Custom manufacturing sales hit Lonza

Profits for H1 2010 at Lonza were CHF135m up 14% from CHF118m in 2009, however sales fell 2% to CHF1301m. In the custom manufacturing division sales fell almost 7% to CHF658m due to anticipated low capacity utilisation in Portsmouth and Hopkinton in Q1 2010. In the chemical manufacturing business Lonza continued to be affected by customers’ efforts to optimise their overall cost base and net working capital. The company successfully implemented of a number of operational excellence programs which have increased the flexibility and throughput of most of its chemical manufacturing assets and will meet the new customer requirements. Lonza's biological manufacturing business continued to operate at high batch success rates, above the industry average and multiple new products and production campaigns had a positive impact on its mid- and large-scale asset utilisation.
Reuters