Lonza confirms full-year outlook
ZURICH Oct 31 (Reuters) - Specialty chemicals and life science group Lonza said its restructuring plan was fully on track as it confirmed its full year guidance on Thursday.
Faced with low-cost competition, a strong Swiss franc and higher raw material prices, Chief Executive Richard Ridinger is overhauling Lonza's structure, cutting jobs and reorganising the firm's production sites.
In its third-quarter business update, the company said its specialty ingredients business segment had shown a good performance, despite a weak recreational water market, while its pharma & biotech division had delivered as expected.
Lonza, which makes ingredients for drugmakers such as GlaxoSmithKline and Roche, reiterated its target to increase core earnings before interest and tax by 10 percent this year, slowing from 28 percent growth in 2012.
The company said capital expenditure would remain below 250 million Swiss francs in 2013. (Reporting by Caroline Copley)