25 July 2013 07:14 [Source: ICIS news]
SINGAPORE (ICIS)--Switzerland’s producer Lonza said on Thursday its first-half 2013 profit plunged by 51.2% year on year to Swiss francs (Swfr) 41m ($44m) as sales slid 11.2%.
Sales for the first six months of the year stood at Swfr1.74bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 3.7% to Swfr334m, the company said in a statement.
Lonza is phasing down its microbial biologics plant in Hopkinton, Massachussets in the US, and its board approved an impairment of Swfr 69m, which is booked in the first half of 2013, the statement explained.
Its operating profit for January-June 2013 before Hopkinton impairment rose by 11% to Swfr181m and EBIT (earnings before interest and tax) after Hopkinton impairment fell by 31.3% to Swfr121m, it added.
“Also our core EBIT target this year will not be influenced by this decision, it will lead to a headcount reduction of approximately two thirds of the 300 employees by the end of the year 2013,” it said.
The company’s core EBIT in the first half of 2013 increased 9.8% year on year to Swfr213m, the company said.
Lonza is reiterating its core EBIT growth target of about 10% for the current year and a double-digit growth in 2014.
For 2015, Lonza said it is targeting an EBITDA margin of 20%.
($1 = Swfr0.94)
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