MONHEIM, Germany – Cognis has reported its half-year results for 2008, with sales up 7 percent to EUR 1.533 billion. The rise in raw material, energy and transportation costs, as well as unfavorable exchange rates, was mitigated by optimized cost structures and sale-price increases. The company reported higher sales across all three core business areas, Care Chemicals, Nutrition & Health and Functional Products. The operating result (adjusted EBITDA) decreased by 5.1 percent to EUR 176 million, and the company reported return on sales of 11.5 percent. Earnings before interest and taxes (EBIT) was down EUR 5 million to EUR 103 million. The company reported a net profit of EUR 11 million, including EUR 6 million of discontinued operations. The sales of the Pulcra Chemicals subsidiary and the 50-percent stake in Cognis Oleochemicals joint venture were successfully completed in July.
Cognis CEO Antonio Trius commented, “In spite of the tough general market conditions, all our core business areas strengthened their position and recorded increased sales. Our successful efforts to optimize our processing and manufacturing costs, and more especially the sale of our Pulcra and Oleochemicals businesses, represent major steps forward for Cognis in terms of its strategic direction and prospects for further profitable growth.”
“Cognis continues to improve its efficiency and sees the necessity to further increase its prices in the light of high raw-material costs and the weak U.S. dollar,” said Antonio Trius. “Concentrating on highly innovative, natural-based solutions for markets driven by the global wellness and sustainability trends will help us to add further value to our company in 2008.”