Kemira Oyj - Interim report (Q1 and Q3)

Kemira Oyj's interim report January-September 2011: Stable performance

Kemira Oyj
Stock exchange release
October 27, 2011 at 08.30 am (CET+1)

Disclosure procedure
Kemira Oyj follows the disclosure procedure enabled by Standard 5.2b published
by the Finnish Financial Supervision Authority and hereby publishes its interim
report January-September 2011 enclosed to this stock exchange release. Kemira's
interim report January-September 2011 is attached to this release in pdf format
and is also available on the company's web site at www.kemira.com.

Third quarter:


  * Revenue was EUR 558.3 million (554.4).
  * Operative EBIT decreased 4% to EUR 40.8 million (42.5) with a margin of
    7.3% (7.7%).
  * Profit before tax decreased 8% to EUR 42.1 million (46.0).
  * Cash flow after investments increased to EUR 56.7 million (6.6).

January-September:

  * Revenue increased 3% to EUR 1,663.9 million (1,614.3).
  * Operative EBIT increased 1% to EUR 123.0 million (122.1) with a margin of
    7.4% (7.6%).
  * Profit before taxes increased 14% to EUR 131.4 million (115.0).
  * Earnings per share from continuing operations increased 12% to 0.65 (0.58).
  * Gearing improved to 35% (39% as of December 31, 2010).


Kemira's President and CEO Harri Kerminen:"Kemira's organic revenue growth in the third quarter was 6%. Sales prices were
higher and sales volumes remained at the same level as in the comparable period
last year. Operative EBIT improved 9% compared to the second quarter, 2011.

Raw material prices have stabilized during the quarter, but looking at the first
nine months of 2011, we have seen a substantial increase in raw material prices.
So far, we have been successful in offsetting higher costs with sales prices.
Reasons for decreased operative EBIT compared to the third quarter in 2010 were
the FWA divestment made in the latter part of 2010 and negative currency
exchange effect.

Paper segment successfully implemented sales price increases to cover higher raw
material costs. Operative EBIT margin was close to the level of comparable
quarter last year. The Municipal & Industrial segment's revenue growth picked up
in the third quarter driven by both volume growth and sales price increases.
Operative EBIT margin improved significantly compared to the previous quarter.
The Oil & Mining segment's organic revenue growth was over 10% with an operative
EBIT margin of nearly 12% being the highest quarterly margin to date for the
segment.

Kemira owns a minority stake (39%) in Sachtleben, a major titanium dioxide
producer. The performance of Sachtleben continued to be very strong. Kemira's
share of the Sachtleben profits tripled compared to the third quarter last year
and was close to EUR 10 million in the quarter.


The visibility for upcoming quarters is not as clear as when compared to the
first half of 2011. However, outlook for the full year 2011 revenue and
operative EBIT remains unchanged. Kemira's revenue is expected to be slightly
higher and operative EBIT higher than in 2010.

Key figures and ratios
The figures for 2010 are for continuing operations excluding Tikkurila, unless
otherwise stated. Tikkurila Oyj was separated from Kemira on March 26, 2010.



                         Jul-Sep 2011 Jul-Sep 2010 Jan-Sep  Jan-Sep Jan-Dec 2010
EUR million                                           2011     2010
--------------------------------------------------------------------------------
Revenue                         558.3        554.4 1,663.9  1,614.3      2,160.9

EBITDA                           64.2         70.5   193.7    201.6        265.7

EBITDA, %                        11.5         12.7    11.6     12.5         12.3
--------------------------------------------------------------------------------
Operative EBIT                   40.8         42.5   123.0    122.1        162.3

EBIT                             40.8         46.0   123.0    128.9        156.1
--------------------------------------------------------------------------------
Operative EBIT, %                 7.3          7.7     7.4      7.6          7.5

EBIT, %                           7.3          8.3     7.4      8.0          7.2
--------------------------------------------------------------------------------
Share of profit or loss           9.0          3.0    23.8      6.8          9.2
of associates
--------------------------------------------------------------------------------
Financial income and             -7.7         -3.0   -15.4    -20.7        -27.4
expenses
--------------------------------------------------------------------------------
Profit before tax                42.1         46.0   131.4    115.0        137.9
--------------------------------------------------------------------------------
Net profit from                  32.9         35.8   102.5     90.8        115.9
continuing operations
--------------------------------------------------------------------------------
Net profit                       32.9         35.8   102.5 621.8***     646.9***
--------------------------------------------------------------------------------
EPS, EUR, from                                        0.65     0.58
continuing operations            0.21         0.23                          0.73
--------------------------------------------------------------------------------
Capital employed*             1,696.3      1,643.3 1,696.3  1,643.3      1,665.1

ROCE, %*                         10.4          9.4    10.4      9.4          9.9
--------------------------------------------------------------------------------
Cash flow after                                      142.6  141.2**
investing activities             56.7          6.6                       168.6**
--------------------------------------------------------------------------------
Capital expenditure              37.3         46.6    71.8     79.1        107.8
--------------------------------------------------------------------------------
Equity ratio, % at                                      52     52**
period-end                         52         52**                          54**
--------------------------------------------------------------------------------
Gearing, % at period-end           35         43**      35     43**         39**
--------------------------------------------------------------------------------
Personnel at period-end         5,033        4,985   5,033    4,985        4,935
--------------------------------------------------------------------------------
* 12-month rolling average
**Includes Tikkurila until March 25, 2010
***Net profit January-December 2010 includes a non-recurring income of EUR
529.2 million from the separation of Tikkurila consisting of the difference
between the market price of Tikkurila on March 26, 2010 and the shareholder's
equity of Tikkurila on March 25, 2010 less the transfer tax related to
Tikkurila's listing as well as the listing costs.

Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative 2010 figures are provided in parentheses for
some financial results, where appropriate. Operating profit, excluding non-
recurring items, is referred to as Operative EBIT. Operating profit is referred
to as EBIT.
Outlook

Kemira's vision is to be a leading water chemistry company. Kemira will continue
to focus on improving profitability and reinforcing positive cash flow. The
company will also do investments to secure the future growth in the water
treatment business.

Kemira's financial targets remain as communicated in connection with the Capital
Markets Day in September 2010. The company's medium term financial targets are:

-          revenue growth in mature markets > 3% per year, and in emerging
markets > 7% per year
-          EBIT, % of revenue > 10%
-          positive cash flow after investments and dividends
-          gearing level < 60%.

The basis for growth are the growing water chemicals markets and Kemira's strong
know-how in water quality and quantity management. Increasing water shortage,
tightening legislation and customers' needs to increase operational efficiency
create opportunities for Kemira to develop new water applications for both new
and current customers. Investment in research and development is a central part
of Kemira's strategy. The focus of Kemira's research and development activities
is on the development and commercialization of new innovative technologies for
Kemira's customers globally and locally.

Kemira expects the volume recovery that was seen in 2010 to continue in 2011,
and Kemira's revenue is expected to be slightly higher than in 2010. Despite the
rising raw material prices, Kemira expects the operative EBIT in 2011 to be
higher than in 2010. Kemira expects capital expenditure to be between EUR
100-110 million in 2011.

Other events after the review period

On October 26, Kemira Board of Directors appointed Wolfgang Büchele (PhD,
Chemistry) Kemira Oyj's President and Chief Executive Officer as of April
1, 2012. Büchele has been a member of Kemira's Board of Directors since 2009. He
succeeds the current President and CEO, Harri Kerminen who will retire.


Press conference and conference call

Kemira will arrange a press conference for analysts and the media on Thursday,
October 27, 2011 starting at 10.30 am at Kemira House, Porkkalankatu 3,
Helsinki. In the conference, Kemira's chairman of the board, Pekka Paasikivi
will present Kemira's new President and CEO as of April 1, 2012, Wolfgang
Büchele. After the presentation, current President and CEO Harri Kerminen will
present the January-September 2011 results. Conference will end with a Q&A
session. The press conference will be held in English. Presentation material
will be available on Kemira's website at www.kemira.com under Investors in
English and at www.kemira.fi in Finnish at 10.30 am.

Conference call in connection to the press and analyst conference

You can also listen to the conference live over the phone and attend the Q&A
session via a conference call or watch the conference via webcast (link to the
webcast available here: www.kemira.com under Investors). In order to participate
in the call, please dial +44 (0)20 7162 0025, code 905820 ten minutes before the
conference begins. Presentation material will be available on Kemira's website.
A recording of the conference call will be available on Kemira's website later
the same day. This conference call replace the one originally scheduled at 1 pm
today.




Additional information:

Tero Huovinen, Director, Investor Relations
Tel. +358 10 862 1980






Kemira is a global over two billion euro water chemistry company that is focused
on serving customers in water-intensive industries. The company offers water
quality and quantity management that improves customers' energy, water, and raw
material efficiency. Kemira's vision is to be a leading water chemistry company.

www.kemira.com
www.waterfootprintkemira.com




[HUG#1558232]

Attachments:

Link to the Interim report January-September 2011 (.pdf).pdf