September 29, 2004 -- Düsseldorf -- Jobwerx News -- In the six months to June 30, 2004, global specialty chemicals supplier Cognis increased its net external sales by 3.0 percent to 1,559 million euros, despite negative foreign currency effects. Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization and exceptional items) was 197 million euros in the first half of 2004, 13.2 percent up compared to 2003. Comments Dr. Antonio Trius, Chief Executive Officer of Cognis: "Cognis achieved strong sales and Adjusted EBITDA growth in the first half of 2004. While supported by an improved trading environment in America and Asia, the results also show that our restructuring initiatives are bearing fruit."

While the sales of the Nutrition & Health, Functional Products and Care Chemicals Strategic Business Units went up compared to the first half year of 2003, the Process Chemicals and Oleochemicals divisions' sales decreased slightly in 2004. The organic growth of sales (excluding currency movements, acquisitions and divestments) was 5.8 percent in the first six months of 2004.

Compared to the previous year EBITDA decreased 10.2 percent to 167 million euros in the first half year of 2004. This was due to two main factors: Firstly, the half year result of 2003 includes a gain of 24 million euros realized on the disposal of the fragrances business. Secondly, it reflects higher restructuring expenses from the implementation of restructuring initiatives in the second quarter 2004. Moreover, the negative effect of both translation and transaction currency effects accounted for approximately 6 million euros. With the Adjusted EBITDA of 197 million euros, Cognis' profit margin (Adjusted EBITDA as percent of sales) rose from 11.5 percent to 12.6 percent.

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