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Stepan reports strong 3Q 2016 results
FOCUS Tegopren. The Tegopren product range includes defoamer boosters, which are based on organo-modified siloxane chemistry, for various applications in the production processes. The Arosurf brand comprises surfactant-based softeners and debonders for tissue and fluff pulp production, which are either substantive or non-substantive. The highly substantive softeners allow good machine operation conditions, superior bulk softness and excellent surface smoothness of the tissue to be achieved. Most of the Arosurf products are food contact compliant. The nonsubstantive softeners for topical application on the sheet before the dryer combine moderate bulkiness with good surface softness of the tissue. Arosurf PA 858, the latest offering of this type, is formulated using traditional cosmetic raw materials. Described as a blend of nonionic softeners, it provides excellent softness and does not harm tensile strength (non-debonding). Tissues and towels will have a unique, smooth feeling. The product is nonhazardous and can be applied as a spray-on in the felt section of the tissue machine. It is recommended for all grades of wood such as pine or eucalyptus (long and short fibres), also recycled fibres and blends. The product is quat-free, non-irritating and odour free. Evonik reports that tissue from one of its first clients using Arosurf PA 858 has been approved by Green Seal in the USA. Original source: Evonik Industries, 12 Oct 2016 (Website: http://corporate.evonik.com/) © Evonik Industries AG 2016
BASF sets out path to enhance leading position in Japan’s construction chemicals industry BASF is taking a series of measures to grow its construction chemicals business in Japan, including a new company structure and an enhanced focus on technical capabilities and new solutions. Leveraging the success of the Pozzolith brand of water-reducing products (ie superplasticizers) in Japan, with its legacy of trust and innovation, BASF is reorganizing its construction chemicals business in Japan by concentrating its sales and distribution management, field application and technical services in a new organization, Pozzolith Solutions Ltd, effective 1 Apr 2017. In the new set-up, Pozzolith Solutions will act as a flexible, agile and customer-focused
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organization. The company will integrate all customer-facing functions, which have to date been divided between BASF Japan Ltd and BASF subsidiary Taiko Shoji Ltd. BASF Japan will focus on production management, R&D and industry advocacy. It will reallocate the staff and job tasks of the construction chemicals team according to the new organizational set-up, to optimize operational efficiency and customer focus. There is hardly any construction market in the world as demanding as that in Japan. Its unique features include the challenges of seismic reliability, high-performance transportation links, green building and sustainability, as well as the demographic change and focus on maximizing labour efficiency. BASF claims to be the market leader in the admixture business in Japan, and recently announced the expansion of its team at the Chigasaki Technical Development Center (TDC). The new set-up, composed of a team of six scientists in the Chigasaki TDC, will focus on specific innovation needs for improving the durability properties of concrete, as well as new technologies to meet Japan's most-demanding construction requirements. Original source: BASF, 17 Oct 2016, (Website: http://www.basf.com/) © BASF 2016
LEGISLATION California’s OEHHA intends to add PFOA and PFOS to Prop 65 list California's Office of Environmental Health Hazard Assessment (OEHHA) has declared plans to include perfluorooctane sulfonate (PFOS), CAS #1763-23-1, and perfluorooctanoic acid (PFOA), CAS #335-67-1, in the state's list of chemicals causing reproductive toxicity under Proposition 65 (California's Safe Drinking Water and Toxic Enforcement Act of 1986). Once PFOS and PFOA are listed, producers will have a year to include warnings for these chemicals on their product labels. The OEHHA is requesting comments as to whether PFOS and PFOA meet the criteria set forth in the Prop 65 regulations for authoritative bodies listings. Original Source: Coatings Today, 28 Sep 2016, (Website: http://www.paint.org/) © American Coatings Association 2016
MARKET REVIEWS Global emulsifier market to reach $8.44 bn by 2021 According to MarketsandMarkets' report 'Emulsifier Market by Source (Bio-based and Synthetic), Application (Food Emulsifiers, Cosmetics & Personal Care, Oilfield Chemical, Pharmaceutical and Agrochemical) and Region - Global Forecast to 2021', the size of the global emulsifiers market is projected to reach $8.44 bn by 2021, at a projected compound annual growth rate (CAGR) of 6.8% during the forecast period. Europe is the largest sector in the global emulsifier market and is growing as the demand in end-use applications such as food, cosmetics & personal care, oilfield chemicals and pharmaceutical products is increasing. Food emulsifiers have the largest market share in the overall European emulsifiers market. The development of the food processing industry is the major reason for the dominance of Europe in the global market. The market for emulsifiers in the oilfield chemicals segment is also promising in Europe, especially in countries such as Russia and Germany. Most of the big players in the emulsifier market, such as Solvay, BASF, Kerry Group, AkzoNobel, Evonik Industries, Clariant and DSM, are Europe-based and supply their products across the globe. Other major players include Dow Corning, Cargill and ADM. Original Source: MarketsandMarkets, 2016. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 18 Oct 2016, (Website: http://www. specialchem4cosmetics.com)
COMPANY RESULTS Stepan reports strong 3Q 2016 results On 18 Oct 2016, Stepan Co reported its financial results for the three and nine months ended 30 Sep 2016. For 3Q 2016, the company's reported net income was $20.4 M, an 18% decrease versus $24.9 M a year earlier. Adjusted net income was $24.5 M, a 16% increase December 2016
FOCUS versus $21.1 M in 3Q 2015. Sales were on a par with 3Q 2015 at $445 M, although total company sales volume increased by 2% for 3Q 2016. Surfactant sales were flat year on year at $290 M, with global surfactant volumes also flat, but operating income decreased by 5% versus the previous year to $20.7 M. Most of this decrease was attributable to lower sales volumes in Latin American and Europe. North American surfactant operating income improved on higher volumes. Polymer operating income was $27.1 M, a 10% increase versus the prior year. This was mostly attributable to higher volume, which was up 11% year on year. The effect of foreign currency translation had an immaterial impact on net income versus the previous year. During Jan-Sep 2016, the company's reported net income was a record $75.9 M, a 20% increase versus $63.1 M for the same period in 2015. Adjusted net income was a record $84.1 M, a 35% increase year on year from $62.4 M in 2015. Total company sales volume increased by 8% for the first nine months of 2016. The effect of foreign currency translation negatively impacted net income by $2.3 M. On 17 Oct 2016, the board of directors of Stepan declared a 7.9% increase in the company's quarterly cash dividend on its common stock to $0.205/share. The dividend is payable on 15 Dec 2016, to common stockholders of record on 30 Nov 2016. The increase marks the forty-ninth consecutive year in which the quarterly dividend rate on the company's common stock has increased. Original Source: Stepan Company, 2016. Found on PR Newswire, 18 Oct 2016, (Website: http://www.prnewswire.com)
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Procter & Gamble exceeds expectations Procter & Gamble has unexpectedly increased its profits at the start of its new business year as its savings programme pays off. Net profits were up 4% from $2.6 bn to $2.71 bn in the latest quarter. Adjusted earnings per share were up from 93 cts to $1.03. Analysts had expected 97 cts. Sales were flat at $16.52 bn because of exchange rate effects but still beat market expectations of $16.49 bn. Organic growth was 3%. The company has confirmed its outlook for the 2016/2017 business year. Earnings per share should be up by a mid-single-digit percentage; full-year sales should grow around 1%. The company has divested unprofitable sectors in order to focus more on core brands. Original Source: Chemie Aktuell, 25 Oct 2016, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2016. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 25 Oct 2016, (Website: http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2016
COMPANY NEWS Solvay increases targets for period to 2018
Unilever increased its sales by 3.4% at constant exchange rates in 3Q 2016. The consumer goods company was able to compensate for lower sales with higher prices. After adjusting for acquisitions, divestments and exchange rate effects, sales were up 3.2%. After adjusting for adverse currency effects of 3.4%, sales were flat at €13.4 bn. Sales in emerging markets were up 5.6% (8.4% in 2015). Adjusted sales in industrialized countries were flat (they grew 2.1% a year earlier).
Solvay announced on 29 Sep 2016 that it is increasing its targets for the period to 2018. It is aiming at annual growth in EBITDA of between 5% and 10% due to programmes that should generate an extra €450 M. The group wants to have cumulated free cash flow of more than €2.4 bn for 20162018. Solvay is to strengthen its Advanced Materials division (sales of €4.5 bn in 2015) through increased contracts and extra production capacity. The consolidation of Cytec should contribute to cash flow from 2016 with savings of €150 M expected by 2018, 50% above the target set when Cytec was acquired ['Focus on Surfactants', Feb 2016].
Original Source: Chemie Aktuell, 13 Oct 2016, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2016
Original Source: Chimie Pharma Hebdo, 3 Oct 2016, (775), (Website: http://www.industrie. com/chimie) (in French) © ETAI Information 2016
Unilever props up sales with price increases
December 2016
Innospec expands partnership with Eigenmann & Veronelli for surfactant range Innospec has announced the expansion of its partnership with Eigenmann & Veronelli in Turkey. The new agreement gives Eigenmann & Veronelli the opportunity to represent Innospec's legacy products, including their flagship Sulfate-Free Iselux surfactant range and Pureact Taurate surfactants along with their Activsoft, Activemol, Condicare, Dispersun, Finsolv, Natrlquest and Rhesperse product ranges. Original Source: Innospec, 2016. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 5 Oct 2016, (Website: http://www.specialchem4cosmetics.com)
Air Products names new distributor for additives Sea-Land Chemical has been appointed as the US distributor of Air Products' surfactants in Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota and South Dakota, thus replacing Harcros Chemicals effective 1 Nov 2016. The products serve as functional additives in cleaning, metalworking and related uses. Original Source: ICIS Chemical Business, 1016 Oct 2016, 290 (12), 6 (Website: http:// www.icis.com) © Reed Business Information Limited 2016
Azelis Personal Care UK adds new ranges Azelis Personal Care in the UK announces agreements with a number of new world class manufacturers, bringing an exciting selection of new quality products to its portfolio of speciality chemicals and raw materials. Among the additional companies is Sino Lion, which claims to supply the first truly 'green' surfactants, offering mildness, excellent biodegradability and an improved skin feel. Sino Lion active ingredients include skin lighteners, advanced anti-microbial/anti-dandruff technologies, sensory agents and super mild sulfate-free surfactants. Another new addition, Temix is one of Europe's premier manufacturers of esters, emulsifiers and surfactants from renewable sources for use across cosmetic applications. Original source: Azelis, 13 Oct 2016, (Website: http://www.azelis.com) © Azelis 2016
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BASF sets out path to enhance leading position in Japan’s construction chemicals industry BASF is taking a series of measures to grow its construction chemicals business in Japan, including a new company structure and an enhanced focus on technical capabilities and new solutions. Leveraging the success of the Pozzolith brand of water-reducing products (ie superplasticizers) in Japan, with its legacy of trust and innovation, BASF is reorganizing its construction chemicals business in Japan by concentrating its sales and distribution management, field application and technical services in a new organization, Pozzolith Solutions Ltd, effective 1 Apr 2017. In the new set-up, Pozzolith Solutions will act as a flexible, agile and customer-focused
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organization. The company will integrate all customer-facing functions, which have to date been divided between BASF Japan Ltd and BASF subsidiary Taiko Shoji Ltd. BASF Japan will focus on production management, R&D and industry advocacy. It will reallocate the staff and job tasks of the construction chemicals team according to the new organizational set-up, to optimize operational efficiency and customer focus. There is hardly any construction market in the world as demanding as that in Japan. Its unique features include the challenges of seismic reliability, high-performance transportation links, green building and sustainability, as well as the demographic change and focus on maximizing labour efficiency. BASF claims to be the market leader in the admixture business in Japan, and recently announced the expansion of its team at the Chigasaki Technical Development Center (TDC). The new set-up, composed of a team of six scientists in the Chigasaki TDC, will focus on specific innovation needs for improving the durability properties of concrete, as well as new technologies to meet Japan's most-demanding construction requirements. Original source: BASF, 17 Oct 2016, (Website: http://www.basf.com/) © BASF 2016
LEGISLATION California’s OEHHA intends to add PFOA and PFOS to Prop 65 list California's Office of Environmental Health Hazard Assessment (OEHHA) has declared plans to include perfluorooctane sulfonate (PFOS), CAS #1763-23-1, and perfluorooctanoic acid (PFOA), CAS #335-67-1, in the state's list of chemicals causing reproductive toxicity under Proposition 65 (California's Safe Drinking Water and Toxic Enforcement Act of 1986). Once PFOS and PFOA are listed, producers will have a year to include warnings for these chemicals on their product labels. The OEHHA is requesting comments as to whether PFOS and PFOA meet the criteria set forth in the Prop 65 regulations for authoritative bodies listings. Original Source: Coatings Today, 28 Sep 2016, (Website: http://www.paint.org/) © American Coatings Association 2016
MARKET REVIEWS Global emulsifier market to reach $8.44 bn by 2021 According to MarketsandMarkets' report 'Emulsifier Market by Source (Bio-based and Synthetic), Application (Food Emulsifiers, Cosmetics & Personal Care, Oilfield Chemical, Pharmaceutical and Agrochemical) and Region - Global Forecast to 2021', the size of the global emulsifiers market is projected to reach $8.44 bn by 2021, at a projected compound annual growth rate (CAGR) of 6.8% during the forecast period. Europe is the largest sector in the global emulsifier market and is growing as the demand in end-use applications such as food, cosmetics & personal care, oilfield chemicals and pharmaceutical products is increasing. Food emulsifiers have the largest market share in the overall European emulsifiers market. The development of the food processing industry is the major reason for the dominance of Europe in the global market. The market for emulsifiers in the oilfield chemicals segment is also promising in Europe, especially in countries such as Russia and Germany. Most of the big players in the emulsifier market, such as Solvay, BASF, Kerry Group, AkzoNobel, Evonik Industries, Clariant and DSM, are Europe-based and supply their products across the globe. Other major players include Dow Corning, Cargill and ADM. Original Source: MarketsandMarkets, 2016. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 18 Oct 2016, (Website: http://www. specialchem4cosmetics.com)
COMPANY RESULTS Stepan reports strong 3Q 2016 results On 18 Oct 2016, Stepan Co reported its financial results for the three and nine months ended 30 Sep 2016. For 3Q 2016, the company's reported net income was $20.4 M, an 18% decrease versus $24.9 M a year earlier. Adjusted net income was $24.5 M, a 16% increase December 2016
FOCUS versus $21.1 M in 3Q 2015. Sales were on a par with 3Q 2015 at $445 M, although total company sales volume increased by 2% for 3Q 2016. Surfactant sales were flat year on year at $290 M, with global surfactant volumes also flat, but operating income decreased by 5% versus the previous year to $20.7 M. Most of this decrease was attributable to lower sales volumes in Latin American and Europe. North American surfactant operating income improved on higher volumes. Polymer operating income was $27.1 M, a 10% increase versus the prior year. This was mostly attributable to higher volume, which was up 11% year on year. The effect of foreign currency translation had an immaterial impact on net income versus the previous year. During Jan-Sep 2016, the company's reported net income was a record $75.9 M, a 20% increase versus $63.1 M for the same period in 2015. Adjusted net income was a record $84.1 M, a 35% increase year on year from $62.4 M in 2015. Total company sales volume increased by 8% for the first nine months of 2016. The effect of foreign currency translation negatively impacted net income by $2.3 M. On 17 Oct 2016, the board of directors of Stepan declared a 7.9% increase in the company's quarterly cash dividend on its common stock to $0.205/share. The dividend is payable on 15 Dec 2016, to common stockholders of record on 30 Nov 2016. The increase marks the forty-ninth consecutive year in which the quarterly dividend rate on the company's common stock has increased. Original Source: Stepan Company, 2016. Found on PR Newswire, 18 Oct 2016, (Website: http://www.prnewswire.com)
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Procter & Gamble exceeds expectations Procter & Gamble has unexpectedly increased its profits at the start of its new business year as its savings programme pays off. Net profits were up 4% from $2.6 bn to $2.71 bn in the latest quarter. Adjusted earnings per share were up from 93 cts to $1.03. Analysts had expected 97 cts. Sales were flat at $16.52 bn because of exchange rate effects but still beat market expectations of $16.49 bn. Organic growth was 3%. The company has confirmed its outlook for the 2016/2017 business year. Earnings per share should be up by a mid-single-digit percentage; full-year sales should grow around 1%. The company has divested unprofitable sectors in order to focus more on core brands. Original Source: Chemie Aktuell, 25 Oct 2016, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2016. Original Source: Handelsblatt Wirtschafts- und Finanzzeitung, 25 Oct 2016, (Website: http://www.handelsblatt.com) (in German) © Verlagsgruppe Handelsblatt GmbH & Co KG 2016
COMPANY NEWS Solvay increases targets for period to 2018
Unilever increased its sales by 3.4% at constant exchange rates in 3Q 2016. The consumer goods company was able to compensate for lower sales with higher prices. After adjusting for acquisitions, divestments and exchange rate effects, sales were up 3.2%. After adjusting for adverse currency effects of 3.4%, sales were flat at €13.4 bn. Sales in emerging markets were up 5.6% (8.4% in 2015). Adjusted sales in industrialized countries were flat (they grew 2.1% a year earlier).
Solvay announced on 29 Sep 2016 that it is increasing its targets for the period to 2018. It is aiming at annual growth in EBITDA of between 5% and 10% due to programmes that should generate an extra €450 M. The group wants to have cumulated free cash flow of more than €2.4 bn for 20162018. Solvay is to strengthen its Advanced Materials division (sales of €4.5 bn in 2015) through increased contracts and extra production capacity. The consolidation of Cytec should contribute to cash flow from 2016 with savings of €150 M expected by 2018, 50% above the target set when Cytec was acquired ['Focus on Surfactants', Feb 2016].
Original Source: Chemie Aktuell, 13 Oct 2016, (Website: http://www.maerkte-weltweit.de) (in German) © MBM Martin Brueckner Medien GmbH 2016
Original Source: Chimie Pharma Hebdo, 3 Oct 2016, (775), (Website: http://www.industrie. com/chimie) (in French) © ETAI Information 2016
Unilever props up sales with price increases
December 2016
Innospec expands partnership with Eigenmann & Veronelli for surfactant range Innospec has announced the expansion of its partnership with Eigenmann & Veronelli in Turkey. The new agreement gives Eigenmann & Veronelli the opportunity to represent Innospec's legacy products, including their flagship Sulfate-Free Iselux surfactant range and Pureact Taurate surfactants along with their Activsoft, Activemol, Condicare, Dispersun, Finsolv, Natrlquest and Rhesperse product ranges. Original Source: Innospec, 2016. Found on SpecialChem Cosmetics and Personal Care Innovation and Solutions, 5 Oct 2016, (Website: http://www.specialchem4cosmetics.com)
Air Products names new distributor for additives Sea-Land Chemical has been appointed as the US distributor of Air Products' surfactants in Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota and South Dakota, thus replacing Harcros Chemicals effective 1 Nov 2016. The products serve as functional additives in cleaning, metalworking and related uses. Original Source: ICIS Chemical Business, 1016 Oct 2016, 290 (12), 6 (Website: http:// www.icis.com) © Reed Business Information Limited 2016
Azelis Personal Care UK adds new ranges Azelis Personal Care in the UK announces agreements with a number of new world class manufacturers, bringing an exciting selection of new quality products to its portfolio of speciality chemicals and raw materials. Among the additional companies is Sino Lion, which claims to supply the first truly 'green' surfactants, offering mildness, excellent biodegradability and an improved skin feel. Sino Lion active ingredients include skin lighteners, advanced anti-microbial/anti-dandruff technologies, sensory agents and super mild sulfate-free surfactants. Another new addition, Temix is one of Europe's premier manufacturers of esters, emulsifiers and surfactants from renewable sources for use across cosmetic applications. Original source: Azelis, 13 Oct 2016, (Website: http://www.azelis.com) © Azelis 2016
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