High raw material costs impact Ciba results

31/01/2006

Swiss specialty chemicals company Ciba has reported higher sales for 2005, but results were impacted by increased raw material and energy prices.

Sales rose 6% to CHF7.4 billion ($5.8 billion), reflecting sales price increases, strong growth in Asia Pacific and the acquisition of Raisio Chemicals.

Asia Pacific now represents 29% of the company’s sales. Sales growth in both mainland China and India was double digit. Sales in Europe were also higher.

The company’s Textile Effects recovered in second half. 2005 sales were at a similar level to 2004 at CHF1.3 billion, with very strong growth in Asia Pacific, particularly China and South Asia. Textile chemicals remained stable, while sales in dyes were slightly lower.  Sales prices fell by 1% over 2004, with volumes 1% lower, although improving in the second half of the year with signs of market recovery.