Cognis reports flagging textile technology revenues

22 Aug '05

3 min read

Worldwide innovative specialty chemicals and nutritional ingredients prouder and supplier Cognis announced the half year results.

In the six months to June 30, 2005, the global specialty chemicals supplier Cognis achieved net external sales of 1,602 million euros. This is an increase by 2.8 percent compared to the same period in 2004. Adjusted EBITDA (earnings before net financial result, income taxes, depreciation, amortization and exceptional items) grew by 1.1 percent to 200 million euros. Comments Dr. Antonio Trius, CEO of Cognis: "High raw material costs and challenging market conditions remain to influence our financial performance. However, for 2005 as a whole, we continue to expect moderate sales and Adjusted EBITDA growth."

Cognis' sales excluding foreign currency effects and divestments increased in the first half year of 2005 by 5.2 percent over the first half year of 2004. Four of the company's five Strategic Business Units (SBUs) – Care Chemicals, Nutrition & Health, Functional Products and Oleochemicals – achieved significant growth, with only the Process Chemicals SBU posting lower organic sales than in 2004.

Sales by Strategic Business Unit (SBU)
With sales up 9.1 percent to 629 million euros, Care Chemicals, Cognis' largest SBU, achieved strong growth. The main growth drivers were strong sales of fatty alcohols and primary surfactants, and the continuing growth in sales of innovative, new products.

Sales in the Nutrition & Health SBU increased by 5.9 percent to 156 million euros, with sales of plant sterols like Vegapure sterol esters being particularly strong. Sales growth of other branded ingredients, specifically Tonalin conjugated linoleic acid (CLA) and Xangold lutein esters did contribute as well in the first six months of 2005.

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