Novozymes Q4 earnings lower than predicted

Novozymes’ shares fell to the lowest they have been in two months following the announcement that the company’s earnings for the fourth quarter of 2011 were lower than predicted.

The Denmark-based company, which uses enzymes to produce biofuels, says the results could be blamed on the price of raw materials rising and a drop in sales for bioenergy enzymes.

However, net profit did grow by 13% did grow to DKK1.8 million (€242,000) but Novozymes says it expects 2012’s performance to be unpredictable because of instability within the global economy.

Steen Riisgaard, Novozymes’ CEO, says: ‘The uncertainty is expected to continue in 2012 and, although the characteristics of our products, the many different industries we serve, and the way the business operates have made Novozymes’ sales and earnings fairly resilient in previous economic downturns, we currently see scenarios at both the high and low end of the guidance.’
He says that the company is planning to further develop its cellulosic ethanol by building a commercial sized facility this year in Italy, with more facilities in the pipeline.

‘To sum up, although 2012 looks to be another uncertain year with respect to the global economy, it's also set to bring some very exciting developments with the focus remaining on innovation, market presence, and operational excellence,’ Riisgaard adds.