Altana warns of short-term uncertainty despite record sales

German specialty chemical group Altana increased sales by five percent in 2011 compared to the record year it reported in 2010, and said it expects to table a low single-digit increase in 2012 as, “the present overall economic situation remains to be characterized by an unchanged high degree of uncertainty, thus representing quite a challenging environment for Altana in the short-term”.
 
Sales reached €1.6 billion in 2011, surpassing the record €1.5 billion achieved in 2010.
 
Actega Coating and Sealants saw the biggest change in sales across Altana’s four divisions, up 14 percent to €297 million. BYK Additives & Instruments grew eight percent to €582 million, while Elantas Electrical Insulation grew four percent and Eckart Effect Pigments sales shrunk three percent.
 
Europe was Altana’s biggest sales region, with Germany alone seeing sales up 10 percent in 2011 against 2010.
 
However, Altana’s 2011 results report was filed with caution. It said sales in the first six months of 2011 increased by a double-digit percentage, but it was hit by falling sales momentum in the second half of the year.
 
Likewise, rising raw material prices held back its earning figures despite sales price increases and countermeasures relating to fixed costs, which Altana said were not able to fully offset the rising cost of raw materials.
 
Dr. Matthias L. Wolfgruber, chief executive officer of Altana, said: ‘The present overall economic situation remains to be characterized by an unchanged high degree of uncertainty, thus representing quite a challenging environment for Altana in the short-term.'

For the current business year, Altana anticipates an operating increase in sales in the low single-digit percentage area. The company expects raw material prices to stabilize at the current high level. As a result, the EBITDA margin should remain within the target range of 18-20 percent.

Wolfgruber added: ‘With our clear, strategic focus on innovative and technically demanding growth markets we are optimally positioned in the current environment. Due to the flexibility we have achieved over the past several years we are confident that we will be able to act prudently and successfully even in a continuing volatile market environment.’