But Swiss firm lands substantial new contracts in the pharma and biotech sectors
Swiss chemicals manufacturer Lonza's full-year 2013 net profit fell 44% to CHF87m (US$95.6m) compared with CHF156m a year earlier.
Sales slipped 4% to CHF3.58bn.
The pharma and biotech unit saw a 7.9% drop in 2013 sales to CHF1.43bn ($1.57bn), hit by lower revenues in the first half when there was a production stop at its Visp manufacturing site to increase capacity. The company said it had started manufacturing new products for long-term contracts in the second half and had raised its capacity utilisation to planned levels.
Lonza added that it was on track with build-out of additional commercial scale ADC capacity in Visp and continued demand for integrated ADC offering with a full service from mAb manufacture to conjugation in Visp and Slough, UK.
Transformation and reduction of complexity will continue in 2014 with a stronger emphasis on organic growth and improving quality.
The firm forecasts a 10% increase in core earnings before interest and tax (EBIT) for 2014, as well as revenue growth of 5%.