Kemira Q2 net profit down 88% on restructuring charges

16 December 2013 13:32  [Source: ICIS news]

LONDON (ICIS)--Kemira’s net profit for the second quarter of the year fell by 88% compared with the same period last year to €3.7m ($4.9m), partly as a result of €27m in restructuring fees and efficiency savings writedowns, the Finnish chemicals company said on Tuesday.

Revenues were up slightly year on year, from €562.3m in the second quarter of 2012 to €569.3m in the second quarter of 2013, on the back of improved sales volumes driven by Europe, the Middle East and Africa (EMEA), the company said.

The €27m of non-recurring charges included €15m related to the closure of its Vaasa process chemicals site, €6m restructuring charges towards the set-up of its business services centre in Gdansk, Poland, and €3m related to its efficiency savings programme.

The results follow a 91% year-on-year net profits drop in the first quarter of the year as a result of a €23m writedown from the sale of its stake in loss-making titanium dioxide (Ti02) producer Sachtleben to joint venture partner Rockwod.

Kemira maintained earlier predictions that 2013 revenues will be up slightly in local currency terms than 2012 revenues, while operative earnings before interest and taxes (EBIT) - which excludes non-recurring items such as restructuring fees and writedowns - are predicted to be up compared to last year.

($1 = €0.76)

By: Tom Brown
+44 208 652 3214

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