Lignin business drives Borregaard Q1 profit growth

03 May 2007 10:42  [Source: ICIS news]

LONDON (ICIS news)--Borregaard recorded a 40% increase in first quarter operating profit to Norwegian Krone (NKr) 91m ($15m/€11m) driven by price rises and an improved product mix, said Norway-based parent company Orkla on Thursday.

 

Revenue rose 4% to NKr1.15bn compared to the same period last year due to strong growth in the lignin segment.

 

The LignoTech business improved sales volume by 20% due to new capacity and better utilisation of existing plants.

 

Borregaard said the segment significantly increased its first quarter profit due to high prices and strong demand, especially in the construction industry.

 

Borregaard ChemCell was still making a loss in the first quarter though improved slightly on last year.

 

The market for speciality cellulose had improved with good demand and higher prices, but extremely high timber prices hindered profitability at the plants in Norway and Switzerland, said the company. Ethanol made a good contribution to profit.

 

The group’s Ingredients & Pharma and Energy segments both reported a year-on-year drop in operating profits.

 

($1 = €0.74/NKr5.97)

By: Mark Watts
+44 20 8652 3214

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