Cognis, Düsseldorf, Germany, reported generated earnings before interest, tax, depreciation, amortization and exceptional items of $395 million, a return on sales of 10.6%.
Cognis executives said that in spite of the difficult macroeconomic environment in 2003, the supplier achieved $3.6 billion in sales. This is a 5.6% drop compared to 2002, but the company cited the weak U.S. dollar and a worldwide decline in sales prices as factors.
Organic growth, sales after considering exchange fluctuations, acquisitions and divestments, was maintained at 2002’s level, executives said.
“Our efforts to reduce costs and to expand our core business are beginning to pay off,” said Joachim Sohngen, chief financial officer, Cognis. “We were able to reduce our structural costs in comparable terms to the preceding year. On this basis, we are moving confidently into the new year.”