04/10/2006
Brenntag proceeds profitable growth and underpins world market leadership
Facing slightly restrained dynamics in the development of some European economies, competitive market conditions and high raw material costs, Brenntag succeeded again in underpinning it’s position as a globally leading chemical distributor in fiscal 2005. The company recorded external sales of EUR 5.3 billion (US$ 6.6 billion). Earnings before interest, taxes, depreciation and amortization (EBITDA operating) totalled EUR 301 million (US$ 374 million).
Brenntag’s Chief Executive Officer, Klaus Engel, commented on the results: ”Our financial performance 2005 reflects again the value of the broadly based product and market expertise of Brenntag’s international network which secures our full access to all key chemical markets. My colleagues and I on the Board of Management would like to thank our customers and suppliers for the trust they have shown in us. Brenntag is ideally positioned to continue its profitable growth as the world-wide leading full-line chemical distributor.”
In Europe the company enhanced its market position both by selected acquisitions and internal growth from new services. Through the integration of the Herkommer & Bangerter business along with the purchase of further shares of the Biesterfeld Joint Venture, Brenntag could leverage its logistics network in Germany significantly. Further acquisitions in Great Britain and Spain strengthened the attractive specialty chemicals segment. In July 2005, Brenntag acquired the business operations of Chem-On, adding industrial chemicals to the swiss product portfolio.
The environmentally-friendly Air1® concept for diesel engine trucks made further inroads into the European market. Brenntag ensures distribution of the innovative reducing agent “AdBlue”: Ten public filling stations went into operation in 2005, and eleven facilities were set up together with freight forwarding companies.
In Central and Eastern Europe (CEE), Brenntag continued to expand its network by a new distribution company in Istanbul, Turkey in February 2005, while the foundation for the further expansion of the Russian business has been laid with the establishment of a Moscow subsidiary in August 2005. In Poznan (Poland) an additional service center has been opened in September 2005, to cope with the dyamic market development in Eastern Europe.
In Lancaster (Texas) a new integrated distribution center has been opened in February 2005 offering additional services for warehousing, packaging and blending of chemicals. The acquisition of the south Texas oil and gas business of J.A.M. Distributing Company in April 2005 enhances Brenntag’s regional presence in the area and provides benefit to up-stream customers in the attractive fuel and lubricant distribution segment. The purchase of Quadra Chemicals’ US business effective October 2005 broadens Brenntag’s commitments in the food, paper, pharmaceutical and energy segments. Following this strategy, the acquisition of LA Chemical in March 2006 substantially transforms Brenntag’s capabilities in western United States and provides a leading position in that region.
Brenntag Latin America presented the CASA Environmental Award 2004 to the subsidiary in Bolivia. The award is conferred in recognition of numerous measures to improve infrastructure, work safety and environmental management. Brenntag Bolivia also received certification in line with ISO 9001. In Mexcio, Brenntag is the only chemical distributor being allowed to use the “Responsible Care” label.
Brenntag operates more than 300 locations with 9,200 people in 50 countries. Underlying the company’s strong position in world markets, Brenntag is committed to providing value to its customers and suppliers through superior supply chain logistics, single sourcing and value-added-services. Capitalizing on leading regional market positions and world-wide know how, Brenntag provides a “one-stop-shop” for over 25,000 chemical products to more than 150,000 customers. To its suppliers and customers alike, Brenntag offers, both in Europe and the Americas, an unrivalled, extensive and state-of-the-art distribution network for industrial and specialty chemicals.
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| Dr. Klaus Engel, Brenntag CEO | Logistic Center Poznan, Polen |
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