Press Release: May 2009
ARCH CHEMICALS announced sales for the first quarter of 2009 of $293.7 million, compared to $347.1 million for the first quarter of 2008. Higher pricing and the favorable impact of the Advantis acquisition were more than offset by lower volumes and unfavorable foreign exchange. Segment operating income was $9.1 million in 2009 compared to $12.2 million in 2008.
"Despite the very challenging global market conditions, we are pleased with our first quarter results, which exceeded our expectations. These results were driven principally by our water products and performance urethanes businesses, where we benefited both from price increases and from ongoing margin-improvement plans," said Arch Chemicals' Chairman, President and CEO Michael E. Campbell.
The following compares segment sales and operating income (loss) for the first quarters of 2009 and 2008:
Treatment Products reported sales of $249.0 million and operating income of $14.6 million in 2009 compared with sales of $293.6 million and operating income of $21.6 million in 2008.
HTH Water Products
HTH water products reported sales of $102.7 million and operating income of $9.7 million for 2009 compared to sales of $97.8 million and operating income of $6.0 million for 2008.
Personal Care and Industrial Biocides
Personal care and industrial biocides reported sales of $68.1 million and operating income of $11.3 million compared to sales and operating income of $80.4 million and $15.9 million, respectively, in 2008.
Sales decreased $12.3 million, or approximately 15 percent, as improved pricing was more than offset by lower volumes and unfavorable foreign exchange. The lower volumes were caused by decreased demand for biocides used in building products and metalworking fluids, due to the downturn in the global construction market and the depressed automotive industry. The improved pricing principally related to health and hygiene products.
Operating income decreased $4.6 million as lower volumes were partially offset by improved pricing and lower freight costs.
Wood Protection and Industrial Coatings
Wood protection and industrial coatings reported sales of $78.2 million and an operating loss of $6.4 million compared to sales and an operating loss of $115.4 million and $0.3 million, respectively, in 2008.
Sales decreased $37.2 million, or approximately 32 percent, as significantly lower volumes due to the continued downturn in the economy and unfavorable foreign exchange were partially offset by improved pricing. In the wood protection business, lower volumes across all regions for the residential sectors due to the continued downturn in the global construction market were partially offset by higher global prices. In the industrial coatings business, lower volumes were attributable to poor economic conditions in Europe.
Operating results were $6.1 million below the prior year, principally due to lower volumes for both businesses. In addition, higher pricing in the wood protection business was offset by unfavorable foreign exchange and higher raw material costs.
2009 Outlook
Higher results are expected from the HTH water products business due to improved global pricing and the positive contribution from the acquisition of Advantis, including related synergies, as well as from the performance products business resulting from lower raw material costs. These improved results are expected to be more than offset by decreased demand for industrial biocides, used in the building products market, as well as in the wood protection and industrial coatings businesses.
The Company now expects full-year 2009 sales to be approximately two to four percent lower than 2008, as the contribution from the acquisition of Advantis and higher pricing should be more than offset by unfavorable foreign exchange and lower volumes.


Chemical Week: May 2009
In combining the two foremost biocide companies – Dow Biocides and Rohm and Haas Advanced Materials – the global industry leader has arrived. The combined technologies and enhanced offering make Dow Microbial Control the science and technology leader for sourcing the highest performing, most sustainable and best supported portfolio of actives, products and technologies to help solve any microbial control problem.
“Dow Microbial Control is now the leading company for all microbial control needs,” said Mark Henning, general manager, Dow Microbial Control. “From specialty to commodity, highly-regulated to non-regulated, our new business has the expertise to help our customers save time, money and resources to solve any microbial problem.” With the combined resources of Dow Biocides and Rohm and Haas Biocides, the new Dow Microbial Control has a comprehensive offering available to help customers.
Regional Customer Application Centers
Dow Microbial Control customer application centers are located in: Buffalo Grove, Illinois, USA; Buchs, Switzerland; Horgen, Switzerland; Dubai, United Arab Emirates; Mumbai, India; Valbonne, France; São Paolo, Brazil; Jacarei, Brazil; Queretaro, Mexico; Shanghai, Peoples Republic of China; Singapore; Soma, Japan; and Spring House Pennsylvania, USA.
“Our regional customer applications centers play a critical role in how we work with our customers around the globe,” said Henning. “We are able to offer customers global leadership with a local focus. Each of our centers contains dedicated application and challenge testing laboratories, and is fully staffed with technology experts and the best equipment, including TAUNOVATESM High Throughput optimization capabilities.”
Market Participation
Dow Microbial Control has a leadership position in numerous markets, including oil field, paint, industrial water treatment, pulp and paper, household and personal care, cleaners, plastics, building materials, marine antifouling, wood, metalworking and animal biosecurity. Results for Biocides in first quarter 2009, declined primarily due to lower volume in oil and gas applications in North America. More on www.DowMicrobialControl.com


Technical Textiles: May 2009
Phillips-Van Heusen Corporation has licensed UltraSafe Uniforms to design, produce and market men’s and women’s medical uniforms under PVH’s IZOD brand in the United States.
The license with UltraSafe, a year-old firm based in Glendale, Calif., marks the first time medical uniforms will be offered under the IZOD brand and the first time IZOD brand apparel will be offered in the uniform specialty retail channel. “We look forward to this expansion of IZOD into a new channel of distribution with specialized needs and style-conscious customers who have high standards for what they wear in the workplace,” said Allen Sirkin, President and Chief Operating Officer of Phillips-Van Heusen. “With UltraSafe, we believe we’ve found a partner who thoroughly understands not only the heritage of fashion, value and active orientation signified by the IZOD brand but also the special demands of better uniform specialty stores and the health care industry workers they serve.”
UltraSafe was founded in 2008 by Ron Cunningham, President and Chief Executive Officer, who was previously Vice President of Sales for Strategic Partners, the licensee for Cherokee medical uniforms, and a consultant to Barco Uniforms.
Cunningham said that all items in the IZOD collection will include Aegis Microbe Shield technology, which inhibits staining and odor and is considered among the most effective antimicrobial processes on the market today.
Phillips-Van Heusen Corporation is one of the world’s largest apparel companies. It owns and markets the Calvin Klein brand worldwide. It is the world’s largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD and its licensed brands.


Textiles World: May 2009
The lyocell fiber producer smartfiber AG, Germany, has achieved an innovation for the production of textiles with health-promoting properties. This fiber contains the active ingredient algae, which make an active material exchange between fiber and skin possible and so ensures a long-lasting feeling of wellbeing. SeaCell active plus is the first natural fiber on a cellulosic basis with silver technology which can also be bleached. It therefore becomes additionally interesting for the textile industry as it is now possible to produce very white clothing with antibacterial silver fibers.


Textiles World: May 2009
ÆGIS introduces a new consumer friendly certification mark: EcoFresh, powered by the ÆGIS Microbe Shield® technology. EcoFresh means products stay fresher longer and require fewer launderings. This reduces the amount of detergents released into the environment and helps conserve valuable resources such as water and energy.
As always when using the Aegis technology, products are protected against odor-causing bacteria, mold, mildew and contaminating fungus. Our unique technology is durable without the use of heavy metals and does not leach onto you or into our environment.
Using the EcoFresh mark proves to your customers that a portion of the product they are buying is environmentally friendly. Our unique technology and environmental story is unsurpassed in the industry. EcoFresh means your customers can conserve water and lower their energy consumption all without sacrificing performance.