Company News

March 1, 2021

BASF Announces TDI and Polyol Increases

March 1, 2021

Dear Valued Customer,


Effective April 1, 2021 or as contracts allow, BASF Corporation is raising the price for all Lupranate® TDI products by $0.11 per pound, and all Pluracol® polyol products by $0.13 per pound.


Your BASF Account Manager will provide further details of this announced increase and is available to answer any questions you may have. We appreciate your continued support for BASF Urethane Chemicals.

March 1, 2021

BASF Announces TDI and Polyol Increases

March 1, 2021

Dear Valued Customer,


Effective April 1, 2021 or as contracts allow, BASF Corporation is raising the price for all Lupranate® TDI products by $0.11 per pound, and all Pluracol® polyol products by $0.13 per pound.


Your BASF Account Manager will provide further details of this announced increase and is available to answer any questions you may have. We appreciate your continued support for BASF Urethane Chemicals.

March 1, 2021

Recticel Results and Forecast

Recticel Annual Results 2020 – Solid 2nd half 2020 and Strategic Repositioning

Regulated information, Brussels, 26/02/2021 — 06:55 CET, 26.02.2021

  • Net sales: from EUR 878.5 million to EUR 828.8 million (-5.7%), including a -0.3% currency effect 
  • Adjusted EBITDA: from EUR 70.7 million to EUR 58.8 million (-16.8%)
  • Result of the period (share of the Group): from EUR 24.8 million to EUR 63.2 million, including EUR 68.7 million result from discontinued operations 
  • Net financial debt (cash): EUR 4.6 million, including IFRS 16 lease liabilities
  • Proposal to pay a gross dividend of EUR 0.26 per share

Olivier Chapelle (CEO): “After a -17.5% sales decline in 1H2020 caused by the COVID-19 lockdown, the 2H2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the COVID pandemic and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7.0% sales growth in 2H2020 and a 10.0% increase in Adjusted EBITDA.

Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalize as of 3Q2021.


2020 has also been a milestone year for the important strategic repositioning of our Group. We have at last succeeded in divesting our Automotive Interiors operations, which, together with the disposal of our 50% participation in the Eurofoam joint venture, has enabled the signing of the acquisition of FoamPartner. This transaction will create a truly global player in Engineered Foams, and the preparation of its closing is progressing well.


While pursuing further external growth opportunities, the Board of Directors has now also decided to launch a divestment process for our Bedding division, in line with our amended strategy.

OUTLOOK

Our underlying end-use markets remain difficult to predict in the context of the COVID-19 pandemic. Regardless of these uncertainties, our Group expects in 2021 a substantial increase in sales, and a 30% increase of its Adjusted EBITDA, not taking into account the contribution from the FoamPartner acquisition nor the related synergies.

https://www.recticel.com/recticel-annual-results-2020-solid-2nd-half-2020-and-strategic-repositioning.html

March 1, 2021

Recticel Results and Forecast

Recticel Annual Results 2020 – Solid 2nd half 2020 and Strategic Repositioning

Regulated information, Brussels, 26/02/2021 — 06:55 CET, 26.02.2021

  • Net sales: from EUR 878.5 million to EUR 828.8 million (-5.7%), including a -0.3% currency effect 
  • Adjusted EBITDA: from EUR 70.7 million to EUR 58.8 million (-16.8%)
  • Result of the period (share of the Group): from EUR 24.8 million to EUR 63.2 million, including EUR 68.7 million result from discontinued operations 
  • Net financial debt (cash): EUR 4.6 million, including IFRS 16 lease liabilities
  • Proposal to pay a gross dividend of EUR 0.26 per share

Olivier Chapelle (CEO): “After a -17.5% sales decline in 1H2020 caused by the COVID-19 lockdown, the 2H2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the COVID pandemic and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7.0% sales growth in 2H2020 and a 10.0% increase in Adjusted EBITDA.

Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalize as of 3Q2021.


2020 has also been a milestone year for the important strategic repositioning of our Group. We have at last succeeded in divesting our Automotive Interiors operations, which, together with the disposal of our 50% participation in the Eurofoam joint venture, has enabled the signing of the acquisition of FoamPartner. This transaction will create a truly global player in Engineered Foams, and the preparation of its closing is progressing well.


While pursuing further external growth opportunities, the Board of Directors has now also decided to launch a divestment process for our Bedding division, in line with our amended strategy.

OUTLOOK

Our underlying end-use markets remain difficult to predict in the context of the COVID-19 pandemic. Regardless of these uncertainties, our Group expects in 2021 a substantial increase in sales, and a 30% increase of its Adjusted EBITDA, not taking into account the contribution from the FoamPartner acquisition nor the related synergies.

https://www.recticel.com/recticel-annual-results-2020-solid-2nd-half-2020-and-strategic-repositioning.html

February 26, 2021

BASF Results

BASF proposes stable dividend despite pandemic, sees support from organic growth

Author: Nigel Davis

2021/02/26

LONDON (ICIS)–BASF management on Friday said a €3.30/share dividend would be proposed to the annual meeting as the company generated what it called a solid cash flow in 2020 despite the pandemic.

The company reported strong earnings in the fourth quarter of the year after facing the difficult operating environment brought about by the coronavirus pandemic earlier in 2020

Financial analysts had been predicting a dividend cut. The pay out would be flat compared with 2019 but the yield would be 5.1% based on the year end share price of €64.72

The expected earnings power of the ongoing businesses and their cashflow will be sufficient to cover investments and dividend payments, CEO, Martin Brudermuller, said, outlining future dividend policy. BASF has also, effectively, put the brakes on capital spending in 2021.

“Based on our medium-term financial planning, we will also have scope to reduce our financial indebtedness,” he added.

BASF is developing what could be seen as a more sustainable business model. No major investments are planned, rather bolt-on acquisitions that add to the company’s technical expertise and regional manufacturing capabilities.

Currently, BASF is in the midst of its largest ever investment – at Nanjing in China – and is investing in battery materials.

The divestments it has on hand include the pigments business and the IPO (initial public offering) of Wintershall DEA.

“The new Verbund site in southern China and our investments in battery materials will provide additional momentum for BASF’s future growth. We will finance the strong organic growth in these areas with proceeds from our divestitures.” Brudermuller said.

“Despite high investments in these growth activities in the coming years, we expect that our portfolio will be less capital-intensive after this transformation.”

BASF has also agreed to pay performance bonuses to staff despite lower returns in 2020. The return on capital employed (ROCE) for the year sank to 1.7% compared with 7.7% in 2019, with earnings impacted by non-cash impairments of €2.9bn.

Employee performance-related compensation is determined by ROCE and for the year was below the pay-out threshold.

The BASF board, however, had agreed to pay bonuses totalling €360m as a sign it said of recognition and appreciation of work done through the pandemic. “With this bonus, we want to acknowledge the huge effort put in by the BASF team in the pandemic year 2020, which was difficult for everyone,” Brudermuller said.

The company’s share price dipped in early trading on Friday, falling 1.3% as of 12:30 GMT, despite the stable dividend and stronger fourth-quarter earnings. The tepid market response was due to conservative 2021 earnings projections undershooting analyst expectations, according to Baader Bank’s Markus Mayer.

“After BASF’s share price outperformed over the last weeks, we expect profit taking on today’s reporting,” he said.

“The reason might be prudent earnings guidance… which assumes significant disruptions to global supply chains,” he added.

https://www.icis.com/explore/resources/news/2021/02/26/10611465/basf-proposes-stable-dividend-despite-pandemic-sees-support-from-organic-growth