Lonza H1 net profit jumps 14.4% on better margins

22 July 2010 08:54  [Source: ICIS news]

SINGAPORE (ICIS news)--Switzerland-based chemicals and drugs maker Lonza said on Thursday its first-half net profit jumped 14.4% year on year to Swiss francs (Swfr) 135m ($129m, €101m), largely due to the strong performance of its life science ingredients business.

Details of its second-quarter results were not provided.

Lonza said its January-to-June 2010 earnings before interest, taxes, depreciation and amortisation (EBITDA) margins rose to 23.8% from 22.6% in the same period last year despite a 2.1% slippage in overall revenue to Swfr1.3bn.

The life sciences ingredients division had a 17.4% jump in operating profit to Swfr81m as sales improved 5.9% to Swfr536m, but this was offset by weaker revenue turnout at Lonza's other business divisions.

Its custom manufacturing business had a 6.8% year-on-year decline in first-half sales to Swfr658m, while revenue at its bioscience division fell 9.4% to Swfr106m, the company said.

“Lonza’s life-science strategy will continue to deliver long-term growth through an increased project pipeline, new signed contracts and an intact outsourcing trend, and investments in plants and technologies,” Lonza said.

($1 = Swfr1.05/€1 = Swfr1.34)

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By: Nurluqman Suratman

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