Husky reports 12% sales drop in 2009

March 2 (Canadian Plastics) -- Husky Injection Molding Systems reported a sales decline of 12% compared to sales in 2008.

The Bolton, Ont.-based company generated sales of $1.1 billion in 2009, versus 2008 sales of $1.3 billion.

The financial results were included in an annual report released by Onex, the Canadian private equity company that acquired Husky in 2007 and took the company private.

⌠While Husky significantly improved its margins in 2009, sales were lower primarily due to the global economic recession, the report said.

While the overall numbers were gloomy - in particular, a decline of 23% in North America - there were signs of brightness in the Onex report, including a 13% increase in sales of Husky equipment in Latin America in 2009.

Husky indicated there is no connection between the figures reported by Onex and the machinery maker's decision to hold a large, two-day equipment auction later this month. On March 23-24, Toronto-based industrial plant auction specialist Corporate Assets Inc. will conduct the auction in Bolton, near Husky's facility. Included in the auction will be almost 20 metal cutting units, as well as paint lines, manufacturing cells and smaller equipment.

⌠The auction is simply selling assets, most of which are at least 10 years old, that are no longer required, Husky spokesperson Alexandra Walsh told Canadian Plastics. ⌠This does not represent a shift in the way we are doing business or in our commitment to the Bolton campus. As we did last year, this year we will continue to make significant investments in new equipment and technology on the Bolton campus, which continues to be the primary mold and machine manufacturing location used to meet customer requirements in North and South America.

MRC

Bayer MaterialScience's earnings rebound in Q4 2009

March 2 (plasteurope) -- Bayer MaterialScience was battered severely by the crisis in 2009. Sales tumbled 23% to EUR 7.5 bn, with volumes and selling prices both down 12%. EBITDA before special items fell 59% to EUR 446m. Polycarbonate sales receded by 21% to EUR 1.87 bn, polyurethanes by 25% to EUR 3.78 bn.

Group CEO Werner Wenning blamed much of last year's earnings slump on the weak first quarter. ⌠Business recovered markedly as the year progressed, he said. In Q4, earnings saw a turnaround of 400%. Wenning and CEO-designate Marijn Dekkers reinforced Bayer's commitment to the high tech polymers business.

MRC

MRC Reference

The share in the Russian market in 2008:
PS - 0.7% (ABS - 7.2%).

Annual sales growth in Russia over the last 5 years:
PS - (-10%).

Polymers processing technologies:
injection molding.

Mexichem acquires Ineos Fluor

March 2 (theengineer) -- The Ineos Group is to sell its fluorochemicals business to Mexichem, a Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar.

The deal comprises the international business and assets related to Ineos's fluorochemical operations located in North America, Europe and Asia.

It is expected that on completion of the transaction, the business will become a global producer of speciality fluorochemicals, with annual sales revenues of more than $500m (GBP315m).

David Price, chief executive officer of Ineos Fluor, said: "The agreement presents a unique opportunity to bring together the world's largest supplier of fluorspar with our own fluorochemical production assets, customer base and research capabilities."

Elaborating on the reasons behind the sale, Price added: "While performing well, the fluorochemicals business no longer fits within the Ineos Group portfolio as it focuses its attention on its large-scale petrochemicals businesses."

Ineos Fluor supplies fluorine-based products, technology and services across a number of major industries, from pharmaceuticals to automotive, refrigeration and air-conditioning.

The company employs around 350 people across sites in Europe, North America and Asia.

The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.

MRCMRC Reference

Ineos is a petrochemical group.
In Russia Ineos's interests are represented by Ineos Polyolefins and IneosChlorVinyls.

The share in the Russian market in 2008:
PVC - 4.5%;

polyethylene - 1.9%
(HDPE - 2.8%, LDPE - 1.2%);
polypropylene - 1.4%
(PP-random - 22.1%, PP-impact - 2.0%);
polystyrene - 0.9%.

Imports by polymers processing technologies:
profile extrusion;
pipe extrusion;
film extrusion;
injection molding.


BPI performs well but remains cautious for 2010

March 1 (prw) -- British Polythene Industries (BPI) has reported a 200% jump in pre-tax profits for 2009 - GBP11.8m, up from GBP3.9m in 2008. The results are partly due to cost reductions and a restructuring that saw the closure of its Stockton operation.

Commenting on the results Cameron McLatchie, chairman of BPI, said: ⌠2009 produced a good outturn for the group, despite conditions remaining as challenging as 2008, with volatile input costs and reduced demand from certain sectors, particularly those dependent on activity in the construction industry.

⌠It would be imprudent not to have a sense of caution when looking at the potential outcome for 2010, but, at the same time, we are confident that the group continues to take steps to produce the best results we can in what remains a very challenging market.

⌠The previously reported decisive actions taken to reduce excess capacity in the industrial part of our UK business have resulted in a reduction in losses from these activities, added McLatchie. ⌠Combined with a continuing steady performance from the resilient agricultural and retail food sectors and reduced UK energy costs, we have, as previously indicated, produced results considerably ahead of 2008.

⌠We expect a continuing good performance in 2010, but economic and business risks remain.

According to the company, it generated ⌠pleasing levels of cash in 2009 and was successful in reducing debt. Operating cash flow from trading amounted to GBP27.6m and improvements in working capital generated a further GBP15.1m.

MRC


DuPont is emerging stronger from global economic crisis

March 1 (yourpetrochemicalnews) -- DuPont Senior Vice President and Chief Financial Officer Nicholas C. Fanandakis said the company is emerging stronger from the global economic crisis after taking a number of actions in 2009 to better position it for sustainable growth. Fanandakis made his remarks at the Morgan Stanley Basic Materials Conference.

"Under very difficult conditions, our work in 2009 redefined the company and repositioned it for sustainable growth," said Fanandakis. "We used the downturn to change the course of the company. Our focus is on delivering superior growth for our shareholders through customer-driven and science-based solutions, carefully prioritized investments, industry-leading productivity and strict accountability."

Fanandakis said DuPont took several swift actions in 2009 which resulted in:

-- realigning the company to support the commitment to customers, sustainable growth and delivering revenue and earnings growth through market-driven science;
-- maintaining its R&D investment at $1.4 billion during the economic crisis and introduced more than 1,400 new products - up 60 percent over 2008;
-- delivering $1.1 billion in fixed cost productivity and $1 billion in working capital productivity;
-- delivering $3.4 billion in free cash flow.

Fanandakis reaffirmed the company's commitment to deliver about 20 percent compound annual earnings growth for the 2009-2012 period. By executing on priorities, DuPont expects to generate about 10 percent top-line compound annual growth for the 2009-2012 period. The company also plans to capture $1 billion in fixed cost productivity and $1 billion in working capital productivity gains during the 2010-2012 timeframe. Additionally, Fanandakis reaffirmed the company's 2010 earnings per share guidance at a range of $2.15-2.45.

DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.

MRC