Demand was strong in the beginning of the period and even led to several products being put on allocation. The political unrest
witnessed in North Africa and the Middle East during the first quarter led to significant hikes in raw material prices. Since then, several factors such as the European debt crisis, the slowdown of the Chinese economy and cutbacks in the U.S. governmental stimulus programs have resulted in a softer demand situation, most noticeably in Asia.

The Perstorp Group’s sales rose by 6% to SEK 7,902 m (7,428), despite a negative currency effect of 11% from the strengthening Swedish krona. Volume growth was 5% driven primarily by products such as Oxo, HDI, and Penta. Prices rose by 12% to compensate for the rise in raw material costs.

The operating earnings before depreciation and amortization were SEK 916 m (935) adjusted for items affect¬ing comparability. The strengthening Swedish krona led to a negative currency effect of SEK -270 m from the translation and transaction flows in the period. The fixed cost level fell, in part as a result of efficiency improve¬ments at the French operations.

The purchased Penta business of the U.S. specialty chemicals company Ashland Inc. continues to be integrated into the Perstorp Group, resulting in increased Penta volumes and synergy effects.

Several strategic investments have been decided upon in the first half year: capacity expansion for HDI deriva¬tives and 2-EHA in Europe and Asia, the restart of investment in a new production plant for Valeraldehyde and its derivatives 2-PH and DPHP, and an expansion of the Group’s Neo production with a new plant in China.

The Perstorp Interim report 1 January - 30 June 2011 can be downloaded >> and ordered >> in printed copies.