UpdateBelgium's Tessenderlo expects flat second-half earnings in 2011

25 August 2011 14:12  [Source: ICIS news]

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LONDON (ICIS)--Tessenderlo is expecting flat second-half earnings in 2011 compared with the same period last year, the Belgium-based chemicals firm said on Thursday.

The announcement follows year-on-year growth for the group’s performance from continuing operations in the first half of this year.

In the first half of 2011, Tessenderlo’s net profit from continuing operations grew by 53% to €50.2m ($72.8m) compared with the same period last year, as revenue rose by 9.4% year on year to €1.12bn.

The group’s recurring earnings before interest and taxes (REBIT) from continuing operations in the first half of 2011 rose by 77% year on year to €76.3m.

Following Tessenderlo’s sale of its polyvinyl chloride (PVC) and chlor-alkali business to INEOS ChlorVinyls on 1 August, the segment’s performance was not included as part of the group’s continuing operations.

“For the continuing operations, the second half of 2011 is anticipated to be broadly in line with the solid results recorded in the second half of 2010,” the company said.

“Consequently, as expected, 2011 will represent a clearly improved operating result for the continuing operations of the group on a full-year basis,” it added.

Tessenderlo also said the sale of businesses this year, including its PVC/chlor-alkali segment, would strengthen its balance sheet.

“This context of better results and low net debt levels will allow the group to continue implementing its strategy of becoming a higher-return specialty company,” it added.

First-half 2011 revenue from the group’s inorganics segment grew by 3.5% year on year to €207m, supported by improved pricing in sulphates and phosphates.

Tessenderlo’s gelatine and akiolis business revenue increased by 19% year on year to €235.7m in the first half of 2011, because of sustained demand and a firming pricing environment, the company said.

“The [gelatine and akiolis] segment continues to invest for growth while maintaining control of its fixed costs,” Tessenderlo added.

Group segment Tessenderlo Kerley’s revenue during the first half of 2011 was €157.1m, up by 22% year on year, as volumes and prices were ahead of the same period a year ago.

The group’s plastic pipe systems and profiles business reported 6.9% year-on-year growth in the first half of 2011 to €301.1m.

Including the sale of its PVC/chlor-alkali activities, which brought a one-time charge of €158m, Tessenderlo swung to a half-year loss €103.3m compared with a profit of €22.5m in the same period last year, as revenue rose by 12.8% to €1.42bn compared with the same period last year.

($1 = €0.69)

For more on Tessenderlo visit ICIS company intelligence

By: Franco Capaldo
+44 (0)20 8652 3214

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