Higher sales in specialty chemicals

Higher sales in specialty chemicals

Swiss specialty chemicals Clariant International reports for the first quarter of the ongoing year 13% higher sales of totally CHF 1945 (CHF 1717) million (in local currencies + 18 %), however on a less profitable basis. The mature business units Textile Chemicals, Paper Specialties, Leather Services and Emulsions Detergents & Intermediates remained subdued (less volume but it reflects also the deliberate disposal of less profitable segments). On the other hand all geographical regions – with the exception of Europe – showed double-digit growth in local currencies.

The gross margin decreased from 29.8 to 28.2 % but it is still significantly higher than the one of the fourth quarter of 2011 (26.0 %). EBITDA fell from CHF 277 million (margin 16.2 %) to CHF 236 million (margin 12.1 %) and the operating profit (EBIT) before exceptional items decreased from CHF 230 million (margin 13.4 %) to CHF 160 million (margin 8.2 %).

The management expects that the business will pick up – after the weak start – during 2012 – but this will not be seen in the first half year report but will become reality in the second half of this year and this would allow Clariant further sales growth in local currencies and sustained profitability.


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