ALTANA achieves outstanding business year 2010
Good business year 2011 expected
The specialty chemicals Group ALTANA ended the business year 2010 with excellent sales and earnings figures. Sales climbed to €1,535.4 million, corresponding to an increase of 30% compared to the previous year (€1,181.7 million). Adjusted for exchange rate as well as acquisition effects, the operating sales growth was 24%. As a result, ALTANA did more than compensate for the crisis-related decrease in sales in the business year 2009, and was also able to generate significant growth in sales compared to the pre-crisis level of 2007.
Earnings increase stronger than sales increase
The increase in earnings before interest, taxes, depreciation and amortization (EBITDA) was even more pronounced than in sales revenues. In 2010, EBITDA grew by 51% to €314.1 million, up from €208.4 million. The EBITDA margin was 20.5% and therefore clearly higher than the prior-year figure of 17.6%.
As of December 31, 2010, ALTANA employed 4,937 people worldwide; this is an increase of 3% on the previous year. In the current business year the company will presumably exceed the level of 5,000 employees. In 2010, capital expenditure in intangible assets and property, plant and equipment rose strongly by 37%, amounting to €73.8 million following €54.0 million in 2009. At €82.0 million, the company’s research and development expenses were noticeably higher than in the prior year (€70.6 million).
Performance of the divisions
For the first time ever, the BYK Additives & Instruments division generated sales of more than half a billion Euros in the past business year. Sales improved by 29%, up from €419.9 million in 2009 to €541.2 million in 2010. Sales of ECKART Effect Pigments also rose noticeably from €282.3 million to €356.6 million; this corresponds to an increase of 26%. The ELANTAS Electrical Insulation division achieved the largest percentage growth, with sales climbing by 38% to €377.4 million, following €272.7 million in 2009. Sales of ACTEGA Coatings & Sealants grew by 26% from €206.8 million to €260.2 million.
Regional sales perfomance
ALTANA generated the highest sales volume in Europe, with €683.7 million compared to €555.1 million in the previous year; this is an increase of 23%. The second most important region was Asia, where sales amounted to €439.0 million. This corresponds to an increase of 38%, which is the strongest growth in comparison to the previous year (€317.9 million). China accounts for almost half of the company’s total sales in Asia. With sales of €224.2 million, this country is the third largest single market, close behind Germany (€234.5 million). In the Americas ALTANA achieved sales of €361.5 million, following €267.7 million in 2009; this also corresponds to a significant sales increase of 35%. The largest single market in the American region is the U.S., with sales amounting to €242.0 million.
Return to long-term growth course
“ALTANA looks back on an outstanding business year 2010, in which we have returned to our long-term growth course and achieved excellent sales and earnings results,“ stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. According to Wolfgruber this success was not only due to the positive overall economic situation: “The strong business year 2010 is the result of our clear and long-term oriented corporate strategy, which focuses on innovation and customer proximity in demanding global markets, even during the worldwide economic crisis,“ continued Wolfgruber. The company‘s present position, said the CEO, is an excellent foundation from which to further embrace the opportunities in the worldwide specialty chemicals markets and to successfully continue the company’s course of profitable growth with the help of continuing high and further rising investments into the future.
Outlook
For the current business year ALTANA expects further increases in sales, primarily driven by the development of the global economy in the sales markets important for the company. However, due to the fact that general economic risks will continue to exist, we expect an economic environment that is characterized by increased volatility. The development of raw material prices, in particular, might have a significant effect on the profitability of the Group. Overall, we assume that ALTANA will continue its course of profitable growth.
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