Brenntag records strong results for 2008 and enters the Asian market
Brenntag announces strong results for 2008: With an increase of 11% to the previous year the company recorded external sales of EUR 7.4 billion (USD 10.8 billion). Earnings before interest, taxes, depreciation and amortization (operating EBITDA) increased by 17%.
Eliminating currency exchange rate effects removes the impact the weakened US Dollar had on reported results and reveals an even stronger growth: Sales increased by 14% and operating EBITDA by 22%.
Brenntag’s Chief Executive Officer Stephen R. Clark: ”The sound 2008 operating performance comes from Brenntag’s ideal position in the center of the supply chain which enables it to efficiently service both its customers and suppliers. As such, we are finding many opportunities to help our partners get through the current rough patch in the economy at the same time mitigating volume weakness in our own business. Brenntag’s unparalleled physical network and service capabilities continue to allow us to move forward with excellent value propositions during these trying times.
During 2008, we expanded our presence in industries, product areas and geographic regions. Ten acquisitions were completed including one which enabled us to enter Asia and Australia. This opens up new opportunities not only for our customers and our suppliers but also for ourselves. With capital expenditures of EUR 80 million (USD 118 million) we continued to optimize safety, efficiency and service capabilities. With these undertakings we are looking forward to enhancing the results of our valued business partners in the years to come.”
2008 acquisitions included:
- the purchase of Rhodia’s chemical distribution operations in Australia, India, Taiwan and the ASEAN countries of Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
- Dipol Chemical International, Inc., focused on the distribution of polymers and specialty chemicals in Ukraine, Russia and Baltic States and which also provides services in Belorussia and Moldova
- Schoofs, Inc., Moraga, a Californian specialty chemical distributor with process chemical lines pertaining to the Oil & Gas Industry
- C.N. Schmidt B.V., a Dutch specialty chemical distributor which strengthens Brenntag’s positions in the important Benelux market as well as the business in Europe. The company acts as a distributor of specialty chemicals in the food, pharma, rubber and water treatment sector
- Yara International ASA’s production and chemical distribution activities in Koeping (Sweden) and Tertre (Belgium) for ammonia nitrate solution, aqueous ammonia and weak nitric acid
- Inquimex S.A.C.I., Argentina, a leading company in the distribution of polyurethanes and industrial chemicals in Argentina
Major 2008 capital expenditures included:
- a new distribution center in Querétaro, Mexico with an area of 77,000 square meters (830,000 square feet) and 15,000 square meters (160,000 square feet) warehouse space including 1,000 square meters (11,0000 square feet) of temperature controlled rooms for fine chemicals and vitamins. Also developed on site was tank storage of 41 tanks with 3,000 cubic meters capacity complete with parking for 80 railcars
- the completion of a new storage and distribution center in Rotterdam (Netherlands) in which bulk solvents are stored in underground tanks of 50 cubic meters each and in high volume tanks (800-1,200 cubic meters) as well as an ultra-modern area where bulk solvents are loaded, drums are filled, automatically palletized and stored
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