Coatings World - July 2008

Hempel
Sales: $1.27 billion
All segments
reported growth

Hempel improved its position in 2007, continuing to deliver sustained growth. For the second year, the Hempel Group increased revenues by 19%, reaching $1.27 billion in net sales. Volume increased by 18% and reached 289 million liters. Additionally, operating profit increased by 57%.

All this was achieved in spite of the continued high fluctuation of raw material prices and the effect of a weakening U.S. dollar. More than 50% of net sales in the Hempel Group are generated in U.S. dollar-based markets.

Hempel’s protective segment exceeded the increase in the global protective market, delivering a healthy growth of more than 30%, which was similar to the growth in 2006. Most of this growth has been driven by increased demand in Asia and Europe.

In 2007, the marine segment increased net sales by eight percent. The largest growth was in Asia, while Hempel saw slower growth in the biggest markets: the U.S. and Europe. The significant effects of higher raw material prices, combined with the fact that many fixed contracts were mainly U.S. dollar-based, put margins in the marine segment under pressure.

The container segment continued its good performance with high activity levels and record volumes. The

yacht segment saw double-digit growth in a relative steady market. The decorative segment continued to grow, mainly due to increased purchasing power in both developing and industrialized regions, especially China and the Middle East.

Company Facts:

Hempel A/S
Lundtoftevej 150, DK-2800
Kgs. Lyngby, Denmark
Tel: ( 45) 4593-3800; Fax: ( 45) 4588-5518
www.hempel.com

• 2007 SALES REVENUE: $1.27 billion (2006 SALES: $1 billion)

• KEY PERSONNEL: Pierre Yves Jullien, group president and CEO; Carsten Bennike, group executive vice president, supply chain; Kim Junge Andersen, group executive vice president and CFO; Klaus Moller, director group marketing; Martin Wiese, group VP R&D; Svend Johnsen, key manager protective; Lars Hermansen, key manager container; Jacqui Knott, key manager, yacht; Jannik Allentoft, key manager marine.

HEMPEL EXPANDS
WITH LACOR ACQUISITION

Extending coverage of the German market Hempel acquired Lacor on January 1, 2007 and much of the year was dedicated to ensuring a smooth integration of Hempel’s existing business in Germany with Lacor, Hempel reported.

Founded in 1989 and based in Merzig, Germany, Lacor is a leading national and international supplier of protective coatings and industrial paints. Lacor has been incorporated into Hempel Germany.

Lacor brings a competitive product range, a strong market position and access to interesting markets and customers in Germany and surrounding countries, according to Hempel. With the combined strengths of the two companies, Hempel foresees significant business expansion possibilities. The deal represents a positive step forward in Hempel’s newly adopted “One Hempel – Everywhere” strategy, which aims to strengthen Hempel’s market presence in selected areas and segments.

• MAJOR PRODUCTS: Marine, protective, container, decorative and yacht coatings.

“We improved our position in 2007, improving efficiency and professionalism across the company,” said group president and CEO Pierre-Yves Jullien. “We managed this despite the weakening U.S. dollar and raw material prices that remained high. However, we must still work harder to improve. We must obtain a better return for the value we create for our customers—and we must become truly efficient in every part of our organization.”