Kemira net profit soars 51% to €29.5m on pricing, margins

30 July 2009 09:00  [Source: ICIS news]

LONDON (ICIS news)--Kemira reported that net profit in the second quarter increased 51% year on year to €29.5m ($41.5m) on higher sales prices and better margins, the Finnish chemical company said on Thursday.

Revenue in the quarter that ended on 30 June dropped 12% year on year to €650.9m, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 10% to €82.2m.

The impact of the titanium dioxide business, which has been transferred to a joint venture, has not been included in these statistics, Kemira said in a statement.

All segments reported percentage increases in operating profit, with the exception of paints and coatings division Tikkurila, which was affected from a fall in sales volumes.

“In extremely volatile market conditions, demand for paints and coatings decreased considerably as new construction, building material sales and housing sales slowed down in all key markets,” said Kemira’s president and CEO Harri Kerminen.

“The demand and price of specialty chemicals supplied to the food, feed and pharmaceutical industries remained healthy,” he added.

“Kemira’s revenue in 2009 is expected to fall compared to 2008 due to reduced demand in customer industries, especially in Tikkurila and in pulp and paper chemicals,” he added, when talking about the company’s outlook.

But the company remained confident that its operating profit for 2009 would be higher than last year’s.

“The key focus areas in 2009 will be profitability improvement and reinforcing clash flow and the balance sheet,” said Kerminen.

($1 = €0.71)

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By: Lucy Craymer
+44 20 8652 3214

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