Ciba Specialty Chemicals First Half-Year Sales.BASEL, Switzerland--(BUSINESS WIRE)--July 16, 1998-- -- Sales in Swiss Francs Noun 1. Swiss franc - the basic unit of money in Switzerland franc - the basic monetary unit in many countries; equal to 100 centimes centime - a fractional monetary unit of several countries: France and Algeria and Belgium and Burkina Faso and Burundi and Up 9% and 12% in Local Currencies -- -- Sustained Sales Growth in a Challenging Business Environment --
January January % Change
through through in local
June 1998 June 1997 In CHF currencies
Divisions in CHF m in CHF m
Additives(1) 1131 1084 (1)4 (1)7
(PVC Stabilisers
business) 100
Consumer Care 583 590 -1 1
Performance Polymers 944 797 19 21
Pigments 636 631 1 3
Textile Dyes 705 729 -3 0
Water Treatments(2) 288 - - -
Total Group 4287 3931 9 12
1) The year-to-year percentage increases compare 1997 first half results without the division's PVC PVC: see polyvinyl chloride. PVC in full polyvinyl chloride Synthetic resin, an organic polymer made by treating vinyl chloride monomers with a peroxide. Stabilisers business. This business was swapped during the second quarter for Witco's Epoxy epoxy Any of a class of thermosetting polymers, polyethers built up from monomers with an ether group that takes the form of a three-membered epoxide ring. The familiar two-part epoxy adhesives consist of a resin with epoxide rings at the ends of its molecules and a curing Systems and Adhesives business, and all revenues, retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a to January 1, 1998, were transferred to Witco as part of the swap. The Epoxy Systems and Adhesives business, and its year-to-date revenues, were integrated into the Performance Polymers division. (2) Water Treatments figures were consolidated from April onwards; they include all the businesses of the previous Allied Colloids. Group Overview Ciba Specialty Chemicals' sales between 1 January 1998 and 30 June 1998 grew 9 percent in Swiss francs and 12 percent in local currencies, compared with the same period in 1997. Total Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. reached CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4.3 billion. Sales excluding the Group's Water Treatments division (which became fully consolidated effective 1 April 1998) increased by 2 percent in Swiss francs and 4 percent in local currencies. This is higher than the estimated market growth of 2 to 3 percent for 1998. All divisions contributed to the increase. Sales growth was supported by the Group's continued strong volume growth. Sales in the Americas showed a significant increase whilst sales growth in Europe was more moderate and sales in Asia were lower than 1997, but within previously stated expectations. Divisional Overview Additives The division continued its strong performance of the first quarter resulting in first half sales of over CHF 1.1 billion. Sales grew by 4 percent in Swiss francs and 7 percent in local currencies. Both the Polymer Additives and Process and Lubricant Lubricant A gas, liquid, or solid used to prevent contact of parts in relative motion, and thereby reduce friction and wear. In many machines, cooling by the lubricant is equally important. Additives businesses continued their strong growth. The Imaging and Coating Additives business showed a slight increase over last year's outstanding result reflecting a lower demand in some Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" . The division experienced strong sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and most of Europe. This far outweighed the impact of weaker sales in some Southeast Asian countries. Strong volume growth continued in all business units while, at the same time, the pace of competitive price decreases declined. Consumer Care Sales in local markets topped the high level reached in 1997 representing a 1 percent growth in local currencies and a 1 percent decrease in Swiss francs . The Antimicrobials business continued its strong growth trend in the second quarter. Fabric Finishing could not match last year's excellent half-year results. Sales in the Americas and Europe showed a moderate increase. Results in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. were affected by continued economic turmoil in domestic retail markets resulting in decreased local demand which affected some of the division's consumer-oriented products (for example a shift to cheaper laundry detergents). Product prices remained constant during the first half-year. Performance Polymers With the addition of Witco's Epoxy Systems and Adhesives business (approximately CHF 100 million) the division's sales increased to CHF 944 million, 19% higher in Swiss francs and 21% higher in local currencies compared to 1997. On a comparable basis the division recorded a 7% gain in Swiss francs (9% in local currencies) in the first half-year. In particular, Coating Systems, Heavy Electrical, Electronic Materials and Adhesives and Tooling contributed to the sales increase. The difficult economic conditions in parts of Asia were more than compensated for by gains in other areas, especially in North America while European markets exceeded last year's good results. Selective price increases were implemented in the first half. In addition the division saw a strong volume increase. Pigments The division increased its sales to CHF 636 million, representing a 1% increase in Swiss francs and a 3% increase in local currencies compared to the first half of 1997. The Classical Pigments business had the largest increase in sales, followed by High Performance Pigments and Masterbatches. Sales were considerably higher in the NAFTA NAFTA in full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's countries, while Europe kept pace with last year's strong showing. Sales were affected by low demand in Japan and some Southeast Asian countries, though stronger sales were noted in both China and India. Textile Dyes Sales of CHF 705 million were a marginal increase on last year's first-half sales performance in local currencies. In Swiss francs sales were 3% below the same period last year. The division was affected by reduced demand from the world wool-processing and dyeing industries. On the other hand demand for dyeing products for other fibres increased illustrating the benefit of Ciba's broad product range for a large variety of fibres. Sales in continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. were very satisfactory. Business in Southeast Asia was relatively strong as large parts of the Asian textile industry redirected their business to exports, primarily to the Americas. Consequently, sales in the Americas were down. Overall Ciba's position as a global player allowed the Group to easily respond to geographic shifts in demand. Price erosion during the first quarter of 1998 appears to have slowed down in the second quarter. The division's new ink jet See inkjet printer. printing technology is experiencing a very positive response from customers and has already realised a number of large orders. Water Treatments In spite of the rapid and demanding integration process the Water Treatments division achieved sales growth, on a comparable basis, of 2% in Swiss francs over the second quarter of 1997. Sales in Europe and the Americas grew while sales in Asia were down only slightly. The polymers and monomers resale business and some of the other specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. businesses saw decreases. However, growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in several other key areas, including sales to the paper, mining and oil business, were encouraging. Ciba Specialty (SWX SWX Swiss Exchange (trademark of SWX Swiss Exchange) SWX SolidWorks (3D solid modeling CAD software) SWX Splitter / Wave Division Multiplexer : CIBN) is a global leader in the discovery, development and manufacture of innovative materials that provide colour, performance and care for plastics, coatings, fibres, fabrics and other products and production processes. The six divisions - Additives, Consumer Care, Performance Polymers, Pigments, Textile Dyes and Water Treatments - all have leading positions in their chosen markets. Ciba Specialty Chemicals “Ciba” redirects here. For the pre-1971 company, see Novartis. Ciba Specialty Chemicals is a chemical company based in and near Basel, Switzerland. It was formed as the non-pharmaceuticals elements of Novartis were spun out in 1997, following the merger in the (excluding the Water Treatments division) had 1997 global sales of more than CHF 7.8 billion. Note: Ciba Specialty Chemicals will report its half-year financial results on 18 August 1998. CONTACT: O'Patrick Wilson Communications (914) 785-4045 patrick.wilson@cibasc.com or Joanne Marion Investor Relations Investor relations The process by which the corporation communicates with its investors. (914) 785-2503 Joanne.marion@cibasc.com |
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