Kemira’s interim report for January-June 2009 shows a marked increase in operating profit from the previous year. Revenue in January-June 2009 was €1,259.6 million (January-June 2008: €1,425.1 million). Revenue from continuing business operations decreased by 4%.
Operating profit excluding non-recurring items rose by 27% to €81.9 million (€64.4 million). Operating profit in continuing business operations, excluding non-recurring items, increased by 34%.
Cash flows after investments grew significantly and were €49.5 million (€65.7 million). Earnings per share were €0.28 (€0.27).
Kemira’s revenue in 2009 is expected to fall compared to 2008 due to reduced demand in customer industries, especially in Tikkurila and in pulp and paper chemicals. However operating profit in continuing business operations, excluding non-recurring items, is expected to increase from the previous year’s €126.3 million.
Revenue in April-June 2009 was €650.9 million (April-June 2008: €741.5 million). Revenue from continuing business operations decreased by 5%.
Operating profit excluding non-recurring items rose by 45% to €53.8 million (€37.2 million). Operating profit in continuing business operations, excluding non-recurring items, was up 52%.
Cash flows after investments were €83.9 million (€56.7 million).
Earnings per share were €0.23 (€0.15).
Kemira’s president and CEO Harri Kerminen stated: “Kemira’s operating profit from continuing businesses, excluding non-recurring items, increased by 52% in April-June from the same period a year earlier, which is a very good achievement in the current market environment. The decrease in sales volumes in several customer segments was for the main part compensated by the sales price increases implemented in the second half of last year. Fixed costs in April-June were some €22 million lower than in the same period a year earlier.
I am particularly pleased with the fact that our cash flows after investments turned clearly positive during the first half of the year. Strengthening of the cash flow has been our main focus for this year, and as part of this effort we reduced our net working capital in the second quarter significantly. Thanks to the strong cash flow, gearing took a turn in the right direction.
Customer demand remains weaker than last year, and in addition there is pressure for increases in raw material prices. This makes our efficiency-enhancement program, which we initiated already mid last year, even more important. However, we are confident that our operating profit excluding non-recurring items in continuing businesses will be higher this year compared to last year.”
Conference for analysts and the media
Kemira arranged a press conference for analysts and the media on July 30, 2009 starting at 10:30am at Kemira House, Porkkalankatu 3, Helsinki. The press conference was held in Finnish. Harri Kerminen, Kemira’s president and CEO, presented the results. Presentation material has also been available on Kemira’s website under Investors since 10:30am on that day.
A conference call in English began at 1:00pm Helsinki time. A recording of the conference call is now also available on Kemira’s website. The recording will be available until August 3.