Perstorp Q4 op profit jumps 28%, net losses triple

25 February 2008 13:15  [Source: ICIS news]

MUMBAI (ICIS news)--Perstorp posted a 28% year-on-year rise in fourth-quarter operating profit to Swedish kronor (SKr) 194m ($31m/€21m) on strong demand for nearly all its products and high capacity utilisation at its plants, it said on Monday.

However, for the quarter ended 31 December Perstorp's net losses tripled to SKr96m from SKr31m in the year-ago period, following the $138m acquisition of Lonza Singapore in November and other investments, the specialty chemical company said.

"The group delivered in line with its business plan and exceeded targets for growth and profitability," said Perstorp’s president and CEO Bo Dankis.

The Swedish speciality chemicals company’s sales for the period increased 4.6% to SKr2.3bn, primarily on the back of the acquisition of Lonza Singapore, which was a leading purified isophthalic acid (PIA) producer in the region, it said.

"We made majors investments in production capacity, new products and company acquisitions, which will have a major impact on the future development of the group," Dankis said.

The company's full-year operating profits for 2007 rose 42% to SKr803m on the back of volume increases and higher price levels, it said, adding net losses fell 16% to SKr18m despite a declining US dollar and high energy and raw material costs.

Perstorp's net sales for the period jumped 18% to nearly SKr8.6bn, due to strong demand, price rises and the start-up of a new rapeseed oil methyl ester (ROME) plant at Stenungsund in Sweden, it said.

"The main priority for Perstorp in 2008 is to continue delivering growth and earnings in line with established plans," Dankis said.

"It’s important that we succeed in integrating the acquired companies and handling the major investment projects that have started."

($1 = SKr6.27/€1 = SKr9.31)

By: Divya Chowdhury
+65 6780 4359

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