For pulp and paper chemicals, the low business cycle in the client industry is forecast to continue. Following the acquisitions made last year, the company has strengthened its geographical presence and expanded its portfolio of products and services, especially in North America. Pulp and paper chemicals' full-year operating income is set to improve on the figure reported a year ago.
Demand for water treatment chemicals is expected to show further favourable development. Raw material prices have risen rapidly, cutting into profitability, at least in the short term. Operating income is nevertheless estimated to improve on last year.
The trend for industrial chemicals has been good, particularly for Kemira Fine Chemicals. Within titanium dioxide pigments and the unit's other products, sales volumes and prices are lower than they were a year ago. Thanks to measures aiming at saving on fixed costs, operating income is expected to come in ahead of last year's result.
Demand for paints appears relatively good, especially after last summer's weak painting season. Sales in Russia will continue to grow. Fixed-cost savings and synergy benefits will contribute to improving full-year operating income.
Prices of GrowHow's fertilizers were substantially higher than during the same period last year. Although raw material prices have risen too, GrowHow's operating income is expected to improve on last year.
Kemira Oyj will publish its 3-month interim report on 4 May 2004 at 9.00 a.m.
Kemira Oyj will issue a further press release today on the resolutions passed at the Annual General Meeting.
For further information, contact:
Kemira Oyj Tel. +358 (0)10 8611
Kaj Friman, Group Treasurer
Tel. +358 (0)10 862 1704, GSM +358 (0)50 62 626