The Tessenderlo Group (Brussels / Belgium; www.tessenderlo.com) was back in profit in the first half of 2010 with recurring EBIT (REBIT) of almost EUR 33m. That compares with a loss of EUR 20m in the first six months of 2009. The Belgian chemicals group, which has a traditional structure and a strong focus on chlorine chemistry, reported sales of EUR 1.2 bn in the first half of this year, an improvement of almost 13% on the first six months of 2009.

Tessenderlo’s figures for PVC production and processing highlight the difference in the development of this chlorine-based polymer and polyolefins. The PVC/Chlor-Alkali segment lifted sales 4.1% to EUR 238m in the first half of 2010, up from EUR 229m in the first half of 2009. However, the growth was generated entirely in the second quarter when sales were EUR 120m, more than 16% higher than in Q2 2009 when segment sales were EUR 103m. Segment REBIT was actually slightly lower, dropping to a negative EUR 7.2m compared to a negative EUR 5.7m in the second quarter of last year even though volumes were markedly higher.

Processing business at this vinyls specialist increased negligibly to EUR 282m, only 2.7% above the 2009 figure of EUR 274m. The increase was principally attributable to higher volume sales of PVC profiles in the second quarter, whereas volume sales of pipe systems only advanced marginally year-on-year. Tessenderlo reports that seasonal declines in Benelux during the winter were offset by higher volumes in France and the UK. Segment REBIT increased 21% to EUR 10.8m, up from EUR 8.9m last year.

Tessenderlo expects the very mixed picture to continue in both segments in the second half of this year because of their strong exposure to the construction sector. Growth in one niche is likely to be negated by declines in other areas. The outlook for the “Inorganics”, “Gelatin and Akiolis” and “Tessenderlo Kerley” segments is more promising, the group said.

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