Poland's ZChP holds Q3 TiO2, ferts profitability in difficult markets

15 November 2012 17:48  [Source: ICIS news]

LONDON (ICIS)--Zaklady Chemiczne Police (ZChP) saw its third-quarter net profit fall 38% year on year to zlotych (Zl) 28.6m ($8.8m, €6.9m) from Zl 46.3m a year ago, managing to keep its fertilizer and titanium dioxide (TiO2) businesses profitable despite challenging markets, the Polish company said on Thursday.

Sales revenues moved up 28% to Zl 759.6m from Zl 591.9m, comparing the third quarters of 2012 and 2011, ZChP added.

ZChP's TiO2 division remained in the black, despite input costs increasing by two to three times year on year, weak demand due to soft automotive and construction demand, and large inventories of up to three to four months of consumption held in Europe, said Piotr Drozd, an analyst at Prague-based investment bank WOOD & Company.

The company, which has achieved 1.5-3% reductions in phosphate input prices because of purchases from lower-cost Algeria instead of Morocco, has said its fertilizer earnings before interest and tax (EBIT) margins from 4.5% in the third quarter of 2011 and 5.3% in the second quarter of this year to 7.6% in the third quarter of 2012, he added.

ZChP is a subsidiary of the Zaklady Azoty Tarnow (ZAT) group, which reported its financial results earlier on Thursday.

($1 = Zl 3.27, €1 = Zl 4.17)

By: Will Conroy
+44 20 8652 3214

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