RPM increases minority interest in Indian
composites company
RPM International Inc. has agreed to increase its minority ownership interest in
Kemrock Industries and Exports Ltd., a
fully integrated fiberglass reinforced plastic composites manufacturer with more
than $200 million in annual sales located
in Vadodara, Gujarat State, India, from
aRPM International Inc. has agreed to increase its minority ownership interest in
Kemrock Industries and Exports Ltd., a
fully integrated fiberglass reinforced plastic composites manufacturer with more
than $200 million in annual sales located
in Vadodara, Gujarat State, India, from
approximately 14. 9 percent to 15.1 percent. As a result of this agreement to increase its ownership interest above 15
percent, RPM is required under Indian
law to commence a public offer for up to
an additional 20 percent of the outstanding shares of Kemrock.
RPM’s increased ownership of Kemrock signals its continued support and
confidence in the company and its management, led by Kemrock’s founder and
managing director, Kalpesh Patel, and further solidifies RPM’s position as a long-term investor in Kemrock.
“We’ve had a long-standing partnership with RPM and we welcome this additional investment as a means to further
our business relationship,” said Patel.
Traded on the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd., Kemrock is India’s
largest composite exporter, with its products sold in more than 50 countries worldwide. It manufactures pultruded profiles;
gratings; windmill blades; thermosetting
resins; rail coach interiors and exteriors;
cable management, piping and access systems; lighting poles and carbon fiber.
“As we envisioned when we made our
initial investment in Kemrock in 2006, it
has been a key strategic business partner
for RPM in India,” said Frank Sullivan,
RPM chairman and chief executive.
“Kemrock has provided us with a platform that we have leveraged to increase
our presence in the rapidly growing Indian marketplace and vibrant Asia-Pacific
region. We expect that this relationship
will only continue to flourish.”
Valspar reports $992.7 M sales
in second quarter
The Valspar Corporation reported its results for the second-quarter ended April
29, 2011. Second-quarter sales totaled
$992.7 million, a 23. 5 percent increase
from the second quarter of 2010. Second-quarter adjusted net income per share increased to $0.64 in 2011 from $0.61 in
2010. Second-quarter adjusted net income
per share in 2011 excludes $0.05 per
share in acquisition-related charges and a
$0.01 per share charge related to restructuring actions. Net income for the second
quarter of 2011 was $56.3 million and reported earnings per share were $0.58. Net
income for the second quarter of 2010
was $61.7 million.
The company announced restructuring
actions related to improving the profitability of its Wattyl acquisition and further reducing the cost structure of its global wood
product line. These actions are expected to
result in charges to earnings of $0.30-$0.35
per share over the next 12 months and generate annual savings of $0.12-$0.14 per
share by fiscal 2013.
“We were pleased with our improved
sales and earnings performance for the
quarter, a particularly solid accomplishment given the strength of our results in
the second quarter of 2010,” said
William Mansfield, Valspar chairman
and chief executive officer. “Double-digit
top-line growth resulting from acquisitions, pricing and the continued success
of our new business efforts helped to
mitigate the impact of substantially
higher raw material costs. We are continuing to raise our selling prices and
taking steps to further reduce our cost
structure while maintaining investments
in our brands and technology. We continue to expect fiscal year 2011 adjusted
net income per share in the range of
$2.45 to $2.65.”
BASF’s sales in all segments
drive dynamic growth in first
quarter
BASF has had a powerful start to 2011.
Capacity utilization rates in the company’s
plants were good; in particular, demand in
the chemicals business (Chemicals, Plastics, Performance Products, Functional Solutions) increased compared with the same
quarter of the previous year. Sales grew by
25 percent to € 19. 4 billion. The Cognis
businesses acquired in December 2010
made a significant contribution to this substantial sales growth.
Net income increased by €1.4 billion
to €2.4 billion. Earnings per share were
€2.62 in the first quarter of 2011 compared with €1.12 in the same period of
2010. Adjusted for special items and
amortization of intangible assets, earnings
per share amounted to €1.94 (first quarter
of 2010: €1.32).
Sales in Europe were 24 percent higher
than in the same period of the previous
year. Demand for chemical products continued to be high. As a result of higher
volumes and prices, income from operations before special items rose by €581
million to €1,832 million, sharply exceeding the level in the same quarter of the
previous year.
In North America, sales grew by 21
percent in U.S. dollars and 22 percent in
euro terms. Compared with the first quarter of 2010, earnings improved by €64
million to reach €393 million.
Sales in the Asia Pacific region rose by
28 percent in local-currency terms and by
33 percent in euro terms. Earnings improved by €106 million to €416 million
as a result of higher prices and volumes.
In South America, Africa, Middle East,
sales were up year on-year by 20 percent
in local-currency terms and by 25 percent
in euro terms. Earnings increased by € 27
million to €91 million. CW
