Kemira’s financial targets, restructuring program “Fit for Growth” and outlook 2014
Kemira will continue to focus on improving its profitability and reinforcing the positive cash flow. The company will also continue to invest in order to secure future growth in the water quality and quantity management business.
Kemira’s financial targets have been revised in connection with its strategy update on April 23, 2013. The company’s financial targets for 2016 are:
- revenue EUR 2.6-2.7 billion
- EBITDA-% of revenue 15%
- gearing level < 60%
In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-24%. The operative tax rate excludes non-recurring items and the impact of the income from associated companies.
The basis for growth is the expanding market for chemicals related to water quality and quantity management and Kemira’s strong expertise in this field. The need to increase operational efficiency in our customer industries creates opportunities for Kemira to develop new products and services for both current and new customers. Research and Development is a critical organic growth enabler for Kemira and it provides differentiation capabilities in the water quality and quantity management markets. Kemira will invest in innovation, technical expertise, and competencies in the targeted focus areas.
Restructuring program “Fit for Growth”
Kemira Oyj has continued to implement its global restructuring program “Fit for Growth”, launched at the end of July 2012 in order to improve the company’s profitability, its internal efficiency and to accelerate the growth in emerging markets without sacrificing business opportunities in the mature markets. In 2012, the cost savings impact of “Fit for Growth” was EUR 10 million. In 2013, “Fit for Growth”-related cost savings were EUR 46 million and nearly reaching the full cost savings run rate of EUR 60 million on an annualized basis at the end of 2013. “Fit for Growth” related savings will not be reported separately anymore in the coming Kemira interim reports.
In 2014, Kemira expects its revenue in local currencies and excluding acquisitions and divestments to be slightly higher than in 2013 and its operative EBIT to be higher than in 2013.
The guidance for 2014 is defined as follows.
|Slightly higher/lower||from 0% to 5% or from 0% to -5%|
|Higher/lower||from 5% to 15% or from -5% to -15%|
|Significantly higher/lower||more than 15% or less than -15%|
Helsinki, February 7, 2014
Board of Directors
All forward-looking statements in this review are based on the management’s current expectations and beliefs about future events, and actual results may differ materially from the expectations and beliefs such statements contain.