Displaying items by tag: Kemira

kem zelOn March 6, 2014, Kemira closed the divestment of formic acid business, including the feed and the airport runway de-icing product lines, which had formed the major part of ChemSolutions segment.

After the closure, the remaining sodium percarbonate business in ChemSolutions segment was transferred to Paper segment and ChemSolutions segment was discontinued as of the beginning of Q2 2014.

The figures for Q1 2013-Q1 2014 have been restated according to the new structure and are attached to this release.

Main change:

Kemira's sodium percarbonate business, previously a part of ChemSolutions segment, has been transferred to Paper segment.

Figures for Q1 2013 - Q1 2014 on Kemira Group level, Oil & Mining and Municipal & Industrial segments have not been changed.

The January-June 2014 Interim report will be published on July 22, 2014

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The Annual General Meeting of Kemira Oyj approved the Board proposal of a EUR 0.53 dividend per share for the financial year 2012. The Annual General Meeting decided to elect five members to the Board of Directors. Members Winnie Fok, Juha Laaksonen, Jari Paasikivi, Kerttu Tuomas and Jukka Viinanen were reelected to the Board of Directors. Jukka Viinanen was elected to continue as the Board's Chairman and Jari Paasikivi was elected to continue as the Vice Chairman.


Dividend payment

The dividend of EUR 0.53 per share will be paid to a shareholder who is registered in the company's Shareholder Register maintained by Euroclear Finland Ltd on the dividend record date, April 2, 2013. The dividend will be paid out on April 9, 2013.

Remuneration of the Chairman, the Vice Chairman and the members of the Board of Director

The Annual General Meeting decided that the remuneration paid to the members of the Board of Directors will be as follows: the Chairman will receive EUR 74,000 per year, the Vice Chairman and the Chairman of the Audit Committee EUR 45,000 per year and the other members EUR 36,000 per year. A fee payable for each meeting of the Board of Directors and the Board Committees will be EUR 600 for the members residing in Finland, EUR 1,200 for the members residing in rest of Europe and EUR 2,400 for the members residing outside Europe. Travel expenses are paid according to Kemira's travel policy.

In addition, the Annual General Meeting decided that the annual fee be paid as a combination of the company's shares and cash in such a manner that 40% of the annual fee is paid with the company's shares owned by the company or, if this is not possible, shares purchased from the market, and 60% is paid in cash. The shares will be transferred to the members of the Board of Directors and, if necessary, acquired directly on behalf of the members of the Board of Directors within two weeks from the release of Kemira's interim report January 1 - March 31, 2013.

 

The meeting fees are to be paid in cash.

Election of the auditor

Deloitte & Touche Oy was elected as the company's auditor with Jukka Vattulainen, APA, acting as the principal auditor. The Auditor's fees will be paid against an invoice approved by Kemira.

Authorization to decide on the repurchase of the company's own shares

The Annual General Meeting authorized the Board of Directors to decide upon repurchase of a maximum of 4,500,000 company's own shares ("Share repurchase authorization").

 

Shares will be repurchased by using unrestricted equity either through a tender offer with equal terms to all shareholders at a price determined by the Board of Directors or otherwise than in proportion to the existing shareholdings of the company's shareholders in public trading on the NASDAQ OMX Helsinki Ltd (the "Helsinki Stock Exchange") at the market price quoted at the time of the repurchase.

 

The price paid for the shares repurchased through a tender offer under the authorization shall be based on the market price of the company's shares in public trading. The minimum price to be paid would be the lowest market price of the share quoted in public trading during the authorization period and the maximum price the highest market price quoted during the authorization period.

 

Shares shall be acquired and paid for in accordance with the Rules of the Helsinki Stock Exchange and Euroclear Finland Ltd.

 

Shares may be repurchased to be used in implementing or financing mergers and acquisitions, developing the company's capital structure, improving the liquidity of the company's shares or to be used for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. In order to realize the aforementioned purposes, the shares acquired may be retained, transferred further or cancelled by the company.

 

The Board of Directors will decide upon other terms related to share repurchase.

 

The Share repurchase authorization is valid until the end of the next Annual General Meeting.

 

Authorization to decide on share issue

The Annual General Meeting authorized the Board of Directors to decide to issue a maximum of 15,600,000 new shares and/or transfer a maximum of 7,800,000 company's own shares held by the company ("Share issue authorization").

 

The new shares may be issued and the company's own shares held by the company may be transferred either for consideration or without consideration.

 

The new shares may be issued and the company's own shares held by the company may be transferred to the company's shareholders in proportion to their current shareholdings in the company, or by disapplying the shareholders' pre-emption right, through a directed share issue, if the company has a weighty financial reason to do so, such as financing or implementing mergers and acquisitions, developing the capital structure of the company, improving the liquidity of the company's shares or if this is justified for the payment of the annual fee payable to the members of the Board of Directors or implementing the company's share-based incentive plans. The directed share issue may be carried out without consideration only in connection with the implementation of the company's share-based incentive plan.

 

The subscription price of new shares shall be recorded to the invested unrestricted equity reserves. The consideration payable for company's own shares shall be recorded to the invested unrestricted equity reserves.

 

The Board of Directors will decide upon other terms related to the share issues.

The Share issue authorization is valid until May 31, 2014.

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kemira logoKemira will open a new AKD-emulsion line in Sweden to better serve big sizing clients. New capacity will be available during summer 2013.

AKD is an alkyl ketene dimer based sizing agent, which impacts paper and board hydrophobicity or water resistance. Sufficient hydrophobicity is important for packaging materials and it improves paper or board runnability in a coating process. Water resistance also improves printability and dimension stability of the final product during the converting process.

Kemira holds complete supply chain from key raw materials to the final emulsion product. 

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Kemira's new organizational structure has been operational since October 1, 2012 and as announced earlier, financial reporting according to the new structure started as of January 1, 2013. Kemira's reporting segments are Paper, Municipal & Industrial, Oil & Mining, and ChemSolutions as a new segment. The unit "Other" has been abolished. The restated figures for Q1 to Q4 2012 are summarized in the attached files, see links below. Restatements for earlier periods have not been made.

 

Main changes are:

*Service revenues in Sweden and Finland, previously reported as part of the unit "Other" are now reported within the Paper segment. Kemira Group expenses previously reported as part of "Other" are now allocated to the four segments.

*Kemira is now applying a key ownership principle for every production plant according to which every plant is owned by a dedicated segment.

*Kemira's sodium percarbonate business, previously part of the Paper segment, has now been transferred to ChemSolutions.

*Kemira's group figures for 2012 have been restated to also reflect the change of IAS 19, Employee Benefits.

The January-March 2013 Interim report will be published on April, 23, 2013.

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Kemira Oyj's Annual and Sustainability Report 2012 has been published online at www.kemiraannualreport2012.com (in English) and www.kemiravuosikertomus2012.fi (in Finnish) on February 28, 2013 at 12 pm (CET + 1). The Annual and Sustainability Report are available only online.

Kemira Oyj's Financial Statements 2012 has been published at www.kemiraannualreport2012.com > Financials. In addition, Kemira has published today the Corporate Governance Statement which is available online at www.kemira.com under Investors > Corporate Governance.

Kemira has also published its sustainability targets for the years 2013-2015. The sustainability targets address several operations within Kemira: responsible business conduct, supplier performance management, efficient use of water and energy in manufacturing, employee health & safety, performance management and leadership development, community involvement, and development of sustainable customer solutions. The targets enable Kemira to lead its sustainability actions in a goal-oriented way, and create value for both business and stakeholders. 

Attachments:

Financial Statements 2012

Corporate Governance Statement

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Due to continuously escalating raw material costs Kemira increases the price for Alkenyl Succinic Anhydride (ASA) products in Europe, Middle East and Africa.

Price increase will range from 5% to 10% and will be effective for all deliveries from April 1st 2013 onwards or as the specific contract terms allow.

Although Kemira continues to take actions to minimize the impact of escalating raw material costs, it is necessary to adjust pricing in order to compensate the higher costs.

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kemira logoKemira Oyj has announced that it has reached two milestones in the execution of its long-term growth path. Kemira signed a licensing agreement with geographical exclusivity with Mitsui Chemicals, Inc. for acrylamide manufacturing technology, and has completed a substantial capacity expansion for three sites in North America, increasing its manufacturing capacity by 60%. This will strengthen Kemira's polymer product line globally. Polymers are core to Kemira's water technology platform and also play a significant role in growing applications like water reuse, wastewater treatment, rheology control and shale fracturing.

The exclusive licensing agreement for acrylamide manufacturing technology signed with Mitsui Chemicals, Inc. enables Kemira to produce high-quality acrylamide monomer. Acrylamide is the key building block for polymers used in applications in the paper, oil, gas, and mining industries and in municipal water treatment. The proprietary acrylamide bio-process uses bio-catalysts, which reduce energy requirements in the manufacturing process when compared to using traditional copper catalysts.

In addition, Kemira has completed a two-year, multi-million euro capacity expansion project at its polymer production plants in North America, effective this month. This has resulted in a 60% increase in manufacturing capacity at the company's Mobile, Alabama; Columbus, Georgia; and Longview, Washington production sites.

"We view this proactive approach as an investment for our customers and in the industries Kemira serves," says Randy Owens, President, Kemira Oil & Mining. "We are excited about these steps that will support the growth of our business. With the new manufacturing technology we are able to reduce the environmental impact of our operations, while also meeting the challenging needs of our customers to improve efficiency, productivity and water management."

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kemira logoKemira will record non-recurring items with a negative impact of approximately EUR 71 million on its reported EBIT in the fourth quarter of 2012.

Due to the accelerated implementation of the "Fit for Growth" program, related non-recurring charges will affect the reported EBIT in the fourth quarter of 2012 by approximately EUR 27 million, resulting in a total of approximately EUR 67 million "Fit for Growth" related restructuring charges for the second half of 2012. Previous guidance, in connection to the third quarter 2012 result release, was to book EUR 60 million of the restructuring charges in the second half of 2012 and the balance in the first half of 2013. Overall, non-recurring charges related to the restructuring program are estimated to be around EUR 85 million, as communicated earlier.

The annualized cost savings target of EUR 60 million with the "Fit for Growth" restructuring program remain as earlier communicated. The savings impact is expected to take place as follows: EUR 10 million in 2012, EUR 50 million in 2013 and EUR 60 million in 2014.

The write-down related to the divestment of Kemira's food and pharmaceuticals businesses related to Niacet Corporation (Niagara Falls, USA), announced on December 14, 2012, will have a negative impact of approximately EUR 18 million on the reported EBIT in the fourth quarter of 2012.

In addition, approximately EUR 26 million non-recurring items, impacting the reported EBIT negatively in the fourth quarter of 2012, will be booked. These non-recurring items are mainly related to environmental liabilities and efficiency improvements, as well as streamlining of Kemira's current operations outside of the "Fit for Growth" program.

Kemira's dividend policy is to distribute a dividend that accounts for 40 - 60% of its operative net income. Operative net income is defined as net profit for the period, excluding non-recurring items and adjusted for tax effects. The non-recurring items therefore will not negatively impact Kemira's ability to distribute dividends.

Kemira will publish its fourth quarter and full year 2012 results on February 6, 2013 at around 2.30 pm (CET+1).

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Kemira's co-determination negotiations in Finland have been concluded. The negotiations concerned Kemira's sites in Helsinki, Espoo, Oulu, Sastamala, Kuusankoski, Joutseno, Vaasa and Harjavalta.

In the beginning of the negotiations it was estimated that the personnel reductions may affect approximately 260 employees' working in Finland. As a result of the negotiations, the head count reduction will be 152 in Finland, out of whom 79 persons will leave the company through pension schemes. Kemira will continue analyzing the outsourcing opportunities. The terminations will be carried out by the end of October. Kemira will support the affected employees by providing outplacement services which aim at re-training and re-employment.

The personnel reductions are related to the restructuring program "Fit for Growth" announced in July. The program aims to improve the company's profitability, internal efficiency and to accelerate growth in the emerging markets. The expected EUR 60 million cost savings impact of the program will occur as follows: EUR 10 million in 2012, EUR 50 million in 2013 and EUR 60 million in 2014. The ultimate goal of the program is to reach at least 10% EBIT margin in 2014. Redundancies will account for 50% of the expected savings. The targeted cost savings for Kemira's sites in Finland will be achieved with fewer redundancies than originally anticipated.

The expected restructuring charges connected to the program amount to EUR 85 million of which EUR 35 million will be cash cost and EUR 50 million being write-downs. EUR 55 million of the restructuring charges will be booked in the second half of 2012, and the balance in the first half of 2013.

The organizational restructuring also affects Kemira's sites outside of Finland and the negotiations in the sites affected by the possible personnel reductions will be completed in each country according to the local legislation.

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Kemira held its Capital Markets Day (CMD) 2012 in London today.

Kemira retained its existing outlook for 2012. In 2012, Kemira expects revenue and operative EBIT to be approximately at the same level as in 2011. In the near term, uncertainty in Europe and a slowdown in global economic growth may affect the demand for our products in our customer industries. This guidance assumes current currency exchange rates and an oil price level of 115 $ per barrel.

 

Kemira's financial targets remain as communicated earlier. 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%.

 

The theme of the CMD was the "Fit for Growth" restructuring program, launched on July 26th, 2012. Wolfgang Büchele, President and CEO gave an update on the implementation of the program:

"The expected EUR 60 million cost saving impact of the program will occur as follows: EUR 10 million in 2012, EUR 50 million in 2013 and EUR 60 million in 2014. The ultimate goal of the program is to reach at least 10% EBIT margin in 2014. Redundancies will account for 50% of the expected savings, and the remaining 50% will be achieved through manufacturing network consolidation and leaner operations. Currently 14 manufacturing sites are under review as part of the ongoing manufacturing consolidation."

 

Wolfgang Büchele also gave an update on the ongoing work to sharpen Kemira's strategy. "Our main focus is on delivering our 'Fit for Growth' program, but we have also started to analyze how the company should look in 2020. The highest growth in our accessible markets is focused on Asia-Pacific and South America. Our oil and gas business is expected to grow strongly in all regions. One of Kemira's key strengths is the capability to tailor products and applications to customers' needs based on innovation and extensive manufacturing capability. We are also a leading global chemical supplier to the paper industry with long-term commitment. The strategy will be communicated, once approved, in connection with the Q1 results in 2013".


Jyrki Mäki-Kala, CFO, also gave further details on the "Fit for Growth" restructuring program: "The expected restructuring charges connected to the program amounts to EUR 85 million of which EUR 35 million will be cash cost and EUR 50 million being write-downs. EUR 55 million of the restructuring charges will be booked in the second half of 2012, and the balance in the first half of 2013. Our cost savings estimates for the different segments, based on the detailed action plan, are: Paper EUR 22 million, Municipal & Industrial EUR 22 million, Oil & Mining EUR 12 million and ChemSolutions EUR 4 million."

Other Kemira speakers at the Capital Markets Day included Petri Helsky, President, Paper segment, Hannu Virolainen, President, Municipal & Industrial segment, Randy Owens, President Oil & Mining segment, Frank Wegener, Managing Director of ChemSolutions, Joe Chan, Region head, APAC and Hilton Casas de Almeida, Region head, SA.

All Kemira Capital Markets Day 2012 presentations are available at www.kemira.com at around 2.00 pm (CET+1).
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