Clariant AG : Clariant improves profitability, reinstates dividend
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Clariant AG /
Clariant AG : Clariant improves profitability, reinstates dividend
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* Full-year sales increased by 16% in local currency and 4% in CHF
* EBITDA margin before exceptional items rose to 13.2% from 12.7% in 2010
* Net income improved to CHF 251 million from CHF 191 million in 2010
* Dividend payment resumed at CHF 0.30 per share through reduction of par
value
* Outlook: Clariant expects further sales growth in local currencies and
sustained
profitability in 2012 as the global economy is expected to progressively
strengthen
in the course of the year.
CEO Hariolf Kottmann commented: "In 2011, we started to transform Clariant into
a highly profitable specialty chemicals company, based on a strong technology
base and a solid financial position. The acquisition of Süd-Chemie marked a
milestone in this process. In addition, Clariant continued to invest in its
growth businesses and supported the mature businesses in improving their
profitability. This is reflected in a better performance despite challenging and
volatile business conditions. In 2012, we will intensify the efforts to
sustainably increase the quality and performance of the portfolio."
Key Financial Data
Fourth quarter Full Year( a)
-------------------------------------------------------------------------------
in CHF million 2011( b) 2010 % CHF % LC 2011 2010 % CHF % LC
Sales 1 918 1 700 13 21 7 370 7 120 4 16
EBITDA before 241 170 42 54 975 901 8 25
exceptional items( c)
- margin 12.6% 10.0% 13.2% 12.7%
EBIT before 165 120 38 50 717 696 3 20
exceptional items( c)
- margin 8.6% 7.1% 9.7% 9.8%
EBIT 33 31 6 29 507 366 39 66
Net income 10 47 251 191
Operating cash flow 185 277 206 642
Number of employees 22 149(1) 16 176(2)
-------------------------------------------------------------------------------
(a) 2011 includes Süd-Chemie figures consolidated for eight months (May-Dec)
(b) including Süd-Chemie
(c) 2011 including additional charge of CHF 54 mn (FY 2011) and CHF 43 mn (Q4
2011) as a result of the sale of Süd-Chemie
inventories revalued to fair value less cost to sell
(1) as of 31 December 2011 (2) as of 31 December 2010
Clariant Full Year 2011 Performance
Muttenz, 15 February, 2012 - Clariant, a world leader in specialty chemicals,
today announced full-year 2011 sales of CHF 7.370 billion, compared to CHF
7.120 billion in 2010. Sales grew 16% in local currencies and 4% in Swiss
francs. The lower growth in Swiss francs was a result of the significant
appreciation of the Swiss franc against most major currencies on a year-on-year
basis.
Due to the acquisition of Süd-Chemie and the strength of the Business Unit
Catalysis & Energy in the third and fourth quarters, sales were higher in the
second half-year than in the first six months, despite a significant slowdown in
some businesses towards year-end. In addition to Catalysis & Energy, which had
another record-year, the non-cyclical Business Units Additives, Functional
Materials, Industrial & Consumer Specialties, and Oil & Mining Services
contributed significantly to the sales increase in 2011. Those non-cyclical
businesses account for more than 50% of Group sales. In contrast, the cyclical
Business Units Pigments and Masterbatches suffered from a slow-down in
industrial production that started at the beginning of the second half-year and
resulted in destocking activities along the value chain. All regions grew at a
double-digit rate in local currencies.
The double-digit increase in sales was driven by year-on-year sales price
increases of 7% and by acquisitions, which contributed 14% to sales growth.
Volumes were 5% lower, reflecting the lower demand in the second half-year and
the deliberate loss of sales that did not meet Clariant's profitability
targets.
The gross margin decreased to 26.7% from 27.9% in full-year 2010. Lower volumes,
negative currency effects, and a one-time charge were the main drivers of the
slightly lower margin, and were only partly offset by successful sales price
management. Excluding the one-time charge of CHF 54 million as a result of the
sale of Süd-Chemie inventories revalued to fair value less costs to sell, the
gross margin was 27.4%. Despite the global economic slow-down, commodity prices
remained at high levels. Raw material costs increased 14% compared to the
previous year. Sales price increases of 7% fully compensated the higher raw
material costs, leading to a slightly positive contribution to the gross margin.
EBITDA before exceptional items increased to CHF 975 million (margin 13.2%) from
CHF 901 million (margin 12.7%) a year ago. A strong fourth quarter in Catalysis
& Energy and a diminishing negative impact from currencies toward the end of the
year pushed the margin higher. The operating profit (EBIT) before exceptional
items rose to CHF 717 million (margin 9.7%) compared to CHF 696 million (margin
9.8%) in 2010. Lower restructuring costs led to an improvement in net income to
CHF 251 million from CHF 191 million despite higher tax expenses.
The extreme volatility in the foreign exchange markets weighed on Clariant's
profitability in 2011. Both EBITDA and EBIT before exceptional items were
negatively impacted by approx. CHF 190 million (EBITDA), corresponding to a 0.9
percentage-point margin, respectively approx. CHF 170 million (EBIT),
corresponding to a 1.0 percentage-point margin.
Cash flow from operations of CHF 206 million was below last year's CHF 642
million, which to a large extent had been obtained from the reduction in net
working capital, but significantly above the CHF 21 million reported at the end
of the third quarter 2011. As a percentage of annualized sales, net working
capital reached 19.6%, below the targeted
20% of sales.
The acquisition of Süd-Chemie led to an increase in net debt to CHF 1.740
billion compared to CHF 126 million at year-end 2010. Net debt has been reduced
from 1.812 billion at the end of the third quarter, leading to a gearing (net
debt divided by equity) of 58% at year-end 2011. The cash position was strong
with CHF 1.199 billion in cash and cash equivalents on 31 December 2011. The
extension of the maturity profile has been successfully addressed with the
issuance of bonds totaling CHF 300 million in the Swiss francs market since May
2011 and another EUR 365 million in certificates of indebtedness with terms of
three years and four and a half years. After the reporting period, another EUR
500 million with maturity in 2017 have been raised in the Eurobond market.
Clariant Q4 2011 Performance
Clariant reported 21% sales growth in local currencies in the fourth quarter. In
Swiss francs, sales were 13% higher, at CHF 1.918 billion compared to CHF 1.700
billion a year ago. Sales prices increased 9% year-on-year, while volumes were
12% lower and raw material costs rose 10%. Sequentially, sales prices rose
slightly while raw material costs fell 1%. Catalysis & Energy had an excellent
quarter, leading the good performance of the non-cyclical businesses.
Masterbatches and Pigments were negatively affected by the softening demand from
the plastics industry and the related destocking activities. The structurally
challenged mature businesses Textile Chemicals, Leather Services, and Paper
Specialties continued to suffer from the poor business conditions in their
respective end-markets. Organic sales growth in North and Latin America was
double-digit, while sales in Asia/Pacific decreased. Europe suffered from the
debt crisis, with a double-digit decrease in sales. Including acquisitions, all
regions showed double-digit sales growth.
The gross margin was lower year-on-year, at 23.8% compared to 26.0% in the
previous-year period. This was exclusively due to a one-time charge of CHF 43
million as a result of the sale of Süd-Chemie inventories revalued to fair value
less costs to sell. Excluding this charge, the gross margin reached the level of
the previous-year quarter. The EBITDA margin before exceptional items climbed to
12.6% from 10.0% in the fourth quarter of 2010, driven by lower costs and helped
by one-time effects, contributing 0.8 percentage points to the EBITDA margin.
The operating income (EBIT) before exceptional items increased to CHF 165
million (margin 8.6%) from CHF 120 million (margin 7.1%).
Operating cash flow picked-up significantly compared to the first nine months
(CHF 21 million) and rose to CHF 185 million, but was below the exceptionally
high CHF 277 million of the previous year, which had been the result of the
reduction of net working capital.
Süd-Chemie meets high expectations, smooth integration ongoing
The two new Süd-Chemie Business Units - Catalysis & Energy and Functional
Materials - have performed above target in the first eight months of
consolidation. Catalysis & Energy reported an EBITDA before exceptionals of CHF
107 million (margin 21.8%), and Functional Materials CHF 59 million (margin
12.9%). Catalysis & Energy showed the expected strong development in the third
and especially the fourth quarter.
After the extraordinary General Meeting held by Süd-Chemie AG on 22 November
2011, the transfer of all shares held by minority shareholders to Clariant was
approved. The squeeze-out became effective 1 December 2011, with Süd-Chemie now
being 100% owned by Clariant and organized according to the Clariant operating
model.
The integration is progressing as planned with all project teams fully
operational. Based on current insights and integration experience, the
anticipated EUR 75-95 million EBITDA improvements by year-end 2013 are
confirmed.
Outlook 2012
Clariant will continue to systematically implement the next steps in its
transformation process with a focus on the integration of Süd-Chemie, on
completing the restructuring measures initiated in 2009-2010, and on portfolio
management. In this context, Clariant is evaluating strategic options for the
Business Units Textile Chemicals, Paper Specialties, and Emulsions, Detergents &
Intermediates, with the goal of realization in the mid- to long-term.
An accurate forecast for 2012 is difficult given the current level of economic
uncertainty. Raw material costs are expected to rise in the mid-single-digit
range while exchange rates should remain stable compared to the beginning of the
year. In its base case scenario, Clariant expects that after a weak start to
2012, the global economy will progressively strengthen in the course of the
year. Therefore, results for the first half-year are expected to be lower
compared to the high base of the first half of 2011, with an improvement in the
second half-year 2012. For full-year 2012, Clariant expects further sales growth
in local currencies and sustained profitability.
In the last three years, the restructuring program as well as portfolio
management measures have brought Clariant's operating performance to a
sustainably higher level. The Board of Directors will therefore propose to the
AGM a payout of CHF 0.30 per share through a reduction of the nominal value of
the shares to CHF 3.70 from CHF 4.00.
- END -
Tel. E-mail
Corporate Media Relations
Ulrich Nies +41 61 469 6158 ulrich.nies(at)clariant.com
Stefanie Nehlsen +41 61 469 6363 stefanie.nehlsen(at)clariant.com
Investor Relations Tel. E-Mail
Ulrich Steiner +41 61 469 6745 ulrich.steiner(at)clariant.com
Siegfried Schwirzer +41 61 469 6749 siegfried.schwirzer(at)clariant.com
clariant.com
Clariant is an internationally active specialty chemical company, based in
Muttenz near Basel. The group owns over 100 companies worldwide and employed
22 149 employees on December 31, 2011. In the financial year 2011, Clariant
produced a turnover of CHF 7.4 billion. Clariant is divided into eleven business
units: Additives; Catalysis & Energy; Emulsions, Detergents & Intermediates;
Functional Materials; Industrial & Consumer Specialties; Leather Services;
Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; Textile
Chemicals.
Clariant focuses on creating value by investing in future profitable and
sustainable growth, which is based on four strategic pillars: Improving
profitability, innovation as well as research and development, dynamic growth in
emerging markets, and optimizing the portfolio through complementary
acquisitions or divestments.
Financial Review Q4 2011:
http://hugin.info/100166/R/1585704/496624.pdf
Press Release english:
http://hugin.info/100166/R/1585704/496564.pdf
Press Release deutsch:
http://hugin.info/100166/R/1585704/496565.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Clariant AG via Thomson Reuters ONE
[HUG#1585704]
Unternehmensinformation / Kurzprofil:
Datum: 15.02.2012 - 07:01 Uhr
Sprache: Deutsch
News-ID 114735
Anzahl Zeichen: 15422
contact information:
Town:
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Kategorie:
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