14 July 1998 00:06 [Source: ICIS news]
HOUSTON (CNI)--AlliedSignal announced Monday that its second quarter profits climbed 15% to a record $350m on record sales of $3.9bn despite an 18% drop in its speciality chemicals and electronics solutions division income.
Those figures compare to a net income of $305m on 8% increased sales of $3.6bn in the prior year quarter.
In its speciality chemicals and electronics solutions division, AlliedSignal saw an 18% plunge in net income to $82m compared with $100m in the prior year quarter. However, net sales grew 2% to $589m from $576m. The company credited solid growth in pharmaceutical intermediates and waxes for industrial applications for the sales increase, noting that the growth more than offset a sales decline in electronic materials due to soft semiconductor and electronics markets.
Operating margins in the segment expanded, driven by sales growth of higher-margin products; improved cost structure in fluorines and laminates; and, elimination of operating losses from the divested European laminates business. The company blamed the reduction in net income on a lower contribution from the 50%-owned UOP joint venture in process technology.
Speciality chemicals and electronics divisions sales contributed 15% of the company's total sales for the quarter.
Meanwhile, performance polymers sales rose 4% to $531m from $512m. Net income jumped 54% to $57m from $37m. Strong increases in sales of speciality films for pharmaceutical packaging; increased engineering plastics volume in the lawn and power tool market; and, improved sales of higher-margin plastics in Europe were behind the segment's increased performance, the company said.
Those gains were partially offset by the loss of sales resulting from exiting the European carpet fibres businesses and a portion of the North American textiles business. The segment's sales contributed 14% of the company's overall sales for the quarter.
With headquarters in Morris Township, New Jersey, AlliedSignal is an advanced technology and manufacturing company.
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