Cognis Releases 2008 Report

In 2008, Cognis, a worldwide supplier of innovative specialty chemicals and nutritional ingredients, increased its net external sales by 5.5 and organic sales grew by 9.2 percent, including Cognis Care Chemicals, Nutrition & Health and Functional Products. More specifically, Cognis experienced:

Organic sales growth of 9.2 percent

Increased and volatile raw material and energy prices largely compensated by selling price increases

Volume decline due to falling demand, especially in fourth quarter

Lower operating costs

Operating result (Adjusted EBITDA) of 351 million eurosstable on organic basis

EBIT up 5 million euros to 209 million euros

Earnings before tax and special items (-3 million euros) decreased by 55 million euros due to non cash effective revaluation of interest derivatives and U.S. dollar debts

Net loss including special items (including discontinued operations) 63 million euros, improved by 57 million euros.

Portfolio optimized by divestment of Pulcra Chemicals and Cognis Oleochemicals, resulting in stronger focus on less cyclical growth markets

Cash position increased to 226 million euros, unused credit facility (revolver) of around 221 million euros