Perstorp yet to reap restructuring benefits.

09 February 1998 00:00  [Source: ICB]

Swedish speciality chemicals and plastics group Perstorp revealed first quarter pre-tax profits up 68% to SKr251m ($30.9m) on net sales up to SKr3.72bn. The company has begun to see benefits from last year's restructuring, when it divested non-core operations with sales of SKr3.5bn/year. Earnings from comparable units rose from SKr153m to SKr205m as a result of earnings improvements within Perstorp Chemicals and Perstorp Plastic Systems. The company intends to sell its plastics division, which had SKr509m sales during the first quarter. Perstorp's chemicals division, boosted by favourable US and European speciality chemicals markets, showed the sharpest improvement with operating income up 26% to SKr181m on net sales that grew from SKr1.2bn to SKr1.35bn. Pernova, Perstorp's life-sciences unit, saw the quarter's net sales rose 34% to SKr215m. Operating income rose from SKr6m to SKr76m because of SKr60m capital gain from the sale of the group's wound care product range to Smith & Nephew. The firm said its recently purchased New Zealand serum production facility, Selborne Biological Services, did not impact on sales, and growth within the unit was organic. Asian turmoil had no impact on net sales but wiped SKr21m off operating income because of exchange rate losses in Thailand.

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