Bayer profit rises 14% in Q2 2014

MOSCOW (MRC) -- Bayer AG 's second-quarter net profit increased 14%, helped by robust demand for its latest drugs and crop protection products, but the German company tweaked its full-year outlook to reflect the strength of the euro against other currencies, said The Wall Street Journal.

Net profit for the quarter rose to EUR953 million (USD1.28 billion) from EUR841 million a year earlier. Revenue increased 0.9% as adverse currency effects continued to weigh. Adjusted to take into account currency swings and changes in Bayer's portfolio of drug and chemical assets, revenue rose 6.3%. Adjusted earnings before interest and taxes, depreciation and amortization rose 1% to EUR2.22 billion.

"Our life science businesses, in particular, saw unabated growth momentum, with very encouraging sales gains for our recently launched pharmaceutical products and our North and Latin American Crop Science business," said Chief Executive Marijn Dekkers in a news release.

For the full year, Bayer reaffirmed that adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, is set to increase by a low- to mid-single-digit percentage, but the euro's strength is expected to reduce Ebitda by around EUR550 million compared with the previous forecast of EUR450 million. It expects group sales, adjusted for currency and portfolio effects, to rise 6% instead of the previously forecast 5%, allowing for an increased negative currency impact.

"We are upholding the previous guidance for the Group in light of our good operational performance," Mr. Dekkers said.

As MRC wrote before, Bayer MaterialScience (BMS) plans to invest EUR 15 million in the construction of a production line at its Dormagen site, which will use CO2 to produce a precursor for premium polyurethane foam. The line will have an annual production capacity of 5,000 metric tons.

Bayer's five key drugs- blood thinner Xarelto, cancer drugs Stivarga and Xofigo, eye treatment Eylea and pulmonary hypertension drug Adempas- registered combined sales of EUR702 million in the quarter, more than double in the same period last year.

Bayer MaterialScience is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries.
MRC

MOSCOW (MRC) -- AkzoNobel has partnered with the Solar Energy Research Institute of Singapore (SERIS) at the National University of Singapore in order to explore less costly ways of producing high-efficiency silicon wafer solar cells, reported the company on its site.

The company's High Purity Metalorganics (HPMO) business is a leading supplier of electronic materials to the semiconductor and solar industries. Together with SERIS, they will now investigate how to respond to the photovoltaic industry’s desire to reduce the costs involved in moving towards more efficient cell architectures.

The collaboration has been prompted by the growing expectation that the photovoltaic industry will move towards higher efficiency silicon wafer solar cell architectures.

"AkzoNobel has developed significant knowledge in this field and together with SERIS, will identify how to best reduce the total cost of ownership of solar power," said Dr Bram Hoex, Director of the Silicon Materials and Cells Cluster at SERIS. "In particular, the partnership aims to explore how to produce more cost-efficient metalorganic precursor grades that will offer the kind of long-term benefits the industry is looking for."

The new precursors should offer an attractive alternative to the current commercially available metalorganics, which are designed for applications other than high-efficiency silicon wafer solar cells.

AkzoNobel's HPMO products are used in a wide range of industrial and consumer products, including lasers, solar cells, LEDs and mobile phones.

As MRC wrote previously, AkzoNobel completed the sale of its Primary Amides chemicals business to PMC Group effective December 31, 2013. The sale follows a review of the business' fit within AkzoNobel's Functional Chemicals portfolio, where it operated as a standalone activity.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC

MOSCOW (MRC) -- NS Styrene Monomer has restarted its No.2 styrene monomer (SM) plant, as per Apic-online.

A Polymerupdate source in Japan informed that the plant restarted over the weekend. It was shut on July 8, 2014 owing to feedstock supply problems.

Located at Oita in Japan, the plant has a production capacity of 190,000 mt/year.

As MRC informed previously, Styrindo Mono Indonesia (SMI) is in plans to shut its No.1 styrene monomer (SM) plant for maintenance turnaround in H2 November 2014. The plant is slated to be shut for around one month. Located in Merak, Indonesia, the plant has a production capacity of 100,000 mt/year.

Besides, Idemitsu SM (Malaysia), an affiliate of Idemitsu Kosan, one of Japan’s largest refining and petrochemical companies, is likely to shut down its SM plant for maintenance in August 2014. It is likely to remain shut for around one month. Located at Pasir Gudang in Malaysia, the SM plant has a production capacity of 600,000 mt/year.

We also remind that Taiyo Petrochemical is in plans to shut down its SM plant for maintenance in September 2014. The shutdown is expected to remain in force for around 30 days. The plant is currently operating at full production capacity levels. Located at Ube in Japan, the SM plant has a production capacity of 370,000 mt/year.
MRC

MOSCOW (MRC) -- Eastman Chemical Co. said its second-quarter earnings rose 11% as the chemical and materials company reported improved sales across most of its major business segments that offset weakness at its specialty fluids and intermediates segment, said The Wall Street Journal.

Eastman, which makes chemicals, plastics and synthetic fibers, has continued to grow through acquisitions. Eastman in June completed its acquisition of the assets of BP PLC's global aviation turbine engine oil unit. The company's deal for Commonwealth Laminating & Coating Inc., a maker of window films and specialty films for the automotive, architectural and protective applications markets, is expected to close in the second half of the year. Commonwealth will become part of Eastman's advanced materials segment.

In the latest quarter, the company's specialty fluids and intermediates segment reported lower sales and adjusted operating earnings, partly the result of an unplanned shutdown at its Kingsport, Tenn., operations and a decrease in sales volume resulting from a first-quarter weather-related outage at the Longview, Texas, site.

Eastman Chemical reported a profit of USD292 million, or USD1.93 a share, up from USD264 million, or USD1.69 a share, a year earlier. Excluding acquisition impacts and other items, adjusted earnings from continuing operations rose to USD1.92 from USD1.80. Revenue increased 0.8% to USD2.46 billion.

As MRC wrote before, earlier this year, Eastman Chemical Company, a global specialty chemical company, enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS).

Eastman (headquartered in Kingsport, Tennessee, USA) is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables.
MRC

MOSCOW (MRC) -- Tobolsk-Polymer (SIBUR group), Russia's largest polypropylene (PP) producer, has resumed production after a scheduled shutdown for maintenance, reported MRC analysts.

Yesterday, on 31 August, 2014, Tobolsk-Polymer resumed its PP production after the scheduled outage for a turnaround. Maintenance works at the plant started on 30 June 2014.

As reported earlier, Tobolsk-Polymer was the first Russian PP producer of polypropylene that shut down its production for maintenance. Tomskneftekhim with the annual capacity of 140,000 tonnes stopped its production for a turnaround on 20 July, Ufaorgsintez and Poliom intend to shut down their production from mid-August.

LLC "Tobolsk-Polymer" is a subsidiary of SIBUR and Russia's largest construction project of a modern PP complex with the production capacity of 500,000 tonnes per year. It is located in the industrial zone of Tobolsk, at the production site of Tobolsk-Neftekhim.
MRC