US Rockwood’s Q3 income almost doubles to $75.9m, sales up 17.4%

19 October 2011 12:23  [Source: ICIS news]

LONDON (ICIS)--Rockwood Holdings’ third-quarter net income in 2011 almost doubled to $75.9m (€54.6m) from $38.0m reported in the same period last year, on the back of continued demand growth, the US-based specialty chemicals company said on Wednesday.

Net sales for the quarter were at $940.9m, up by17.4% compared with $801.2m for the same period last year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the third quarter were up by 41.3% year on year to $226.9m.

“This quarter’s superior results are further confirmation of the fundamental strength of Rockwood’s unique portfolio of inorganic specialty chemicals, said Seifi Ghasemi, Rockwood’s chairman and CEO.

“Continued strong volume growth in our lithium, surface treatment and clay-based additives businesses, combined with improved pricing in titanium dioxide and lithium, enabled us to more than double our adjusted EPS [earnings per share] for the quarter,” he added.

“All of our business units have improved performance versus last year, and we generated a very strong free cash flow of $135m for the third quarter,” Ghasemi said.

For the nine months ended 30 September 2011, net income was $228.1m, almost doubling the $116.2m reported in the same period in 2010, while net sales totalled $2.85bn, up by 19.3% year on year.

Commenting on the company’s outlook, Ghasemi said that Rockwood continues to see solid order patterns across its businesses.

“We expect to maintain our margins and are optimistic about our prospects. We intend to use our strong cash flow to invest in organic growth and to reduce leverage in line with our long-term objectives,” he said.

($1 = €0.72)

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

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