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Specialty Chemicals – Overview

  • Revenue increased 17 percent: volume and price increases of 6 percent
  • Demand remained firm in both the high growth and mature markets
  • EBITDA increased 16 percent to €241 million
  • EBITDA margin 17.8 percent (2010: 17.9 percent)
  • Significant growth capital committed: Pulp and Paper (Brazil), Bermocoll cellulose derivatives (China), Expancel (Sweden)

The positive demand pattern that materialized in 2010 carried forward into the first quarter of 2011. The recovery of manufacturing and industrial production, particularly in Asia and North America, has resulted in firm demand across most of our business lines. Fueled by the strength in demand and the continued success in our key geographical and innovation growth platforms, volume increased 6 percent relative to the first quarter of 2010. Consequently, revenue increased 17 percent reflecting the improved volume, improved pricing and a favorable currency effect. The further escalation of input and raw material costs has emerged as a performance challenge to maintain our operating margins. Our focus remains on market share, margin management and unit margin development across our businesses. Nonetheless, cost containment actions remain in place, therefore the conversion of incremental margin to EBITDA in Specialty Chemicals remains strong. As a result, EBITDA was €241 million, 16 percent above last year, including a 4 percent positive currency impact. EBITDA margin remains at a healthy 17.8 percent.

Revenue development Q1 2011

Specialty Chemicals – Revenue development Q1 2011 (bar chart)
Specialty Chemicals – Brands (logos)
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