BASEL, Switzerland— Lonza issued an update on the company’s performance during the first quarter of 2010 (1Q10). A strong performance in the Life Science Ingredients and Bioscience areas continues to offset the ongoing volatility in the Custom Manufacturing segment. However, the company continues to implement re-engineering measures to control costs, with expected savings between CHF 70 million and 80 million (up to US$74 million) delivered through 1Q11.
Life Science Ingredients saw a volume recovery in both Nutrition Ingredients and Microbial Control in 1Q10, compared to the same 2009 period. Sales for Carnipure™ products in Nutrition Ingredients were above target due to new contracts. The pipelines in Custom Manufacturing remain strong and new contracts have been signed in all businesses; however, despite stronger order placements for the year, volatility is expected to continue in the segment through the end of 2010.
“Although the environment remains volatile and we are not yet trusting the stronger demand to represent true and full economic recovery, the progress in the first quarter is encouraging,” said Stefan Borgas, CEO, Lonza. “Customers placed more orders and we signed more new contracts than at the same time last year indicating that the outsourcing trend remains strong.”
