Second Quarter Results 2011

Second Quarter Results 2011

Author: ChemistryViews

The second quarter of 2011 was mixed for the chemical industry with political unrest and the appreciation of the Swiss franc affecting results.

chemical industry financial results Q2/2011

(Figures reported in million Euros. Conversion into EUR accurate as of 28/7/2011. Data from each company’s press release.)

BASF with strong first half 2011
  • 2nd quarter 2011: Sales up 13.9 % and EBIT before special items up 1.4 %, on comparable basis up 16 % from the previous year
  • 1st half 2011: Sales up 19.4 % and EBIT before special items up 19.4 % from the previous year
  • Outlook for 2011 confirmed

Following a strong start to the year, BASF had a good and very solid second quarter. Sales improved by 13.9 % to € 18.5 billion and income from operations (EBIT) before special items by 1.4 % to € 2.2 billion despite the suspension of oil production in Libya. In the second quarter of 2010, the Libyan activities contributed an EBIT before special items of € 280 million.

“The economic environment in the first half of 2011 was favorable for our business. Our numbers show that we successfully took advantage of this momentum,” said Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF SE.

Marijn Dekkers BayerBayer Continues Positive Momentum
  • Sales up 5.4 % on an adjusted basis to EUR 9,252 million
  • Operating result (EBIT) advances 25.9 percent to EUR 1,273 million
  • Net income rises by substantial 40.9 percent to EUR 747 million
  • Group outlook for 2011 confirmed with significant progress with innovation projects and efficiency measures advancing well

The efficiency-enhancing measures Bayer announced in November 2010 are being implemented as planned. Bayer’s CEO is optimistic for the current fiscal year and confirmed the sales and earnings forecast for 2011 that was raised in April.

“We are pleased with the way our business performed,” said Bayer CEO Dr. Marijn Dekkers. “We have also achieved significant progress with products from our research and development pipeline.”

Clariant AG – Solid Performance in a Difficult Environment
  • Sales up 14 % in local currencies on solid business fundamentals and price increases, but down 1 % in CHF as Swiss franc continued to appreciate
  • EBITDA before exceptional items at CHF 241 million, down from CHF 264 million a year ago, negative currency impact of CHF 69 million
  • Cash flow from operations of minus CHF 101 million as inventories rose due to relocation of production assets and the usual seasonality
  • Integration of Süd-Chemie progressing as planned

Clariant expects a more difficult but nevertheless solid business environment in H2 2011, characterized by softening demand. Based on this scenario, no further deterioration in currency markets assumed, and including Süd-Chemie consolidated for eight months, Clariant confirms its guidance for the full-year 2011 with sales between CHF 7.8 – 8.0 billion and an EBITDA margin of 13.5 % – 14.5 %.

CEO Hariolf Kottmann commented: “In the first half of 2011, business fundamentals were robust although global economic growth dampened compared to 2010. This is reflected in an improved underlying operating performance year-on-year. The results, however, have been adversely impacted by the massive appreciation of the Swiss franc.”

Dow: Second Quarter 2011 Highlights
  • Earnings per share of $ 0.85 — 57 % increase year-over-year
  • EBITDA increases 25 % with gains in every operating segment
  • Sales up 28 % with price increases offsetting $ 1.5 billion rise in feedstock and energy costs
  • Health & Agriculture Sciences delivers record $ 3 billion of sales in 1H 2011
  • Asia Pacific reaches record $ 2.7 billion of sales; emerging geographies deliver record $ 4.9 billion of sales

Quarterly EBITDA records were achieved in Electronic & Specialty Materials, Performance Systems, Dow Water & Process Solutions divisions leading to EBITDA and equity earnings reaching a record for the first half of the year.

Karl-Ludwig Kley Merck Merck KGaA Q2/2011: Total Revenues Increase by 16 % to EUR 2.6 Billion
  • One-time adjustments lead to Q2 operating result of € –11 million, Q2 core OR at € 315 million
  • Underlying core OR reaches € 548 million vs € 501 million in Q2-2010
  • New Executive Board in place, selection of next level underway
  • New guidance on Group operating result for 2011: approx. € 1 billion, or approx. € 1.4 billion excluding one-time items
  • 2011 guidance on Group operating result unchanged: +35 % to +45 %

With its two major acquisitions, Serono and Millipore, Merck has strengthened itself and set the course for the future.

“The Merck Group produced solid revenue figures for the second quarter. While a series of one-time charges adversely affected this quarter’s profits, this will give us a healthy basis on which our new management team can build,” said Dr. Karl-Ludwig Kley, Chairman of the Executive Board of Merck KGaA.

Mohamed Al-Mady SABIC SABIC reports record profits for 2Q
  • Net income of SR 8.1 billion for the 2Q 2011 — 61 % increase on previous year
  • The earnings per share for the six months ending June 2011 amounted to SR 5.26, compared to SR 3.48 for the same period in the previous year
  • SABIC to expand its basic chemicals line to produce high performance materials

The Second Quarter results show a marked improvement from the previous Quarter and confirm that the diversity of SABIC’s products reduces the risks facing the market. SABIC produces steel, fertilizers, polymers, chemicals and value-added performance chemicals. Strategic agreements have been finalized with partners including Mitsubishi Rayon, Montefibre, Exxon Mobil, Lurgi and Asahi, to produce methyl methacrylate, polymethylmethacrylate, carbon fiber, elastomers and sodium cyanide.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that the company’s results for the Second Quarter 2011 has exceeded the expectations of economic analysts, thanks to the efforts of employees and the various programs that have been initiated by the company over the years to transform SABIC into a truly global company.

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