Swiss Specialty Chemical producer Clariant’s presents the first half year results

Swiss Specialty Chemical producer Clariant’s presents the first half year results

Swiss internationally active Speciality Chemical producer Clariant reports higher sales, less operating profit and higher net income in the second quarter of 2012 and expects further sales growth in local currencies and sustained profitability for the full year 2012 compared to 2011 and under the assumption that the global economy will stabilise at current levels in the second half of the ongoing year

In the second quarter of 2012 sales amounted to CHF 1978 (CHF 1870) million or a plus of 6 % in CHF and 8% in local currencies. In the first half year of 2012 revenues amounted to CHF 3923 (CHF 3587) million or 9% more in CHF and 13 % in local currencies. EBITDA before exceptional items amounted in the second quarter to CHF 233 (CHF 241) million meaning 3% less in CHF and a plus of 2 % in local currencies and for the first half year CHF 469 (CHF 518) million resulted, that is 9 % less in CHF and 4 % in local currencies. EBITDA margin dropped from 12.9 % to 11.8 % in the second quarter 2012 and in the first half year it decreased from 14.4 % to 12.0 %. EBIT before exceptional items reached in the second quarter CHF 158 (CHF 178) million or 11 % les in CHF and 5 % in local currencies and the margin thus declined from 9.5 % in the second quarter to 8.0 % and in the first half year from 11.4 % to 8.1 %. EBIT declined in the first quarter by 23 % in CHF or from CHF 163 million to CHF 125 million and in local currencies -17 % and in the first half year the drop in CHF was 32 % or from CHF 364 million to CHF 248 million and in local currencies the decrease was 26 %. The net income in the second quarter increased from CHF 40 to CHF 70 million and for the first half of 2012 it decreased from CHF 160 million to CHF 90 million.

The cyclical businesses were affected by lower volumes, leading to a volume decline of one percent at group level. Sequentially volumes grew 2 % in the second quarter as compared to the first quarter of 2012. The structurally challenged business partly recovered from the weakness in the last few quarters and stabilised at low levels. Textile Chemicals achieved a single-digit sales growth in local currencies after a plant in Switzerland has been closed.

Looking at geographical regional areas, Asia/Pacific and Latin American outperformed the other regions with sales plus of 18 % respectively 17 %. North America and Europe, Middle East and Africa (EMEA) grew in the low mid-single digit range. EMEA growth benefitted from strong growth in MEA while Europe remained weak particularly in the southern part of Europe. In consequence of the lower production costs and ales price increases, the gross margin increased from 27.5 % to 28.7 %. The sales price increase of 3 % fully compensated for the one percent increase in raw material cost on an annual basis. Sequentially sales prices were marginally up. While raw material costs rose 3 %.

www.clariant.com


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