ELANTAS Electrical Insulation

Wesel, January 31, 2008

ALTANA reports successful business year 2007

  • Excellent start as pure specialty chemicals company
  • Sales: €1,380 million (+ 7%)
  • EBITDA: €248 million (+ 33%)

 

Note: All figures mentioned in this press release are preliminary and unaudited.

ALTANA AG (ALT) concluded its first business year as a pure specialty chemicals company with excellent results. Sales in 2007 totaled €1,380 million, which is an increase of €86 million or 7% on the prior year. Adjusted for negative exchange rate as well as minor positive acquisition and divestment effects, operating sales growth was 9%. Domestic sales in 2007 amounted to €240 million, this also corresponds to an increase of 7% compared to the prior year. At €1,140 million, the international business contributed about 83% to total sales, underlining the global presence of ALTANA. With a sales growth of 11%, the Asian region posted the strongest growth, followed by Europe with a growth of 8%. Sales in North and South America remained almost unchanged, mainly due to exchange rate effects. The region’s operating growth, however, was 6%.

The ALTANA Group’s number of employees as of December 31, 2007, was 4,646, compared to 4,484 in the prior year.

Dynamic sales development in ALTANA’s divisions
The BYK Additives & Instruments division increased sales by 9% on the prior year’s period, with sales rising from €409 million to €445 million. Sales of ECKART Effect Pigments climbed from €339 million to €363 million; this translates into an increase of 7%. Sales of ELANTAS Electrical Insulation grew by 8%, up from €325 million in the prior year to €351 million. The ACTEGA Coatings & Sealants division achieved sales of €222 million after €221 million in 2006.

Substantial earnings growth
The preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) amount to €248 million, up €62 million or 33% on the prior year. As a result, the 2007 EBITDA margin is around 18.0%, and thus within our medium-term target corridor of 18% to 20% despite additional costs due to the two-tier holding structure which was maintained until mid-2007. The preliminary income before taxes (EBT) totaled €214 million, compared to €93 million in 2006. The 2007 figure comprises the extraordinary interest income in the amount of €55 million from the investment of the purchase price for ALTANA Pharma until the distribution of the dividend to ALTANA’s shareholders in May 2007. In 2007, ALTANA recorded net expenses of approximately €8 million altogether for the discontinued operations (ALTANA Pharma) related to expected purchase price adjustments as well as to interest, taxes and dues both domestic and abroad. Hereof, a partial amount totaling €5 million had already been reported in the first half of 2007. 

Dividend policy guarantees shareholders’ participation in the company’s success
ALTANA will let its shareholders adequately participate in the company’s success. A dividend with a payout ratio in the range of 30% to 40% of the Group’s net income is planned. The dividend proposal will also take into account the extraordinary interest income from the sale of ALTANA Pharma.

“ALTANA has achieved excellent sales and earnings results in its first year as a specialty chemicals company“, stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. “This is mainly due to our consistent strategic focus, our strong global positioning and our pronounced orientation towards innovation as well as to our customers“.

For the business year 2008, ALTANA expects a growth in sales – adjusted for exchange rate and acquisition effects – in a single-digit percent range. The medium-range growth target is set at an average sales growth of about 10% annually (thereof 6% organic growth) while maintaining an above-average profitability with an EBITDA margin of 18% to 20%.

ALTANA Group 20071) 20062) Change in %
       
Sales – total (in € million) 1,380 1,294 7
       
Sales by division (in € million)
Additives & Instruments 445 409 9
Effect Pigments 363 339 7
Electrical Insulation 351 325 8
Coatings & Sealants 222 221 0
       
Sales by region (in € million)
Europe 678 627 8
     thereof Germany 240 223 7
North and South America 331 331 0
     thereof U.S. 223 243 - 8
Asia 330 297 11
    thereof China 150 127 18
Other regions 42 39 8
       
EBITDA (in € million) 248 186 33
EBT (in € million) 214 93 > 100
       
Headcount (Dec. 31)
BYK Additives & Instruments 1,140 1,052 8
ECKART Effect Pigments 1,893 1,802 5
ELANTAS Electrical Insulation 887 883 0
ACTEGA Coatings & Sealants 670 655 2
Holding 56 92 - 39

ALTANA –  total

4,646 4,484 4

1)  Preliminary data
2)  The figures relate to the continuing operations.

 

This press release contains forward-looking statements, i.e. current estimates or expectations of future events or future results. These statements are based on beliefs of ALTANA as well as assumptions made by and information currently available to ALTANA. Forward-looking statements speak only as of the date they are made. ALTANA does not intend, and does not assume any obligation, to update forward-looking statements to reflect facts, circumstances or events that have occurred or changed after such statements have been made.

About ALTANA:
ALTANA develops and produces high-quality innovative products in the specialty chemicals business. The ALTANA Group, with headquarters in Wesel/Germany, is a genuine “global player” with 83% of its sales generated by international activities. The ALTANA Group has four divisions: BYK Additives & Instruments, ECKART Effect Pigments, ELANTAS Electrical Insulation, and ACTEGA Coatings & Sealants. All of these divisions occupy a leading position in their target markets with respect to quality, product solution expertise, innovation and service.

ALTANA offers innovative, environmentally compatible solutions with the matching specialty products for coating manufactures, paint and plastic processors, the printing and cosmetic industries, and the electrical and electronic industry. The product range includes additives, special coatings and adhesives, effect pigments, sealants and compounds, impregnating resins & varnishes, and testing and measuring instruments.

At present, the ALTANA Group has 32 production facilities and 46 service and research lab sites worldwide. Throughout the group 4,600 people work to ensure the success of ALTANA worldwide. In 2007 ALTANA achieved sales of about 1.4 billion euros. Its impressive earning power and high growth rate make ALTANA one of the most successful and innovative chemical groups worldwide.