Industry News

Successful 2007 marked by investments in the future for Perstorp

Published on 2008-02-29. Author : SpecialChem

The 2007 financial year was successful and full of significant investments in the future for Perstorp. Net sales rose by 18 per cent to SEK 8,583 million as a result of strong demand and price increases, plus the start of a new rapeseed methyl ester (RME) production plant.

"The Group delivered in line with its business plan and exceeded targets for growth and profitability. Meanwhile, we made majors investments in production capacity, new products and company acquisitions, which will have a major impact on the future development of the Group," says Perstorp's President and CEO, Bo Dankis about the results for the past financial year.

Strong demand for nearly all products and thereby high capacity utilization at the Group's production plants helped net sales for 2007 rise by 18 per cent to SEK 8,583 million (7,273). Higher price levels and the start of a new rapeseed methyl ester (RME) production plant also helped the net increase.

The operating profit before depreciation and amortization (EBITDA) climbed to SEK 1,365 million (1,091) due to volume increases and higher price levels. Profits improved despite the falling US dollar and high prices for energy and raw materials. Cash flow from operations amounted to SEK 550 million (591). Interest payments were higher than in the previous year.

A number of company acquisitions were carried out in 2007 including a leading supplier of PIA (Purified Isophtalic Acid) based in Singapore and after the end of the business year the acquisition of a leading caprolactone business based in the UK. Perstorp's leading position was further strengthened on the important Chinese market through a joint venture and acquisition of production plants in the country. The acquisitions will boost the Perstorp Group's sales by around SEK 2 billion.

"The main priority for Perstorp in 2008 is to continue delivering growth and earnings in line with established plans. It's important that we succeed in integrating the acquired companies and handling the major investment projects that have started. This, combined with continued good demand on the Group's markets, mean that I expect to see positive growth for the Group in 2008," says Bo Dankis.

Source: Perstorp

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