Hercules Q1 EBITDA falls 3.6%, income down 60%
22 April 2008 06:36 [Source: ICIS news]
SINGAPORE (ICIS news)--US-based Hercules has posted a 3.6% fall in its first-quarter earnings before interest, tax, depreciation and amortization (EBITDA) to $88.3m (€55.63m) year-on-year but saw its net income drop almost 60% to $32.4m on escalating raw material and logistics costs, it said in a statement released late on Monday.
The specialty chemicals manufacturer’s net sales increased 11.1% to $558.3m in the period ended
Hercules’ Aqualon group posted an 8.2% slip in net profits to $48m, while its net sales rose 16.6% on increased sales volumes and favourable currency exchange impact, it added. Its coatings and construction division experienced the healthiest growth with an 18.7% jump in net sales to $119.1m.
The Aqualon group’s overall performance was negatively impacted by an unplanned shutdown of its methylcellulose (MC) joint venture unit in
In its paper technologies & ventures segment, profits fell 11.6% to $29.7m, but net sales closed slightly higher at $302.9m. Its ventures business posted a strong 22.9% growth in net sales to $76.2m, while its paper technologies business stabled as net sales closed at $226.7m from $221.2m.
Looking ahead, Hercules remained optimistic about the revenue, earnings and cash flow growth for the full year. The firm planned to increase prices, ramp up current production capacities and introduce new products to offset significant raw material, freight and utility costs.
In January 2008, the firm posted a 6% rise in fourth-quarter profits from operations to $56.9m on sales of $540.7m despite higher raw material costs.
Moody’s also plans to upgrade Hercules’ Ba2 credit ratings following its successful debt reduction efforts.
($1=€0.63)
By: Serene Cheong
+65 6780 4359
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