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Stepan reports higher 2Q 2005 sales and earnings
FOCUS brief discussion of the product and its applications. Chemistry and Industry (London), 4 Jul 2005, (13), 13 (Website: http://www.chemind.org)
Kao earns patent for liquid detergent Kao Corp of Tokyo, Japan, has received Patent No US 6,894,016 B2 for a liquid detergent composition containing water, a water-soluble inorganic salt and at least one surfactant. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Mitchell & Sons patents shaving soap
ON
S U R FAC TA N T S
on price. Since 2001/2002 there has thus been a dramatic change on the Chinese detergents market. In terms of market share (in tonnes) the victors are local competitors with their cheap products and extensive marketing structure. International companies see their chances as lying mainly in speciality products such as liquid detergents, softeners or stain removers. Henkel estimates around 2.5 M tonnes of detergents are sold in China each year. This corresponds to a sum of RMB Yuan 12-14 bn. Volume growth is expected to be just 3-4% in the next few years, value growth 1-2%. Former state company Nice was the leader with sales of 800,000 tonnes in 2004. Henkel had sales of around 100,000 tonnes.
Mitchell & Sons LLC has been awarded Patent No US 6,893,631 B1 for a shaving soap to combat folliculitis. The soap contains castor oil, sodium hydroxide, a surfactant package, palm oil, mango butter, coconut oil, distilled water, and a base soap.
Nachrichten fuer Aussenhandel, 6 Jul 2005, 68 (128), 6 (in German)
HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Indian FMCG growth down at 4.4% in May 2005
Henkel patents dishwashing agent Henkel KgA of Dusseldorf, Germany, has been granted Patent No US 6,903,058 B2 for a solid, machine dishwashing agent having a builder and a copolymer of an unsaturated carboxylic acid and a monomer that contains sulfonic acid groups. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Unilever patents liquid cleanser Unilever Home & Personal Care USA has earned Patent No US 6,903,057 B1 for a personal wash liquid cleanser stabilized with a starch structuring system. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
MARKET REVIEWS China’s detergent companies successful with low-price strategy In deciding which detergent to buy, most Chinese customers work solely SEPTEMBER 2005
The fast moving consumer goods (FMCG) sector in India recorded a lower growth of 4.4% for May 2005. Price cuts for shampoos and detergents brought in during 2004 resulted in higher growth rates in May 2005. The growth of shampoo sales was 35% volume-wise and 19.5% value-wise for May 2005. Shampoo brands Head & Shoulders from Procter & Gamble (P&G) recorded a 44% growth, Clinic from Hindustan Lever Ltd (HLL) recorded a 23.3% growth whereas Sunsilk from HLL recorded a decline for May 2005. Detergent powder sales grew by 12.1%, with Ariel (P&G) recording a growth of 34% and Surf (HLL) a growth of 3%. HLL’s Wheel recorded a growth of 27% and Rin 20% for May 2005. Nirma reported a growth of 12% in value terms. During May 2005, sales of detergent bars declined by 4.7% with the exception of Rin which grew by 1% in value terms. In the toothpastes segment, volume sales were lower by 2.1% for May 2005 but leading players reported gain both in value and volume sales. Sales of Cibaca from Colgate Palmolive increased by 18% while that of Colgate increased by 0.7%. Closeup from HLL recorded a fall of 3%. In the soaps segment,
Godrej’s Fair Glow recorded a growth of 25% and Godrej No 1 a growth of 27%, while HLL’s Lifebuoy grew by 10%. Business Line, 9 Jul 2005, 12 (189), 4
COMPANY RESULTS Stepan reports higher 2Q 2005 sales and earnings Stepan Co reported results for 2Q and 1H ended Jun 2005. Net income was up 62% to $6.177 M during 2Q 2005 (net income of $3.802 M in 2Q 2004) and up 20% to $9.421 M during 1H 2005 ($7.832 M in 1H 2004). Higher sales volumes, higher selling prices and the effect of foreign currency translation resulted in an increase in 2Q net sales of 18% to $278.353 M ($236.347 M in 2Q 2004), and a 19% increase in net sales to $542.605 M during 1H 2005 ($457.734 M in 1H 2004). Surfactant sales were up 14% for 2Q 2005 to $207.051 M due to higher volume and higher selling prices. Surfactant volume grew in North America, Europe and Latin America. The acquisition of FCC in Brazil early in the year [Focus on Surfactants, Nov 2004] had a significant positive effect on surfactant volumes. However, quarterly surfactant earnings declined due to lower margins in Europe, a weaker sales mix in North America and higher research and marketing expenses. The weaker margins in Europe reflect the greater difficulty in recovering higher raw material costs than in North America. Company chairman/CEO F Quinn Stepan said that European surfactant earnings are forecast to improve over the balance of the year in large part due to improved volume in the UK due to the closure of competitor Huntsman’s UK plant. Research, development and technical services expenses were $7.570 M during 2Q 2005 and $15.197 M during 1H 2005 ($6.432 M in 2Q 2004 and $12.746 M in 1H 2004). Stepan 2Q and 1H 2005 results, 20 Jul 2005 (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)
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Kao earns patent for liquid detergent Kao Corp of Tokyo, Japan, has received Patent No US 6,894,016 B2 for a liquid detergent composition containing water, a water-soluble inorganic salt and at least one surfactant. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Mitchell & Sons patents shaving soap
ON
S U R FAC TA N T S
on price. Since 2001/2002 there has thus been a dramatic change on the Chinese detergents market. In terms of market share (in tonnes) the victors are local competitors with their cheap products and extensive marketing structure. International companies see their chances as lying mainly in speciality products such as liquid detergents, softeners or stain removers. Henkel estimates around 2.5 M tonnes of detergents are sold in China each year. This corresponds to a sum of RMB Yuan 12-14 bn. Volume growth is expected to be just 3-4% in the next few years, value growth 1-2%. Former state company Nice was the leader with sales of 800,000 tonnes in 2004. Henkel had sales of around 100,000 tonnes.
Mitchell & Sons LLC has been awarded Patent No US 6,893,631 B1 for a shaving soap to combat folliculitis. The soap contains castor oil, sodium hydroxide, a surfactant package, palm oil, mango butter, coconut oil, distilled water, and a base soap.
Nachrichten fuer Aussenhandel, 6 Jul 2005, 68 (128), 6 (in German)
HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Indian FMCG growth down at 4.4% in May 2005
Henkel patents dishwashing agent Henkel KgA of Dusseldorf, Germany, has been granted Patent No US 6,903,058 B2 for a solid, machine dishwashing agent having a builder and a copolymer of an unsaturated carboxylic acid and a monomer that contains sulfonic acid groups. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
Unilever patents liquid cleanser Unilever Home & Personal Care USA has earned Patent No US 6,903,057 B1 for a personal wash liquid cleanser stabilized with a starch structuring system. HAPPI, Household & Personal Products Industry, Jul 2005, 42 (7), 26
MARKET REVIEWS China’s detergent companies successful with low-price strategy In deciding which detergent to buy, most Chinese customers work solely SEPTEMBER 2005
The fast moving consumer goods (FMCG) sector in India recorded a lower growth of 4.4% for May 2005. Price cuts for shampoos and detergents brought in during 2004 resulted in higher growth rates in May 2005. The growth of shampoo sales was 35% volume-wise and 19.5% value-wise for May 2005. Shampoo brands Head & Shoulders from Procter & Gamble (P&G) recorded a 44% growth, Clinic from Hindustan Lever Ltd (HLL) recorded a 23.3% growth whereas Sunsilk from HLL recorded a decline for May 2005. Detergent powder sales grew by 12.1%, with Ariel (P&G) recording a growth of 34% and Surf (HLL) a growth of 3%. HLL’s Wheel recorded a growth of 27% and Rin 20% for May 2005. Nirma reported a growth of 12% in value terms. During May 2005, sales of detergent bars declined by 4.7% with the exception of Rin which grew by 1% in value terms. In the toothpastes segment, volume sales were lower by 2.1% for May 2005 but leading players reported gain both in value and volume sales. Sales of Cibaca from Colgate Palmolive increased by 18% while that of Colgate increased by 0.7%. Closeup from HLL recorded a fall of 3%. In the soaps segment,
Godrej’s Fair Glow recorded a growth of 25% and Godrej No 1 a growth of 27%, while HLL’s Lifebuoy grew by 10%. Business Line, 9 Jul 2005, 12 (189), 4
COMPANY RESULTS Stepan reports higher 2Q 2005 sales and earnings Stepan Co reported results for 2Q and 1H ended Jun 2005. Net income was up 62% to $6.177 M during 2Q 2005 (net income of $3.802 M in 2Q 2004) and up 20% to $9.421 M during 1H 2005 ($7.832 M in 1H 2004). Higher sales volumes, higher selling prices and the effect of foreign currency translation resulted in an increase in 2Q net sales of 18% to $278.353 M ($236.347 M in 2Q 2004), and a 19% increase in net sales to $542.605 M during 1H 2005 ($457.734 M in 1H 2004). Surfactant sales were up 14% for 2Q 2005 to $207.051 M due to higher volume and higher selling prices. Surfactant volume grew in North America, Europe and Latin America. The acquisition of FCC in Brazil early in the year [Focus on Surfactants, Nov 2004] had a significant positive effect on surfactant volumes. However, quarterly surfactant earnings declined due to lower margins in Europe, a weaker sales mix in North America and higher research and marketing expenses. The weaker margins in Europe reflect the greater difficulty in recovering higher raw material costs than in North America. Company chairman/CEO F Quinn Stepan said that European surfactant earnings are forecast to improve over the balance of the year in large part due to improved volume in the UK due to the closure of competitor Huntsman’s UK plant. Research, development and technical services expenses were $7.570 M during 2Q 2005 and $15.197 M during 1H 2005 ($6.432 M in 2Q 2004 and $12.746 M in 1H 2004). Stepan 2Q and 1H 2005 results, 20 Jul 2005 (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)
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