Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Kemira Sets 15% Margin Target as Focus Switches to Growth

Don't Miss Out —
Follow us on:

April 23 (Bloomberg) -- Kemira Oyj said it aims to double profitability to 15 percent by the end of 2016 as Chief Executive Officer Wolfgang Buechele increases investment in additives for paper as well as the mining, oil and gas industries.

The Finnish company aims to lift sales to 2.6 billion euros ($3.4 billion) to 2.7 billion euros from 2.24 billion euros last year. Adjusted earnings before interest and taxes advanced 9 percent to 42.2 million euros in the first quarter, with a margin of 7.5 percent, Kemira reported today. The shares gained as much as 4.5 percent.

One year after taking the helm, Buechele is revising his blueprint for the company to bring in more growth elements alongside restructuring. Kemira will extend investment and research budgets for additives used in paper as well as oil and mining, while commodity-based units and ChemSolutions will be optimized for efficiency and cash flow.

“We’re rebalancing Kemira,” Buechele told investors and analysts on a call. “The industrial part of the company will play a much stronger role than in the past and the traditional water business is less important.”

In a break from the past, Kemira’s growth will be driven by oil and mining and paper -- providing solutions for drilling wells or anti-scaling. Those markets have better prospects than water purification for municipalities. Only 40 percent of Kemira’s product line is currently in faster-growing markets, and research budgets will be focused on those areas.

Kemira traded 4 percent higher at 11.04 euros as of 5:35 p.m. in Helsinki.

To contact the reporter on this story: Andrew Noel in London at anoel@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.