Dusseldorf, Germany - Degussa AG has posted a 16 percent rise in sales to €5456 million and a 123 percent boost in net income to €375 million for the first six months of this year.
The German speciality chemicals manufacturer reported half-year earnings before interest and tax (EBIT) of €437 million, a 19 percent increase from €368 million in the first half of 2005.
Degussa's polyurethane operation, Goldschmidt Polyurethane Additives, supplies additives for polyurethane foam manufacturing and is part of the group's Care & Surface Specialties business unit which, in turn, is part of its Consumer Solutions division.
The division, which accounted for 23 percent of Degussa's total sales for the first half of the year, lifted sales by 5 percent to €600 million for the second quarter and by 14 percent to €1224 million in the first six months.
EBIT for the Consumer Solutions segment rose by 59 percent to €51 million in the quarter and 66 percent to €111 million for half.
''Thanks to higher volumes and successful price rises, the operating profit improved considerably,'' Degussa chairman Klaus Engel said.
The company expected profit margins for the rest of the year, however, to be affected by higher raw material and energy prices.
''We still expect to report a year-on-year improvement in sales and EBIT in 2006,'' Engel said.
''However, the high growth rates seen in the first half of the year will drop back in the second half of the year.''