MANNHEIM, Germany (March 31)—Rhein Chemie Rheinau GmbH is anticipating sales growth of around 5 percent this year, after a decline in 2003, according to Anno Borkowsky, managing director of the specialty additives supplier.
Rhein Chemie's net sales fell 8.8 percent last year to around $314 million, although Borkowsky attributed this to portfolio streamlining and the strength of the euro against the U.S. dollar. Excluding these factors, sales were about level with 2002, he said.
The company increased both its gross and net cash flows last year, Borkowsky said, explaining that Rhein Chemie is extremely cash flow oriented. By optimizing current assets, the firm increased net cash flow 21.3 percent to $39.8 million.
Rhein Chemie is a wholly owned subsidiary of Bayer A.G. but as of July 1 will operate as an independent business within Lanxess—Bayer's new chemicals and rubber business unit, which will be spun off from the group early next year.