Kemira Oyj’s reports strong financial performance; expects growth in emerging markets
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Kemira Oyj’s reports strong financial performance; expects growth in emerging markets

5:02 PM, 8th June 2011
Kemira Oyj’s reports strong financial performance; expects growth in emerging markets

HELSINKI, FINLAND: Looking at the growing demand, Kemira expects the volume recovery that was seen in 2010 to continue in 2011 and its revenue is expected to be slightly higher than in 2010. Despite the rising raw material prices, Kemira expects the operative EBIT in 2011 to be higher than in 2010.

 

For the full year revenue increased by 10 per cent to EUR 2,160.9 million (1,969.9), EBIT (operating profit) increased by 42 per cent to EUR 156.1 million (109.7). Operative EBIT increased by 30 per cent to EUR 162.3 million (124.9) and the margin increased to 7.5 per cent (6.3 per cent). The net profit from the continuing operations attributable to owners of the parent company doubled to EUR 110.9 million (54). Also Tikkurila Oyj was separated from Kemira on March 26, 2010 and is reported under discontinued operations.

 

Harri Kerminen, President & CEO, Kemira said, “We were able to increase revenues by 10 per cent supported by the recovered demand in many of our customer industries. At the same time, profitability improved significantly, we strengthened the balance sheet and our cash flow was strong. The paper segment managed to increase its profitability by nearly 70 per cent, while revenues benefited from the recovering volumes. The oil & mining revenue grew close to 30 per cent and at the same time its profitability doubled. The municipal & industrial segment increased its sales especially to industrial customers and its profitability was good.

 

One of the most important activities during the year was the listing of the paints and coatings business, Tikkurila, on the Helsinki Stock Exchange. Besides the achieved improved financial position, Tikkurila's spin-off together with the divestments sharpened our profile as a water treatment chemical company. In 2010, already more than 75 per cent of our revenues came from the water business.

 

The establishment of the Centre of Water Efficiency Excellence (SWEET) together with VTT was an important strategic investment and will provide the essential platform to generate organic growth. We also strengthened our presence in China and India, two fast growing emerging markets. We expect the volume recovery that was seen in 2010 to continue in 2011 and Kemira's revenue is expected to be slightly higher than in 2010. Despite the rising raw material prices, Kemira expects the operative EBIT in 2011 to be higher than in 2010.”

 

Kemira’s vision is to be a leading water chemistry company. The company will also do investments to secure the future growth in the water treatment business. The company’s financial targets are - revenue growth in mature markets greater than 3 per cent per year, and in emerging markets greater than 7 per cent per year. 

 

The increasing water shortage, tightening legislation and customers’ needs to increase operational efficiency will create opportunities for Kemira. The company plans to develop new water applications and hence investment in R&D will form a central part of its strategy.

© WOC News

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