- Revenue: EUR 403.7 million (394.4 million in January-March 2004), up 2%.
- Operating profit: EUR 30.3 million (21.2 million), up 43%.
- Earnings/share: EUR 0.15 (2004 pro forma: 0.04)
- Return on capital employed: 9.4% (2004 pro forma: 7.7%).
- Cash flow after capital expenditures was EUR 43.5 million negative (2004 pro forma: 20.4 million negative).
- Full-year revenue, operating profit and earnings per share are estimated to increase on the pro forma figures for 2004.
FULL-YEAR OUTLOOK
Kemira is strengthening its operations within pulp and paper chemicals, water treatment chemicals, industrial chemicals and paints and coatings through both organic growth and acquisitions. All operations aim at improving profitability, achieving growth, building a strong competitive position and boosting synergy across the Group.
Within pulp and paper chemicals, the customer industry has been operating at a good rate in the first part of the year and it is estimated to hold up well during the latter part of the year. The price rises in raw materials used by the Pulp & Paper Chemicals business area are putting pressure on earnings. Thanks to the acquisition of Finnish Chemicals, the business area's revenue and operating profit in 2005 are set to increase on 2004.
Demand for water treatment chemicals is expected to improve further. Price increases in iron, hydrochloric acid and aluminium hydrate are exerting pressure on earnings. Kemwater's full-year revenue is expected to grow substantially on 2004 thanks to the Eaglebrook acquisition that was made in North America. Operating profit is likewise estimated to be higher than that reported in 2004.
Industrial Chemicals is expecting to see a continued step-by-step rise in the prices of titanium dioxide, offsetting the higher prices of raw materials. Thanks to the expansion investments made, full-year sales volumes in titanium dioxide are estimated to be higher than they were in 2004. The business area's sales of formic acid and sodium percarbonate, which is used in detergents, are also anticipated to develop favourably in the latter part of the year. Full-year revenue is estimated to show an increase on the figure which Industrial Chemicals reported for continuing operations in 2004. The acquisition of Verdugt BV should contribute to an increase in operating profit compared with 2004.
Good demand is expected in the paints business in the latter part of the year. Because some units were sold during 2004, full-year revenue for the Paints & Coatings business area is estimated to be at the level of 2004, but operating profit is expected to show a rise.
Full-year revenue generated by the water-soluble fertilizer business, which remained a part of the Kemira Group after the spin-off of Kemira GrowHow, is expected to fall substantially because the basic fertilizer trading operations included in 2004 sales have been discontinued almost completely. The operating loss is expected to diminish markedly.
The Kemira Group's full-year revenue, operating profit and earnings per share in 2005 are estimated to increase on the pro forma figures posted in 2004.
Helsinki, 9 May 2005
The Board of Directors
The full report including tables can be downloaded from the following link:
