Finland’s Kemira third-quarter net profit down by 8.1% to €32.9m

27 October 2011 07:51  [Source: ICIS news]

LONDON (ICIS)--Kemira posted a third-quarter net profit of €32.9m ($45.7m), which is a decrease of 8.1% from €35.8m in the same period last year, partly because of unfavourable exchange rates, the Finland-based company said on Thursday.

The company’s revenue in the third quarter of 2011 was up slightly at €558.3m from €554.4m in the third quarter of 2010, while its earnings before interest, tax, depreciation and amortisation (EBITDA) was down to €64.2m from €70.5m in the same period last year.

“Kemira’s organic revenue growth in the third quarter was at 6%. Sales prices were higher and sales volumes remained at the same level as in the comparable period last year,” said president and CEO Harri Kerminen.

For the first nine months of 2011, Kemira’s sales rose by 3.1% year on year to €1.66bn.

“Raw material prices have stabilised during the quarter, but looking at the first nine months of 2011, we have seen a substantial increase in raw material prices,” Kerminen said.

“So far, we have been successful in offsetting higher costs with sales prices,” Kerminen added.

The president and CEO said the group’s paper segment successfully implemented sales price increases to cover higher raw material costs.

The company’s revenue growth in its municipal and industrial segment’s picked up in the third quarter driven by both volume growth and sales price increases, Kerminen said.

“The visibility for upcoming quarters is not as clear as when compared to the first half of 2011. However, the outlook for the full year 2011 revenue and operative EBIT [earnings before interest and tax] remains unchanged,” Kerminen said.

“Kemira’s revenue is expected to be slightly higher and operative EBIT higher than in 2010,” Kerminen added.

($1 = €0.72)

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By: Franco Capaldo
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