The year has got off to a strong start in all Kemira’s main business areas. Earnings in January-February are better than they were in the corresponding period a year ago and also expectations for full-year profits are higher than they were a year earlier, said CEO Tauno Pihlava, sizing up the Group’s earnings outlook at Kemira Oyj’s Annual General Meeting today, April 3, 2001.
The Group’s growth areas are chemicals for the pulp and paper industry, water treatment chemicals and paints and coatings. Other priority areas are specialty fertilizers and industrial chemicals.
Within pulp and paper chemicals, Kemira has bolstered its market position in the pulp and paper chemicals market in continental Europe following its acquisition of Krems Paper Chemicals of Austria towards the end of last year. The paint business was strengthened considerably when the business operations of the Swedish paints company Alcro-Beckers AB were made a part of Tikkurila. On the plant nutrient side, Kemira is continuing studies of options for disengaging itself from the nitrogen fertilizer business.
The overall outlook for Kemira’s chemicals business remains better than it was last year. Only in pulp and paper chemicals has there been a bit of slow down, which is due to lower capacity usage in the pulp and paper industry. Brisk growth has continued within water treatment chemicals and the business earnings improved compared with 2000. In particular, operations in continental Europe, notably in Spain and Portugal, are running well. The industrial chemicals business has also strengthened further, boosted in part by the inclusion of titanium dioxide pigments within its operations.
In the paint sector, Tikkurila’s sales are moving along at a healthy clip and earnings for the entire paint business are expected to be up on last year’s figure. Net sales are forecast to reach a level of about EUR 450 million. With the acquisition of Alcro-Beckers of Sweden, at the turn of the year Tikkurila became Scandinavia’s largest company in the paint industry. Tikkurila and Alcro-Beckers have also previously engaged in close cooperation in the Baltic Rim countries, and the growth outlook for paints is quite good, particularly in the Baltic countries and in Russia.
Within the fertilizer business the year has likewise started better than it did in 2000. The price trend for both nitrogen and NPK compound fertilizers has been favourable. At the European level, quantitative demand for fertilizers has nevertheless fallen short of targets, both because of the floods in Great Britain last autumn and the heavy rainfall in Europe in the early spring. In addition, the recent livestock disease issues in Europe have overshadowed farmers’ expectations. On the other hand, livestock diseases have nevertheless increased the demand for Kemira’s mineral-based feed phosphates. Business connected with the Group’s food supply chain is estimated to achieve an improved result compared with the previous year.
Kemira Oyj will publish its 3-month interim report on 8 May 2001 at 9.00 a.m.
Today Kemira Oyj will issue a further press release on the resolutions passed at the Annual General Meeting.