Business News
First Half 2009: ALTANA still burdened by economic crisis
Thursday 06. August 2009 - The specialty chemicals Group ALTANA posted considerably lower first-half sales and earnings than in the comparative period of the previous year on account of the worldwide economic crisis. In comparison with the preceding first three months of 2009 the sales performance in the period April to June showed a positive trend; it was not possible, however, to offset the very weak first quarter of the business year.
In total, ALTANA recorded significant losses in sales and earnings in the first six months of 2009. Sales decreased by 25% to 541.0 million, down from 716.8 million in the same period a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 52%, from 141.4 million in the previous year to 68.0 million. The EBITDA margin was down to 12.6% and is therefore lower than the value of 19.7% of the previous year. Earnings before taxes (EBT) amounted to 24.5 million, following 103.6 million in the prior year.
Development of the divisions
Sales in the BYK Additives & Instruments division decreased by 21% to 186.0 million; in the prior year sales had amounted to 236.6 million. The ECKART Effect Pigments division posted a sales decline of 34% to 125.4 million. In 2008, sales had amounted to 189.9 million. In the ELANTAS Electrical Insulation division sales were down by 28% to 128.8 million, following 178.6 million in 2008. Sales in the ACTEGA Coatings & Sealants division remained relatively stable, decreasing by 10% to 100.8 million (prior year: 111.7 million).
Cost cutting and investments for the future run in parallel
Comprising, among others, a reduction of costs of materials and personnel costs as well as the postponement of investment measures, the program to cut costs, initiated in the late summer of 2008, led to cost savings of 35 million in the first six months of 2009. In total, the company plans to save about 55 million in the current business year.
“We have responded early on to the worldwide economic crisis with a high cost discipline and by enhancing our efficiency. Yet at the same time we have continued to invest in projects that secure our future such as research, innovation, and customer service,” stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. “Even though an all clear signal cannot be given at present, first signs of a recovery in the worldwide specialty chemicals markets are emerging. We will gain from our strategy and emerge strengthened from the present crisis.”
Outlook
The continuing financial and economic crisis will further determine the development of ALTANAs important sales markets in all regions. The economic environment is therefore still characterized by high uncertainty, which is expected to mark also the second half of the business year. On the basis of our business performance in the first six months of this year and taking into account the present order situation, we expect a noticeably declining sales and earnings performance for the business year 2009 compared to 2008. Due to the high uncertainty it is still not possible at present to provide any concrete sales and earnings forecast.