These excerpts taken from the ICI 6-K filed Mar 21, 2007.
National Starch markets an extensive product range to sectors as diverse as food, healthcare and construction. Four divisions are grouped around adhesives, specialty starches, specialty polymers and electronic materials. Headquartered in the USA, with manufacturing and customer service centres in 39 countries.
National Starchs sales were 8% ahead of 2005 on a comparable basis, with growth in all businesses. Overall, gross margin percentages increased slightly and trading profit was 13% higher than last year on a comparable basis. Trading margin of 12.0% improved on 2005 (11.4%).
As reported sales were 7% up and trading profit was 13% ahead of 2005 as reported.
This excerpt taken from the ICI 6-K filed Aug 10, 2006.
National Starch achieved 8% comparable sales growth compared with the first half of 2005. All regions were ahead, with North America and Latin America delivering double-digit growth, and Asia and Europe growing by 6%, on a comparable basis.
Overall gross margin percentages were in line with last year. Trading profit was 13% ahead of the first half last year on a comparable basis.
On an as reported basis, sales were 11% ahead of last year and trading profit was 18% higher than 2005, with a favourable foreign exchange effect largely accounting for the difference with the comparable performance.
The following commentaries on the four business groupings within National Starch refer to performance measured on a comparable basis.
Adhesives sales for the half year were 8% ahead of last year, with double-digit growth in North America and Latin America. Higher raw material and utility costs were successfully recovered through increased selling prices and trading profit was significantly ahead of 2005.
Specialty Starch sales for the half year were 7% ahead of last year with strong growth for Food Starches. Sales for Industrial applications were in line with last year. Regionally growth was strongest in Europe and North America. Trading profit was well ahead compared with the prior year.
Sales for Specialty Synthetic Polymers were 8% above last year, with sales in Asia, Europe and North America ahead but sales in Latin America lower. Gross margin percentages were marginally lower than last year and with higher costs below gross margin, trading profit for the half year was slightly ahead of last year.
Sales for Electronic and Engineering Materials were 9% above last year, led by strong double-digit growth for Ablestik, primarily due to robust demand from the semiconductor industry. Gross margin percentages were slightly below last year, but trading profit was significantly ahead.
This excerpt taken from the ICI 20-F filed Mar 31, 2006.
National Starchs sales for 2005 of £1,871m were in line with 2004 on an as reported basis. Operating profit before special items for 2005 was £214m, in line with 2004 on an as reported basis. On a constant currency basis sales were 1% below 2004. The fall, mainly due to the disposal of the Vinamul Polymers business in January 2005, was in part offset by underlying growth in Asia and Latin America, and with the benefit of price increases implemented to offset rising raw material costs. Raw material and energy costs escalated through the year and gross margin percentages were lower than in 2004 despite the implementation of price increases. Operating profit before special items of £214m was 2% below 2004 on a constant currency basis.
The following commentaries relate to the four business groupings within National Starch: Adhesives (46% of National Starchs sales in 2005), Specialty Starches (25%), Specialty Synthetic Polymers (15%) and Electronic and Engineering Materials (14%). The geographic split of revenue by customer location for National Starch in 2005 was: Europe 26%, North America 36%, Asia 27% and Latin America and Rest of World 11%.
Adhesives reported sales were 11% ahead of 2004. Excluding foreign exchange translation effects, Adhesives constant currency sales for 2005 were 9% ahead of 2004. Growth in constant currency sales was strong in North America, Latin America and Asia, notably China and India, but demand weakened in Europe in the latter part of the year. There was good growth for sales of adhesives for paper and disposable products and in Asia, the sports shoe adhesives business performed well. Higher raw material costs were countered by increased selling prices, but gross margin percentages were lower than in 2004.
Specialty Starches as reported sales for 2005 were 1% below 2004. Excluding foreign exchange translation effects, constant currency sales were also 2% lower, with higher sales for food starches more than offset by lower sales into the paper industry. Constant currency sales growth was modest in Europe, Asia and Latin America but sales were lower in North America.
Specialty Synthetic Polymers
Specialty Synthetic Polymers sales for 2005 were 25% lower than 2004 as reported due to the disposal of the Vinamul Polymers business. On a constant currency basis sales were also 26% lower. Constant currency sales were well ahead in Asia and for the Alco and Personal Care businesses.
Electronic and Engineering Materials
Electronic and Engineering Materials sales were 4% ahead of 2004, as reported. Excluding foreign exchange translation effects, sales were 3% ahead on a constant currency basis in generally favourable market conditions. Constant currency sales for Ablestik and Emerson and Cuming were both ahead of 2004, but sales for Acheson were lower. Sales in Latin America grew strongly and North America was well ahead whilst Asia and Europe were broadly similar to 2004.