Business Year 2009: ALTANA Noticeably Affected by the Economic Crisis, Despite strong Rebound in the Second Half of the Year

The specialty chemicals Group ALTANA AG concluded the business year 2009 with noticeably lower sales and earnings figures compared to the prior year due to the effects of the economic crisis. Despite a pronounced upturn in business in the second half of the year, sales declined to €1,182 million, following €1,342 million in 2008, which is a decrease of 12%.

On account of the worldwide economic crisis, sales in all regions remained below the figures of the previous year; in some regions the losses were quite pronounced. At 17%, the highest decline was recorded in Europe, followed by North and South America with a drop of 12%. The Asian region was comparatively stable, with a sales decrease of only 2% for the full year. Here, ALTANA was able to achieve significant growth rates in the second half of 2009, particularly in China.

The BYK Additives & Instruments division achieved sales of €420 million in 2009, corresponding to a decrease of about 7% on the prior year. In the ECKART Effect Pigments division, sales dropped by 20% from €351 million in 2008 to €282 million in 2009. Sales in the ELANTAS Electrical Insulation division in 2009 amounted to €273 million; this is a decrease of 16% compared to 2008 (€327 million). ACTEGA Coatings & Sealants achieved sales of €207 million in 2009, which is only slightly below the 2008 figure (€214 million).

On account of the decline in sales, preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) in the business year 2009 decreased by 16% to €204 million. At 17.3% (prior year: 18.1%), the EBITDA margin was down by only about 1 percentage point. This was mainly due to the immediate and comprehensively taken countermeasures to reduce costs and increase efficiency, which led to savings of about €55 million in the past business year.

Compared to the other divisions, the worldwide economic crisis caused the highest sales decrease in the Effect Pigments division. Here the recovery in the second half of 2009 also started at a later point in time and was less dynamic. The sluggish development in the division’s important target markets, particularly the automotive industry, had a negative effect. This is why ALTANA revised its earnings forecast for Effect Pigments downward in the course of 2009.

Mainly due to the impairments in the Effect Pigments division, preliminary earnings before taxes (EBT) for the ALTANA Group declined by 75% from €159 million in the previous year to €39 million in 2009. Consequently, net income (EAT) was down to €11 million, following €103 million in the business year 2008.

“ALTANA has managed the worldwide economic crisis comparatively well, thanks to resolute countermeasures and the joint efforts and commitment of all those involved,“ stated Dr. Matthias L. Wolfgruber, CEO of ALTANA AG. “For 2010, we expect an improvement over the previous year. However, we anticipate a business year with great uncertainties,” said Dr. Wolfgruber, adding that ALTANA would continue to emphasize and focus on cost efficiency and, at the same time, to increase investments in growth drivers such as innovation and customer orientation.