IPC Thailand

Nanostart Asia Pacific Invests in Specialty Coatings Provider Stella Specialty Chemicals

ipccoating — Wed, 30 May 2012 00:43:12 +0000

FRANKFURT / SINGAPORE — Nanostart Asia Pacific has acquired a stake in Singapore-based Stella Specialty Chemicals Pte Ltd via Nanostart Singapore Early Stage Venture Fund I. Stella offers a wide range of specialty chemical products for surface treatment of metals and plastics. Consequently, the company is an all-round provider for the coating industry.

Stella has already started its marketing activities. The fund has initially acquired around 10 per cent of the shares in Stella. There are plans to increase the stake to around 23 per cent at the beginning of 2013. The purpose of Nanostart Asia Pacific’s investment is to develop and implement the marketing concept and build up a sales team for the Asian market. Said Dr Yin Xi Jiang, Founder and Director of Stella: “This investment fund will accelerate the growth of Stella Specialty Chemicals. It is able to help Stella to continuously validate products and innovations to meet the needs of customers.”

Bernd Dautel, Director of Nanostart Asia Pacific, commented on the new equity investment: “For a start-up company, Stella already has an extremely wide product range with new technologies for coating metallic and non-metallic surfaces. For the similarly diverse target markets ranging from the electronics industry through jewelry and sanitation to the automotive industry, the Stella product range provides solutions that not only improve the end product itself, but also meet economic efficiency and environmental compatibility requirements. The market potential is correspondingly high. Stella therefore meets our criteria for a company that we expect to perform strongly.”

Stella originated from the Advanced Material Technology Centre at Singapore Polytechnic and has years of experience in nanotechnology and green chemistry research and development. Among other things, Stella has developed its own procedure for applying self-assembling monolayers (SAM) to metal surfaces. The extremely thin layers reduce the use of precious metals, resulting in better corrosion and wear resistance. The service life of products is increased whilst costs are reduced. This is a key competitive advantage, particularly in view of rising precious metal prices. The SAM process developed by Stella is water-based, and ultra-thin nano-protective layers can be formed on gold, silver, copper, nickel and tin surfaces in a few seconds. This technology can be used in reel-to-reel process.

Self-assembling monolayers are a typical area of nanotechnology. They are produced when a material is dipped in a solution containing molecules with a hydrophilic end and a lipophilic end. The molecules are taken up by the metal surface at the hydrophilic end. The lipophilic ends in this highly ordered molecule layer face outwards and form the surface of the coating, which therefore has the thickness of a molecule. They give the coating the desired water-resistant and protective properties.

About Nanostart

Nanostart AG headquartered in the German financial capital of Frankfurt, is a leading nanotechnology investment company, with portfolio companies spanning the globe from Silicon Valley to Singapore. The company provides venture capital financing for nanotechnology companies in various growth phases with a focus on innovation-driven industries of the future such as cleantech, life sciences and IT/electronics. As main shareholder of Nanostart Asia Pacific Ptd Ltd, Nanostart invests as partner of the Singapore government.

Bayer Material Science to establish global wind energy competence center in Denmark

ipccoating — Thu, 24 May 2012 01:07:13 +0000

The center will bundle the development capabilities from across the company’s entire portfolio.
Bayer Material Science is going to establish a global wind energy competence center at its existing site in Otterup, Denmark. Source: Bayer Material Science

Bayer Material Science is going to establish a global wind energy competence center at its existing site in Otterup, Denmark.

Source: Bayer Material Science

Bayer Material Science plans to establish a global wind energy competence and development center at its existing site in Otterup, Denmark. The new competence center will spearhead and coordinate the global development activities for advanced materials used in wind energy applications. Kim Harnow Klausen has been assigned as lead of the new global Competence Center in addition to his current responsibility as Managing Director of Bayer Material Science A/S, Denmark.

The center will bundle the development capabilities from across the company’s entire portfolio of polyurethanes, polycarbonates as well as coatings, adhesives and specialties materials, pooling expertise from research and development teams around the world.

Denmark was chosen for the location of the center because of the country’s expertise in the area of wind power and its leading position in energy efficiency. Meanwhile almost half of the wind turbines around the world are being developed and produced by Danish manufacturers and many component suppliers are based in the country.

BASF Coatings Japan Merges With the Coatings BU of BASF Japan to Expand its Business

ipccoating — Wed, 16 May 2012 00:54:06 +0000

TOKYO, Japan — BASF Coatings Japan Ltd. will merge with BASF Japan Ltd., effective October 1, 2012. With this merger, BASF Coatings Japan will become the Coatings business unit of BASF Japan and will continue to provide innovative coatings solutions and to further expand its business.

With this merger, which follows the merger of BASF Pozzolith with BASF Japan on July 1, will truly add value as one company. “The integration of our group companies in Japan will further improve business efficiency and give customers access to the full range of BASF solutions,” said Dr. Joerg-Christian Steck, President, BASF Japan.

BASF Coatings Japan develops, produces and markets a range of automotive OEM coatings, automotive refinish coatings, as well as industrial coatings.

About BASF Japan

BASF started doing business in Japan in 1888. BASF in Japan consists of six companies, with BASF Japan Ltd at its core. Activities cover five business segments including chemicals, plastics, functional solutions, performance products and agricultural solutions. The main production sites are in Yokkaichi (thermoplastic polyurethanes and polymer dispersions), Chigasaki (admixtures for concrete, construction chemicals) Totsuka (coatings) , Kitatone (personal care ingredients) and Isohara (plastic additives) . The Amagasaki R&D Center focuses on innovative solutions for electronics and energy management, as well as product development and technical services for coatings, inks, adhesives&sealants and packaging industries. The Yokohama Innovation Center (engineering plastics) was established in January 2012. In 2011, BASF employed 1,740 employees in Japan, and achieved sales of €1.8 billion to customers in Japan.

About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. They combine economic success, social responsibility and environmental protection. Through science and innovation they enable their customers in almost all industries to meet the current and future needs of society. Their products and system solutions contribute to conserving resources, ensuring healthy food and nutrition and helping to improve the quality of life. They have summed up this contribution in their corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about €73.5 billion in 2011 and had more than 111,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).

Source: BASF

Bayer Declares Q1 2012 Results; Reports Continuing Margin Pressure at MaterialScience

ipccoating — Wed, 09 May 2012 00:50:39 +0000

LEVERKUSEN — The Bayer Group saw a successful start to 2012. “All the subgroups contributed to the encouraging increase in sales, particularly CropScience, which experienced a strong start to the season,” Management Board Chairman Dr. Marijn Dekkers explained on Thursday when the first-quarter interim report was published. Earnings of the Group rose sharply. “In view of the good start to 2012, we are increasingly confident for the rest of the year,” Dekkers added. Given the continuing uncertainties, however, he said Bayer is currently adhering to the guidance for 2012 that was issued at the end of February.

Sales of the Bayer Group advanced by 6.8 percent in the first quarter, to a record EUR 10,056 million (Q1 2011: EUR 9,415 million). Adjusted for currency and portfolio effects (Fx & portfolio adj.), business expanded by 5.2 percent. The operating result (EBIT) climbed by 42.6 percent to EUR 1,637 million (Q1 2011: EUR 1,148 million). Special items totaled minus EUR 169 million (Q1 2011: minus EUR 442 million). EBIT before special items rose by 13.6 percent to EUR 1,806 million (Q1 2011: EUR 1,590 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) – before special items – improved by 9.4 percent to EUR 2,442 million (Q1 2011: EUR 2,232 million). This was partly due to positive currency effects of EUR 85 million, which occurred mainly at Health Care and CropScience. Net income increased by 53.5 percent to EUR 1,050 million (Q1 2011: EUR 684 million). Core earnings per share rose by 15.9 percent to EUR 1.68 (Q1 2011: EUR 1.45).

Gross cash flow moved ahead by 21.8 percent to EUR 1,595 million (Q1 2011: EUR 1,309 million) due to the improved operating performance. Net cash flow, however, was down by 66.2 percent year on year at EUR 271 million (Q1 2011: EUR 801 million), because cash tied up in working capital increased markedly due to the expansion of business. Net financial debt fell since the start of the year from EUR 7.0 billion to EUR 6.9 billion as of March 31, mainly as a result of positive currency effects.
HealthCare Posts Gains Especially in Emerging Markets

Sales of the HealthCare subgroup increased by 4.2 percent in the first quarter, to EUR 4,342 million (Q1 2011: EUR 4,166 million). After adjusting for currency and portfolio effects, sales were up by 2.1 percent. “The Pharmaceuticals and Consumer Health segments both contributed to this growth. Business developed particularly well in the emerging markets as a whole,” explained Dekkers.

Sales in the Pharmaceuticals segment rose by 1.6 percent (Fx & portfolio adj.) to EUR 2,517 million. Growth was achieved mainly in the emerging markets, especially China, while sales were slightly down in most European countries. Among the segment’s best-selling products, Aspirin™ Cardio for the prevention of myocardial infarction posted a significant sales gain of 15.7 percent on a currency-adjusted (Fx adj.) basis. Revenues from the hormone-releasing intrauterine device Mirena™ (Fx adj. plus 8.3 percent), the cancer drug Nexavar™ (Fx adj. plus 4.5 percent) and the blood-clotting product Kogenate™ (Fx adj. plus 1.9 percent) also developed positively. Following market launches in further countries and the expansion of indications, the anticoagulant Xarelto™ entered the list of Bayer’s best-selling pharmaceutical products for the first time. By contrast, sales of the antibiotic Avalox™/Avelox™ (Fx adj. minus 13.3 percent) and the erectile dysfunction treatment Levitra™ (Fx adj. minus 9.3 percent) were down because of a partial restructuring of distribution for general medicine products in the United States.

Sales in the Consumer Health segment rose by 2.9 percent (Fx & portfolio adj.) to EUR 1,825 million, with all divisions contributing to growth. Business developed especially well in the emerging markets. In the Consumer Care Division (non-prescription medicines), the skincare product Bepanthen™/Bepanthol™ (Fx adj. plus 7.7 percent) performed particularly well, while sales of the analgesic Aleven™/naproxen and the One A Dayn™ line of dietary supplements matched the good prior-year level. Sales of the analgesic Aspirin™ declined by 7.0 percent (Fx adj.) from the high level of the prior-year quarter. The Medical Care Division benefited mainly from the positive development of the contrast agent and medical equipment business. Sales of the contrast agent Gadovist™ climbed by 26.5 percent (Fx adj.). Among the diabetes care products, sales of the Contour™ line of blood glucose meters rose by 7.3 percent (Fx adj.). In the Animal Health Division, sales of the Advantage™ line of flea, tick and worm control products advanced by 16.2 percent (Fx adj.).

EBITDA before special items of Bayer HealthCare increased by 3.6 percent to EUR 1,181 million (Q1 2011: EUR 1,140 million). This was largely attributable to the positive business development and effective cost management in both segments.
Growth in All CropScience Businesses

Sales at CropScience advanced by 15.6 percent (Fx & portfolio adj. 14.4 percent) to EUR 2,610 million (Q1 2011: EUR 2,257 million). With good market conditions continuing, the subgroup grew all areas of its business. “The season got off to an early and promising start in the northern hemisphere,” Dekkers explained. Bayer CropScience achieved its highest growth rates in North America at 24.8 percent (Fx adj.), followed by Asia/Pacific at 22.7 percent (Fx adj.). Sales increased by 5.2 percent (Fx adj.) in Europe and by 8.9 percent (Fx adj.) in Latin America/Africa/Middle East.

Crop Protection posted growth in all product groups. Sales of herbicides and fungicides advanced by 19.0 and 12.3 percent, respectively (Fx & portfolio adj.). Sales of insecticides increased by 17.4 percent (Fx & portfolio adj.), mainly benefiting from a rejuvenated portfolio. Business with seed treatment products expanded by 3.2 percent (Fx adj.).

The BioScience business, which specializes in seed and plant traits, improved sales by 17.1 percent (Fx & portfolio adj.). Here, the largest increases were achieved for canola and cotton seed in North America, while the vegetable seed business showed a moderate decline in sales against a strong prior-year quarter. Sales of the Environmental Science business group advanced by 3.4 percent (Fx adj.).

EBITDA before special items of Bayer CropScience climbed by 31.7 percent to EUR 981 million (Q1 2011: EUR 745 million). Earnings growth – mainly the result of an early start to the season and considerably higher volumes – was also helped by efficiency improvements, successful cost management and positive currency effects. In addition, the subgroup benefited from one-time gains of EUR 22 million (Q1 2011: EUR 0 million) in connection with divestments and from the earlier receipt of royalty payments.
MaterialScience Burdened by Persisting High Raw Material Costs

Sales of the high-tech materials business rose by 3.8 percent (Fx & portfolio adj. 2.5 percent) in the first quarter, to EUR 2,788 million (Q1 2011: EUR 2,686 million). “Bayer MaterialScience achieved higher volumes in all regions, while selling prices as a whole were level with the prior-year quarter,” said Dekkers. Price increases in the Latin America/Africa/Middle East, North America and Europe regions offset declines in Asia/Pacific. “However, earnings of MaterialScience remained under pressure because of high raw material costs,” he explained.

Business with raw materials for foams (Polyurethanes) improved by 4.7 percent (Fx & portfolio adj.), while high-tech plastics (Polycarbonates) were down by 4.2 percent (Fx & portfolio adj.) mainly as a result of lower selling prices. Sales of raw materials for coatings, adhesives and specialties improved by 3.9 percent (Fx & portfolio adj.) thanks to growth in all product groups, while the Industrial Operations unit grew by 8.9 percent (Fx & portfolio adj.).

EBITDA before special items of Bayer MaterialScience was down by 19.4 percent year on year at EUR 278 million (Q1 2011: EUR 345 million). However, earnings more than doubled against the weak fourth quarter of 2011 (EUR 106 million). Earnings were diminished above all by a rise in raw material costs, while higher operating costs also had a negative impact. Positive effects came from efficiency improvement programs, increased volumes and one-time gains of EUR 19 million (Q1 2011: EUR 0 million) on the acquisition of the remaining interest in the joint venture Baulé S.A.S.
Increasing Confidence for the Rest of 2012

In view of the good start to 2012, Bayer is increasingly confident for the rest of the year. Given the continuing uncertainties, however, the company is currently adhering to the guidance for the full year 2012 that it issued at the end of February. For the full year 2012, Bayer continues to forecast a currency- and portfolio-adjusted sales increase of about 3 percent. This would result in Group sales of approximately EUR 37 billion based on unchanged exchange rate assumptions (e.g. EUR 1 = US$1.40). Bayer continues to plan a slight improvement in EBITDA before special items. This will be driven by HealthCare and CropScience, while earnings at MaterialScience are likely to be flat with 2011 in view of the currently difficult market conditions. Bayer also plans to slightly improve core earnings per share.

The outlook for 2012 at Bayer HealthCare is confirmed. This subgroup’s top priority for 2012 is to successfully commercialize the new pharmaceutical products. HealthCare expects sales to increase by a low- to mid-single-digit percentage (Fx & portfolio adj.). The subgroup plans to slightly improve EBITDA before special items, although earnings are likely to be hampered by higher marketing expenses and the effects of the genericization of Yasmin™ in Europe. Sales of the Pharmaceuticals segment in 2012 are forecasted to remain stable or move slightly higher on a currency- and portfolio-adjusted basis, and EBITDA before special items to approximately match the prior-year level. In its Consumer Health segment, the subgroup anticipates mid-single-digit growth in currency- and portfolio-adjusted sales and in EBITDA before special items.

Bayer expects market conditions for its CropScience business to remain favorable in 2012, and predicts above-market growth. Following the strong start to the year, the guidance issued in February, according to which CropScience anticipates that currency- and portfolio-adjusted sales and EBITDA before special items will advance by mid-single-digit percentages, may be adjusted upon publication of the next interim report, depending on future business development.

The market environment for Bayer MaterialScience developed as expected in the first quarter. This subgroup continues to plan for currency- and portfolio-adjusted sales and EBITDA before special items in 2012 to remain level with the prior year. Should the market environment develop more favorably than anticipated, MaterialScience expects sales and earnings to increase accordingly. Currency- and portfolio-adjusted sales are expected to improve and EBITDA before special items to come in significantly higher in the second quarter of 2012 than in the first quarter.

Forward-Looking Statements:
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
About Bayer

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. As an inventor company, it sets trends in research-intensive areas. Bayer’s products and services are designed to benefit people and improve the quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power.

Bayer is committed to the principles of sustainable development and acts as a socially and ethically responsible corporate citizen. In fiscal 2011, the Group employed about 112,000 people and had sales of €36.5 billion. Capital expenditures amounted to €1.7 billion, R&D expenses to €2.9 billion.

Source: Bayer MaterialScience

Dow Releases Q1 Report for 2012; Coatings Sales Down 2% Compared to 2011

ipccoating — Wed, 02 May 2012 01:08:01 +0000

2012 First Quarter 2012 Highlights The Company reported earnings of $0.35 per share, or adjusted earnings of $0.61 per share(1). This compares with earnings of $0.54 per share in the same quarter last year, or adjusted earnings of $0.82 per share. Earnings for the quarter were reduced by certain items totaling $0.26 per share, due to restructuring activities the Company elected to implement in the quarter, as well as a charge related to the early extinguishment of debt. Sales were $14.7 billion, in line with the same quarter last year. Adjusted sales(2) rose 4 percent versus the year-ago period, marking the tenth consecutive quarter of year-over-year sales growth. Sales in Agricultural Sciences increased double digits, surpassing $1.8 billion and representing a significant increase versus the previous record. Volume declined 1 percent, but was up 3 percent on an adjusted basis, led by a double-digit increase in Agricultural Sciences, which was up 12 percent. Volume in the United States grew 2 percent on an adjusted basis, reflecting improving economic conditions across several sectors and value chains. Emerging geographies posted a tenth consecutive quarter of year-over-year volume growth on an adjusted basis, led by gains this quarter in the Middle East, Africa, India, and Eastern Europe. EBITDA(3) was $1.7 billion, or $2.1 billion excluding certain items. Agricultural Sciences EBITDA reached a new quarterly record of $451 million. EBITDA records were also achieved in Functional Materials; Polyglycols, Surfactants and Fluids; Dow Elastomers; and Dow Automotive Systems. The Company’s operating rate was 84 percent for the quarter, up 12 percentage points versus the previous quarter and up 1 percentage point versus the year-ago period. Equity earnings were $169 million, versus $298 million in the year-ago period. Dow Corning was the largest driver of the decline due to weakness in the silicon value chain. The Company reduced debt by more than $1 billion in the quarter. Interest expense declined nearly $50 million versus the year-ago period, due to the Company’s ongoing capital management strategy and deleveraging actions over the last 12 months. Net debt(4) to total capitalization was 41.2 percent, remaining on target to reach the Company’s year-end 2012 goal. (1) “Adjusted earnings per share” is defined as earnings per share excluding the impact of “Certain Items.” See Supplemental Information at the end of the release for a description of these items, as well as a reconciliation of adjusted earnings per share to “Earnings per common share – diluted.” (2) “Adjusted sales” is defined as “Net Sales” excluding sales related to prior-period divestitures. (3) EBITDA is defined as earnings (i.e., “Net Income”) before interest, income taxes, depreciation and amortization. A reconciliation of EBITDA to “Net Income Available for The Dow Chemical Company Common Stockholders” is provided. (4) Net debt equals total debt (“Notes payable” plus “Long-term debt due within one year” plus “Long-Term Debt”) minus “Cash and cash equivalents,” and “Marketable securities and interest-bearing deposits.” Andrew N. Liveris, Dow’s Chairman and Chief Executive Officer, stated: “Dow again demonstrated the strength of its transformed portfolio, even as demand remained slow early in the quarter. We have now delivered top-line growth for ten consecutive quarters, and our Agricultural Sciences portfolio achieved record sales and EBITDA. The benefit of our balanced portfolio was again evident: We captured demand gains in developed regions – particularly in the U.S. and Germany – and posted a tenth consecutive quarter of volume increases in rapidly growing emerging economies. “We exited the quarter with momentum, and looking forward we remain resolutely focused on our strategic priorities – capturing the benefits of new products and technologies, such as POWERHOUSE™ and EVOQUE™, which will generate value in local markets for both our customers and our shareholders. In addition, we are capitalizing on our world-class feedstock advantage and balanced, integrated portfolio, as well as exhibiting diligent operating and capital efficiency. All of this places us in a unique position to drive earnings growth and continue our 100-year legacy of shareholder remuneration.” Review of First Quarter Results The Dow Chemical Company reported sales of $14.7 billion in the first quarter of 2012, in line with the year-ago period. Adjusted sales increased 4 percent versus the prior year, representing the tenth consecutive quarter of year-over-year sales growth. Sales in Agricultural Sciences increased double-digits, surpassing $1.8 billion and representing a new record. Volume declined 1 percent, but was up 3 percent on an adjusted basis with increases in Agricultural Sciences (12 percent), Feedstocks and Energy (7 percent), and Performance Materials (2 percent). On an adjusted, geographic basis, volume gains in Europe, Middle East and Africa (EMEA) (7 percent) and North America (2 percent) more than offset declines in Latin America and Asia Pacific. Volume increases in Europe were primarily driven by sales of propylene, the result of a supply agreement from Dow’s divestiture of polypropylene. Volume in the United States grew 2 percent on an adjusted basis, reflecting improving economic conditions across several sectors and value chains. Emerging geographies posted a tenth consecutive quarter of year-over-year volume growth on an adjusted basis, led by gains this quarter in the Middle East, Africa, India, and Eastern Europe. Price rose 1 percent, partially offsetting an increase of nearly $120 million in raw material costs, including feedstocks and energy. Price gains in North America (3 percent) and Latin America (2 percent) offset declines in EMEA and Asia Pacific. Price gains were reported in Feedstocks and Energy (6 percent), Agricultural Sciences (2 percent), and Electronic and Functional Materials (1 percent). The Company reported EBITDA of $1.7 billion, or $2.1 billion excluding certain items. Agricultural Sciences achieved a new quarterly EBITDA record, led by strength in North America and Latin America. In addition, EBITDA records were achieved in Functional Materials; Polyglycols, Surfactants and Fluids; Dow Elastomers; and Dow Automotive Systems. Earnings for the quarter were $0.35 per share, compared with $0.54 per share in the same period last year. Adjusted earnings were $0.61 per share in the quarter. This compares with adjusted earnings of $0.82 per share in the same quarter last year. Certain items in the current quarter consisted of restructuring charges and a charge related to the early extinguishment of debt. (See Supplemental Information at the end of the release for a description of certain items affecting results.) Dow’s global operating rate was 84 percent, up 12 percentage points sequentially and 1 percentage point versus the year-ago period. Research and Development (R&D) expenses were up 1 percent versus the same period last year. The Company continued to invest in its technology-driven segments, including Coatings and Infrastructure Solutions, Electronic and Functional Materials, and Agricultural Sciences. Selling, General and Administrative (SG&A) expenses rose 1 percent versus the prior year, in part due to increased spending to support growth initiatives and new product launches in Agricultural Sciences. Equity earnings were $169 million, compared with $298 million in the year-ago period. Dow Corning was the largest driver of the decline, as it was impacted by weakness in the silicon value chain. Net debt to total capitalization was 41.2 percent, on target to reach the Company’s year-end 2012 goal. The Company reduced debt by more than $1 billion in the quarter, in line with its continuing capital management strategy. Total deleveraging actions taken over the last 12 months resulted in an interest expense reduction of nearly $50 million in the quarter versus the year-ago period. “Dow again demonstrated the strength of its transformed portfolio, even as demand remained slow early in the quarter,” said Andrew N. Liveris, Dow’s Chairman and Chief Executive Officer. “We have now delivered top-line growth for ten consecutive quarters, and our Agricultural Sciences portfolio achieved record sales and EBITDA. The benefit of our balanced portfolio was again evident: We captured demand gains in developed regions – particularly in the U.S. and Germany – and posted a tenth consecutive quarter of volume increases in rapidly growing emerging economies. “We exited the quarter with momentum, and looking forward we remain resolutely focused on our strategic priorities – capturing the benefits of new products and technologies, such as POWERHOUSE™ and EVOQUE™, which will generate value in local markets for both our customers and our shareholders. In addition, we are capitalizing on our world-class feedstock advantage and balanced, integrated portfolio, as well as exhibiting diligent operating and capital efficiency. All of this places us in a unique position to drive earnings growth and continue our 100-year legacy of shareholder remuneration.” Electronic and Functional Materials Sales in Electronic and Functional Materials were $1.1 billion, down 1 percent from the same quarter last year, as a 2 percent decline in volume was partially offset by price gains of 1 percent. Dow Electronic Materials reported sales declines across most businesses, due largely to softness in the electronics industry. However, the business reported strong demand gains in Display Technologies, driven primarily by backlit film sales in Europe. Dow Electronic Materials recorded several customer wins in the quarter, including photoresist for leading edge memory production, films for consumer electronics and electroplating materials for mobile phone applications. Functional Materials reported record first quarter sales, as price increases outpaced a modest contraction in volume. Broad-based demand gains in Performance Additives were more than offset by volume contraction in Dow Wolff Cellulosics. Equity earnings were $19 million, down from $24 million versus the year-ago period. The decline was principally due to results at Dow Corning, which was adversely impacted by weakness in the silicon value chain. EBITDA for the segment was $243 million, which included a $17 million restructuring charge. This compares with EBITDA of $257 million in the same period last year. Functional Materials posted record quarterly EBITDA, driven largely by margin expansion and cost control efforts. Coatings and Infrastructure Solutions Coatings and Infrastructure Solutions sales were $1.7 billion, down 2 percent compared with the same period last year. Volume was flat versus the prior year, and price was down 2 percent. Dow Building and Construction reported sales gains across all geographic areas, except Europe, where the construction industry continues to contract. Dow Water and Process Solutions reported record first quarter sales, with gains in both price and volume. Demand continued to be particularly strong in reverse osmosis membranes in industrial water applications. Dow Coating Materials reported a decrease in sales as price declines more than offset a modest increase in volume. In architectural coatings, volume declined in most geographic areas, driven in part by the lack of customer inventory restocking witnessed in the first quarter of 2011 as industry-wide supply issues abated in the latter part of 2010. Dow Coating Materials’ hiding platform recorded several wins with EVOQUE™ technology as customers continue to reformulate paints to enhance performance and improve the efficiency of titanium dioxide usage. Equity earnings were $22 million, down from $68 million in the same period last year, primarily due to lower results from Dow Corning. EBITDA for the segment was $204 million, which included a $41 million restructuring charge. This compares with EBITDA of $250 million in the year-ago period. Agricultural Sciences Agricultural Sciences posted its sixth consecutive quarter of year-over-year sales record with sales of $1.8 billion, up 14 percent versus the year-ago period. Volume increased 12 percent and price rose 2 percent. The gains were broad-based across products and geographic areas, driven by customer adoption of new products, healthy agricultural market fundamentals, and an early spring planting season in North America. Overall, sales of new products grew 41 percent compared with the year-ago period. First quarter sales of Crop Protection products rose 14 percent versus the prior year, driven by double-digit sales growth in North America, Latin America, and Asia Pacific. Europe recorded sales growth with strong sales in Northern Europe partially offset by lower cereal portfolio sales in Southern Europe due to severe freeze conditions impacting crop plantings. Sales of new Crop Protection products grew 27 percent, led by gains in aminopyralid and penoxsulam herbicides and spinetoram insecticide. In addition, the business launched and secured first sales of sulfloxaflor sap-feeding insecticide in Korea. Seeds, Traits and Oils reported a 16 percent sales gain versus the year-ago period, driven by continued introduction and adoption of new seed technologies, as well as an early spring in North America. Increased corn sales were a key driver of growth, with increased penetration of SmartStax® hybrids and Refuge Advanced® in North America and further adoption of Herculex® technology in Latin America. EBITDA for the segment was $451 million. This represented a new quarterly record, and an 11 percent increase over the previous record of $406 million, which was reported in the year-ago period. Performance Materials Sales in Performance Materials were $3.5 billion, down 2 percent compared with the same quarter last year. However, adjusted sales were flat as volume increases offset price declines. Volume rose in all geographic areas excluding Latin America, which reported a decline due to the shutdown of toluene diisocyanate capacity in Brazil. Polyurethanes sales were up modestly primarily due to improvements in U.S. demand. Broad-based volume increases for Oxygenated Solvents more than offset price declines, as early weather patterns drove accelerated agricultural and construction buying patterns. Epoxy sales contracted in the quarter due to continued softness in allylics and phenolics, coupled with record-level comparables in the year-ago period. Dow Formulated Systems reported double-digit sales growth, with volume gains in all geographic areas except Asia Pacific, which continued to experience weak demand in the wind-energy sector. Polyglycols, Surfactants and Fluids reported a quarterly sales record due to broad-based price gains, however volume was flat as unseasonably warmer weather in North America affected de-icing sales. Amines reported double-digit volume gains, led by sales in Asia Pacific. Sales in Chlorinated Organics declined as sales in the year-ago period were unseasonably high due to industry turnarounds. Dow Oil and Gas reported double-digit sales gains driven by strong sector fundamentals, particularly in North America due to the shale gas dynamic. EBITDA for the segment was $332 million, which included $186 million in restructuring charges. This compares with EBITDA of $564 million in the year-ago period. Performance Plastics Sales in Performance Plastics were $3.6 billion, down 11 percent from the same quarter last year. Adjusted sales were flat as both volume and price were consistent with the year-ago period. Volume gains in Asia Pacific and pricing initiatives in North America offset sales declines in EMEA and Latin America. Dow Elastomers posted new quarterly sales and EBITDA records. The business achieved double-digit volume and price growth in North America, Asia Pacific, and Latin America with strong results in transportation, infrastructure, and adhesive markets. This compensated for slower growth in Europe. Dow Electrical and Telecommunications increased sales over the year-ago period, with double-digit sales and volume gains in Asia Pacific. Sales in Performance Packaging declined over the previous year as a result of lower pricing in Europe, combined with price and volume headwinds in both Asia Pacific and Latin America. These declines were partially offset by pricing momentum in North America. Equity earnings were $34 million, down from $62 million in the year-ago period. EBITDA for the segment was $718 million, compared with $981 million in the same period last year, as naphtha-based margins in Europe and Asia Pacific more than offset the positive impact of favorable ethane-based margins on the U.S. Gulf Coast. Feedstocks and Energy Sales in Feedstocks and Energy were $2.9 billion, up 13 percent from the same period last year. Volume increased 7 percent and price increased 6 percent. The Chlor-Alkali/Chlor-Vinyl business saw continued strong demand in caustic soda, particularly in the pulp and paper and water treatment industries. Vinyl chloride monomer volume declined, primarily due to the shutdown of assets on the U.S. Gulf Coast in 2011. Ethylene Oxide reported a double-digit volume increase, driven by tight market conditions in North America, while ethylene glycol sales declined modestly due to price decreases. Equity earnings were $125 million, down from $155 million in the same quarter last year, as the Company’s joint ventures in Kuwait experienced margin contraction in ethylene glycol. EBITDA for the segment was $198 million compared with $248 million in the same period last year. Outlook Commenting on the Company’s outlook, Liveris said: “The pace of global recovery continues to be consistent with our previous outlook: The United States appears to be on firmer economic ground, buoyed by improvements in consumer confidence and tailwinds from the country’s abundant access to low-cost natural gas. As China’s economy moderates, it will remain attractive as it transitions from managing inflation to encouraging domestic growth. Germany is showing signs of improvement; while Western Europe is expected to remain in recessionary conditions as the region addresses its structural issues. “The broad diversity of Dow’s portfolio gives us the unique ability to pivot – taking advantage of growth where it is happening most. We are benefitting from strong fundamentals in a number of resilient markets, including agriculture, food and industrials. Further, we are encouraged by signs of improvement in construction, electronics and transportation. “We anticipate that global growth will gain momentum as we move through the second quarter and into the remainder of the year. We are committed and focused on execution, and the delivery of our short- and long-term targets.” About Dow Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2011, Dow had annual sales of $60 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 197 sites in 36 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. Source: Dow

AkzoNobel Declares Q1 Results; Reports 6% Rise in Q1, 2012 Compared to 2011

ipccoating — Thu, 26 Apr 2012 01:07:40 +0000

Akzo Nobel N.V. (AkzoNobel) reported a 6 percent increase in first quarter revenue compared with the same period in 2011, mainly driven by pricing actions to offset higher raw material costs. The EBITDA for Q1 was 3 percent lower at €423 million, due to weaker end markets and cost inflation. The company also announced that its global performance improvement program is on track.

Overall raw material prices remain a challenge. Looking forward, the company expects the higher oil and TiO₂ prices on average to have an inflationary impact.

Cash from operating activities was impacted by a one-time pension payment and the seasonal build-up of operating working capital.

Decorative Paints achieved a revenue increase of 4 percent in the first quarter, primarily driven by margin management in weak markets. Lower volumes impacted EBITDA, particularly in North America which benefited last year from a one-time positive customer load-in. Restructuring and cost reduction actions are underway in Europe and North America to offset weaker demand.

In Performance Coatings, revenue increased 11 percent and EBITDA was up 15 percent compared with the previous year. Industrial Coatings – boosted by acquisition activity – achieved the strongest growth, followed by Marine and Protective Coatings. Although overall activity levels were flat, there was significant variability between individual segments.

Specialty Chemicals revenue was up 4 percent, mainly due to the Boxing Oleochemicals acquisition and a positive price/mix effect. EBITDA was 2 percent lower, reflecting different trading conditions in certain businesses.

CEO Hans Wijers said: “We are continuing to focus on performance improvement. Our global margin management efforts are also proving successful as we continue to mitigate the adverse effects of higher raw material costs. However, our volumes were down slightly, reflecting the volatile nature of the economic conditions. Despite these challenges, we have solid fundamentals, renowned brands and a strong geographic spread. Furthermore, the ongoing performance improvement program shows that we are taking the right steps towards achieving our medium-term ambitions.”

About AkzoNobel

AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals. They supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for their customers. Their portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, they are a Global Fortune 500 company and are consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes . With operations in more than 80 countries, our 55,000 people around the world are committed to excellence and delivering Tomorrow’s Answers Today™.

Source: AkzoNobel

BASF to invest in new chemical production site in Dahej, India

ipccoating — Tue, 24 Apr 2012 00:44:59 +0000

The new BASF-site will be an integrated hub for polyurethane manufacturing and will also house production facility for polymer dispersions for coatings.

BASF India Limited will invest EUR 150 million to set up a new chemical production site in Dahej, India. Source: Pixelio/Kirchhoff

BASF India Limited will invest EUR 150 million to set up a new chemical production site at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), located on the west coast of India in Gujarat. The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper. The polymer dispersions facility at the site will produce key ingredients for architectural coatings, adhesives and construction. BASF currently produces dispersions at an existing plant in Mangalore.With this new production site, the company aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care. The start of production is planned for 2014.

Sherwin-Williams Updates Q1 Expectations; Reports 20% Growth in Architectural Paint Sales

ipccoating — Tue, 17 Apr 2012 00:43:38 +0000

CLEVELAND, Ohio — The Sherwin-Williams Company is updating its sales and earnings expectations for the first quarter ended March 31, 2012 previously given on January 26, 2012. Based on stronger than anticipated preliminary sales and earnings results, diluted net income per common share for the first quarter is expected to be in the range of $.92 to $.95 per share compared to the January guidance of $.56 to $.74 per share. The Company reported diluted net income per common share of $.63 per share in the first quarter 2011.

The expected increase in first quarter diluted net income per common share over the earlier guidance for the quarter was due primarily to strong sales and operating results of the Paint Stores Group. Net sales in the Paint Stores Group increased approximately 20% in the quarter due primarily to improving domestic architectural paint sales volume across all end market segments and price increases.

The Company will conduct a conference call to discuss its financial results for the first quarter and its outlook for the second quarter and full year 2012 at 11:00 a.m. ET on Thursday, April 19, 2012.

About Sherwin-Williams

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of coatings and related products to professional, industrial, commercial, and retail customers.

RPM Acquires Australian Auto Repair & Industrial Coatings Business, HiChem Paint Technologies

ipccoating — Wed, 11 Apr 2012 01:09:15 +0000

MEDINA, Ohio — RPM International Inc. announced that its Rust-Oleum Group has acquired HiChem Paint Technologies Pty. Ltd., a leading Australian manufacturer of automotive aftermarket coatings, as well as specialty coatings for industrial applications and home maintenance. Based in Hallam, Australia, HiChem has annual sales of approximately $23 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

HiChem manufactures and markets a wide range of vehicle repair, general industrial and home maintenance coatings and products for both do-it-yourselfers and professionals sold under the Motospray and HiChem brands.

“This acquisition expands our presence in the Australian market with well-respected brands and enhances our operational capabilities in the region by providing new distribution channels and local manufacturing. HiChem is an excellent addition to our Rust-Oleum Group and will benefit from Rust-Oleum’s innovative new products, marketing savvy and category management capabilities,” stated Frank C. Sullivan, RPM Chairman and Chief Executive Officer.

HiChem will continue to be led by its existing management team, including founder and former owner Ivan Moldovan.

About RPM

RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Universal Sealants and Euco. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors.

Source: RPM International

Dow to Invest in a Manufacturing Facility for Dow Coatings Materials Business in Saudi Arabia

ipccoating — Tue, 03 Apr 2012 00:49:27 +0000

RIYADH, Saudi Arabia — The Dow Chemical Company announced plans to invest in a new manufacturing facility for its Dow Coating Materials (DCM) business unit in the Kingdom of Saudi Arabia. Dow Coating Materials is the premier supplier of products and technologies to architectural and industrial coatings manufacturers. The planned facility, which will be located at the Jubail Industrial City, will manufacture a wide range of coating materials for both the Kingdom and export markets worldwide.

“With an unmatched specialty portfolio of advanced materials, we constantly aim at bringing customers differentiation and solving global challenges locally together,” said Jerome Peribere, Executive Vice President of The Dow Chemical Company and President and Chief Executive Officer, Dow Advanced Materials Division (AMD). “By investing in a new coatings facility in Saudi Arabia, we are moving closer to our regional customers, and realizing our regional business objectives in a key growth market for Dow.”

“Our investment in a new world-class coatings facility will support our growth ambitions by bringing the most advanced and sustainable coating materials to the Saudi market and by enabling us to deliver innovation that is tailored to the region’s needs,” said Dr. Ilham Kadri, General Manager, AMD Middle East & Africa. “Additionally, we will look to create new highly-skilled jobs in the Saudi market, and support the Kingdom’s vision to establish sustainable policies and practices in the industry.”

“Dow Coating Materials is known as “The Expert’s Expert”, which basically means our experts collaborate with our customer’s experts to develop the most advanced solutions,” said Anton Van Beek, General Manager, DCM Europe, Middle East & Africa (EMEA). “We are committed to helping our customers rethink coatings by working closely with paint and coating formulators worldwide to develop breakthrough technologies that are differentiated. Our new investment in Saudi Arabia will deliver the solutions our regional customers want, without compromising on cost or sustainability profile.”

Dow Coating Materials operates 43 manufacturing plants worldwide and 13 dedicated R&D facilities across all major geographic markets where Dow does business. Through its mission of collaboration, inspiration, innovation and growth, the business provides material products, science, technology, and manufacturing solutions to the architectural and industrial coatings industry worldwide.

The new facility is the latest in a series of investments to be announced by Dow in Saudi Arabia. In July 2011, Dow and Saudi Aramco announced an agreement to form Sadara Chemical Company, a joint venture to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Saudi Arabia. Upon completion, the joint venture is projected to be among the world’s largest petrochemical facilities and would represent the largest foreign direct investment into Saudi Arabia’s petrochemical sector. Dow also recently announced plans to invest in a best-in-class manufacturing facility for DOW FILMTEC™ Reverse Osmosis (RO) elements in the Kingdom.

About Dow Coating Materials

Dow Coating Materials is the most innovative coatings raw material supplier in the world; driving fundamental shifts in the coatings industry and moving the market as the expert’s expert in coatings solutions. Through its mission of collaboration, inspiration, innovation and growth, the business provides material products, science, technology, and manufacturing solutions to the architectural and industrial coatings industry worldwide. Dow Coating Materials operates 43 manufacturing plants worldwide and 13 dedicated R&D facilities across all major geographic markets where Dow does business.

About Dow in the Kingdom of Saudi Arabia

Dow’s presence in the Kingdom of Saudi Arabia began 35 years ago with two subsequent joint ventures with E.A. Juffali & Brothers, Arabian Chemical Company Ltd., manufacturing STYROFOAM™ brand insulation (Jeddah) and latex (Jubail). In 2011, Dow and Saudi Aramco formed a joint venture, Sadara, to build, own and operate a world-scale, fully-integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. Also in 2011, Dow expanded its global R&D footprint by establishing the Dow Middle East and Africa R&D Center at the King Abdullah University of Science and Technology as part of a comprehensive R&D collaboration agreement with the University.

About Dow

Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2011, Dow had annual sales of $60 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 197 sites in 36 countries across the globe.

Source: Dow