The Urethane Blog
February 26, 2019
Martin Brudermüller
Let me add that Q1 and Q2, 2019 will be comparably weak quarters. Firstly, the first half of 2018 will benefit — still benefited from higher margins in isocyanates. That means, comparables are tough. Secondly, costs associated with the implementation of our strategy and a higher number of planned turnarounds compared to the first half of 2018 will negatively impact earnings. The decisive factor to achieve our targets for 2019 are an improved business performance, solid customer demand and first contributions from our excellence program in the second half of the year.
Thomas Wrigglesworth
Thanks, Stefanie. Thanks. Thanks, Martin for your presentation. Two quick questions, if I may. Firstly on the announcement that you would divest pigments and perhaps going wrapping up with Construction Chemicals as well in that, can you give us an update on where you are in the decision process around Construction Chemicals? And in pigments, can we assume that if you’re looking for a sale that attempts with — to potentially put this into a JV has — are now behind us and that a sale is the only route?
And could you provide some framework, just on these divestitures about how you’re going to define value realization for shareholders? Is there going to be price levels at which you just won’t sell and you’ll keep? And can you give us some framework?
Second question, if I may. Just looking at the fourth quarter I was just wondering if there are any — if you could just define for me the one-time effects? Obviously, you’ve identified the €200 million from the Rhine. Is that both from lower utilization rates and lower logistics? And is there — are there any insurance payments that have been received that are included in EBIT pre in that fourth quarter EBIT number? Thank you.
Martin Brudermüller
So, Thomas, a status on where we stand with the Construction Chemicals process. We are currently preparing the documents and the data room and then we will go into an open and clear auction process. We assume that it was the end of 2019 we came to a conclusion and know where we go. This will be very clearly a straight sale of this business.
The pigments part that really worked today. We announced today, certainly in an earlier step, we have to now prepared all the documents. I think the timing is right for that. You’re right; we have looked into different options. We came to the conclusion that a straight divestiture is the best option for this business.
This portfolio pruning, we are going forward as the new strategy. It’s very clear that this is no longer an innovation-driven business. Although a slow growth and it is not that deeply embedded in the Verbund. So with this, very clearly we think there could be better owners in environments to bring this business forward.
With regard to the Rhine impact, yes, most of what you — what this €200 million’s made up in Q4 is in fact the two things you mentioned. It is the reduction of utilization — or the reduced utilization rate of the plants and with this — the EBIT we could not capture, and it is definitely also from the higher transportation costs, because it could only bring about one-third of the volumes that are normally coming by ship to the road. And that has significantly higher transportation costs. And these are the two major effects. Hans, you say something to Q1 one-time costs?
Martin Brudermüller
Andrew about the guidance for Chemicals, just be aware that also the new segment Chemicals from 1st of January does not continue Monomers.
Andrew Stott
Yeah. So I said…
Martin Brudermüller
So the isocyanate part is definitely in the Materials segment. Indeed cracker margins are stressed in the moment in other regions particularly, however, very much in the U.S. which has to do with the additional ethylene capacities coming onstream over there. And however the other businesses look rather well.
And you’re right, Mins business I think is a very strong one, but also BDO business is something which is hard to improve margins. So, overall, I think, we have a good situation here, except the cracker margins. I think all over the other part of the portfolio is relatively stable. Yeah. With this, Hans, you do on the one-time costs and…
https://seekingalpha.com/article/4244331-basf-se-adr-basfy-q4-2018-results-earnings-call-transcript?part=single
February 21, 2019
Canada publishes a “List of pollution prevention planning notices and their performance”
On Feb. 16th, 2019 the following appeared under “Notices in effect”:
- Toluene diisocyanates
- Applies to owners of facilities who, in 2018 or any time thereafter, release into the ambient air 100 kg or more of toluene diisocyanates (TDIs) per calendar year. (Note: this program will be more of a concern for foam operations, as 100kg/year is a rather large amount to release as air pollution, especially for a cast operation.)
- Objective: Reduce human exposure to TDIs through the reduction of industrial TDI emissions to ambient air to the greatest extent practicable, using best available techniques economically achievable.
See the complete notice at: http://gazette.gc.ca/rp-pr/p1/
The introduction to the notice appeared as follows:
Canada Gazette, Part I, Volume 153, Number 7:
February 16, 2019
DEPARTMENT OF THE ENVIRONMENT
CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999
Notice requiring the preparation and implementation of pollution prevention plans in respect of toluene diisocyanates
Pursuant to the Canadian Environmental Protection Act, 1999 (hereinafter referred to as the “Act”), the Minister of the Environment published in the Canada Gazette, Part I, on March 24, 2018, a Proposed notice requiring the preparation and implementation of pollution prevention plans in respect of toluene diisocyanates.
Whereas persons were given the opportunity to file comments with respect to the proposed Notice for a comment period of 60 days; and
Whereas no comments were received on the proposed Notice,
Notice is hereby given that, under subsection 56(1) of the Act, the Minister of the Environment requires any person or class of persons described in section 2 of the Notice to prepare and implement a pollution prevention plan in respect of toluene diisocyanates.
www.PMAhome.org
February 21, 2019
Canada publishes a “List of pollution prevention planning notices and their performance”
On Feb. 16th, 2019 the following appeared under “Notices in effect”:
- Toluene diisocyanates
- Applies to owners of facilities who, in 2018 or any time thereafter, release into the ambient air 100 kg or more of toluene diisocyanates (TDIs) per calendar year. (Note: this program will be more of a concern for foam operations, as 100kg/year is a rather large amount to release as air pollution, especially for a cast operation.)
- Objective: Reduce human exposure to TDIs through the reduction of industrial TDI emissions to ambient air to the greatest extent practicable, using best available techniques economically achievable.
See the complete notice at: http://gazette.gc.ca/rp-pr/p1/
The introduction to the notice appeared as follows:
Canada Gazette, Part I, Volume 153, Number 7:
February 16, 2019
DEPARTMENT OF THE ENVIRONMENT
CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999
Notice requiring the preparation and implementation of pollution prevention plans in respect of toluene diisocyanates
Pursuant to the Canadian Environmental Protection Act, 1999 (hereinafter referred to as the “Act”), the Minister of the Environment published in the Canada Gazette, Part I, on March 24, 2018, a Proposed notice requiring the preparation and implementation of pollution prevention plans in respect of toluene diisocyanates.
Whereas persons were given the opportunity to file comments with respect to the proposed Notice for a comment period of 60 days; and
Whereas no comments were received on the proposed Notice,
Notice is hereby given that, under subsection 56(1) of the Act, the Minister of the Environment requires any person or class of persons described in section 2 of the Notice to prepare and implement a pollution prevention plan in respect of toluene diisocyanates.
www.PMAhome.org
February 20, 2019
This Thomas Index Report is sponsored by TOP Worldwide, a leading full-service 3PL provider for distribution, manufacturing, and fulfillment centers.
Hello. In this week’s Thomas Index Report, we’re going to take a look at sourcing activity for Trucking Services by users of the Thomasnet.com platform. Our data shows that over the past 12 weeks, sourcing activity for this category is up 9% over its historical average.
Our firmographic buyer data shows that three of the top industries driving this trend are Food & Beverage, Transportation & Logistics, and Wholesale Trade.
For nearly a quarter of a century, our country has been dealing with a growing shortage of long-haul truck drivers — a situation that is reaching critical mass as unemployment numbers are at their lowest point in nearly 50 years, and the baby boom generation retires in record numbers.
This comes as trucking demands are increasing due in large part to the huge growth in online sales. According to DAT Solutions, the problem is so severe that in 2018, just one truck was available for every 12 loads that needed to be moved. Companies are sweetening the pot in a bid to attract new drivers; in fact, according to MarketWatch, Walmart is hiring drivers that can make upwards of $90,000 per year.
In a high-tech approach to solving the problem, companies such as Daimler, GM, Volvo, and Tesla are working on autonomous — or self-driving — semi trucks. While widespread use of this technology is still a ways off, driverless trucks are on the road today.
In fact, back in 2016, an Uber self-driving truck made its first commercial delivery, bringing 2,000 cases of Budweiser beer 120 miles from Fort Collins, Colorado, to Colorado Springs. Self-driving trucks developed by Google sister company Waymo have been delivering freight for Google’s data centers since early 2018, and Amazon is hauling cargo in autonomous trucks developed by the company Embark. With technology companies and truck manufacturers racing to perfect this technology, and with the federal government taking a light touch on regulating autonomous vehicles, this is a very interesting category to keep an eye on.
In addition to Trucking Services, our data shows that sourcing activity is also up as much as 17% in the freight-related categories of Containers, Wood Crates, and Pallets.
https://news.thomasnet.com/featured/as-online-sales-continue-to-grow-demand-for-trucking-services-increases?utm_content=featuredvideo&utm_position=&channel=email&campaign_type=thomas_industry_update&campaign_name=190219&utm_campaign=190219&utm_medium=email&utm_source=thomas_industry_update&tinid=220515551
February 20, 2019
As Online Sales Continue to Grow, Demand for Trucking Services Increases
This Thomas Index Report is sponsored by TOP Worldwide, a leading full-service 3PL provider for distribution, manufacturing, and fulfillment centers.
Hello. In this week’s Thomas Index Report, we’re going to take a look at sourcing activity for Trucking Services by users of the Thomasnet.com platform. Our data shows that over the past 12 weeks, sourcing activity for this category is up 9% over its historical average.
Our firmographic buyer data shows that three of the top industries driving this trend are Food & Beverage, Transportation & Logistics, and Wholesale Trade.
For nearly a quarter of a century, our country has been dealing with a growing shortage of long-haul truck drivers — a situation that is reaching critical mass as unemployment numbers are at their lowest point in nearly 50 years, and the baby boom generation retires in record numbers.
This comes as trucking demands are increasing due in large part to the huge growth in online sales. According to DAT Solutions, the problem is so severe that in 2018, just one truck was available for every 12 loads that needed to be moved. Companies are sweetening the pot in a bid to attract new drivers; in fact, according to MarketWatch, Walmart is hiring drivers that can make upwards of $90,000 per year.
In a high-tech approach to solving the problem, companies such as Daimler, GM, Volvo, and Tesla are working on autonomous — or self-driving — semi trucks. While widespread use of this technology is still a ways off, driverless trucks are on the road today.
In fact, back in 2016, an Uber self-driving truck made its first commercial delivery, bringing 2,000 cases of Budweiser beer 120 miles from Fort Collins, Colorado, to Colorado Springs. Self-driving trucks developed by Google sister company Waymo have been delivering freight for Google’s data centers since early 2018, and Amazon is hauling cargo in autonomous trucks developed by the company Embark. With technology companies and truck manufacturers racing to perfect this technology, and with the federal government taking a light touch on regulating autonomous vehicles, this is a very interesting category to keep an eye on.
In addition to Trucking Services, our data shows that sourcing activity is also up as much as 17% in the freight-related categories of Containers, Wood Crates, and Pallets.
https://news.thomasnet.com/featured/as-online-sales-continue-to-grow-demand-for-trucking-services-increases?utm_content=featuredvideo&utm_position=&channel=email&campaign_type=thomas_industry_update&campaign_name=190219&utm_campaign=190219&utm_medium=email&utm_source=thomas_industry_update&tinid=220515551
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