Süd-Chemie reported on Tuesday that it was able to "hold its own comparatively well during the crisis in 2009." Due to the massive drop in demand in numerous customer segments as a result of the recession, revenue generated by the leading global specialty chemicals enterprise for adsorbents, additives and catalysts fell by 10% to €1.072 billion (2008: €1.191 billion). In Asia and the Middle East, which moved quickly out of the recession thanks to their dynamic emerging markets, revenue rose by approx. 10% or €33.8 million. This mitigated the recession-related downturns in Europe and North America. Süd-Chemie generated 85% of total revenue outside Germany in 2009, with over a third meanwhile originating from Asia and the Middle East.

Ongoing Innovation And Growth Strategy

In spite of the recession and cost-cutting measures, Süd-Chemie continued to follow its long-term growth and innovation strategy in 2009. Compared with the previous year, expenditure on research and development was for instance increased by 10% to €57.7 million. Although 45% lower than in 2008, capital expenditure of €67.7 million was still significantly higher than depreciation. This was used largely to set up production plants in Germany in technological fields offering high future potential, such as diesel emission control catalysis, and to finance the company´s strong growth in Asia, notably in China. The equity ratio climbed by 1.9 percentage points to reach 35.3%. Net financial liabilities rose, due to minor factoring transactions, only by a marginal 5.3% to €362.5 million.

Outlook for 2010

At the end of 2009, the business outlook became brighter after the deep recession. Both the world economy and the global chemical market, Süd-Chemie´s most important customer industry, are once again set for expansion. As a result, and in view of the strict economy drive in 2009, Süd-Chemie's managaing board said it is optimistic that the company will return to its course of profitable growth in 2010. The company is expected to generate consolidated revenue of €1.125 billion in 2010, equivalent to an increase of some 5%. Profitability will also improve again in 2010. The Ebit adjusted for non-recurring items will increase by approx. 10%. Assuming that the economy continues to recover, Süd-Chemie will show a further dynamic improvement in business activity and profitability in 2011.

Dr. Günter von Au, Managing Board Chairman of Süd-Chemie AG, said: "In spite of the sharp economic downswing, we were able to hold our own comparatively well during a year of recession and expand our leading market positions. In view of our fairly moderate drops in revenue and earnings, we reported a respectable performance compared with the industry average. We are prepared for a global upswing during this year and beyond, and are optimistic that Süd-Chemie will once again return to its path of sustained profitable growth in 2010."