Kemira Q2 net profit drops 43% on high feedstock

30 July 2008 09:40  [Source: ICIS news]

SINGAPORE (ICIS news)--Finland’s Kemira has posted a 43% drop in its second-quarter net profit to €18.9m ($29.5m) on surging raw material and energy costs, it said on Wednesday.

"The development of raw material prices and energy-related costs continued to be very unfavourable for Kemira. The achieved sale price increases did not fully compensate for the significantly higher costs," said Kemira president and CEO Harri Kerminen.

The company’s operating profit for the period fell 34% to €37.2m while revenue fell marginally to €741.5m.

For the first half, the company posted a 42% fall in net profit to €35m while operating profit for the period fell 32% to €72.3 and revenue dropped marginally to €1.4bn

Looking forward, Kemira expected growth to be moderate and operating profits were expected to remain below last year’s levels on continued high raw materials and energy values.

($1 = € 0.64)

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By: Bohan Loh
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