News Flash

'Textile Effects' profitability stabilize 'Project Shape' at Ciba

31 Jan '06

2 min read

Chemical major Ciba Specialty Chemicals released the year 2005 sales results.

Highlight of the same are:
- Significant impairment for Textile Effects in fourth quarter
- Sales up six percent in Swiss francs, four percent in local currencies
- Profitability impacted by higher raw material costs
- Project Shape delivering substantial cost savings
- Improvement in operational performance in fourth quarter
- Strategic options under evaluation for Textile Effects
- Substantial investments in Asian production
- Dividend of CHF 3 per share proposed

Armin Meyer, Chairman of the Board and CEO, summarizes as follows that 2005 has been the most challenging year for the Company since its foundation. Higher raw material, energy and pension costs added up to almost CHF 400 million.

On the other side, they achieved solid sales growth, 2.5 percent sales price increases, CHF 60 million cost savings from Project Shape and made good progress with the repositioning of Textile Effects.

As part of the repositioning, an assessment of the value of Textile Effects escort to a significant impairment. With our key priorities – innovation and improving operations – as well as our focused portfolio, they will be able to deliver stronger results.

Profitability levels impacted by higher raw material costs - Operating income, before special effects (consisting of restructuring, impairment and other charges relating to Project Shape and Textile Effects), was 5 percent lower at CHF 579 million in 2005 (2004: CHF 612 million). Including special effects, an operating loss of CHF 124 million was reported.

Click here to see more details:

Swiss chemical company Ciba strive to be the partner of choice for our customers, offering them innovative products and one-stop expert service. They create effects that improve the quality of life – adding performance, protection, color and strength to textiles, plastics, paper, automobiles, buildings, home and personal care products and much more.

Ciba Specialty Chemicals

More Ciba Specialty Chemicals News... More Textiles News - Switzerland...