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Cognis reports increased sales and earnings for first nine months of 2006

Published on 2006-11-22. Author : SpecialChem

In the nine months to September 30, 2006, global specialty chemicals supplier Cognis achieved net external sales of 2,555 million euros, a 7.2 percent increase on the same period in 2005. Adjusted EBITDA (earnings before net financial result, income taxes, depreciation, amortization and exceptional items) grew by 7.1 percent to 304 million euros, and the company's overall profit margin was 11.9 percent. Comments Antonio Trius, CEO of Cognis: "We are really pleased with the results for the first nine months of the year, which have been achieved despite higher energy costs, especially in Europe, and increasing raw material costs. Care Chemicals, Nutrition & Health and Functional Products have made particularly important contributions to these encouraging figures, and it is no coincidence that these three Strategic Business Units are all strongly focused on innovation-driven growth markets."

Four Strategic Business Units (SBUs) of the company posted sales that exceeded the nine-month figures for 2005, with Functional Products achieving particularly significant growth in sales. Oleochemicals reported slightly lower sales. Moreover, all regions made a contribution to the strong results. Organic net external sales (sales adjusted for the effects of currency fluctuations, acquisitions and divestments) for the Cognis group as a whole were 5.8 percent higher than the previous year.

Sales by Strategic Business Unit (SBU)

Care Chemicals, Cognis' largest SBU, achieved significant growth, with sales increasing by 6.1 percent to 1,024 million euros. The main drivers of this growth were strong sales of fatty alcohols and surfactants, and above all of innovative value-added products from the performance ingredients segment.

Sales in the Nutrition & Health SBU increased by 5.1 percent to 240 million euros. The increase was mainly due to the solid performance of branded ingredients – especially the Vegapure sterol ester and Tonalin conjugated linoleic acid (CLA) – and to the pharmaceuticals and healthcare business segment.

Functional Products saw the highest growth of any SBU, with sales increasing by 13.0 percent to 643 million euros. All the SBU's market segments contributed to this growth. In particular, the synthetic lubricants, agriculture and mining businesses achieved strong results.

Sales of Process Chemicals totaled 194 million euros, up 4.9 percent, with strong demand in the Asia-Pacific region driving increased sales in both the leather and textiles business segments.

Oleochemicals' sales decreased slightly, and at 417 million euros were 0.9 percent down on the same period in 2005.

About Cognis

Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients, with a particular focus on the areas of wellness and sustainability. The company employs about 8,000 people, and it operates production sites and service centers in 30 countries. Cognis has dedicated its activities to a high level of sustainability and delivers natural source raw materials and ingredients for food, nutrition and healthcare markets, and the cosmetics, detergents and cleaners industries. Another main focus is on products for a number of other industries, such as coatings and inks, lubricants, textiles, as well as agriculture and mining. The company holds a 50-percent stake in the joint venture Cognis Oleochemicals, one of the world’s leading manufacturers of oleochemicals.

Cognis is owned by private equity funds advised by Permira, GS Capital Partners, and SV Life Sciences. In 2005, Cognis recorded sales of 3.18 billion euros and an Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) of 356 million euros.

Cautionary Statement

The statements we make in this release may include statements about our plans and future prospects for the company and the industry that are forward-looking statements. Our actual performance may differ materially from performance suggested by those statements. We urge you to review the cautionary statements in our financial statements for information on factors that could cause those differences.

Source: Cognis

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