Kemira revenue rose by 20% in July-September 2005

Nov 03, 2005. /Lesprom Network/. In July-September the Kemira Group’s revenue rose by 20% compared with the same period a year earlier and was Euro 543.0 million (July-September 2004: 453.4 million). The main factors driving growth were the acquisition of Finnish Chemicals by the pulp and paper chemicals business and the Verdugt acquisition within industrial chemicals, both completed at the beginning of April. The higher business volume also stemmed from the acquisitions made at the end of 2004 by the pulp and paper chemicals business as well as within water treatment chemicals. The acquisitions accounted for approximately Euro 104 million of the growth in the revenue, whereas revenue was reduced by the disposal of the industrial coatings business in the UK at the turn of the year (a drop in revenue of Euro 5.2 million) as well as by the cut-back in the operations of the non-core water soluble speciality fertilizers unit (a revenue decrease of Euro 27.5 million). Stripping out acquisitions and disposals as well as the reorganization measures in the water soluble fertilizers business, organic growth was 4%. In July-September, operating profit increased by 28% to Euro 59.2 million (46.1 million). The acquisitions made added approximately Euro 10 million to operating profit. The result includes capital gains on asset disposals of Euro 2.7 million (2.8 million).

Raw material prices increased moderately in July-September compared with the previous quarter, whereas the price of energy rose markedly. Kemira succeeded in passing part of the raw material cost increases into selling prices.

In Euro