- Email: [email protected]
Stepan reports higher quarter and full year 2007 earnings
FOCUS Enzymes for industrial applications (Ref: BIO030E) The global market for industrial enzymes increased from $2.2 bn in 2006 to an estimated $2.3 bn by the end of 2007. It should reach $2.7 bn by 2012, a compound annual growth rate (CAGR) of 4%. This report contains descriptions of various technical enzyme applications including detergent, textile, pulp and paper, leather, and miscellaneous chemicals; also, food applications including confectionery and sweeteners, dairy, fruit and vegetable processing, and animal feed. The current market status of enzymes, trends and forecasts for growth over the next 5 years are discussed and an analysis of the enzymes industry on a worldwide basis, both from a marketing and application perspective, is given. Discussion of emerging technologies with a thorough patent analysis is detailed together with information about major players and their contributions to the enzymes industry. The greatest growth rate is expected in the animal enzymes sector. New and emerging applications have helped drive demand for enzymes, and the industry is responding with a continuous stream of innovative products. $4250.00 Business Communications Co Inc, 40 Washington St, Suite 110, Wellesley, MA 02481, USA. Tel: +1 781 489 7304. Fax: +1 781 489 7308. E-mail: [email protected]. Website: http://www.bccresearch.com (Jan 2008)
COMPANY RESULTS Stepan reports higher quarter and full year 2007 earnings Stepan Co reported financial results for 4Q and year ended Dec 2007. Net income for 4Q 2007 was $1.6 M compared to a loss of $5.5 M in 4Q 2006. Surfactant gross profit grew by $7.2 M, or 43%, on an improved product and customer mix, which contributed to higher margins for 4Q 2007. The 4Q 2007 surfactant volume declined 1% on lower biodiesel volume. North America, Latin America and Europe all posted improvement. 6
ON
S U R FAC TA N T S
Net sales increased 19% due to higher selling prices (14%), the effect of foreign currency translation (4%), and improved volume (1%) for 4Q 2007. Net income for 2007 rose to $15.1 M from $6.7 M in 2006. Surfactant gross profit rose by $10.4 M, or 13%, on a 4% increase in volume, an improved product mix and the recovery of escalating raw material costs in selling prices for 2007. This broad-based improvement more than offset lower biodiesel profitability and profit margins in Latin America. Net sales increased 13% due to higher volume (5%), selling prices (5%) and the effect of foreign currency translation (3%). Surfactant 2007 net sales increased 11% on a 4% gain in volume. The volume gains were largely in North America on laundry and cleaning products including fabric softeners, agricultural products and speciality blends, which more than offset weaker biodiesel sales volume. High farm crop prices have stimulated agricultural product demand, which is expected to remain strong through 2008. European sales volume grew at a 5% rate, primarily due to increased sales of fabric softeners. Latin American volume declined slightly. Stepan Co 4Q and 2007 financial results, 12 Feb 2008, (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)
Reckitt Benckiser reports strong growth in 2007 Reckitt Benckiser, the Anglo-Dutch household products firm, achieved net income of £905 M in 2007, up 15% year on year, based on revenue growth of 7% to £5.27 bn. The company said brands such as Vanish Oxi and Air Wick Freshmatic continued to perform well, while there was a 10% like-for-like sales improvement at the Boots healthcare business acquired for £1.93 bn in 2006. Reckitt is anticipating sales growth of around 6-7% in 2008 and a net income rise of 10%. The first half of 2008 will see a number of product launches, including a new version of Cillit Bang to remove stains from surfaces in areas such as the garage and kitchen. It will also introduce Dettol hand sanitizer, incorporating a formulation used in hospitals. The growth forecasts for 2008 came
despite a slight slowdown in the final three months of 2007, with fourth quarter revenues up by 6% to £1.37 bn and net income up only 2% at £292 M following a one-off tax impact. In Europe, which generates 54% of the company’s sales, revenues were 7% higher at £2.81 bn in 2007. However, there are ominous signs of increasing competitive pressure and general consumer weakness in Europe, which could affect performance in 2008. Reckitt, like its arch rival Procter & Gamble, spends heavily on marketing its 18 leading brands, leaving enough firepower to promote its pipeline of new products. In total it spends about 12% of sales on marketing. In 2007 Reckitt lost market share in dishwasher soap in countries where Procter & Gamble joined the fray. The Independent, 13 & 14 Feb 2008, (Website: http://www.independent.co.uk), La Tribune, 13 Feb 2008, (Website: http://www.latribune.fr) (in French) & Economist, 16 Feb 2008, 386 (8567), 76
Colgate announces strong 4Q and FY 2007, exceeding expectations For its 4Q 2007 (period ends 31 Dec 2007), Colgate-Palmolive Co reported excellent worldwide sales and unit volume growth together with higherthan-expected earnings growth. Worldwide sales grew 13.5% to $3.64 bn and unit volume grew 5.0%, as reported. Excluding divestments, worldwide sales and unit volume grew 14.0% and 5.5%, respectively. Global pricing increased 2.0% and foreign exchange added 6.5%. The very strong top-line growth was supported by a 14% increase in worldwide advertising spending. Reported net income in 4Q 2007 was $414.9 M. Excluding restructuring charges and the prior year gain on the sale of the company’s household bleach business in Canada, net income in the quarter increased 15% versus 4Q 2006 to a record $490.7 M. For the full year 2007, worldwide sales as reported increased 12.5% to $13.79 bn, an all-time high, including 6.5% unit volume growth, 1.0% higher pricing and 5.0% positive foreign exchange. Global sales and global unit volume grew 13.0% and 7.0%, respectively, excluding divestments. As reported, net income for 2007 was $1.74 bn compared to $1.35 bn in 2006. APRIL 2008
COMPANY RESULTS Stepan reports higher quarter and full year 2007 earnings Stepan Co reported financial results for 4Q and year ended Dec 2007. Net income for 4Q 2007 was $1.6 M compared to a loss of $5.5 M in 4Q 2006. Surfactant gross profit grew by $7.2 M, or 43%, on an improved product and customer mix, which contributed to higher margins for 4Q 2007. The 4Q 2007 surfactant volume declined 1% on lower biodiesel volume. North America, Latin America and Europe all posted improvement. 6
ON
S U R FAC TA N T S
Net sales increased 19% due to higher selling prices (14%), the effect of foreign currency translation (4%), and improved volume (1%) for 4Q 2007. Net income for 2007 rose to $15.1 M from $6.7 M in 2006. Surfactant gross profit rose by $10.4 M, or 13%, on a 4% increase in volume, an improved product mix and the recovery of escalating raw material costs in selling prices for 2007. This broad-based improvement more than offset lower biodiesel profitability and profit margins in Latin America. Net sales increased 13% due to higher volume (5%), selling prices (5%) and the effect of foreign currency translation (3%). Surfactant 2007 net sales increased 11% on a 4% gain in volume. The volume gains were largely in North America on laundry and cleaning products including fabric softeners, agricultural products and speciality blends, which more than offset weaker biodiesel sales volume. High farm crop prices have stimulated agricultural product demand, which is expected to remain strong through 2008. European sales volume grew at a 5% rate, primarily due to increased sales of fabric softeners. Latin American volume declined slightly. Stepan Co 4Q and 2007 financial results, 12 Feb 2008, (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)
Reckitt Benckiser reports strong growth in 2007 Reckitt Benckiser, the Anglo-Dutch household products firm, achieved net income of £905 M in 2007, up 15% year on year, based on revenue growth of 7% to £5.27 bn. The company said brands such as Vanish Oxi and Air Wick Freshmatic continued to perform well, while there was a 10% like-for-like sales improvement at the Boots healthcare business acquired for £1.93 bn in 2006. Reckitt is anticipating sales growth of around 6-7% in 2008 and a net income rise of 10%. The first half of 2008 will see a number of product launches, including a new version of Cillit Bang to remove stains from surfaces in areas such as the garage and kitchen. It will also introduce Dettol hand sanitizer, incorporating a formulation used in hospitals. The growth forecasts for 2008 came
despite a slight slowdown in the final three months of 2007, with fourth quarter revenues up by 6% to £1.37 bn and net income up only 2% at £292 M following a one-off tax impact. In Europe, which generates 54% of the company’s sales, revenues were 7% higher at £2.81 bn in 2007. However, there are ominous signs of increasing competitive pressure and general consumer weakness in Europe, which could affect performance in 2008. Reckitt, like its arch rival Procter & Gamble, spends heavily on marketing its 18 leading brands, leaving enough firepower to promote its pipeline of new products. In total it spends about 12% of sales on marketing. In 2007 Reckitt lost market share in dishwasher soap in countries where Procter & Gamble joined the fray. The Independent, 13 & 14 Feb 2008, (Website: http://www.independent.co.uk), La Tribune, 13 Feb 2008, (Website: http://www.latribune.fr) (in French) & Economist, 16 Feb 2008, 386 (8567), 76
Colgate announces strong 4Q and FY 2007, exceeding expectations For its 4Q 2007 (period ends 31 Dec 2007), Colgate-Palmolive Co reported excellent worldwide sales and unit volume growth together with higherthan-expected earnings growth. Worldwide sales grew 13.5% to $3.64 bn and unit volume grew 5.0%, as reported. Excluding divestments, worldwide sales and unit volume grew 14.0% and 5.5%, respectively. Global pricing increased 2.0% and foreign exchange added 6.5%. The very strong top-line growth was supported by a 14% increase in worldwide advertising spending. Reported net income in 4Q 2007 was $414.9 M. Excluding restructuring charges and the prior year gain on the sale of the company’s household bleach business in Canada, net income in the quarter increased 15% versus 4Q 2006 to a record $490.7 M. For the full year 2007, worldwide sales as reported increased 12.5% to $13.79 bn, an all-time high, including 6.5% unit volume growth, 1.0% higher pricing and 5.0% positive foreign exchange. Global sales and global unit volume grew 13.0% and 7.0%, respectively, excluding divestments. As reported, net income for 2007 was $1.74 bn compared to $1.35 bn in 2006. APRIL 2008