28 October 2005 16:31 [Source: ICIS news]
LONDON (ICIS news)--The positive effects of restructuring helped third quarter profits at the Borregaard fine chemicals division of Norwegian resource group Orkla grow by NKr2m ($257,000/Euro256,560) to NKr75m despite a sharp fall in sales by Nkr550m to NKr1bn.
At the end of the nine months to September, operating profit before amortisation and other revenues and expenses at Borregaard were NKr250m compared with Nkr256m in the corresponding period in 2004.
The improved profit before amortisation and other expenses was due to improvements at Borregaard Synthesis and Borregaard Energy and the elimination of losses from restructured or eliminated companies, Orkla said in a statement.
But this was offset by the Ligno Tech and ChemCell businesses which were both hit by high energy costs, exchange rates and the reduced effects of currency hedges. Ligno Tech’s business was also hit by a poor product mix, although volumes were higher. ChemCell saw demand and prices for its cellulose fibres fall in ?xml:namespace>
Orkla said it will start another round of cost cutting and process improvements aimed at saving a further NKr 400m by the end of 2007.
At the group level, Orkla posted a sharp increase in operating profit at NKr1.04bn from NKr92m a year ago.
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