- Revenue: EUR 1,994.4 million (2004: 1,695.1 million), growth of 18%.
- Operating profit: EUR 165.5 million (111.6), up 48%.
- Earnings per share: EUR 0.73 (0.50), growth of 46%.
- Return on capital employed: 9.9% (8.6%).
- Cash flow after capital expenditures excluding acquisitions amounted to EUR 170.8 million (155.4).
- In 2006, revenue, operating profit and earnings per share are estimated to increase on 2005.
- The proposed dividend is EUR 0.36 per share (0.34).
OUTLOOK FOR 2006
In 2006, the Kemira Group's full-year revenue, operating profit and earnings per share are estimated to increase on 2005. The high prices of energy and raw materials are projected to continue in 2006, putting negative pressure on profits.
For Pulp & Paper Chemicals, capacity utilization in the customer industry is estimated to be good in 2006. The business area's revenue in 2006 is expected to grow compared to 2005, especially due to the acquisitions that have been made. Operating profit is likewise estimated to increase because of an improved capacity utilization rate, the structural changes that have been carried out and the acquisition of Finnish Chemicals. The currently high level of raw material prices and especially energy prices will continue to challenge margin development. The purchase of the Lanxess paper chemicals business will have a negative impact on the business area's earnings in 2006, because the business that is to be acquired was previously loss-making, and there will be integration costs.
Demand for Kemwater's water treatment chemicals is expected to remain good. During 2006, Kemwater will devote particular attention to growing its new businesses, such as sludge treatment and outsourcing services for industry. The high prices of hydrochloric acid, chlorine and aluminum hydrate, especially in the United States, will put negative pressure on profits. Kemwater's revenue and operating profit are estimated to increase on 2005.
In the Performance Chemicals business area, prices of titanium dioxide are estimated to rise during 2006. Demand for titanium dioxide is set to hold steady or grow slightly. The percentage of specialty pigments in Kemira's aggregate sales is estimated to increase. The higher prices of raw materials and especially energy will challenge margin development. The business area's sales of organic acids and acid derivatives as well as sodium percarbonate, which is used in detergents, are also anticipated to develop favorably. Performance Chemicals' revenue and operating profit are estimated to rise.
The Paints & Coatings business area is expected to generate higher revenue due to continuing good demand in all its market areas. Operating profit is estimated to grow in step with the good trend in sales and as a result of the structural arrangements that have been carried out in recent years. Revenue and operating profit will get a boost from the Kraski Teks acquisition that was made in Russia.
Helsinki, February 6, 2006
Board of Directors
The full report including tables can be downloaded from the following link:
