Despite disappointing first half results for 2006, the company has said it is confident of meeting its targets for the full year.
The organic fine and performance chemicals division has successfully passed on increased costs and the company said that it was confident of delivering the expected EBIT (Earnings before interest and taxes) improvement over 2005.
Half-year results, published back in July, reported the operating margin had decreased from 15.2 per cent to 13.7 per cent. However, the EBIT figure had increased from the first half-year 2005 to CHF 69m from CHF 66m.
The company reports that the nicotinates business is back on track, with price rises planned for the coming months. Vitamin intermediate sales have been stable, while demand for L-carnipure has remained strong with price competition from China unchanged.
Lonza has been expanding its nutrition portfolio with the acquisitions of Nutrinova's DHA business and larch arabinogalactan (LAG) assets of US firm Larex Inc, striking out from niacin, or vitamin B3, and the vitamin-like substance L-carnitine to food and supplement makers.
The company has reported that sales of vitamin intermediates have been stable, while the LAG integration has been successful, with long-term planning under development.
