Finland's Kemira Q4 net profit surges 50.6% to €37.8m

08 February 2012 07:28  [Source: ICIS news]

SINGAPORE (ICIS)--Finnish chemicals firm Kemira reported on Wednesday a 50.6% year-on-year increase in its net profit to €37.8m ($50.4m) in the fourth quarter of last year, despite a surge in raw materials prices.

The firm’s revenues slipped by 0.6% year on year to €543.3m, while earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 2.81% to €65.9m, the company said in a statement.

“Raw material prices increased rapidly in the beginning of the year,” it said.

“The prices for some of our key raw materials have continued to increase during the second half of the year and are still at a very high level,” the company added.

The firm’s net profit fell to €140.3m in the full year of 2011, compared with €646.9m in the same period a year earlier, the firm said.

Kemira’s 2010 net profit figure included a non-recurring income of €529.2m from the divestment of decorative paints firm Tikkurila.

Its overall sales in 2011 rose 2.3% year on year to €2.21bn, while EBITDA fell by 2.29% to 259.6m.

“In the near term, uncertainty in Europe and a slowdown in global economic growth may affect the demand for our products in the customer industries,” said Kemira's president and CEO Harri Kerminen.

“In 2012, Kemira expects the revenue and operative earnings before interest and taxes (EBIT) to be slightly higher than in 2011," Kerminen added.

($1 = €0.75)

By: Nurluqman Suratman

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