Ciba Provides Overview for 2005

Published: February 13, 2006, By pffc-online.com

PRESS RELEASE

BASEL, SWITZERLAND—Ciba Specialty Chemicals reports operational improvements during a challenging year. Armin Meyer, Chairman of the Board and CEO, summarizes as follows: "2005 has been the most challenging year for the Company since its foundation. Higher raw material, energy and pension costs added up to almost CHF 400 million. On the other side, we achieved solid sales growth, 2.5 percent sales price increases, CHF 60 million cost savings from Project Shape and made good progress with the repositioning of Textile Effects. As part of the repositioning, an assessment of the value of Textile Effects led to a significant impairment. With our key priorities – innovation and improving operations – as well as our focused portfolio, we will be able to deliver stronger results. We are confident in our future, and therefore will once again be proposing a dividend of CHF 3 per share at the AGM on March 2, 2006."

Sales for the year were CHF 7.4 billion, up 6% in Swiss francs and 4% in local currencies, reflecting sales price increases, strong growth in Asia Pacific and the acquisition of Raisio Chemicals. Asia Pacific now represents 29% of sales. Sales growth in both mainland China and India was double digit. Sales in Europe were higher, mainly due to the acquisition, and flat in the Americas.

For more information, see cibasc.com.