Süd-Chemie makes a satisfactory start to 2010
Positive outlook confirmed for the full year 2010
Süd-Chemie AG, Munich has made a satisfactory start to 2010. During the first three months of the year, consolidated revenue generated by the specialty chemicals enterprise for adsorbents and catalysts rose by a slight 1% compared with the same quarter last year, reaching EUR 264.0 million. Rising to EUR 15.9 million, which was 19.5% up on the first three months of 2009, operating profit (EBIT) increased faster than revenue. Reasons for this marked upturn in earnings included higher plant utilisation in several business units as a result of rising demand, a more profitable product mix and sustained cost savings. Earnings before interest, taxes and depreciation (EBITDA) improved by 12.4% compared with the same period in 2009, to reach EUR 30.8 million.
The recovery on world chemical markets has had a generally positive impact on Süd-Chemie´s performance in 2010 so far. Reviving demand in the wake of increased economic activity during the first quarter resulted in higher levels of plant utilisation and a significant rise in revenue and earnings (EBIT) in the Business Units for Adsorbents and Additives, Performance Packaging, Water Treatment and Energy and Environment. Although the Business Unit for Foundry Products and Specialty Resins recorded only a marginal rise in revenue during the first three months of 2010 compared with the figure reported for the same period last year, which was adjusted for discount sales during the first quarter of 2009, its profitability increased as a result of cost-reduction measures. Only the Catalytic Technologies Business Unit, after a relatively strong first quarter last year, recorded a drop in revenue for the first quarter 2010, owing to postponed orders; nevertheless, a rise in operating profit (EBIT) was achieved in this unit due to a positive valuation effect accruing from commodity hedging transactions. In addition, a marked rise in incoming orders during the first quarter endorses the confident prediction that Süd-Chemie´s largest and most profitable business unit will achieve its ambitious business targets in the course of this year.
Since business developed as anticipated during the first and at the beginning of the second quarter of 2010, the company is adhering to its forecast for the 2010 financial year. Based on this, revenue is expected to increase by 5% to EUR 1.125 billion. Adjusted for non-recurring items, operating income (EBIT) should rise by 10%.
Dr. Günter von Au, Managing Board Chairman of Süd-Chemie AG, said: "We are satisfied with the first quarter of 2010, but also convinced that we will perform even better as the year progresses. After an extremely strong final month in 2009 and a rather slow start to 2010, we recorded a significant improvement in profitability during the first three months of this year compared with the same period in 2009. Given our strong business and order performance in March and our good start to the second quarter, we are confident that growth momentum will increase in the course of the year."
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