Switzerland: Performance Exceeds Targets Lonza Recorded Strongest First Quarter in Company History
During the first quarter of 2016, Lanza registered record figures in terms of sales and earnings. The overall company performance was driven by the Specialty Ingredients and the Pharma & Biotech segments.
Basel, Switzerland – “These record-level results in the first quarter show that the strict market focus of our organization is producing results” said Richard Ridinger, CEO of Lonza. “We will use this positive start to the year to drive further our transformation initiatives with the goal of further strengthening our position as a leading supplier to the pharmaceutical, biotech and our different specialty ingredients markets.”
The Pharma & Biotech segment’s sales growth was driven by robust demand in Mammalian Manufacturing, Clinical Development and Emerging Technologies. The higher-than-expected growth in Emerging Technologies came specifically through contributions from cell and viral therapy applications. The significant earnings improvement was a result of the strong operational performance and ongoing cost discipline.
"With this positive start into 2016 and the good momentum already continuing into the second quarter, we expect double-digit Core Ebit growth for first half of 2016. The record-setting performance of the company led to a healthy balance sheet in the first quarter and will support the continued deleveraging of the company" Richard Ridinger concludes.
The company also announced that:
- its Specialty Ingredients segment delivered robust results throughout all markets in the first quarter through ongoing progress in portfolio management to focus on higher-value activities.
- Consumer Care growth was driven by ongoing demand in the Hygiene business. Integration of innovative solutions such as L-Carnitine applications in Nutrition and vitamin B3 solutions for cosmetic applications are further accelerating demand.
- In Agro Ingredients Lonza experienced better sales than expected in the first quarter while softer demand is anticipated for the remainder of the year.
- Coatings & Composites reported stable demand and good performance across all relevant markets.
- Water Treatment’s business in the first quarter was on track for the residential business while Industrial, Commercial, Municipal and Surface Water delivered a good performance overall.