Specialty Chemicals business led strong group results in 2017 / Performance Plastics margins hit by raw materials prices
Revenue at Italian polyamide producer Radici (Bergamo; www.radicigroup.com) climbed by a fifth to EUR 1.15 bn in 2017, driven by higher sales prices and demand at its Specialty Chemicals division. Group EBITDA rose 45% to EUR 160m, and while net income was up 60%, the family-owned compounder gave no specific figures.

Revenue at Specialty Chemicals expanded 35% to EUR 439m on the back of positive trends in both volumes and average prices for polymers and adipic acid. The economic trend of the business remained positive in the first quarter of 2018.

The Performance Plastics division was forced to deal with an upsurge in raw materials prices, resulting in shrinking margins. Sales volume however improved. The Invista business also helped boost revenues by over 20% to EUR 360m and kept gross operating margin in line with budget forecasts – see Plasteurope.com of 16.09.2016.

In the first three months of 2018, growth at Performance Plastics was higher than the year-earlier period. Raw materials costs as a percentage of sales were still rising, but higher volumes and containment of fixed costs helped improve income. In June 2017, a new production line became operational in Germany. There are also plans to expand capacity by installing two new production lines scheduled for 2018 at the Villa d’Ogna site in Bergamo – see Plasteurope.com of 18.06.2018.

The Synthetic Fibres and Nonwovens division achieved more than 9% revenue growth at EUR 451m. Radici said it was very pleased with the overall results for first half of 2018, which gained year-on-year. For the second half, it was more cautious due to the “new climate of political uncertainty,” apparently referring to prospects of new tariffs.

To boost competitiveness this year, Radici is investing EUR 50m. The amount is included in the EUR 210m budgeted for 2014-2018.
10.07.2018 Plasteurope.com [240129-0]
Published on 10.07.2018
Radici: Compoundbereich leidet unter hohen RohstoffkostenGerman version of this article...

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