The textile chemical and colorant business

The textile chemical and colorant business

Three big players in textile chemicals, colorants and textile effects – namely BASF (D), Clariant (CH) and Huntsman (USA) have presented their results for 2011 and an outlook for 2012

BASF group reports for 2011 15 % increase in sales amounting to EUR 73.5 billion and a 4 % higher operational result (EBIT) before special items of EUR 8.4 billion. Also the fourth quarter of 2011 has been successful creating for that period a ten percent increase of sales to EUR 18.1 billion but a 14 % lower EBIT decreasing to EUR 1.5 billion. The division Performance Products – including the acquired Cognis businesses posted a 19% rise in sales in the fourth quarter of 2011 and the full year sales – including price increases – added 28 % to a total of EUR 15.7 billion and at the same EBIT before special items was 11 % higher and totaled EUR 1.7 billion. All divisions delivered excellent results and for 2012 further EUZR 1.7 (EUR 1.6) billion are earmarked for global research and development. The BASF management is confident for 2012 to reach the figures of 2011 in the first half and to top those in the second half of the year regarding sales and profit. The business framework BASF is working with is a global economic growth of around 2.7 % (as in 2011) a solid global chemical production growth of 4.1 %, excluding pharmaceuticals, an average exchange rate against the USD of EUR 1.30 and an average oil price (Brent) of USD 110 per barrel (BASF is engaged also in the oil sector).

Clariant (Specialty Chemicals) has increased its groups sales by 21 % in the fourth quarter of 2011 but translated into CHF they were only 13 % higher and reached CHF 1918 (CHF 1700) million. For all of 2011 sales increase 4 % to CHF 7370 (7120) million and in local currency the plus would have been 16 %. The operating profit (EBIT) before exceptional items increased by 3 % or from CHF 696 to CHF 717 million and in local currencies it advanced 20 % and the net income improved from CHF 191 million to CHF 251 million. The outlook for 2012 further sales growths in local currencies and sustained profitability . Textile Chemicals suffered in different markets as well as Leather Services and Paper Specialities. It has to be noted that the Chairman Dr. Jürg Witmer will step down at the annual general meeting on coming March 27 and the current Vic-Chairman Dr. Rudolf Wehrli will succeed him. Also leaving the board is Dr. Klaus Jenny after seven years activities, especially as president of the audit committee and Günter von Au is leaving his position as CEO of Süd-Chemie (now belonging to Clariant) and he will be elected to become a member of the Board of Directors of Clariant.

Huntsman Corporation reports a 9 % increase of total sales to USD 2632 (USD 2412) million in the fourth quarter of 2011 and an 11 % improved operating result (adjusted EBITDA) to USD 243 (USD 219) million. For entire 2011 sales were 21 % higher and reached USD 11221 (USD 9250) million and adjusted EBITDA was 39 % higher and reached a total of USD 1214 (USD 875) million. The division Textile Effects noted a decrease in revenues in the fourth quarter due to lower sales (-7 % for the quarter and -9 % for the full year) of eight percent to USD 174 (189) million and six percent less to USD 737 (USD 787) million for all of 2011 and for both periods also the adjusted EBITDA provoked losses. For the fourth quarter the loss was USD 22 (USD 1) million and for 2011 it amounted to USD 64 million whereas in 2010 it was USD 15 million plus. It should be added that on February 15, 2012 the groundbreaking ceremony for the new Asia Pacific Technology Center (ATC, investment USD 40 million)) in Shanghai’s Minhang Economic & Technological Development Zone took place and will support in the future the Asia Pacific region’s rapidly growing demand. The new ATC will form an integrated technology and innovation campus together with the existing technology center opened in 2008. The ultimate facility will entail halls, laboratories and offices and accommodate up to 400 technical experts from different divisions and will complement the already existing Technology Centers in The Woodlands, Texas (USA) and Brussels (B) as well as smaller regional centres.

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