Dutch DSM swings to Q1 net loss on one-off charge

MOSCOW (MRC) -- Dutch pharmaceutical group DSM posted a 70 million euro first quarter net loss Wednesday despite an 11 percent jump in sales, boosted by higher animal nutrition volumes and favourable exchange rates, said Globalpost.

Net profit excluding exceptional items slumped to 69 million euros (USD75.8 million), down 24 percent year-on-year, DSM said in a statement.

Sales however jumped by 11 percent to 1.88 billion euros including a windfall from favourable exchange rates, said the group based in the southern Dutch city of Heerlen.

Group earnings before interest, tax, depreciation and amortisation also rose four percent to 248 million euros, beating a 239-million-euro prediction by analysts polled by Bloomberg.

The higher figures were mainly achieved through increased volumes shipped by DSM's nutrition and materials manufacturing divisions, it said.

DSM's nutrition division overall recorded good volume growth in animal nutrition, but that was partially offset by low Vitamin E prices and a weaker performance by the human nutrition segment, group chief executive Feike Sijbesma said.

DSM warned of a negative price impact of 80 million euros in earnings before interest, tax, depreciation and amortisation should low Vitamin E prices continue.

It pointed to "weak demand in Europe and a slowdown in growth in some emerging markets with economic resilience in the United States," for the rest of 2015.

As MRC informed earlier, Royal DSM signed a partnership agreement with long fibre thermoplastic (LFT) specialist Plasticomp (Winona, Minnesota / USA) to develop bio-based LFT composite materials based on DSM’s "EcoPaXX" polyamide 4.10. The lightweight materials, which include compounds reinforced with glass fiber as well as carbon fiber, will be targeted at automotive and other performance-driven markets.

Royal DSM is a global science-based company active in health, nutrition and materials. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.
MRC

MOSCOW (MRC) - April prices for Russian pipe high density polyethylene (HDPE) increased by Rb3,000 - 6,500/tonne, according to ICIS-MRC Price Report.

Despite the expectations of many Russian pipe producers, they did not manage to roll over March PE prices for April delivery. Russian producers managed to increase prices for pipe HDPE significantly, citing strong demand and more expensive imports. April prices for pipe HDPE increased by Rb3,000-6,500/tonne, compared with the March level.

Demand for pipe HDPE was quite strong in the early April. Many market participants have built up stock inventories actively, some companies said that they purchased, taking into account the needs of the May. The supply of polyethylene in the market was tight, in particular natural PE100. There was available only HDPE from Nizhnekamskneftekhim.

But in the second half of April, demand for pipe HDPE has significantly weakened. One of the key factors of the demand weakening was the problem with working capital; converters had problems with crediting. As a result, many pipe producers had to change their plans for the feedstock procurement.

April deals for Russian natural PE 100 were done in the range of Rb89,000-93,500/tonne FCA, including VAT. The price range of black PE100 was less significant, the deals were done in the range of Rb92,500-94,500/tonne CPT Moscow, including VAT.

MRC

MOSCOW (MRC) -- Clariant has posted a first-quarter net profit of Swiss francs (Swfr) 87m (USD91.6m) from a net loss of Swfr48m in the previous corresponding period because of a substantial decline in restructuring costs, said the company in its press relelase.

Q1 sales decreased 2 pct to 1.465 billion Swiss francs (USD1.53 billion) from 1.492 billion Swiss francs.

Q1 net result from continuing operations at 87 million francs compared to net loss of 39 million francs.

Clariant said that exceptional items including restructuring, impairment, and transaction-related costs declined to Swfr13m compared to Swfr99m in the first quarter of 2014.

Clariant’s largest division, Plastics & Coatings, registered a 1% growth in sales in local currencies during the first quarter of 2015 but a decrease in francs of 4% to Swfr619m, with earnings before interest and taxes (EBIT) decreasing 11% in local currencies and 17% in francs.

Plastics & Coatings’ Masterbatches subdivision also took a hit from the cold winter in North America, where sales declined, although they remained flat in Europe and grew in Latin America and Asia, with both India and China performing well. The subdivision Additives benefited from good sales of halogen-free flame retardants for electrical applications and electronics recovered.

Sees FY 2015 further increase in its EBITDA margin before exceptional items above full-year 2014 and increase cash flow generation.

As MRC informed earlier, Clariant announced that it has acquired the black pigment preparations portfolio of Lanxess, located at Nagda, Madhya Pradesh.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints. Clariant India has local masterbatch production activities at Rania, Kalol and Nandesari (Gujarat) and Vashere (Maharashtra) sites in India.
MRC

MOSCOW (MRC) -- Imports of unblended polyvinyl chloride (PVC) into Kazakhstan fell over the first three months of 2015 by 47% year on year to slightly more than 6,200 tonnes, reported MRC analysts.

March imports of unblended PVC to Kazakhstan rose to 3,200 tonnes under the pressure of seasonal factors versus 2,100 tonnes in February. The overall imports of resin decreased to 6,200 tonnes from January to March 2015 from 11,600 tonnes over the same period of 2014. Such a major fall in PVC imports to Kazakhstan was caused by both weaker demand for resin from local producers and virtually a complete cessation of further PVC re-imports into Russia.

Chinese producers, with the share of about 98% of the local market over the stated period, are the main PVC suppliers to the Kasakh market because of the geographical factor.
MRC

MOSCOW (MRC) -- Imports of general purpose polystyrene (GPPS) to the Russian market decreased in the first quarter of 2015 by 42% year on year and totalled 3,500 tonnes, according to MRC DataScope report.

March GPPS imports rose by 17% from February to 1,600 tonnes. Traditionally, imports grow in the first half of the year. This year's lower imports were caused by the displacement of foreign grades by Russian material because of the increased production in the country.

The sector of extrusion grade GPPS for the foam products processing accounted for the greatest fall im shipments. Imports of these grades were only 160 tonnes in Q1 2015 versus 1,130 tonnes in the first quarter of 2014. Thus, the decrease in imports was caused by the increased output of GPPS for the extruded polystyrene (XPS) producers at Gazprom neftekhim Salavat this year. At the same time last year, the plant produced GPPS-115 grade, used in the injection moulding processing.

Imports of polystyrene for sheet extrusion fell by 35% to 1,700 tonnes, whereas imports of injection moulding GPPS grades dropped by 28% to 1,670 tonnes.

MRC