8Additives for Polymers July 2007

NEWS

Chemtura posts continuing losses

For the first quarter of 2007, Chemtura Corp reported a loss from continuing operations of

US$15.5 million on sales of $955.0 million. For the comparable quarter of 2006, the company posted net earnings of $13.2 million on sales of $915.8 million.

The first quarter results reflect sequential perform-ance improvement and establish positive momentum for 2007, says Robert Wood, chairman and CEO. Overall, Chemtura’s core businesses performed well with 9% year-over-year and 12% sequential revenue growth. ‘We are pleased by a noteworthy turnaround in the perform-ance in non-flame retardant Plastic Additives, as well as solid results in all of our other industrial businesses,’ says Wood. The portfolio reshaping and the recently announced restructuring initiative [ADPO, June 2007] are both central to the company’s transformation and are expected to enhance its long-term competitive posi-tion and yield improved results as the year progresses. However, as a result of the restructuring plan, Chemtura recorded a pre-tax charge of $1.7 million in 1Q 2007 for facility closures, severance and related costs.

First quarter 2007 net sales of $955.0 million were up 4%, primarily due to the acquisition of Kaufman Holdings, favourable foreign currency translation and increased selling prices. Net sales growth was reduced by divestment of the Industrial Water Additives business and a decrease in sales volume. Gross profit decreased $18.8 million in 1Q 2007 as compared with the same quarter of 2006. The decrease in margin is primarily due to $23.7 million of higher raw material and energy costs principally in Plastic Additives, and a number of other smaller costs, partially offset by $8.3 million in selling price increases, $3.5 million related to cost savings pro-grammes and $1.2 million in other net increases.

The Plastics Additives segment recorded sales of $421.2 million in 1Q 2007, up nearly 6% from $397.6 million for the same quarter a year earlier. However, operating profit of $26.2 million for the segment was down 23% from $32.3 million in 1Q 2006.

Contact: Chemtura Corp, 199 Benson Road, Middlebury, CT 06749, USA. Tel: +1 203 573 2220, Fax: +1 203 573 2800, Web: www.chemtura.com

Ciba improves profitability in 1Q 2007

Ciba Specialty Chemicals reported sales of CHF1.66 billion (c. �1.0 billion) for the first

quarter of 2007, a 3% increase in Swiss francs and local currencies compared to CHF1.62 billion for 1Q 2006.

Growth in Europe was good, particularly in Germany and Eastern Europe; and Asia was very strong, with China continuing to show double-digit growth. Sales in the USA were lower, with weakness in the construc-tion, paper and automotive industries affecting demand. Central and South America also achieved good sales growth. Sales volumes increased 4% overall, with sales prices slightly lower than in 1Q 2006. The impact of currencies was negligible in 1Q 2007.

Gross profit for the quarter improved 2% to CHF476 million (1Q 2006: CHF468 million). Selling, general and administrative expenses were 15.7% of sales (2006: 16.8%), reflecting productivity improvements and cost containment measures throughout the organization, Ciba says. Operating income before restructuring was CHF134 million, 23% higher than the CHF108 mil-lion achieved in 1Q 2006. This increase is mainly as a result of savings from the ‘Shape’ efficiency programme, Ciba says.

In Plastic Additives, 1Q sales increased to CHF553 million, up 3% in Swiss francs and 4% in local curren-cies compared to the same quarter last year, with strong demand in Asia and particularly good growth in the Home & Personal Care business. The segment’s operat-ing income (EBIT) before restructuring was up 16% in 1Q 2007, totalling CHF87 million, while operating income margin before restructuring in Plastic Additives improved to 15.7% (13.9% in 1Q 2006).

According to chief operating officer Brendan Cummins, results are starting to come through from the Operational Agenda programme, with Ciba on track to achieve an improvement of CHF400-500 million in its cost structure by 2009. Good progress is being made in implementing new processes and tools to facilitate prof-itable growth across all businesses, Cummins says.

Contact: Ciba Specialty Chemicals, Klybeckstrasse 141, CH-4002 Basel, Switzerland. Tel: +41 61 636 4444, Fax: +41 61 636 3019, Web: www.cibasc.com