Cognis functional productsbusiness unit – including its synthetic lubricants, mining technology, AgroSolutions and polymers, coatings and inks businesses – on May 30 reported sales of 222 million (U.S. $298.6 million), up 0.6 percent from 220 millionin the first quarter of 2006.
On an organic basis – meaning sales excluding foreign currency effects, and the effects of acquisitions and divestitures – the functional products unit grew 5.4 percent, or by 12 million (U.S. $16.1 million) over the year-ago quarter.
The difference comes purely from negative currency impacts of minus 4.8 percent, Cognis Vice President of Communications Susanne Sengel told Lube Report. Sengel said that the functional products unit makes most of its sales in the United States, and that the dollar – compared to the Euro – has devalued there in 2007s first quarter compared to 2006s first quarter. The higher organic growth – where the currency effect is excluded – comes from higher volumes sold for the Synlubes, AgroSolutions and PCI [polymers, coatings and inks] businesses, Sengel added.
Dusseldorf, Germany-based Cognis as a whole reported operating income of 111 million (U.S. $149.3 million), down 1.3 percent from 113 millionin 2006s first quarter. Net sales for the company increased 1.7 percent to 890 million, compared to the year-earlier quarter.
Higher margin products and higher volumes at our strategic business units Care Chemicals and Functional Products, and a successful cost management were important drivers for our solid growth, said Cognis Chief Executive Officer Antonio Trius. On the other hand, increased raw material prices and unfavorable hard currency issues had an impact on our earnings.
Cognis Synlubes Technology business markets four main brands. Its Synative brand products include base oils for high-performance lubricants, hydraulic and transmission fluids, oleochemical raw materials such as esters, fatty acids and fatty alcohols for lubricant production, and additive components for fuels and metalworking fluids.
The companys Emgard line includes compounded synthetic lubricants for gearboxes and transmissions, axle oils, air compressors and industrial applications.
Its Breox polyalkylene glycol base fluids, premixes and compounded lubricants are supplied for transportation, industrial lubricants, hydraulic fluids, process oils and other applications. Uses for its ProEco compounded lubricants and base fluids include refrigeration and air conditioning compressors and transformer oils.
Cognis Synlubes Technology has production and service sites in Canada, the United States, Brazil, Germany, France, Spain, Italy, U.K. and China. In addition to its Synlubes business, Cognis supplies specialty chemicals to a wide range of industries.