Sud-Chemie's 2010 nine-month operating profit falls to €72.5m

27 October 2010 10:34  [Source: ICIS news]

LONDON (ICIS)--Sud-Chemie’s operating profit for the first nine months of 2010 fell 5.2% year on year to €72.5m ($100.7m), despite improved demand and plant utilisation, the German specialty chemicals company said on Wednesday.

It said a reason for the fall, from €76.5m, was that earnings for the same period in 2009 included non-recurring income of €15.8m from the acquisition of a catalyst plant in China.

The company added that adjusted for non-recurring items, operating profit for the first nine months of 2010 had climbed 22.1% year on year to €77.3m.

Consolidated revenue for the front three quarters grew 13.2% to €896.4m, largely due to improved performances in Sud-Chemie’s foundry chemicals, plastic additives and environmental catalysts segments, which had been heavily hit by the economic crisis.

Earnings before interest, taxes and depreciation (EBITDA) rose by 0.9% to €121.1m, Sud-Chemie added.

“In addition to rising demand and improved plant utilisation, earnings also benefited from a more profitable product mix, cost savings and price increases,” the group said.

“A negative impact on earnings was felt as a result of high start-up costs in Sud-Chemie's two new business segments, namely battery materials…and biocatalysis,” it added.

As a result of its performance in the first nine months, Sud-Chemie has raised its revenue forecast for 2010 from €1.13bn to approximately €1.2bn.

($1 = €0.72)

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By: Franco Capaldo
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