INDUSTRYNEWS

Akzo may sell more chemicalbusinesses

Akzo says it could sell chemicalbusinesses over and above thosealready up for sale. The companyrecently said it would sellchemical activities with salestotalling €1 bn/y, around 22% ofoverall sales. The companyrejects speculation that it is towithdraw from chemicals, thoughit does admit that the planneddivestments will cut chemicals’share in the portfolio significantly.More detailed plans for thechemicals businesses will beannounced in May 2004. Akzosays it is adopting measures toresist the trend towardscommoditization in several of itschemical segments. It says pulpand paper chemicals are oneexample. Here, there is anopportunity for it to be a leader.In the meantime, Akzo is workingto complete the disposal of itscatalysts, coating resins andflame-retardants businesses.Catalysts and coating resins eachhave sales of around €400 M/y,flame-retardants €200 M/y.

Chemical Week, 29 Oct 2003, 165 (39)

DuPont’s 3Q 2003 profits fall 66%

DuPont attributes its poor 3Q2003 performance to weakEuropean and US economies.DuPont posted 3Q 2003 profits of$135 M, down 66%, despiteincreased sales of $6.14 bn, up12%. DuPont’s global volumesincreased by 4% while localcurrency prices fell 1%. USvolumes were up 1%, Europeanvolumes were flat, Asian Pacificvolumes were up 14% and SouthAmerican volumes were up 9%.In 3Q 2003 DuPont took a $987M charge for its interiors andtextiles business Invista. DuPontis currently negotiating the sale of

Invista to Koch Industries. After-tax operating fell in the followingsectors: coatings and colourtechnologies -29%. electronic andcommunication technologies -52%,performance materials -57%.DuPont’s Safety and Protectiondivision saw operating incomeincrease by 2% and thePharmaceuticals divisionincreased operating income by18%. DuPont’s Agriculture andNutrition business posted a lossof $142 M and its Textiles andInteriors business posted a lossof $8 M.

Chemical Market Reporter, 27 Oct 2003(Website:http://www.chemicalmarketreporter.com)

Atofina’s Kynar continues to grow

Atofina Chemicals’ Kynar 500polyvinylidene fluoride (PVDF)coatings resins continue to showsolid growth despite having beenon the market for years. In Aug2003, the company issued alicence to Rohm and HaasCompany for the production ofpowder coatings using Kynar 500PC PVDF resin. Atofina has alsoadded capacity in Pierre Benite,France, for non-coatings gradesof Kynar. The resins are growingstrongly in Asia, displacing rivalmaterials and technologies. Theresins have a range of end uses,mostly in metal extrusions androofing, wall panels and columncovers.

Chemical Market Reporter, 3 Nov 2003(Website:http://www.chemicalmarketreporter.com)

Akzo Nobel posts 23% decline in 3Q2003 net profits

In 3Q 2003 Akzo Nobel saw itsnet profits fall by 23% to €178 Mas a result of the appreciation ofthe Euro against the Dollar, highretirement costs and competitionfrom generic drugs (whichtogether had a negative impact of€62 M). Analysts had expectedthe group to register net losses of

€173-190 M. Akzo Nobel’soperating profits dropped by 20%in 3Q to €204 M and its turnoverby 7% to €3.254 bn. 3Q wasparticularly difficult for the group’spharmaceuticals division whichregistered a 10% decline inturnover (including 6% because ofunfavourable exchange rates) to€877 M and a 34% decrease inoperating profits to €120 M. Mostof the decline was due tocompetition from generic versionsof the antidepressant Remeron inthe US. 2004 will probably beanother difficult year for thedivision. However there are noplans for restructuring or furtherjobs losses. The division hasalready shed 800 jobs during2003 and Akzo Nobel hasdecided to increase promotion ofnew products such as thecontraceptive ring.

For 3Q Akzo Nobel’s paintsdivision registered a 5% declinein turnover to €1.339 bn(although it would have posted a2% increase in turnover givenunchanged parameters andexchange rates). The division’soperating profits were down 6%to €128 M (but showed a smallincrease excluding exchange ratevariations and exceptional costs).Akzo Nobel has already begun arestructuring programme in thissector which will entail the loss of1000 jobs.

For 3Q 2003 the chemicalsdivision registered decreases of5% and 6% in its operatingprofits and turnover to €73 M and€1.071 bn respectively. Exchangerates cut turnover by 6% whereasrecent acquisitions (notably ofECI Electro-Chemie) increased itby 1%. A restructuringprogramme has already involvedthe loss of 830 jobs and theclosure of a salt unit in Stade,Germany. Akzo Nobel predictsthat its whole year net profits willbe significantly lower than the€892 M registered in 2002(possibly by as much as 20%). Alarge part of the €320 M savings(including €120 M in thepharmaceuticals division)

4 NOVEMBER 2003

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