Süd-Chemie makes a successful start to 2011
Positive outlook confirmed for full year 2011
Süd-Chemie AG, Munich, a group company of Clariant AG, Muttenz, Switzerland, has made a successful start to 2011. As a result of business expansion in all segments, the speciality chemical company for adsorbents and catalysts reported consolidated revenue of EUR 318.7 million for the first three months of 2011, an increase of 20.6% compared with the first quarter of 2010. The first-time proportionate consolidation of Ashland’s foundry chemicals business due to the building of the ASK Chemicals joint venture in the fourth quarter of 2010 also contributed to the positive revenue development. Rising by 38.1% on a year-on-year basis, consolidated operating profit (EBIT) grew even faster than revenue to reach EUR 20.3 million. Reasons for this marked rise in earnings included the business expansion, increased plant utilisation in response to higher demand, as well as non-recurring income of EUR 2.8 million resulting from acquisition of a 50% share in Exaloid Süd-Chemie S.L., Arceniega, Spain which is active in the foundry additives sector. Adjusted for this non-recurring income, the EBIT rose by 19.0% to EUR 17.5 million. Higher prices for raw materials, which could be passed on to customers on a successive basis only, had a negative impact on earnings. Compared with the same quarter last year, earnings before interest, taxes and depreciation (EBITDA) improved by 22.5% to EUR 36.5 million.
The upward trend on world chemical markets had a positive influence on Süd-Chemie´s initial performance in 2011. All six Business Units were able to achieve significant sales expansion during the first quarter. The Business Units for Foundry Products and Speciality Resins, Performance Packaging and also Energy and Environment all reported an increase in operating profit (EBIT) for the quarter that far exceeded their revenue performance. Mainly as a result of price increases in the case of energy and raw materials, which have not yet been fully passed on to customers, operating profit rose at a lower rate than revenue in the Adsorbents and Additives Business Unit, while in the Water Treatment Business Unit, the EBIT remained at the same level as the previous year. Operating profit (EBIT) generated by the largest and most profitable Catalytic Technologies Business Unit was in certain segments adversely affected by underutilised production capacity and failed to reach the figure reported for the first quarter of 2010. A strong rise in the intake of new orders in this Business Unit compared with the same period last year will however lead to a sustained improvement in its earnings situation in the course of the year.
In view of the positive performance reported for the first quarter and the beginning of the second quarter of 2011, the company is adhering to its forecast for the full year 2011. This envisages an anticipated 10% increase in revenue to around EUR 1.35 billion. Following adjustment for non-recurring items, operating profit (EBIT) should rise by 15% to some EUR 120 million.
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