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Segmental Reporting
 6 Months Ended
Jun. 30, 2012
Segmental Reporting [Abstract]  
SEGMENTAL REPORTING

NOTE 2 – SEGMENTAL REPORTING

Innospec divides its business into three segments for management and reporting purposes: Fuel Specialties, Active Chemicals and Octane Additives. The Fuel Specialties and Active Chemicals segments operate in markets where we actively seek growth opportunities but their end customers are different. The Octane Additives segment is generally characterized by volatile and declining demand.

 

The Company evaluates the performance of its segments based on operating income. The following table analyzes sales and other financial information by the Company’s reportable segments:

 

 

                                 
    Three Months Ended
June 30		     Six Months Ended
June 30		  

(in millions)

   2012     2011     2012     2011  

Net sales:

                                

Fuel Specialties

   $ 114.5     $ 113.3     $ 245.2     $ 240.4  

Active Chemicals

     44.9       48.7       91.4       95.2  

Octane Additives

     19.1       24.5       42.7       36.2  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 178.5     $ 186.5     $ 379.3     $ 371.8  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit:

                                

Fuel Specialties

   $ 34.7     $ 31.1     $ 73.4     $ 67.5  

Active Chemicals

     12.1       13.7       23.2       25.4  

Octane Additives

     9.9       13.3       24.1       18.0  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 56.7     $ 58.1     $ 120.7     $ 110.9  
   

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

                                

Fuel Specialties

   $ 16.9     $ 12.3     $ 38.6     $ 34.6  

Active Chemicals

     7.2       9.1       13.2       16.7  

Octane Additives

     8.0       8.1       20.4       10.3  

Pension credit/(charge)

     0.1       (0.1 )      0.2       (0.2 ) 

Corporate costs

     (7.8 )      (6.5 )      (16.4 )      (14.0 ) 

Restructuring charge

     0.0       0.0       (0.1 )      0.0  

Impairment of Octane Additives segment goodwill

     (0.3 )      (0.5 )      (0.6 )      (1.1 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

   $ 24.1     $ 22.4     $ 55.3     $ 46.3  
   

 

 

    

 

 

    

 

 

    

 

 

  

The pension credit/(charge) relates to the United Kingdom defined benefit pension plan which is closed to future service accrual. The charges related to our other much smaller pension arrangements in the U.S. and overseas are included in the segment and income statement captions consistent with the related employees’ costs.

The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments:

 

 

                                 
    Three Months Ended
June 30		     Six Months Ended
June 30		  

(in millions)

   2012     2011     2012     2011  

Depreciation:

                                

Fuel Specialties

   $ 0.5     $ 0.6     $ 1.0     $ 1.2  

Active Chemicals

     0.6       1.1       1.2       2.3  

Octane Additives

     0.2       0.2       0.3       0.4  

Corporate

     0.4       0.4       0.8       0.9  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 1.7     $ 2.3     $ 3.3     $ 4.8  
   

 

 

    

 

 

    

 

 

    

 

 

  

Amortization:

                                

Fuel Specialties

   $ 0.5     $ 0.5     $ 1.0     $ 1.1  

Active Chemicals

     0.4       0.4       0.7       0.7  

Octane Additives

     0.1       0.2       0.3       0.5  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 1.0     $ 1.1     $ 2.0     $ 2.3