31 October 2013 10:30 [Source: ICIS news]
LONDON (ICIS)--Croda International’s third-quarter operating profit from continuing operations rose by 4.0% year on year to £62.0m (€72.1m) as all of its business segments saw an improvement in earnings, the UK-based specialty chemicals company said on Thursday.
Turnover in the third quarter was up 4.4% to £267.9m with underlying sales up 0.8% on the back of growth across all regions, it added.
“Innovation-led sales were very strong in all segments, with double digit growth seen in new and patented products. However, we saw near double digit declines in relatively low-margin but high-volume commodity and toll manufacturing sales,” Croda said.
Third-quarter operating margins remained stable at 23.1%.
In the group’s Consumer Care business, operating profit increased 3.2% to £45.6m, as sales rose 3.2% to £145.4m supported by both volume growth and a better quality product mix.
Croda’s Performance Technologies segment saw operating profit rise 4.5% to £13.9m as sales grew 0.4% to £95.0m on the back of growth in its Geotech and Polymer Additives businesses.
In the Industrial Chemicals business operating profit increased 19.0% to £2.5m, as turnover rose 31.6% to £27.5m, boosted by the acquisition of Sichuan Sipo Chemical (Sipo), Croda added.
Martin Flower, chairman of Croda said: "Croda has continued to generate a steadily improving underlying sales performance through every quarter of this year despite challenging market conditions.
“We continue to benefit from the strong demand for innovation and remain particularly encouraged by the progress that Croda is making in Asia and South America. However, with currencies continuing to weaken and market conditions expected to remain subdued, fourth quarter profits are likely to be similar to quarter three," Flower added.
(€1 = £0.86)
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