At the Capital Markets Day in Helsinki, Harri Kerminen, President and CEO gave a presentation about Kemira's strategy. Kemira improves its customers water related processes through chemistry applications, and has strong market positions in targeted customer industries.
Kemira's strategy is designed to leverage growing demand for water and continuous productivity improvement, reducing volatility of business performance over cycle. Kemira has improved its operative EBIT in January-June 2011 by 4% despite a 20% increase in its raw material costs.
"Regarding the JV Sachtleben TiO2 business, Kemira and its partner Rockwood have both stated that they do not consider TiO2 to be a long-term core business. Therefore, although we are currently happy with the performance of this business, we continue to consider and evaluate strategic options for this business for the long-term", Harri Kerminen said in his presentation.
Other Kemira speakers at the Capital Markets Day included Jyrki Mäki-Kala, CFO, Petri Helsky, president, Paper segment, Pekka Ojanpää, president, Municipal & Industrial segment, Randy Owens, president Oil & Mining segment, Heidi Fagerholm, Executive Vice President R&D and Technology.
Kemira kept its outlook for 2011 announced in the beginning of the year unchanged. Kemira expects the volume recovery that was seen in 2010 to continue in 2011 and Kemira's revenue is expected to be slightly higher than in 2010. Despite the rising raw material prices, Kemira expects the operative EBIT in 2011 to be higher than in 2010.
In 2011, Kemira expects the capital expenditure to be between EUR 100-110 million.
Kemira's financial targets remain as communicated in connection with the Capital Markets Day in September 2010. The company's medium term financial targets are:
- revenue growth in mature markets > 3% per year, and in emerging markets > 7% per year
- EBIT, % of revenue > 10%
- positive cash flow after investments and dividends
- gearing level < 60%.