Clariant reports progressively improving operating profitability and a strong cash flow during a challenging 2009
(Thomson Reuters ONE) - Clariant AG / Clariant reports progressively improving operating profitability and a strong cash flow during a challenging 2009 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. * Sales in 2009 down 14% in local currency and 18% in CHF * Operating income before exceptional items decreased to CHF 270 million in 2009 from CHF 530 million in 2008 * Cash flow from operations improved to CHF 757 million from CHF 391 million in the previous year * Net debt reduced to CHF 545 million from CHF 1,209 million in 2008 * As part of the ongoing asset network optimization program, further measures are being implemented, affecting production sites in Muttenz (Switzerland), Resende (Brazil) and Thane (India) * Outlook 2010: Clariant does not foresee a sustainable recovery of the global economy. As a consequence, Clariant expects sales growth in local currencies in the low single-digit range. The operating income margin before exceptionals is expected to rise above 6%. Cash flow from operations will remain strong but below the levels of 2009.CEO Hariolf Kottmann commented: "During the year we have successfully focused ongenerating cash, decreasing costs and reducing complexity. In an economicenvironment that is still challenging, we will continue to focus on ourrestructuring efforts. The aim remains to achieve sustainable aboveindustry-average profitability by the end of 2010 and to create a solid platformfor profitable growth in the years thereafter."Key Financial Data Fourth Quarter Full Year------------------------------------------------------------------------------- in CHF million 2009 2008 % CHF % LC 2009 2008 % CHF % LC Sales 1 710 1 744 -2 2 6 614 8 071 -18 -14 EBITDA before exceptionals 164 104 58 70 495 783 -37 -30 - margin 9.6% 6.0% 7.5% 9.7% EBIT before exceptionals 107 42 - - 270 530 -49 -42 - margin 6.3% 2.4% 4.1% 6.6% EBIT -23 -148 - - -20 229 - - Net loss -67 -207 -194 -37 Operating cash flow 224 217 757 391 Number of employees 17 536* 20 102**-------------------------------------------------------------------------------* as of December 31, 2009 ** as of December 31, 2008Clariant 2009 PerformanceMuttenz, February 16, 2010 - Clariant, a world leader in specialty chemicals,today announced sales of CHF 6.614 billion in the full-year 2009, compared toCHF 8.071 billion in 2008. This represents a decline of 18% in Swiss francs or14% in local currency.The significant drop in sales reflected the severe economic crisis that affectedall businesses across all regions. At the beginning of the year, sales wereseverely impacted by lower demand levels, resulting in significant capacityunderutilization and leading to a depressed gross margin in the first quarter.As the year progressed, capacity utilizations rose as sales volumes improvedquarter-by-quarter, therefore reducing capacity underutilization costs. Inaddition, the company took decisive measures to address production overcapacitysuch as temporary shutdowns, short time work or involuntary vacation. Throughstrong price management, Clariant was able to maintain sales prices at 2008levels, while on the other hand raw material prices were lower. As a result, thegross margin for the full year was 28.2%, only slightly lower compared to the2008 margin of 28.7%.In 2009, Clariant focused on the reduction of Sales, General & Administration(SG&A) costs. In absolute terms, SG&A costs decreased to CHF 1.47 billion fromCHF 1.64 billion in the previous year. The SG&A cost in percentage of salesincreased to 22.2% from 20.3% as a result of lower sales. Consequently theoperating income (EBIT) before exceptional items reached CHF 270 millioncompared to CHF 530 million in the previous year leading to an EBIT margin of4.1% compared to 6.6% in 2008. Throughout 2009 the operating income beforeexceptional items improved quarter-by-quarter.All divisions saw a slight recovery in demand in the second half of the year,although to varying degrees. Based on their decisive restructuring and costcutting measures, they all contributed positively to the operational incomebefore exceptional items.Restructuring and impairment costs amounted to CHF 298 million, mainly relatedto the first phase of site closures within the global asset network optimizationprogram (GANO), and a reduction in headcount. The number of job positions wasreduced to 17,536 from 20,102 at year-end 2008. The combination of therestructuring costs and the lower operating income led to a net loss of CHF 194million compared to a net loss of CHF 37 million in the previous year.Cash flow from operations amounted to CHF 757 million. This was largely due tothe stringent focus on net working capital - mainly inventory reduction andaccounts receivable management. In the second half of the year, the progressiveimprovement of operating income before exceptionals increasingly contributed tothe strong cash generation.Clariant significantly strengthened its balance sheet by increasing its cashposition to CHF 1,140 million compared to CHF 356 million in 2008. This includedthe proceeds of the CHF 300 million convertible bond launched in July. At thesame time, net debt was reduced to CHF 545 million from CHF 1,209 million at theend of 2008. The company's gearing - net debt divided by equity - was at 29% bythe end of 2009, significantly lower than the 61% at the end of 2008.Clariant Q4, 2009 PerformanceClariant reported sales of CHF 1,710 million in the fourth quarter compared toCHF 1,744 million a year ago. All businesses continued to stabilize. At theregional level, Asia showed double-digit growth while all other regions remainedat the depressed levels of the previous-year period.In local currencies, fourth quarter sales rose 2% compared to a weak quarter inthe previous year. While volumes increased 8%, sales prices fell 6% and rawmaterial costs were 14% lower. The underutilization costs were also lower thanin the previous year quarter as a consequence of higher capacity utilizationrates.As a result, the gross margin for the quarter reached 29.6% compared to 25.2% ayear ago. The EBIT margin before exceptional items also improved to 6.3% from2.4% in the fourth quarter of 2008.Operating cash flow reached CHF 224 million, up from CHF 217 million a year ago.Future cash flow is expected to be increasingly generated through the operatingincome line as savings from tight inventory management have already beenrealized.Global Asset Network Optimization (GANO) UpdateIn 2009 Clariant started a program to optimize its global production network.First results were communicated to the public in November. Clariant announcedtoday a second step of this program which effects the following locations:Clariant will transfer the Textile Dyes and the Textile Chemicals productionfrom Muttenz, Switzerland, to locations in Asia. In addition, the Paper Chemicalproduction will be moved to Prat in Spain.The optimization of the Textile production in Resende, Brazil, will lead to apartial plant closure.It will be proposed to the Board of Directors of Clariant Chemicals (India) Ltdto close the Balkum site in Thane, India.Approximately 500 jobs will be affected by these measures, of which roughly 400in Muttenz, Switzerland.The closures and transfers will be completed between 2011 and 2013.Outlook 2010The company does not foresee a sustainable recovery of the global economy due tostructural problems. Asia - in particular China - and Latin America willcontinue to provide positive impulses for the world economy, although it isunlikely that these impulses will be strong enough to significantly mitigate aflat or even negative development in Europe and the United States.Clariant expects 2010 sales growth in local currencies in the low single-digitrange. The continued restructuring measures will improve the company's costposition, resulting in a positive impact on the operating result. The EBITmargin before exceptionals is expected to rise above 6%. Cash flow fromoperations will remain strong. The projected restructuring costs will amount toCHF 200-300 million.Reflecting the current uncertainties in the economic environment, the Board ofDirectors will recommend to Clariant's 15th General Assembly on March 29, 2010to suspend dividends, grants or payouts to shareholders for 2009.Clariant confirms its target of a sustainable above industry average return oninvested capital (ROIC) by the end of 2010.- end -Contacts Media Relations Mark Hengel Phone: +41 61 469 66 53 E-Mail: mark.hengel(at)clariant.com
Unternehmensinformation / Kurzprofil:
Bereitgestellt von Benutzer: hugin
" alt="FIRST LITHIUM OPTIONS NEVADA LITHIUM TARGET
Datum: 16.02.2010 - 07:02 Uhr
Sprache: Deutsch
News-ID 12527
Anzahl Zeichen: 0
contact information:
Town:
Muttenz 1
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 307 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Clariant reports progressively improving operating profitability and a strong cash flow during a challenging 2009"
steht unter der journalistisch-redaktionellen Verantwortung von
Clariant AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
