Evonik raises outlook for 2010 following a strong start to the year

(Evonik) -- ⌠We started this year with strong figures, commented Klaus Engel, Chairman of the Executive Board of Evonik Industries AG, today, when the company published its key financial data for the first quarter of 2010. The Group reported a substantial improvement in all major financial indicators. In particular, earnings have increased steadily. ⌠The economy is starting to recover and our confidence is growing. Nevertheless, the economic situation remains uncertain, said Engel.

The Evonik Group grew sales to ┬3,769 million in the first quarter of 2010, a rise of 18 percent on the year-back quarter, which was marked by the economic crisis. EBITDA (earnings before interest, taxes, depreciation and amortization) increased 126 percent to ┬744 million, principally due to far higher volume sales. The EBITDA margin improved to 19.7 percent (Q1 2009: 10.3 percent), bringing it to a good level. EBIT (earnings before interest and taxes) more than quadrupled to ┬554 million, driven mainly by the pleasing development of the Chemicals and Energy Business Areas. Overall, the Evonik Group's net income was ┬290 million, compared with a loss of ┬46 million in Q1 2009.

The cash flow from operating activities advanced 20 percent to ┬530 million. This was mainly attributable to a far higher operating result, while net working capital increased as a result of a perceptible upturn in business. The cash flow was sufficient to finance capital expenditures of ┬117 million and to reduce net financial debt to ┬3,192 million, a decline of ┬239 million compared with year end 2009.

MRC

Multinational withdrawal benefits Polish PS firm

(prw) -- Polish polystyrene manufacturer Synthos, which emerged battered but intact from the worst effects of the economic crisis last year, now aims to benefit from the exit from the region of several big multinational producers.

The Oswiecim-based chemical group, whose styrene division recorded a ┬4.6m operating loss in the first three quarters of 2009, could gain from changes in a market suffering from overcapacity.

Synthos, Europe's third ranked foamed polystyrene producer, has survived, while notable competitors like BASF and Dow Chemical called a halt to local manufacture. The effects of the crisis were exacerbated, not just by oversupply but also by rising benzene prices which together made production there unprofitable.

But recovery has been patchy with some market sectors like construction and industrial packaging still blighted. So Synthos, which, as a group also manufactures synthetic rubbers, will have to take advantage of those more stable markets such as food packaging where demand is up.

MRC

Petrochemical hub in Malaysia's ECER to attract investors from the Middle East

(plastemart) -- A world-class petrochemical hub in the East Coast Economic Region (ECER) that currently houses two operational integrated petrochemical complexes, is set to attract investors from the Middle East. Of the two complexes, Kertih Integrated Petrochemical Complex in Terengganu, located within the Petronas Petroleum Industry Complex (PPIC), focuses on ethylene-based products; while Gebeng Integrated Petrochemical Complex in Pahang focuses on propylene-based products.

PPIC is home to 41 plants and facilities with investment from Petronas and offers world-class infrastructure and facilities, including logistics and distribution system to support downstream manufacturing activities, and polymer feedstock availability.

The East Coast Economic Region Development Council (ECERDC) investment mission is headed to the Middle East from May 7 to 17 to attract investors from the Gulf region to ECER, as well as to enhance bilateral business relationship between Malaysia and the Middle East countries.

MRC

Protest in Changhua County to halt construction of petrochem complex by Kuo Kuang

(plastemart) -- Protests have demanded the government to halt the construction of a petrochemical complex by Kuo Kuang Petrochemical Technology Corp in Changhua County. Residents and environmentalists staged a protest in front of the Ministry of the Interior's Construction and Planning Agency to this effect. No conclusion has been reached by the Construction and Planning Agency on its second review of an application filed by Kuo Kuang for revised land use and development scheduled for this week. The company has not yet disclosed the proposed source of 400,000 tons of water required daily by the petrochemical plant.

The ministry originally planned to designate the coastal area in Changhwa one of the nation's most important wetlands, but that plan was halted by the Council of Economic Planning and Development (CEPD).

MRC

Cereplast announces first quarter 2010 Results

EL SEGUNDO (Cereplast) -- Cereplast, a leading manufacturer of proprietary bio-based, sustainable plastics, today announced its financial results for the first quarter ended March 31, 2010.

Revenue for the first quarter ended March 31, 2010, totaled $319,217 compared to $564,383 a year ago. The sales decrease for the period was due to the temporary closure of the Company's factory as it moved its operations from California to its new production facility in Seymour, Indiana. The decrease was partially offset by an increase in order from both existing and new customers.

Gross profit decreased by $6,204, or 6.4%, to $91,566 for the three months ended March 31, 2010, compared to gross profit of $97,770 for the three months ended March 31, 2009. As a percentage of net sales, gross profit margin increased to 31.6% for the three months ended March 31, 2010 from 17.4% for the three months ended March 31, 2009. The increase in gross margin is attributable to lower cost of sales tied to decreases in raw materials costs, and improvements in manufacturing operations and cost savings at the Company's new facility in Seymour, Indiana.

Total operating expenses for the three months ended March 31, 2010 decreased by $705,627, or 31.2%, to $1,556,717 compared to total operating expenses of $2,262,344 for the three months ended March 31, 2009. The decrease for the period is largely attributable to a reduction in salary and wages and in the value of stock-based compensation as a result of a smaller workforce, as well as a decrease in marketing expenses, professional fees, rent expense, and research and development costs.

Net loss for the first quarter of 2010 decreased by $508,961, or 23.2% to $1,684,594 compared to a net loss of $2,193,555 for the same period a year ago. The decrease in net loss was a result of reduced operating expenses associated with downsizing of the Company's workforce and leveraging staff resources, improved processes and cost controls, and rigorous market and customer selection as well as enhanced gross profit margins.

MRC