Arch Chemicals posts healthy results on personal care growth
Sales were up 17 percent to $441m, compared to a figure of $337m for the corresponding quarter in 2009, when the results were hard hit by the economic downturn.
Net income rose from a figure of $30.7m to $43.5m, an increase of nearly 42 percent, reflecting both the growth in sales and significant cost controls implemented by the company during 2009.
Comparison very favorable on poor 2009 first half
During 2009 the company’s performance was hard hit by a downturn in both the personal care market and the construction industry worldwide, but the company says that recovery in these markets has boosted results in all of its divisions.
During the quarter, sales of personal care and industrial biocides increased from $73.5m to $84.8m, while profits for the division more than doubled to $17.3m.
The company said that one of the main driving forces to the growth in the division was the supply of biocides for anti dandruff products.
Demand up in all business divisions
“The significant year-over-year improvement in sales and operating results was driven by strong demand in all of our core Biocides businesses, particularly HTH water products, personal care and industrial biocides,” said Arch CEO Michael Campbell.
Looking ahead to the rest of 2009, the company says it is now expecting sales to rise by 9 – 11 percent of the full financial year, while the strong first half results also prompted the company to raise its EPS guidance by around 15 percent.
The company specializes in biocide products for the water treatment and construction industries, as well as for hair and skin care products.
