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February 2007 Additives for Polymers 9 efficiency and streamline business processes, including a number of site and plant restructur- ing measures. BASF expects this to result in total savings of 300 million per year by 2008. Contact: BASF AG, Carl-Bosch-Straße 38, D- 67065 Ludwigshafen, Germany; tel: +49-621- 60-0; fax: +49-621-60-42525; URL: www.basf. de Chemtura tightens portfolio, reports third quarter loss Plastics additives major Chemtura Corp report- ed a loss from continuing operations of US$80.6 million on net sales of $917.0 million for 3Q 2006, compared to a loss of $120.3 million on sales of $918.4 million for 3Q 2005. The small decrease in sales is related to the divestment of the Industrial Water Additives business and lower sales volumes, which were mostly offset by increased selling prices and favourable for- eign currency translation. For the nine months to end September 2006, the company posted a loss from continuing operations of $67.0 million on sales of $2849 million, up 35%. The Plastics Additives segment posted 3Q net sales of $403.5 million, up from $374.6 million in 3Q 2005. Operating profit for the quarter was $17.5 million, down from $25.4 million in the same period of 2005. For the first nine months of 2006, segment sales increased to $1210.1 million from $792.8 million in 2005. Operating profit for the period was $90.5 million, up from $57.5 million the previous year. Commenting on the results, chairman and CEO Robert L. Wood highlighted the “solid performance” of flame retardants, among other sectors, but said that margin recovery for non-flame-retardant plastics additives has not yet reached anticipated levels although the company has begun to recap- ture volume for these products. The company is focusing efforts on growing its best franchises, fixing problem areas, streamlining costs and honing the portfolio “to create a far better per- forming company”, Wood says. In line with this strategy of focusing on core businesses, Chemtura sold its majority inter- est in extrusion system manufacturer Davis- Standard to joint owner Hamilton Robinson for $72 million in October 2006, and in November announced plans to sell its EPDM elastomers and rubber additives activities to Lion Chemical Capital. Proceeds will be used to reduce the company’s debt. According to Wood, divest- ment measures are to continue, leaving only the most profitable activities (above 15% margin). Activities below this level are antioxidants, PVC additives and surfactants, and the company plans to deal with these areas by mid 2007 by means of acquisitions, transfers out of the group, or joint ventures. Other problem areas are house- hold detergents and polyurethane additives. In other recent news, Chemtura has signed long-term supply and purchase agreements with TETRA Technologies, Inc for a number of products. Among the terms, TETRA will buy bromine and tail brines from Chemtura and invest in its bromine operations. It will also sell sodium chloride and magnesium hydroxide extracted from the tail brines back to Chemtura for use, respectively, as a feedstock for chlorine production and as a flame retardant and/or neu- tralization agent. Contact: Chemtura Corp, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573- 2220; fax: +1-203-573-2800; URL: www.chem- tura.com Cabot posts improved 4Q and fiscal year results Cabot Corp achieved net income of US$27 million on sales of $663 million for its 4Q 2006 and net income of $88 million on sales of $2543 million for its full fiscal year 2006 ended 30 September. This compares to a net loss of $59 million for 4Q fiscal 2005 (sales of $558 million) and a net loss of $48 million (sales of $2125 million) for the full fiscal year 2005. Describing the 4Q results as “pleasing on the whole”, Kennett F. Burnes, Cabot’s chairman and CEO, says demand for products in all busi- nesses remained strong during the quarter and the company was able to improve cash gen- eration and successfully manage the volatility in feedstock and energy prices. The quarter also saw a reduction in staff in order to decrease costs, particularly in the carbon black product lines. Cabot plans to eliminate about 130 posi- tions by the end of fiscal 2007 to streamline

Chemtura tightens portfolio, reports third quarter loss

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February 2007 Additives for Polymers

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efficiency and streamline business processes, including a number of site and plant restructur-ing measures. BASF expects this to result in total savings of �300 million per year by 2008.

Contact: BASF AG, Carl-Bosch-Straße 38, D-67065 Ludwigshafen, Germany; tel: +49-621-60-0; fax: +49-621-60-42525; URL: www.basf.de

Chemtura tightens portfolio, reports third quarter lossPlastics additives major Chemtura Corp report-ed a loss from continuing operations of US$80.6 million on net sales of $917.0 million for 3Q 2006, compared to a loss of $120.3 million on sales of $918.4 million for 3Q 2005. The small decrease in sales is related to the divestment of the Industrial Water Additives business and lower sales volumes, which were mostly offset by increased selling prices and favourable for-eign currency translation. For the nine months to end September 2006, the company posted a loss from continuing operations of $67.0 million on sales of $2849 million, up 35%.

The Plastics Additives segment posted 3Q net sales of $403.5 million, up from $374.6 million in 3Q 2005. Operating profit for the quarter was $17.5 million, down from $25.4 million in the same period of 2005. For the first nine months of 2006, segment sales increased to $1210.1 million from $792.8 million in 2005. Operating profit for the period was $90.5 million, up from $57.5 million the previous year. Commenting on the results, chairman and CEO Robert L. Wood highlighted the “solid performance” of flame retardants, among other sectors, but said that margin recovery for non-flame-retardant plastics additives has not yet reached anticipated levels although the company has begun to recap-ture volume for these products. The company is focusing efforts on growing its best franchises, fixing problem areas, streamlining costs and honing the portfolio “to create a far better per-forming company”, Wood says.

In line with this strategy of focusing on core businesses, Chemtura sold its majority inter-est in extrusion system manufacturer Davis-Standard to joint owner Hamilton Robinson for $72 million in October 2006, and in November

announced plans to sell its EPDM elastomers and rubber additives activities to Lion Chemical Capital. Proceeds will be used to reduce the company’s debt. According to Wood, divest-ment measures are to continue, leaving only the most profitable activities (above 15% margin). Activities below this level are antioxidants, PVC additives and surfactants, and the company plans to deal with these areas by mid 2007 by means of acquisitions, transfers out of the group, or joint ventures. Other problem areas are house-hold detergents and polyurethane additives.

In other recent news, Chemtura has signed long-term supply and purchase agreements with TETRA Technologies, Inc for a number of products. Among the terms, TETRA will buy bromine and tail brines from Chemtura and invest in its bromine operations. It will also sell sodium chloride and magnesium hydroxide extracted from the tail brines back to Chemtura for use, respectively, as a feedstock for chlorine production and as a flame retardant and/or neu-tralization agent.

Contact: Chemtura Corp, 199 Benson Rd, Middlebury, CT 06749, USA; tel: +1-203-573-2220; fax: +1-203-573-2800; URL: www.chem-tura.com

Cabot posts improved 4Q and fiscal year resultsCabot Corp achieved net income of US$27 million on sales of $663 million for its 4Q 2006 and net income of $88 million on sales of $2543 million for its full fiscal year 2006 ended 30 September. This compares to a net loss of $59 million for 4Q fiscal 2005 (sales of $558 million) and a net loss of $48 million (sales of $2125 million) for the full fiscal year 2005.

Describing the 4Q results as “pleasing on the whole”, Kennett F. Burnes, Cabot’s chairman and CEO, says demand for products in all busi-nesses remained strong during the quarter and the company was able to improve cash gen-eration and successfully manage the volatility in feedstock and energy prices. The quarter also saw a reduction in staff in order to decrease costs, particularly in the carbon black product lines. Cabot plans to eliminate about 130 posi-tions by the end of fiscal 2007 to streamline

ADPO_Feb.indd 9ADPO_Feb.indd 9 05/03/2007 11:39:2805/03/2007 11:39:28