Belgium's Tessenderlo narrows Q4 net loss to €7.8m

24 February 2011 07:18  [Source: ICIS news]

SINGAPORE (ICIS)--Belgium’s Tessenderlo narrowed its net loss in the fourth quarter of 2010 to €7.8m ($10.7m) from a loss of €39.3m in the corresponding period a year earlier as sales improved, the company said on Thursday.

Group revenue rose 18.9% year on year to €610.4m in the fourth quarter, while recurring earnings before interest, tax, depreciation and amortisation (EBITDA) more than tripled to €40.5m from €11.6m in the same period a year earlier, it said in a statement.

For the full year of 2010, the company swung to a net profit of €20.3m, versus a loss of €166.7m in 2009, on the back of better operating results, the company said.

Sales rose 15.9% year on year to €2.43bn in 2010, while recurring EBITDA nearly tripled to €175.6m, from €63.4m in 2009.

“Cost control remained in place during the year, and combined with the revenue gains, contributed to material improvements in group recurring EBITDA,” the statement said.

In its outlook, the company said that its revenue and profitability were expected to increase in 2011.

“The group will continue to manage costs strongly and pursue cost reduction opportunities,” it added.

Three key projects previously announced would also be completed in the second half of the year, Tessenderlo said.

The firm’s gelatin business would be opening its first site in Brazil, while its recently formed joint venture will start up its second gelatin site in China, it said.

Tessenderlo’s compounds business would also bring its first site in China into production to serve its customers in the automotive industry, the firm added.

($1 = €0.73)

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By: Nurluqman Suratman

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