Lonza Group AG reported earnings results for 2013. For the period, adjusted, or core, profit was increased by 11.2% to CHF 259 million. Core earnings before interest and tax (EBIT) also grew by 11.2% to CHF 436 million. The company's sales fell by 4.2% to CHF 3,584 billion. The performance of the Specialty Ingredients unit was boosted by strong demand for agrochemical offerings and solid demand for industrial solutions, as well as the Arch integration. Net debt was reduced by CHF 200 million to CHF 2,103 million. Operational free cash flow was maintained on a high level at CHF 519 million. Capital expenditure was down by 32.3% to CHF 210 million, from CHF 310 million in 2012. The solid core EBIT results stem from the continued success of product portfolio optimization and from the execution of efficiency improvement programs, which the company announced in the past. The lower revenues in 2013 resulted from several factors: unfavorable exchange rate translation effect, especially the U.S. dollar in the fourth quarter; ongoing lower Water Treatment sales in the second half also in the southern hemisphere; an accelerated phasedown of the Hopkinton site faster than it anticipated; and the product portfolio optimization which was ongoing through many businesses. The company grew Core EBITDA by 8.2% now to CHF 711 million.

The company announced that in 2014 it expects to continue with its transformation into a market-driven firm from a product-focused organization. Lonza thus sees almost 10% increase in core EBIT and around 5% sales rise for 2014. Capital expenditure forecast for 2014 will again be below CHF 300 million, including maintenance capital expenditure. On the free cash flow, operational free cash flow, the company sees a similar level in 2014 and in 2013. The depreciation on property, plant and equipment was CHF 308 million in 2013 and CHF 304 million in 2012. For 2014, the company sees a similar to slightly lower level in depreciation.