Sybron Chemicals Will Explore Strategic Alternatives
"No decision has been made to enter into any transaction or restructuring of the company," Sybron said in a release. It did not provide any specifics, and intends to make no further statements regarding the strategic review.
The specialty chemicals maker has three basic product lines:
- Textile chemicals. Products for textile preparation, dyeing, printing, finishing, and garment processing. Its brands include Tanatex dyehouse chemicals and Jersey State, Auralux, and other textile and carpet; Ocean Wash products for stone washing jeans; and Ionac ion exchange resins.
- Environmental. Primarily bacterial and enzymatic systems for water and waste treatment and bioremediation. Its Bi-Chem biologically active seed cultures are used to treat industrial, municipal, and sanitary waste, groundspills, and turf. It also sells microbial and organic-based products for golf, horticulture, and agriculture.
- Polymer intermediates. Sybron acquired Ruco Polymer in 1998. The company makes intermediates for powder and high-solids coatings, urethane latexes, and specialty resins for copier and laser printer toners.
The company's net income rose 13.5%, to $7.4 million, on a 6.7% increase in sales to $73.3 million for the first quarter of 2000. But the increase only shows up when Sybron excludes one-time charges and special times. Add them back and net income declined to $1.5 million, from $3.4 million in the first quarter of 1999.
Despite lackluster financial performance, none of Sybron's segments appear particularly weaker than any other.
First quarter textile chemical sales were $30.9 million, $487,000 lower than the previous year. North American sales remained flat, and strong European growth was offset by unfavorable exchange rates. Gross profits declined 2.1% due to falling prices and margins.
Polymer intermediates sales were $24.6 million, compared to $22.4 million in the first quarter of 1999 as volumes increased. Gross margins remained stable because lower raw materials costs and plant operating efficiencies offset price decreases.
First quarter environmental products and services sales rose 19.4%, to $17.7 million. Drivers included strong demand for toll processed chemicals and newly introduced aziridine products. Ion exchange sales rose nearly 7%, led by industrial products. Biochemical sales presented a more mixed picture, as declining turf and consumer product sales overshadowed higher water treatment and sanitary product sales. Lower sales of high-margin biochemicals reduced segment margins, as did higher raw materials costs and generally lower aziridine margins.
For more information: Richard M. Klein, President/CEO, Sybron Chemicals Inc., PO Box 66, Birmingham Rd., Birmingham, NJ 08011. Phone: 609-893-1100 or 800-678-0020. Fax: 609-894-8641.
By Alan S. Brown, Managing Editor of Chemical Online, a companion site to Solid Waste.com within the VerticalNet e-commerce family.