Finland’s Kemira maintains €2.6bn-2.7bn revenue target for 2016

10 September 2013 07:50  [Source: ICIS news]

SINGAPORE (ICIS)--Kemira is maintaining its revenue target of €2.6bn-2.7bn ($3.47bn-3.6bn) for 2016, as savings are expected to be generated from structural changes underway in the company, the Finnish producer said on Tuesday.

It should be able to deliver earnings before interest, tax, depreciation and amortisation (EBITDA) in the same year equivalent to 15% of revenue, Kemira said in a statement.

For 2013, the company expects revenue in local currencies, exclusive divestments to either stay flat or post growth of up to 5% compared with 2012.

Operating profit this year, on the other hand, is expected to grow by more than 15%, the company said.

“Kemira is targeting an operative EBIT [earnings before interest and tax] margin of 10% in 2014,” it said.

“The target is expected to be achieved through a number of factors, including the Fit for Growth cost savings, additional efficiency measures, like the Vaasa process chemicals site closure and the establishment of a global business service centre, as well as synergies relating to the recent 3F acquisition (closure of the transaction expected on October 1, 2013),” Kemira said.

“In addition, the reorganization and changes in the business model in municipal & industrial [segment] are expected to result in more than €5m savings once fully implemented,” Kemira said.

Kemira expects innovation to be its key organic growth driver that should generate €250m in revenue in 2016, more than double the €106m made in 2012, company president and CEO Wolfgang Buchele said.

($1 = €0.75)

By: Pearl Bantillo
+65 6780 4359

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