’s scheme to boost its customer base by 1 bn from the current 3.5 bn. P&G’s market share for laundry detergent in India is at 8-9% versus rival Hindustan Unilever’s 37%. Although P&G was able to expand its market share for shampoo from 15% to 25% in the past six years, it is still way behind Hindustan Unilever’s 46% share. HAPPI, Household & Personal Products Industry, Jul 2010, 47 (7), 72
3M acquires JR Phoenix
COMPANY NEWS P&G, M&G tap Amyris for bio-based product development US industrial biotechnology company Amyris has entered into separate agreements with Procter & Gamble (P&G) and Mossi & Ghisolfi (M&G) for the joint development of products with Biofene, the trade name for Amyris’ Brazilian-sugarcane-based raw 7
US speciality chemicals group 3M has acquired JR Phoenix for an undisclosed sum. JR Phoenix makes hygiene products including soaps, antimicrobial gels, creams and shampoos. Chimie Pharma Hebdo, 7 Jun 2010, (511), 11 (in French)
Hallstar forms personal care jv Hallstar and Scandiflex have formed the Sao Paulo, Brazil-based equal jv Hallstar do Brazil to sell Hallstar’s personal care ingredients. Chemical Week, 24 May 2010, (Website: http://www.chemweek.com)
COMPANY RESULTS Stepan reports 2Q and 1H earnings Stepan Co reported net sales for 2Q 2010 of $366.5 M (+14% over $321.2 M in 2Q 2009) and for 1H 2010 of $703.5 M (+10%). Net income for 2Q 2010 was $17.05 M (-13%) and for 1H 2010 $37.7 M (+9%). Gross profit for 2Q 2010 declined 3% to $63.5 M. The company’s net debt levels increased by $4.2 M for 2Q 2010 and by $26.3 M for 1H 2010. The research, development and technical services expenses for 2Q 2010 were $10.0 M, up 12%, while for 1H 2010 these expenses rose 13%. The net sales for the company’s surfactants segment in 2Q 2010 were up 11% to $264.6 M while for the six months to end Jun 2010 they rose 6% to $526.9 M. Sales volumes for the segment rose 4% for 2Q 2010 but gross profit declined 4%. Stepan has made recent investments in Singapore, Poland and the Philippines (see p 2) to deliver long-term growth for the company. The company’s 1H 2010 volume gains were generated by improved market demand, market share gains and greater penetration of new end-use markets. The SEPTEMBER 2010
ON
S U R FAC TA N T S
company says these opportunities for growth will continue for the balance of 2010 and into 2011. Stepan Co financials 2Q and 1H 2010, 27 Jul 2010, (Stepan Co, 22 W, Frontage Road, Northfield, IL 60093, USA, tel: +1 847 446 7500, fax: +1 847 501 2100, website: http://www.stepan.com)
Reckitt Benckiser reports increased profits in 2Q 2010 The Anglo-Dutch household product, hygiene and health group Reckitt Benckiser has reported a 23% rise in net result for 2Q 2010. Its net profit was £380 M (€455 M), above analyst forecasts of £363.4 M and the group’s own forecast of £365 M. Reckitt Benckiser attributes the improved performance to strong growth in developing markets and to new products. The group posted a 10% increase in turnover to £2.06 bn and a 21% rise in operating profit. The company recently agreed a £2.5 bn deal for SSL, the consumer goods group behind Durex and Scholl footcare, to boost its health and personal care arm. The takeover of SSL is expected to increase the division’s net revenues by 36% to around £2.8 bn, or a third of total group sales. SSL has operations in more than 30 countries, with manufacturing in India, Thailand and China, in addition to its UK sites. The group saw pre-tax profits leap 51% to £115.3 M in the year to 31 Mar as sales soared, thanks to growth in burgeoning markets such as China a market in which Reckitt wants to expand. La Tribune, 26 Jul 2010, (Website: http://www.latribune.fr) (in French) & The Independent, 21 Jul 2010, (Website: http://www.independent.co.uk)
material farnesene [Focus on Surfactants, Jun 2010]. Farnesene is used for a range of chemical products, including emollients, flavours, fragrances, surfactants, isoprene, industrial and automotive oils and lubricants. Biofene will be used in some of P&G’s speciality chemical products and as a renewable raw material in M&G’s PET. Amyris and P&G have also signed a supply agreement on conditions that specific technical and commercial milestones are met. Total recently disclosed plans to buy 17% of Amyris’ equity. Chemical Week, 12 Jul 2010, (Website: http://www.chemweek.com) & Chemical and Engineering News, 28 Jun 2010, 88 (26), 23 (Website: http://www.cen-online.org)
P&G eyes India for expansion P&G is looking at India as an excellent prospect for growth, as the firm anticipates its fabric care sales in the country to increase six-fold in 2010 from 2003 levels. India plays a major role in the company’s scheme to boost its customer base by 1 bn from the current 3.5 bn. P&G’s market share for laundry detergent in India is at 8-9% versus rival Hindustan Unilever’s 37%. Although P&G was able to expand its market share for shampoo from 15% to 25% in the past six years, it is still way behind Hindustan Unilever’s 46% share. HAPPI, Household & Personal Products Industry, Jul 2010, 47 (7), 72
3M acquires JR Phoenix
COMPANY NEWS P&G, M&G tap Amyris for bio-based product development US industrial biotechnology company Amyris has entered into separate agreements with Procter & Gamble (P&G) and Mossi & Ghisolfi (M&G) for the joint development of products with Biofene, the trade name for Amyris’ Brazilian-sugarcane-based raw 7
US speciality chemicals group 3M has acquired JR Phoenix for an undisclosed sum. JR Phoenix makes hygiene products including soaps, antimicrobial gels, creams and shampoos. Chimie Pharma Hebdo, 7 Jun 2010, (511), 11 (in French)
Hallstar forms personal care jv Hallstar and Scandiflex have formed the Sao Paulo, Brazil-based equal jv Hallstar do Brazil to sell Hallstar’s personal care ingredients. Chemical Week, 24 May 2010, (Website: http://www.chemweek.com)