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Ciba 9-month profit jumps
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October 17, 2000: 9:32 a.m. ET
Growth in all divisions boosts earnings at Swiss chemical company
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LONDON (CNNfn) - Switzerland's Ciba Specialty Chemicals AG said Tuesday profit for the first nine months soared 65 percent on strong demand for products used in inks, paints, plastics and detergents.
The country's second-biggest chemical company said net income rose to 329 million Swiss francs ($185.3 million), or 4.96 francs per share, from 199 million Swiss francs, or 1.85 francs per share, a year ago.
Sales at the Basel-based company rose 12 percent to 5.98 billion francs, while operating profit jumped 58 percent to 688 million francs.
Ciba, one of the world's biggest makers of specialty chemicals, has been shedding business in recent months, including its polymers business for 1.6 billion francs in May, to concentrate on four divisions - additives, water treatment, colors and consumer care.
The company's shares rose 1.2 percent to 95.50 francs after Ciba reiterated it expects double-digit profit growth in 2000.
"We feel very comfortable that we will achieve an EBITDA (earnings before interest, tax, depreciation and amortization) at the top or somewhat above the target range of 16 percent to 17 percent of sales," Chairman Rolf Meyer said in a statement. "This would indicate strong double-digit percentage increases in both net income and earnings per share."
The EBITDA margin rose to 17.4 percent in the first nine months from 14.5 a year earlier.
Ciba said its profit growth reflected solid sales growth and its ability to offset sharp increases in raw materials prices by shifting its source of suppliers from one hemisphere to another.
"We continue to anticipate only a 2 to 3 percent increase in raw materials prices for the full year," the company said. 
--from staff and wire reports
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Ciba
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