C&EN: TODAY'S HEADLINES - Mixed Picture For European Firms

PATRICIA SHORT

Last week’s spate of first-quarter financial results from European chemical companies failed to give a clear outlook for 2003.

At BASF, operating profits for the quarter were up 15% on a 7% increase in sales. Net profits were off by 21%, primarily because of high tax-related charges. Chairman Jürgen F. Strube cautioned that, despite the good quarter, there is still too much uncertainty in the global economic situation to predict a broader recovery.

Bayer, after a “transition year” of restructuring in 2002, saw sales from continuing operations increase by 4%. The company’s preliminary figures also indicate that its operating profit for the period will exceed that of first-quarter 2002.

Also reporting gains in operating profits were DSM, Merck KGaA, Solvay, and Celanese. Operating profits were down 16% at Ciba Specialty Chemicals because of currency effects; in local currencies, the results were up 17%.

Meanwhile, Rhodia’s operating profits were down 80%—but at least they were positive. Sales from continuing activities were up 4%. The company did show a net loss for the quarter. Rhodia’s results were published for its annual meeting in Paris. CEO Jean-Pierre Tirouflet kept his job at the meeting after two-thirds of shareholders rejected a resolution that he step down.