Croda sells Italian business

Specialty chemicals supplier Croda International has announced the sale of its Italian business. Croda, which acquired the Cremona based business with Uniqema in 2006, is selling the subsidiary to a private company located in Italy for a consideration equivalent to the working capital value. Completion is subject to a number of minor conditions but Croda said it is expected to take place before the year end.

The company has also issued its interim management statement for the period since 1 July 2012. According to the company, trading in the third quarter was robust considering the depressed market conditions, especially in Europe, with underlying group sales up 3.2% compared to the same period of 2011.

Meanwhile, month to month trading has been volatile. Sales were in line with expectations in July and August but weakened in September. Adverse currency translation averaged 2.8% but the exit rate for the quarter was 6.2%. Including the adverse currency impact, continuing sales were up 0.5% at £256.5m.

Overall, turnover declined in Europe but grew in all other major regions. Against a strong third quarter in 2011, Croda’s Consumer Care segment saw sales decline 2.7% due to slow Personal Care sales.

But despite the soft trading environment in Europe and the currency headwinds, Croda’s operating profit for the year to date is at £193.5m, 8.2% ahead of a strong comparative 2011 period. Croda credits this to a strategy concentrating on high value, niche markets and on supplying to both large and small customers globally.

“We expect a similar performance in quarter four to that seen in the third quarter,” said Croda chairman Martin Flower. “Looking further ahead, the board remains confident that Croda has the right strategy for continued growth.”

All the above figures, including comparative ones exclude the company’s disposed Cremona business.