First Half 2009: ALTANA Still Burdened by Economic Crisis
EBITDA: down 52 percent; EBITDA margin 12.6 percent
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.
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).
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.“
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