Ciba's Textile Effects see good growth in chemicals business, Q3
07 Nov '05
4 min read
Gross profit margin for the nine months of 2005 was 28.9 percent of sales, compared with 31.9 percent the previous year. This decline is partly due to the different cost structure of Raisio Chemicals, along with higher raw material and utility costs.
Compared with the same period in 2004, raw materials costs are approximately 10 percent higher and energy costs have increased by CHF 20 million.
R&D expenses were CHF 225 million, remaining at 4.1 percent of sales.
Operating income before restructuring charges was 14 percent lower at CHF 440 million and adjusted EBITDA, which is operating income plus depreciation and amortization, was 5 percent lower at CHF 754 million before restructuring charges.
Adjusted EBITDA margin before restructuring was 13.6 percent of sales for the nine month period, showing an improvement trend from the first quarter (13.0 percent), to the second (13.3 percent) and to the third (14.6 percent). The figure was 15.2 percent for the same nine month period in 2004.
Net income for the nine months was CHF 220 million. This is not directly comparable with the CHF 333 million for the same period in 2004, as the 2004 figure included the release of provisions from the divestment in 2000 of Performance Polymers and the resolution of a tax case, which together totaled CHF 43 million. Included in the 2005 figure are restructuring charges of CHF 54 million net of tax.
Excluding the effects of these aperiodic effects, net income on a comparable basis (before restructuring charges and one-time gains in both periods) was CHF 244 million for the nine month period in 2005, compared with CHF 290 million in the same period of 2004.
marketing@alchempro.com
