Perstorp, Sweden - In 2007, Swedish speciality chemicals group Perstorp had a successful year "full of significant investments in the future," the group said in a Net sales for the polyol producer rose by 18 percent to SEK 8583 million ($1366 million) as a result of strong demand and price increases, plus the start of a new rapeseed methyl ester (RME) plant.
"The Group delivered in line with its business plan and exceeded targets for growth and profitability. Meanwhile, we made major investments in production capacity, new products and company acquisitions, which will have a major impact on the future development of the Group," said Perstorp's president and ceo, Bo Dankis in a release on the results.
Acquisitions in 2007 including a leading supplier of PIA (Purified Isophtalic Acid) based in Singapore and the acquisition, concluded early in 2008, of the Solvay caprolactones business, based in the UK. "Perstorp's leading position was further strengthened in the important Chinese market through a joint venture and acquisition of production plants in the country," the group said, adding that these acquisitions will boost sales by around SEK 2000 million.
Strong demand and the resulting high capacity utilisation at Perstorp's plants helped net sales for 2007 rise by 18 per cent to SEK 8583 million.
Operating profit before depreciation and amortisation (EBITDA) climbed to SEK 1365 million (SEK 1091 million: 2006) as a result of volume increases and higher price levels. Profits improved despite the falling US dollar and high prices for energy and raw materials, commented the group. Cash flow from operations amounted to SEK 550 million (2006: SEK 591 million). Interest payments were higher than in the previous year, Perstorp added.
For 2008, Perstorp's main priority is to continue delivering growth and earnings in line with established plans, commented Dankis, stressing the importance of "integrating the acquired companies and handling the major investment projects that have started."
"I expect to see positive growth for the group in 2008," Dankis concluded.