IHS Chemical Week


Specialty Chemical Round Up; August 5-August 11

7:03 AM MDT | August 11, 2011 | By KERRI WALSH

 Late-reporting specialty chemical companies mostly posted improved second-quarter results, helped by higher selling prices and improved volumes. Specialty makers expect growth to continue, but are mixed about how strong growth will be. They all agree that raw material costs will continue to rise.  Lanxess's net income jumped 38%, to €181 million, on sales up 23%, to €2.2 billion. Lanxess says it has raised its outlook for full-year 2011 Ebitda pre exceptionals because of the strong second quarter results. The company now expects Ebitda pre exceptionals to grow about 20% from year ago levels, up from its previous estimate of 10%-15%. The company earned €918 million last year. Henkel’s second quarter adjusted operating profit from its adhesives and sealants division jumped 9%, to €278 million ($396 million), on sales up 4%, to €1.9 billion. “Both volume improvements and selling price increases played their part in this positive development,” Henkel says. “Although further steep rises in raw material and packaging prices exerted a distinctly negative effect, the ensuing cost increases were significantly outweighed by further efficiency enhancement measures and selling price increases,” the company says.

International Flavors and Fragrances (IFF) reported net income of $76.2 million, up 13%, on sales up 7%, to $716 million. Excluding special items, reported earnings were 97 cts/share, up 14%. DIC's net profits for its fiscal first quarter ended June 30, 2011 rose 41%, to ¥8.5 billion ($109 million). Sales decreased 3%, to ¥191.5 billion, mainly due to the appreciation of the Japanese currency, DIC says.

Arch Chemicals' net income from continuing operations fell 14%, to $37.4 million. Sales were essentially flat at $443.8 million. Earnings were “significantly impacted” by lower-than expected results in the company’s HTH water products business, stemming from the postponement by one “mass retail customer” of purchases from the second quarter to the third.

Lonza says that its LG Acquisition Corp. subsidiary has extended the expiration date for its previously announced tender offer for all outstanding shares of biocides maker Arch Chemicals (Norwalk, CT), to September 12, 2011. Lonza announced last month that it will acquire Arch in a deal valued at $1.4 billion. Lonza launched the tender for all of Arch’s outstanding shares on July 15 for $47.20/share in cash. The tender offer was initially scheduled to expire on August 11.

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