Place de cotation: Francfort
- Londres - New York - Virt-x - Zurich
Indice: SMI
- STOXX 600
le groupe est l'activité
restante de la méga-fusion entre Ciba et Sandoz en 1996. Fusion
qui donna naissance à un colosse de l'industrie chimique : Novartis.
Car si Ciba Chimie reste indépendant, il est lié bien évidemment
à toute cette histoire, à un savoir-faire historique, reconnu
Operational
Agenda to improve sales, margins and free cash flow 17.08.2006,
Basel, Switzerland
Sales
rise 9 percent in Swiss francs in the first half (6 percent in local currencies)
Operating
income (EBIT) higher on strong second quarter results and strict cost management
Closing
of Textile Effects divestment leads, as expected, to net loss
Free
cash flow improves significantly
Strategy
with focused portfolio and distinct resource allocation
Operational
Agenda to substantially improve cost structure; around 2,500 fewer positions
required by 2009 – the majority coming from natural attrition
Outlook
2006 confirmed: Higher sales, profits and free cash flow
Ciba
Specialty Chemicals focuses on the three core businesses Plastic Additives,
Coating Effects and Water & Paper Treatment and thus strengthens its
leadership position in the market.
Armin
Meyer, Chairman of the Board and Chief Executive Officer, comments: “In
the second quarter, we have improved our performance, with increasing growth
in sales, operating income and free cash flow.
With
the divestment of Textile Effects completed with significantly lower separation
costs than expected, we have made a major step towards our strategic target
to focus on the three core businesses Plastic Additives, Coating Effects
and Water & Paper Treatment and thus strengthen our leadership position
in the market. We refined our strategy, defining distinct portfolio roles
for each business and outlining a targeted, top?down allocation of resources.
We also confirmed our continued commitment to innovation as well as expansion
in high?growth regions.
We
expect the implementation of this strategy and the complementary Operational
Agenda, over the next years, to boost local currency sales, on average,
by 3 to 4 percent per year; to increase operating income margins by more
than 1 percent of sales per year in 2007 and 2008, with an accelerated
improvement thereafter; and to significantly improve free cash flow beginning
in 2008.”
Chief
Operating Officer Brendan Cummins added: “Performance in the second quarter
2006 was encouraging. New innovative products supported our performance.
Demand accelerated across nearly all of our businesses and our focus on
cost management and net working capital led to increased profitability
and a substantially improved free cash flow.
As
we continue to face competitive challenges as well as higher raw material,
utility and social benefit costs, the implementation of our Operational
Agenda is our top priority to improve our overall cost structure on a annualized
basis by CHF 400 million to 500 million by 2009. These measures, necessary
to stay competitive, will lead overall in the next three to four years
to a reduction of around 2,500 positions. While the majority of this reduction
will occur by natural fluctuations, there will be some redundancies.”
OVERVIEW
– FIRST HALF 2006
Sales
rise 9 percent in Swiss francs (6 percent in local currencies)
Sales
increased 9 percent in Swiss francs and 6 percent in local currencies for
the first half of 2006, totaling CHF 3.285 billion (2005: CHF 3.003 billion).
Sales reflected the Company’s recent trend of stronger demand at roughly
stable sales prices, with demand continuing to improve between the first
and second quarters.
First-half
volumes increased 6 percent compared to the corresponding period last year
with contributions from nearly all businesses. Sales prices could be increased
selectively. Currency movements had a smaller, albeit still positive, effect
compared to the first half of 2005, as the U.S. dollar weakened during
the second quarter of 2006.
Regionally,
in local currencies, sales in Asia-Pacific rose 11 percent, with China
17 percent higher and India 15 percent higher than a year ago. Sales in
Europe rose 5 percent, with above-average increases in Southern and Eastern
Europe. Sales in the Americas rose by 2 percent, with NAFTA 3 percent higher.
Operating
income (EBIT) higher on strong second quarter results and strict cost management
Gross
profit was 9 percent higher, reaching CHF 965 million, or 29.4 percent
of sales (2005: CHF 882 million, 29.4 percent). Healthy margin improvement
was seen in the second quarter (30.0 percent) versus the first quarter
of the year (28.7 percent). This result could be achieved, despite higher
raw material and utility costs, thanks to higher sales, improved capacity
utilization rates, cost savings related to Project Shape and additional
cost reductions in the second quarter.
Raw
material costs were about 3 percent higher compared to the first half of
last year. Utility costs were about 15 percent higher than last year.
Operating
income in the first half of 2006, before restructuring, impairment and
other charges, rose 5 percent, reaching CHF 259 million, or 7.9 percent
of sales (2005: CHF 247 million, 8.2 percent), with a clear improvement
seen in the second quarter (9.2 percent) compared to the first quarter.
Higher sales and savings from Project Shape contributed to the positive
result. Operating income, after restructuring, impairment and other charges,
rose 15 percent, to CHF 226 million.
Ciba
Specialty Chemicals achieves strong sales growth in first quarter
27.04.2006, Basel, Switzerland
Sales up 11% in Swiss francs,
5% in local currencies
Separation of Textile Effects
well on track
Higher costs and temporary
lower capacity utilization impact profitability
Operational Agenda to improve
margins and cost structure; target of CHF 400 to 500 million by 2009
Outlook 2006 – higher sales,
profits and free cash flow
Significant volume growth
in Plastic Additives underlines the need for production expansion which
is currently underway on Jurong Island, Singapore.
Armin Meyer, Chairman of
the Board and Chief Executive Officer, comments: “We started the year with
strong organic sales growth across most of the businesses. The separation
of Textile Effects is a turning point for the future of the Company. This
intensive process is on schedule for a closing in the third quarter. The
divestment will strengthen our strategic focus on our core businesses for
plastics, coatings, water and paper. It will give us the opportunity to
streamline our global structures and to sustainably improve our profitability
from the first quarter levels, which did not meet our expectations.”
Chief Operating Officer
Brendan Cummins added: “Our profitability continues to be impacted by increases
in raw material costs, utility costs and social benefit costs. With
selected price increases, a number of firm operational initiatives underway
as well as strict cost containment, we are confident to deliver higher
sales, higher profits and free cash flow in 2006.”
Sales up 11 percent in Swiss
francs and 5 percent in local currencies
First quarter sales were
CHF 1,645 million (2005: CHF 1,486 million), up 11 percent in Swiss francs
and 5 percent in local currencies.
Volumes were 5 percent higher,
supported by improved demand in several industries, notably automotive
and plastics. The positive currency effect in Swiss francs stemmed from
a stronger US dollar in the first three months.
While the businesses most
exposed to high raw material costs pushed through further price increases,
overall sales prices for the quarter were flat. The Company will continue
its strict price discipline in order to offset unfavorable cost increases
such as utilities and raw material costs.
All regions showed sales
growth in local currencies, with Asia up 13 percent, Europe 3 percent and
the Americas 1 percent.
Sales in Plastic Additives
reached CHF 536 million (2005: CHF 461 million), up 16 percent in Swiss
francs and 10 percent in local currencies over the same period last year.
Sales prices were further increased, and volume growth was significant
across all business areas, underlining the need for production expansion
which is currently underway in Singapore.
Coating Effects sales were
CHF 485 million (2005: CHF 441 million), up 10 percent in Swiss francs
and 5 percent in local currencies over the first quarter of 2005. Volume
growth was strong, although pricing pressure on more mature products in
Imaging and Inks and Electronic Materials led to some decreases in sales
prices.
Sales in Water & Paper
Treatment reached CHF 624 million (2005: CHF 584 million), up 7 percent
in Swiss francs and 1 percent in local currencies. Sales price increases
in Water Treatment, driven by the need to compensate higher raw materials
costs, more than offset weaker volumes. Paper Chemicals suffered from sluggish
demand and price pressure in certain product lines, while the acquired
product lines of Raisio Chemicals performed according to expectations. |
