ASHLAND
Tough going for distribution and composites company in 2007 / Expansion of business in China planned
Ashland (Covington, Kentucky / USA; www.ashland.com) lifted sales 8% to USD 7.8 bn in fiscal 2007 (30 September) while increasing EBIT 27% to USD 216m. The company headed by chairman and CEO James J. O'Brien is active in four segments: Distribution, Performance Materials (polyester and vinyl ester resins), Valvoline (lubricants) and Water Technologies. It claims to be the largest distributor of plastics in the US.
The Distribution segment reported worldwide sales of USD 4 bn in 2007, with 42% of this generated by plastics and 13% by composite materials. The segment’s EBIT plunged to USD 41m from USD 120m in 2006. This reflected slack demand, particularly in the US, along with higher raw material prices worldwide. The Performance Materials segment – with sales of around USD 1.6 bn – fared only slightly better as EBIT slipped 21% to USD 89m.
In April 2008, Ashland reported that the distribution segment would expand its logistics capacities in the growth market of China, but did not provide further details. The company recently won several contracts for plastics distribution and logistics in the People's Republic. These include agreements with BASF (PSU, POM, PA 6.6), primarily for multinational companies of North American origin, Clariant (colour concentrates, additives), DSM (the complete range of PA, PET, PBT, TPE), LTL Color Compounders (thermoplastic colour and additive compounds), and Teknor Apex (PVC compounds).
e-Service:
Ashland annual report for fiscal 2007 as a PDF document (1.770 KB)
The Distribution segment reported worldwide sales of USD 4 bn in 2007, with 42% of this generated by plastics and 13% by composite materials. The segment’s EBIT plunged to USD 41m from USD 120m in 2006. This reflected slack demand, particularly in the US, along with higher raw material prices worldwide. The Performance Materials segment – with sales of around USD 1.6 bn – fared only slightly better as EBIT slipped 21% to USD 89m.
In April 2008, Ashland reported that the distribution segment would expand its logistics capacities in the growth market of China, but did not provide further details. The company recently won several contracts for plastics distribution and logistics in the People's Republic. These include agreements with BASF (PSU, POM, PA 6.6), primarily for multinational companies of North American origin, Clariant (colour concentrates, additives), DSM (the complete range of PA, PET, PBT, TPE), LTL Color Compounders (thermoplastic colour and additive compounds), and Teknor Apex (PVC compounds).
e-Service:
Ashland annual report for fiscal 2007 as a PDF document (1.770 KB)
14.05.2008 Plasteurope.com [210712]
Published on 14.05.2008
German version of this article...