Univar Reports Third-Quarter, Nine-Months 2006 Results

Rotterdam, The Netherlands November 2, 2006 - Univar N.V. (Euronext Amsterdam: UNIVR), a world leader in chemical distribution, today announced results for its fiscal third quarter ended September 30, 2006.

Highlights Q3 and Year-to-Date 2006

- Univar reported third-quarter 2006 EBIT of USD 53.9 million, an increase of 25.1% over third-quarter 2005.

- Consolidated third-quarter net sales grew by 14.1% to USD 1,655.0 million, due to significant revenue increases at all three major operating business units.

- Year to date: net sales increased 10.2% to USD 5,050.4 million, EBIT increased 17.1 %, and fully diluted earnings per share increased 16.2% to USD 3.44.

- Due to continuing strong performance, the company intends to increase the 2007 dividend payout ratio to approximately 30% of 2006 net income.

Consolidated Key Results Third Quarter 2006

(unaudited; in USD millions, except ratios and per share results)	Q3 2006	Q3 2005	%Change (actual)	%Change (currencyneutral)
Net sales	1,655.0	1,450.9	14.1	12.7
Gross margin	246.1	220.3	11.7	10.1
Operating expenses	192.2	177.2	8.5	7.2
Operating expenses: Gross margin	78.1%	80.4%	-	-
Operating income before depreciation and amortization (EBITDA)	65.5	53.5	22.4	20.3
Operating income (EBIT)	53.9	43.1	25.1	22.0
EBIT margin (EBIT: Net sales)	3.3%	3.0%	-	-
Net income	29.2	24.3	20.2	16.1
Fully diluted earnings per common share	1.02	0.82	24.4	20.7

Third Quarter Results

The companys strong business results in the third quarter were driven by significantly improved performances companywide, including promising improvement at Univar Europe, which experienced substantial sales and EBIT growth.

Consolidated third-quarter net sales grew by 14.1%, to USD 1,655.0 million compared with USD 1,450.9 million in third-quarter 2005. Marked revenue increases occurred at all three major operating business units, primarily the result of higher market pricing for chemical products; and meaningful volume growth. Consolidated gross margin dollars improved as a result of sales growth, offsetting a decline in gross margin percentage associated with overall higher prices and changes in the sales mix. Univar reported third-quarter 2006 EBIT of USD 53.9 million, an increase of 25.1 % over the USD 43.1 million reported in third-quarter 2005. Fully diluted earnings per share in third-quarter 2006 grew 24.4% to USD 1.02 compared with USD 0.82 a year ago.

Market Environment

Overall, higher chemical prices combined with volume improvement to drive sales, gross margin, and EBIT growth throughout Univar. Chemical pricing in the third quarter was generally at increased levels in Europe, and mostly higher in North America, where the decline in the price of crude oil did affect the pricing of some chemical products. The US market grew moderately and Western Canadas economy was robust. There was improvement from earlier 2006 trends in many industrial economies in Europe, which contributed to the improved performance at Univar Europe.

Nine Months Results

Univars improved business results in the nine-month period ended September 30, 2006, are attributable primarily to solid growth in consolidated sales and gross margin and comparatively limited operating expense growth. Sales and EBIT growth occurred at all three major operating business units on both a reported basis and on a currency-neutral basis. Reported performance in Europe was mildly hindered by foreign currency exchange whereas Canadian results were helped significantly by currency movements.

Year to date, consolidated net sales increased 10.2% to USD 5,050.4 million from USD 4,582.2 million for the first nine months of 2005. Control of operating expenses was particularly effective in Europe and Canada. EBIT increased 17.1 % to USD 178.0 million from USD 152.0 million. EBIT as a percent of sales improved to 3.5% compared with 3.3% in the year-ago nine-month period. Fully diluted earnings per share increased 16.2% to USD 3.44 from USD 2.96 a year ago.

Dividend

The company intends to recommend to the shareholders for approval at the Annual General Meeting of Shareholders a substantial increase in the annual dividend. As a result of Univars continuing strong operating performance, the company will propose an increase in the 2007 dividend payout ratio to approximately 30% of 2006 net income. In 2006, the dividend payout ratio was 20.6% of 2005 net income.

Outlook 2006

Assuming the business environment remains favorable, Univar expects to continue its solid operating performance during the remainder of the second half of fiscal year 2006. Due to normal seasonal business patterns, second-half sales and EBIT from normal operations are typically lower than in the first half-year. Management anticipates that this seasonal pattern will prevail in 2006.

Reader enquiries

Univar Europe

www.univareurope.com

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Notes for editors

About Univar

Univar N.V. (Euronext Amsterdam: UNIVR) is one of the worlds leading independent distributors of industrial chemicals and providers of related specialty services, operating throughout North America and Europe. Univar endeavors to service its customer base, made up of some 250,000 industrial customers, with a full portfolio of products. The majority are commodities that the company buys in bulk, then processes, blends and repacks to meet the diverse requirements of the industries we serve. Others are specialtiespurchased pre-packaged and sold on a technical basis, usually under a manufacturer s own brand. As well as differentiating ourselves through our vast product offering, Univar also provides a number of related services, both to its customers and suppliers, such as blending, managing customer inventories, packaging, labeling, warehouse management, waste management, technical support and managing vendor reduction programs. Univar operates a network of 163 distribution centers, located throughout the United States, Canada and 18 European countries. In 2005, Univar generated net sales of USD 6.0 billion and operating income (EBIT) of USD 207.7 million. Univar has approximately 6,700 employees based throughout North America and Europe. The companys registered office is in Rotterdam, the Netherlands, with administrative support offices in Bellevue, Washington, USA, and Bradford, England, UK. For more information, visit: www.univarcorp.com