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Segmental Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segmental Reporting

NOTE 2 – SEGMENTAL REPORTING

Innospec divides its business into three segments for management and reporting purposes: Fuel Specialties, Performance Chemicals and Octane Additives. The Fuel Specialties and Performance Chemicals segments operate in markets where we actively seek growth opportunities although their ultimate 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
September 30		     Nine Months Ended
September 30		  

(in millions)

    2013     2012     2013     2012  

Net sales:

         

Fuel Specialties

    $ 137.4      $ 127.0      $ 403.6      $ 372.2   

Performance Chemicals

      47.9        46.8        140.2        138.2   

Octane Additives

      7.5        9.6        33.4        52.3   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 192.8      $ 183.4      $ 577.2      $ 562.7   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit:

         

Fuel Specialties

    $ 42.6      $ 36.8      $ 130.1      $ 110.2   

Performance Chemicals

      11.1        10.4        32.9        33.6   

Octane Additives

      3.7        3.5        17.6        27.6   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 57.4      $ 50.7      $ 180.6      $ 171.4   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

         

Fuel Specialties

    $ 22.3      $ 19.6      $ 66.4      $ 58.2   

Performance Chemicals

      5.6        5.6        17.1        18.8   

Octane Additives

      2.1        1.5        13.0        21.9   

Pension credit/(charge)

      (0.7 )      0.0        (2.1 )      0.2   

Corporate costs

      (9.4 )      (9.1 )      (29.4 )      (25.5 ) 

Restructuring charge

      0.0        (0.1 )      0.0        (0.2 ) 

Impairment of Octane Additives segment goodwill

      (0.4 )      (0.3 )      (1.0 )      (0.9 ) 

Profit on disposal

      0.0        0.1        0.0        0.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

    $ 19.5      $ 17.3      $ 64.0      $ 72.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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
September 30		      Nine Months Ended
September 30		  

(in millions)

    2013      2012      2013      2012  

Depreciation:

            

Fuel Specialties

    $ 0.5       $ 0.4       $ 1.7       $ 1.4   

Performance Chemicals

      0.9         0.6         2.6         1.8   

Octane Additives

      0.1         0.2         0.5         0.5   

Corporate

      0.6         0.4         1.7         1.2   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2.1       $ 1.6       $ 6.5       $ 4.9   
  

 

 

     

 

 

     

 

 

     

 

 

  

Amortization:

            

Fuel Specialties

    $ 1.6       $ 0.6       $ 4.8       $ 1.6   

Performance Chemicals

      0.6         0.3         1.3         1.0   

Octane Additives

      0.2         0.2         0.5         0.5   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2.4       $ 1.1       $ 6.6       $ 3.1