Swiss Lonza H1 net profit slips 3.1% on weak margins

25 July 2012 06:32  [Source: ICIS news]

SINGAPORE (ICIS)--Switzerland’s producer Lonza said on Wednesday its first-half 2012 net profit dipped by 3.1% year on year to Swiss francs (Swfr) 94m ($94.38m) as weaker margins offset the strong sales growth.

Sales for the first six months of the year surged 64.6% year on year to Swfr1.96bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 23.4%, the company said in a statement.

But EBITDA margins for the period at 16.6% was 5.6 percentage points lower compared with the same period in 2011, it said.

Lonza’s operating profit for January-June 2012 increased 23.5% to Swfr168m, with margins at 8.6%, down from 11.4% in the previous corresponding period, the company said.

Taking out one-off items in the financial results, Lonza said its core net profit increased 16.8% year on year to Swfr125m, with core operating profit up 39.2% at Swfr199m.

The company hopes to deliver 10-15% growth in operating profit this year.

“However, it goes without saying that the volatility of the current macroeconomic situation in some parts of the world can always have a negative effect on all strategic and operational efforts,” Lonza said.

($1 = Swfr0.996)

By: Pearl Bantillo
+65 6780 4359

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