Styrolution Group GmbH, the plastics venture of BASF SE (BAS) and Ineos Group Holdings Ltd., may reach its double-digit profit margin goal earlier than the planned 2020, Chief Executive Officer Roberto Gualdoni said.
“With a little bit of luck we will maybe reach it early,” Gualdoni said today at a press conference in Frankfurt, where the company is based.
Earnings before interest, tax, depreciation, amortization and one-time items as a percentage of sales rose to 7.6 percent in 2013 from 5.6 percent a year earlier, the company said today.
Styrolution, formed in October 2011, has set itself the goal of generating half of its sales from specialty products and half of revenue from emerging markets by the end of the decade. The company aims to set up its first ever production in China before that date as it currently serves Chinese customers from Thailand and Korea, the CEO said today.
Net income more than doubled to 117 million euros ($160 million) last year, Styrolution said. Ebitda before one-time items rose 32 percent to 442 million euros and sales declined 2.5 percent to 5.8 billion euros in 2013.
There has been no indication from Styrolution’s owners as to whether a change of ownership is planned, Gualdoni said today. Ineos has an option to buy BASF’s stake at a fixed price as of this month and BASF has an option to sell its stake to Ineos from October. Both options expire in 2016.
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