Mülheim an der Ruhr, Germany - Brenntag, a chemical distribution company, continued its growth path in the second quarter of 2011. Compared to the same period last year, Brenntag increased sales and again achieved an increase in profits. Sales grew by 11.2 percent (15.9 percent based on constant exchange rates) to EUR 2,173.4 million (second quarter 2010: EUR 1,953.8 million), while gross profit improved by 5.9 percent (10.8 percent based on constant exchange rates) to EUR 443.8 million (second quarter 2010: EUR 419.2 million). Operating EBITDA reached EUR 167.7 million (second quarter 2010: EUR 153.0 million), which reflects a strong growth rate of 9.6 percent (15.4 percent based on constant exchange rates). Net profit for the second quarter was at EUR 67.6 million (second quarter 2010: EUR 38.7 million), an increase of 74.7 percent. All regions contributed to the positive development.
Brenntag Europe performed well in the second quarter of the financial year 2011. Operating gross profit in the reporting period rose by 5.5 percent or 5.1 percent on constant exchange rates to EUR 232.2 million from EUR 220.0 million in the previous year. Operating EBITDA grew to EUR 82.3 million in the second quarter of 2011 reflecting an increase of 11.2 percent (11.0 percent on constant exchange rates) compared to EUR 74.0 million in the second quarter of 2010.
Following the stable development in the first quarter, Brenntag North America remains on its growth path. Operating gross profit based on constant exchange rates increased by 10.2 percent to EUR 160.6 million. However, the weaker U.S. dollar led to a slight decrease of -1.0 percent, including exchange rate effects. Operating EBITDA was reported with EUR 69.6 million in the second quarter of 2011, exceeding the prior-year figure by 10.9 percent, on constant exchange rates, despite the generally more moderate development of the North American economy.
In the second quarter of 2011, operating gross profit in Latin America increased strongly by 11.2 percent on constant exchange rates and 2.2 percent, including exchange rate effects, to EUR 38.0 million compared to EUR 37.2 million in the corresponding quarter of the previous year. In a weaker macroeconomic climate, the Latin American companies recorded operating EBITDA of EUR 13.0 million in the reporting period. Adjusted for exchange rate effects, the growth rate amounted to 11.9 percent, which results in a growth of 4.0 percent as reported.
Looking forward, the company expects to achieve a range of EUR 650 to 670 million operating EBITDA on a full-year level.
Brenntag Increases Profits in Second Quarter
August 13, 2011