Cognis Functional Products business unit on Nov. 25 reported operating profit of 19 million (U.S. $28.7 million) in the third quarter, up almost 36 percent from 14 million in 2008s third quarter. The unit includes synthetic lubricants, mining technology, AgroSolutions and polymers, coatings and inks businesses.
The improved performance reflects lower raw material costs, as well as an improved product mix focused on the green trend, and cost management which compensated demand shortage in key markets, the company said.
The Functional Products unit posted sales of 193 million (U.S. $291.7 million) for 2009s third quarter, down 22.4 percent from 249 million in the year-earlier period. Volumes in businesses that are exposed to the housing and construction and automotive industries, such as Polymers, Coatings & Inks, and Synlubes, remain lower than the prior year, the company said.
As a whole, Dusseldorf, Germany-based Cognis reached third quarter sales of 655 million, down 15 percent from 771 million in the year-earlier period. The company reported a third quarter net profit of 21 million, compared to a 24 million loss in 2008s third quarter.
Cognis CEO Antoni Trius noted, The significant savings achieved through our global cost optimization program enabled us to improve our operating result. Sales volumes are still relatively low, but they continue to move in an upward direction. The economic situation has further stabilized and slightly improved over the last months, as global demand and businesses start to recover, although the situation remains volatile.