Clariant AG : Clariant posts growth in the first quarter
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Clariant AG /
Clariant AG : Clariant posts growth in the first quarter
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* Well-balanced portfolio allows Clariant to grow in a challenging but
stable business environment.
* Continuing operations achieved first quarter sales growth of 2% in local
currencies and 1% in Swiss francs, to CHF 1.526 billion from CHF 1.513
billion in the previous-year period.
* EBITDA margin before exceptional items at 13.7% compared to 13.9% in Q1
2012.
* Net result from continuing operations of CHF 38 million compared to CHF
16 million in Q1 2012.
* Net debt reduced to CHF 1.66 billion, down from CHF 1.79 billion at
year-end 2012.
* For full-year 2013, Clariant expects further progress in sales and
profitability compared to 2012 by focusing on growth and continuous cost
efficiency.
CEO Hariolf Kottmann: "Clariant had an encouraging start to the year as
sales continued to grow and margins remained robust under stabilizing
economic conditions. While the Group concentrated on disciplined cost
management and the execution of the announced portfolio measures, the
businesses turned their attention to intensifying growth and fostering
innovation. Regardless of the persistent economic softness, Clariant is in
shape to deliver step-by-step on its promises in order to create one of the
leading specialty chemicals companies."
Key Financial Data
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Continuing operations: First Quarter
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In CHF million 2013 2012 %CHF %LC
Sales 1 526 1 513 1 2
EBITDA before exceptional items(1) 209 211 -1 0
- margin 13.7% 13.9%
EBIT before exceptional items(1) 141 147 -4 -2
- margin 9.2% 9.7%
EBIT(1) 119 114 4 2
Net result from continuing operations 38 16
---------------------------------------------------------------------------
Net income(2) 50 17
Operating cash flow(2) -72 6
Number of employees (2) 21 202 21 202*
---------------------------------------------------------------------------
Discontinued operations:
Sales 421 432
Net result from discontinued 12 1
operations
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(1 )First quarter 2012 restated for the effect of IAS 19 (revised)
(2 )Total Group, including discontinued operations
(*) As of 31 December 2012
First Quarter 2013 results
Muttenz, April 30, 2013 - Clariant, a world leader in specialty chemicals,
today reported first quarter sales 2013 from continuing operations of CHF
1.526 billion compared to CHF 1.513 billion in the previous-year period, an
increase of 2% in local currencies and 1% in Swiss francs. Organic growth of
2% was primarily the result of higher volumes. The negative currency effect
of 1% was mainly attributable to the double-digit percentage depreciation of
the Brazilian real and the Japanese yen against the Swiss franc compared to
the same period one year ago.
The business environment remained basically unchanged compared to the final
quarter of 2012. As in the previous quarter, sales trends were therefore not
uniform across regions and businesses. At the regional level, Latin America
exhibited the highest growth with a 10% increase in local currency sales.
Year-on-year, sales in Asia Pacific and EMEA were unchanged, with the latter
posting 2% growth in Europe and a 10% sales decline in Middle East & Africa.
Sales in North America grew 5%.
As expected, the Care Chemicals and Natural Resources Business Areas
continued to grow, with local currency sales increases of 13% and 4%
respectively. Care Chemicals benefitted from the low sensitivity of the
consumer-oriented businesses to the general economic cycle and favorable
weather conditions for its European and North American de-icing business. In
2013, the de-icing season extended into late March on both sides of the
Atlantic. Natural Resources was driven by double-digit local currency sales
growth in Oil & Mining Services while the Functional Minerals business was
weak, recording a mid-single-digit decline in local currencies year-on-year.
Catalysis & Energy experienced a single-digit sales decline due to a slow
start in Syngas and Specialty Catalyst, reflecting the usual high volatility
in the first two quarters of the year. Plastics & Coatings, on the other
hand, stabilized at low levels, with the slightly lower sales figures mainly
attributable to the early Easter break and therefore fewer billing days this
year compared to the previous-year period.
The gross margin was close to the level achieved one year ago, at 29.2%
compared to 29.3% in the first quarter 2012. The negligible decline was due
to higher costs of underutilized production capacities. Year-on-year, sales
prices increased marginally while raw material costs rose 1%. Compared to
the fourth quarter 2012, sales prices and raw material costs remained
stable.
EBITDA before exceptional items from continuing operations was flat in local
currencies and 1% lower in Swiss francs year-on-year, reaching CHF 209
million compared to CHF 211 million. The respective EBITDA margin reached
13.7% compared to 13.9% for continuing operations in the previous-year
period.
Exceptional items were lower, decreasing to CHF 22 million in comparison to
CHF 33 million in the first quarter of 2012 as a result of lower
restructuring costs in the continuing businesses. The net result from
continuing operations therefore improved to CHF 38 million from CHF 16
million one year ago, also helped by a better financial result which more
than compensated for higher taxes.
The operating cash flow followed the normal seasonality with an increase in
net working capital in the first half-year followed by cash generation in
the second half-year. A build-up in inventories led to a cash outflow of CHF
72 million compared to a CHF 6 million cash inflow in the previous-year
period. Capital expenditure was lower year-on-year, at CHF 44 million versus
CHF 54 million, reflecting a cautious investment philosophy in the current
volatile economic environment.
Net debt stood at CHF 1.656 billion, a reduction from the CHF 1.789 billion
recorded at year-end 2012. The reduction was exclusively achieved through
the early redemption of the CHF 300 million convertible bond 2009-14 in
February/March which entailed a conversion into share capital instead of a
repayment. As a result of lower net debt, gearing (net financial debt in
relation to equity) improved to 56% from 67% at year-end 2012.
Changes in reporting structure and restatements
Effective 1 January 2013, Clariant has regrouped its seven Business Units
for reporting purposes into four Business Areas: Care Chemicals (BU ICS),
Catalysis & Energy (BU Catalysts, Energy Storage business), Natural
Resources (BU Oil & Mining Services, BU Functional Minerals), and Plastics &
Coatings (BU Additives, BU Masterbatches, BU Pigments). In addition, the
Medical Specialties business has been reallocated from BU Functional
Minerals to BU Masterbatches. Restatements for 2012 have been made
accordingly.
At the Group level, the introduction of IAS 19 (revised) (pension
accounting) as of 1 January 2012 is reflected in restated figures for the
period. For the quarter, IAS 19 had a positive impact of CHF 4 million on
EBITDA and EBIT, while net income decreased by CHF 3 million. For the full-
year 2012, the positive impact of IAS 19 on EBITDA and EBIT was CHF 18
million, while net income decreased by CHF 10 million.
Event subsequent to Q1 2013 - repayment of straight bond and distribution
from reserves
Clariant repaid the EUR 600 million straight bond 2006-13 with a 4.375%
coupon on
5 April, thus at the bond's maturity date.
On 4 April a distribution totaling CHF 105 million was made to Clariant
shareholders. This was accrued for in the consolidated accounts as of 31
March 2013.
Discontinued operations
In 2012, Clariant announced it would be looking for strategic options for
the five businesses Textile Chemicals, Paper Specialties, Emulsions,
Detergents & Intermediates and Leather Services. In a first phase, Clariant
announced on 27 December 2012 an agreement to sell its Textile Chemicals,
Paper Specialties and Emulsions businesses to SK Capital, a US-based
investment firm. The project to find buyers for the Business Units Leather
Services and Detergents & Intermediates is pursued. Therefore, all five
businesses are reported as "discontinued operations", starting from the
2012 full-year results.
Outlook 2013
The repositioning of the portfolio in 2011 and 2012 has brought Clariant to
a sustainably higher level of profitability and net income.
For 2013, Clariant expects a persisting soft macroeconomic environment,
characterized by high volatility. While solid growth in the emerging markets
is most likely, no significant growth impulses are expected from the
European and North American economies.
In this scenario, Clariant will focus on growing the seven core businesses
and on continuous cost discipline. This will lead to further top-line growth
in local currencies and improved profitability in 2013. For the mid-term,
Clariant confirms its 2015 targets of an EBITDA margin of above 17% and a
return on invested capital (ROIC) above the peer-group average.
CORPORATE MEDIA RELATIONS INESTOR RELATIONS
Kai Rolker Ulrich Steiner
Phone +41 61 469 63 63 Phone +41 61 469 67 45
kai.rolker(at)clariant.com ulrich.steiner(at)clariant.com
Stefanie Nehlsen Siegfried Schwirzer
Phone +41 61 469 63 63 Phone +41 61 469 67 49
stefanie.nehlsen(at)clariant.com siegfried.schwirzer(at)clariant.com
Financial Review Q1 2013:
http://hugin.info/100166/R/1697581/559425.pdf
Press Release english:
http://hugin.info/100166/R/1697581/559448.pdf
Medienmitteilung deutsch:
http://hugin.info/100166/R/1697581/559473.pdf
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originality of the information contained therein.
Source: Clariant AG via Thomson Reuters ONE
[HUG#1697581]
Unternehmensinformation / Kurzprofil:
Datum: 30.04.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 254147
Anzahl Zeichen: 12715
contact information:
Town:
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Kategorie:
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