Arch Chemicals' Q3 net income falls to $9.2m, but sales rise 4%

02 November 2010 13:52  [Source: ICIS news]

TORONTO (ICIS)--Arch Chemicals’ third-quarter net income fell to $9.2m (€6.6m), from $10.3m in the same period of 2009, largely due to tax and one-off charges, the US-based specialty chemicals firm said on Tuesday.

However, sales for the three months ending on 30 September rose 4% to $325.6m, from $312.2m, and quarterly-segment operating income rose to $20m, up 7% from $18.7m in the third quarter of 2009, Arch said.

CEO Michael Campbell said robust demand in Arch’s core biocides business was behind the improvement in operating profit and sales.

"We set quarterly sales records for our anti-dandruff agents and health and hygiene biocides,” he said.

“We also saw double-digit volume growth in biocides for building products, all of which more than offset the lower results, due to timing, from our water products business,” he added.

In addition, Arch’s wood protection business reported improved profitability as a result of increased demand in Europe and lower raw material costs, even though global housing and construction markets remained weak, Campbell said.

Arch raised its full-year 2010 earnings guidance, with earnings from continuing operations before special items expected at $2.40-2.50/share, compared with the company’s previous guidance of $2.25-2.40/share.

Full-year 2010 sales were expected to be about 9-11% higher than in 2009, Arch said.

For the full 12 months of 2009, Arch reported net income of $47.1m on sales of $1.39bn.

($1 = €0.72)

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By: Stefan Baumgarten
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