Altana increases sales by 9% in first half of 2015

The speciality chemicals Group Altana was able to increase sales by 9% to €1070M in the first half of 2015 (yr-on-yr: €985M). At €210M, earnings before interest, taxes, depreciation and amortisation (EBITDA) almost reached the high level of the previous year (€212M). At 19.6%, the EBITDA margin was below the previous year’s margin (21.5%), remaining, however, at a high level.

The company’s sales growth mainly resulted from positive exchange rate effects (8%) but also from acquisitions (1%). Adjusted for these effects, operating sales in the first six months of 2015 were down by 1% and, therefore, slightly below the strong previous year’s level. "Demand momentum in our markets did not live up to our expectations in the first half of 2015,” stated Dr Matthias L Wolfgruber, CEO of AltanaAG. "However, Altana is very well positioned for further profitable organic growth.”

Overprint varnishes business posts significant growth due to acquisitions. The Actega Coatings & Sealants division achieved the strongest growth in the period under review. Actega boosted sales by 16% to €195M, mainly as a result of acquisition effects. Adjusted for acquisition and exchange rate effects, sales increased by 2%. The Eckart Effect Pigments division posted the strongest operating sales increase. Due to special factors from the previous year sales were up by 3%. Positive exchange rate effects led to a total nominal increase in sales of 10% to €179M.

Sales in the divisions Elantas Electrical Insulation (€242M) and BYK Additives & Instruments (€455M) grew by 11 and 4% respectively. Adjusted for exchange rate effects, operating sales in both divisions were slightly down by 2% respectively.

The USA remains strongest growth market

Altana posted by far the strongest growth again in the Americas region. Especially due to the current US$-€ exchange rate, sales grew by 23%. In the USA, sales actually rose by 24%. Adjusted for acquisition and exchange rate effects, sales in the Americas remained almost unchanged at the high level of the previous year, with a slight decrease of 1%. Operating sales in the USA were up by 2% points. Nominal and operating sales in Europe stabilised at the previous year’s level. Asia contributed 10% to growth; operating sales almost reached the previous year’s level (-1%).

Outlook

Adjusted for acquisition and exchange rate effects, sales growth in 2015 is expected to be in the low single-digit percentage range, and therefore at the lower end of the target range of 2-5%. Altana confirms its growth forecast for the full year and anticipates nominal sales growth in the higher single-digit percentage range.