The first half of the year showed a good volume trend across the product portfolio. Inventory levels across the industry, however, have been kept low throughout the value chain since the last economic downturn. The pending sovereign debt crisis in Europe coupled with slower growth in the US and Asia, therefore reflects a softening in underlying demand, which was evident for Perstorp towards the end of Q3.

The Perstorp Group’s sales rose by 6% to SEK 11,698 (11,033) m, despite a negative currency effect of 10% from the strengthening Swedish krona. Volume growth was 4%, driven primarily by products such as Oxo, HDI, bio-fuels and Penta. Prices rose by 12% to compensate for the increase in raw material costs.

Operating earnings before depreciation and amortization were SEK 1,372 (1,293) m adjusted for items affecting comparability. The strengthening Swedish krona led to a negative currency impact of SEK -175 m from the translation effect and transaction flows over the period. Fixed costs have been kept below last year’s levels, partly due to a positive consolidation effect from the strong Swedish krona, but also from efficiency improvements at the French operations.

The acquired Penta business of Ashland Inc., the US specialty chemicals company, is now integrated into the Perstorp Group, resulting in increased Penta volume and synergy effects.

Several strategic investments have been decided upon in the first nine months: capacity expansion for HDI derivatives 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.