Lonza profits rise

Lonza, the Swiss fine chemicals company, has reported a 5.2 per cent rise in net profits for the first half of the year to SFr161 million (€109m) after good performances from all its main operating divisions.

Group sales increased by 2.2 per cent to SFr1.3 billion, but operating income of SFr217 million was below last year's result of SFr223 million due to the sale of the company's energy business in December 2001, which had provided SFr18 million in the first half of 2001. On a comparative basis, group operating income increased by 5.9 per cent from SFr205 million to SFr217 million.

Lonza is a leading producer of active chemical ingredients, intermediates and biotechnology solutions to the pharmaceutical and agrochemical industries, and offers a broad catalogue of organic intermediates for a wide range of applications such as pharmaceuticals, agrochemicals, vitamins, food and foodstuff, dyes and pigments, adhesives and fragrances.

The company's biotechnology activities showed the expected healthy growth in sales and operating income, while the exclusive synthesis business faced a competitive environment, with increased pressure on plant loading and margins. The organic fine and performance chemicals businesses achieved an increase in profitability based on continual improvement of the operating performance of the plants and a decrease in some raw material costs. The polymer intermediates business recovered further due to the positive effect of the realignment of market players in Europe and stable demand in most industrial applications, Lonza said in a statement.

Lonza also confirmed that it would not be selling its polymer intermediates business as had previously been the case, as it now felt that the division would offer better value to shareholders by remaining part of the group.