27 July 2010 12:14 [Source: ICIS news]
LONDON (ICIS news)--Rockwood Holdings second quarter net profit ballooned to $52.4m (€40.3m) from $600,000 in the same period last year due to higher demand volumes across the majority of its product lines, it said on Thursday.
Rockwood's specialty chemicals segment saw net sales for the second quarter increase 21.6% year on year to $287.3m, while its performance additives business rose by 10.7% to $199.4m.
Net sales in the group's titanium dioxide pigments segment increased by 15.8% to $190.3m, primarily from higher volumes in all applications, as well as higher selling prices, Rockwood added.
“The significant improvement in Rockwood’s quarterly sales and earnings reflects the strong demand for our specialty products across all geographies and in almost every end market we serve,” said Seifi Ghasemi, Rockwood’s chairman and CEO.
“Our inorganic raw material costs remain stable, and we continue to benefit from our disciplined approach to pricing and rigorous cost control. Our lithium and advanced materials businesses continue to see significant organic growth and improved margins,” Ghasemi added.
Rockwood's net debt, fell to $1.9bn compared with $2.2bn on 31 December 2009, due to the cash flow generated from operations in the first half of 2010, it said.
Looking ahead Ghasemi said that Rockwood was operating with a cautious outlook, despite that demand for its products remained strong throughout the second quarter and had continued at the beginning of the third quarter.
“We will continue our focus on growing our portfolio of specialty products, generating strong cash flow and improving our leverage ratio,” he said.
($1 = €0.77)
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