Difficult leather market affects Cognis results
German specialty chemicals company Cognis has reported a 4.3% sales increase for 2007, with sales totalling €3.5 billion ($5.6 billion). Growth was seen across its three core business areas – care chemicals, nutrition and health and functional products. Higher raw material costs were offset by cost reductions and selling price increases.
Net profit before special items rose by €28 million to €30 million. However, these special items turned net profit into a net loss of €120 million.
Care chemicals recorded a 6.7% rise in sales to €1.4 billion, while functional products sales rose 4% to €874 million.
Since last July, what was formerly Cognis’ process chemicals SBU has been trading under the name of Pulcra Chemicals, a wholly owned subsidiary of the Cognis group. Its sales fell by 4.7% to €246 million in 2007. Although Pulcra Chemicals did achieve growth in China, volumes in all other regions were lower, due to the adverse market conditions in both the leather and textiles industries. Higher raw material costs also affected the business negatively.
