Rockwood Holdings's gross profit for the
three
months ended in Sep. 2014 was €126 Mil. Rockwood Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2014 was €476 Mil.
Rockwood Holdings had a gross margin of 45.72% for the quarter that ended in Sep. 2014 => Durable competitive advantage
During the past 12 years, the highestGross Margin % of Rockwood Holdings was 45.24%. The lowest was 26.41%. And the median was 31.52%.
Rockwood Holdings Gross Profit Historical Data
The historical data trend for Rockwood Holdings's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Rockwood Holdings's Gross Profit
For the Specialty Chemicals subindustry, Rockwood Holdings's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rockwood Holdings's Gross Profit Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Rockwood Holdings's Gross Profit distribution charts can be found below:
* The bar in red indicates where Rockwood Holdings's Gross Profit falls into.
Rockwood Holdings Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Rockwood Holdings's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €476 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rockwood Holdings had a gross margin of 45.72% for the quarter that ended in Sep. 2014 => Durable competitive advantage
Rockwood Holdings Gross Profit Related Terms
Thank you for viewing the detailed overview of Rockwood Holdings's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Rockwood Holdings Inc was incorporated in Delaware in September 2000. It is a developer, manufacturer and marketer of value-added specialty chemicals and materials used for industrial and commercial purposes. The Company operates through two business segments: Lithium and Surface Treatment. The Lithium segment operates under the Rockwood Lithium brand name and develops lithium chemicals for industries and end markets. It develops and manufactures basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents, including butyllithium and lithium aluminum hydride. It operates lithium business along the following five business divisions reflecting its core end-markets: Lithium Salts; Special Salts; Butyllithium/Lithium Metal; Battery Products and Lithium Specialties. Lithium segment obtains lithium brine which it uses to produce lithium products through evaporation in the Salar de Atacama, Chile and Silver Peak, Nevada. Lithium's customers include Bayer CropScience (a division of Bayer AG), Syngenta AG, Umicore S.A., Samsung SDI Co. Ltd. and Royal DSM N.V. Surface Treatment segment operates under the Chemetall brand name and develops and manufactures metal surface treatment products and services for industries and end market. Surface Treatment's products are used for a variety of applications and serve the automotive, aerospace and general industrial markets, including steel and metal-working industries. The customers include ArcelorMittal, Daimler AG, European Aeronautic Defence and Space Company (EADS) N.V., Ford, Renault-Nissan and Volkswagen AG. The competitors in this segment includes: Dow Corning Corporation, Catalise Industria e Comercio de Metals Ltda and Nachmann S.r.I. The Company's operations are subject to regulation by the FDA with respect to certain products produced, marketed and sold by its Lithium segment, which includes pharmaceutical intermediates.
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