News Flash

'Trading environment remains highly uncertain & volatile' - Cognis CEO

27 May '09

4 min read

At the same time, we are starting to see a few positive signs, with the rate of volume decline slowing appreciably in March. Our goal is to further strengthen the leading position we enjoy in growth markets driven by the wellness and sustainability trends. The suitability of our strategy is borne out by the fact that these areas are more resilient to the economic downturn.”

Outlook for 2009
“The trading environment remains highly uncertain and volatile,” says Trius. “We expect our cost-saving measures to counteract lower sales. Most of the initiatives will materialize from April onwards. Together with our efforts on optimizing our costs, we will also stay focused on maintaining our healthy cash position.”

Care Chemicals recorded sales of 370 million euros, a decrease of 13.8 percent (down 13.4 percent on an organic basis). Sales volumes were lower in all business segments. However, volumes actually increased by 8 percent compared to the fourth quarter of 2008. Sales of those businesses primarily serving the home and personal care market segments remained largely resilient. Consumer interest in “green” trends where Care Chemicals excels in providing innovative solutions primarily supported the growth in the Americas and Asia-Pacific.

Functional Products achieved sales of 201 million euros, representing a fall of 16.1 percent (down 16.9 percent on an organic basis). Compared to the fourth quarter of 2008, the decline in volumes was much lower at 5 percent. Businesses related to the mechanical engineering, housing and automotive sectors such as Coatings & Inks and Synlubes were particularly affected by the economic downturn.

Within the Synlubes business however, both sales of fuel efficient compounded lubricants and wind turbine lubricants remained robust. The agrochemical solutions business slightly increased sales, as demand for environmentally sound agricultural solutions remained robust.

Cognis

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