20 November 2006 - In the nine months to September 30, 2006, global specialty chemicals supplier Cognis achieved net external sales of 2,555 million euros, a 7.2 percent increase on the same period in 2005. Adjusted EBITDA (earnings before net financial result, income taxes, depreciation, amortization and exceptional items) grew by 7.1 percent to 304 million euros, and the company's overall profit margin was 11.9 percent.

Comments Antonio Trius, CEO of Cognis: “We are really pleased with the results for the first nine months of the year, which have been achieved despite higher energy costs, especially in Europe, and increasing raw material costs. Care Chemicals, Nutrition & Health and Functional Products have made particularly important contributions to these encouraging figures, and it is no coincidence that these three Strategic Business Units are all strongly focused on innovation-driven growth markets.”

Four Strategic Business Units (SBUs) of the company posted sales that exceeded the nine-month figures for 2005, with Functional Products achieving particularly significant growth in sales. Oleochemicals reported slightly lower sales. Moreover, all regions made a contribution to the strong results. Organic net external sales (sales adjusted for the effects of currency fluctuations, acquisitions and divestments) for the Cognis group as a whole were 5.8 percent higher than the previous year.

Sales by Strategic Business Unit (SBU)
Care Chemicals, Cognis’ largest SBU, achieved significant growth, with sales increasing by 6.1 percent to 1,024 million euros. The main drivers of this growth were strong sales of fatty alcohols and surfactants, and above all of innovative value-added products from the performance ingredients segment.

Sales in the Nutrition & Health SBU increased by 5.1 percent to 240 million euros. The increase was mainly due to the solid performance of branded ingredients – especially the Vegapure sterol ester and Tonalin conjugated linoleic acid (CLA) – and to the pharmaceuticals and healthcare business segment.

Functional Products saw the highest growth of any SBU, with sales increasing by 13.0 percent to 643 million euros. All the SBU’s market segments contributed to this growth. In particular, the synthetic lubricants, agriculture and mining businesses achieved strong results.

Sales of Process Chemicals totaled 194 million euros, up 4.9 percent, with strong demand in the Asia-Pacific region driving increased sales in both the leather and textiles business segments.

Oleochemicals’ sales decreased slightly, and at 417 million euros were 0.9 percent down on the same period in 2005.

Overview of results for the first three quarters of 2006

Sales in millions of euros	Q1–3 2005*	Q1–3 2006	Change
Cognis Group	2,384	2,555	+7.2%
Care Chemicals	965	1,024	+6.1%
Nutrition & Health	229	240	+5.1%
Functional Products	569	643	+13.0%
Process Chemicals	185	194	+4.9%
Oleochemicals	420	417	-0.9%
Earnings in millions of euros (Cognis Group)	Q1–3 2005*	Q1–3 2006	Change
Adjusted EBITDA	284	304	+7.1%

*The 2005 figures have been amended to reflect the new SBU structure, which has been in place since January 1, 2006.