Clariant AG: Clariant achieves 8 % sales growth in a softening economic environment
(Thomson Reuters ONE) -
Clariant AG /
Clariant AG: Clariant achieves 8 % sales growth in a softening economic
environment
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* Sales from continuing operations rose 8 % in local currencies. In Swiss
francs, sales increased 4 % to CHF 1.51 billion from CHF 1.44 billion in the
third quarter of 2013
* Strong volume growth and higher sales prices overcompensated a still
unfavorable currency effect
* EBITDA before exceptional items up 8 % in local currencies, margin at 14.0 %
compared to 14.1 %
* Net result from continuing operations at CHF 58 million compared to CHF 129
million, due to higher taxes and a favorable one-time item in 2013
* Outlook: For full-year 2014, Clariant expects around mid-single-digit sales
growth in local currencies and an EBITDA margin before exceptional items
above full-year 2013
"In the first nine months Clariant's well-balanced, growth-oriented portfolio
achieved above-market growth in a softening global economic environment," said
CEO Hariolf Kottmann. "Volumes were strong and prices firm despite uneven
developments in industries, end-markets and regions. While we expect those
challenges to persist in the fourth quarter, we are confident of reaching our
targets for 2014, including substantial cash flow generation in the remainder of
the year."
Key Financial Data
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Continuing operations: Third quarter Nine months
-------------------------------------------------------------------------------
in CHF million 2014 2013 % CHF % LC 2014 2013 % CHF % LC
Sales 1 507 1 443 4 8 4 530 4 513 0 6
EBITDA before 211 203 4 8 635 623 2 9
exceptional items
- margin 14.0 % 14.1 % 14.0 % 13.8 %
EBIT before exceptional 141 132 7 12 426 417 2 10
items
- margin 9.4 % 9.1 % 9.4 % 9.2 %
EBIT 122 147 -17 -13 291 377 -23 -13
Net result from 58 129 102 238
continuing operations
-------------------------------------------------------------------------------
Net income(1) 59 -204 85 -75
Operating cash flow(1) 126 153 13 40
Number of employees(1) 16 936 18 099*
Discontinued operations
Sales 0 443 98 1 315
Net result from 1 -333 -17 -313
discontinued operations
-------------------------------------------------------------------------------
(1 )Total Group including discontinued operations
* As of 31 December 2013
Third quarter 2014 - strong sales growth on higher volumes
Muttenz, 30 October 2014 - Clariant, a world leader in specialty chemicals,
today announced third quarter 2014 sales of CHF 1.507 billion compared to CHF
1.443 billion in the third quarter of 2013. This corresponds to sales growth of
8 % in local currencies, driven by 7 % higher volumes and average sales price
increases of 1 %. Growth in Swiss francs was 4 % as currency developments still
had an adverse, albeit weaker, negative impact. Important trading currencies -
predominantly the US dollar - strengthened against the Swiss franc during the
reporting period, leading to a less pronounced effect of -4 percentage points on
sales compared to - 7 percentage points in the first half-year of 2014.
Clariant achieved double-digit local currency sales growth in the emerging
markets, led by Latin America with a 23 % sales increase followed by
Asia/Pacific with 13 %. In Latin America, Brazil reported single-digit growth
while sales in most of the other economies in the region grew double-digit. In
Asia/Pacific strong sales growth was achieved in China with 12 % and in India
with 38 % higher sales. In the mature markets, North America reached 3 % higher
sales, outpacing Europe Middle East & Africa (EMEA), which grew 2 %. As in the
first six months, the driver for growth in EMEA was the Middle East & Africa
region which achieved growth of 15 %, in-line with other emerging markets. In
contrast, growth was uneven across countries in Europe with good growth in the
Nordic countries and in Eastern Europe, resulting in 0 % sales growth in the
region.
With the exception of Care Chemicals, all Business Areas achieved mid single-
digit to double-digit sales growth in local currencies in the third quarter.
Care Chemicals reported 1 % lower sales resulting from a reduction of the
exposure to lower margin products. Excluding this impact, Care Chemicals grew
5 % in local currencies, reflecting robust growth in Consumer Care,
predominantly in Crop Solutions and Personal Care while Industrial Applications
grew at a slower pace. Catalysis & Energy achieved 20 % higher sales, driven by
a continuing strong growth in the Catalysts business but also due to a
substantial improvement in sales in the start-up business Energy Storage. In
Natural Resources, both the Oil & Mining Services and Functional Minerals
businesses contributed to a 14 % sales increase. Plastics & Coatings sales grew
7 % on the back of a good sales performance of all three businesses: Additives,
Masterbatches and Pigments.
At 28.8 %, the gross margin improved from the 28.1 % recorded in the prior-year
period. Improved capacity utilization and slightly higher sales prices more than
offset a negative currency impact.
EBITDA before exceptional items from continuing operations rose 8 % in local
currencies, reaching CHF 211 million in Swiss francs compared to CHF 203 million
in the third quarter of 2013. This was entirely due to higher volumes that more
than compensated for the positive one-time effect from the acquisition of the
deep-water assets in the Gulf of Mexico one-year ago. This one-time item
together with higher volumes but an unfavorable mix and a still adverse currency
impact resulted in a slightly lower EBITDA margin before exceptional items of
14.0 % versus 14.1 % in the year-ago period. The unfavorable mix was mainly due
to the Plastics & Coatings Business Area in which Clariant has selectively put
more emphasis on volumes and cash generation.
Exceptional items including restructuring, impairment, and transaction-related
costs increased to CHF 17 million from CHF 4 million one year ago. Those items
were primarily related to measures to streamline operations within the Group.
Net income from continuing operations of CHF 58 million was recorded, compared
to CHF 129 million in the previous year. The decrease was entirely caused by
higher tax charges compared to the year-ago period and a one-time gain from the
joint venture transaction with Wilmar in the previous year.
Following the normal seasonal pattern, operating cash flow turned positive in
the third quarter and reached CHF 126 million compared to CHF 153 million in the
third quarter of 2013. After nine months, cash flow stood at CHF 13 million
compared to CHF 40 million one year ago. A strong cash generation is expected in
the fourth quarter.
Net debt stood at CHF 1.608 billion and was therefore higher than the CHF 1.500
billion recorded at year-end 2013. Gearing, reflecting net financial debt in
relation to equity, rose to 60 % from 54 % at the end of 2013. Compared to the
end of the first half-year of 2014, net debt and gearing were slightly lower at
the end of the quarter.
Outlook 2014 - Focus on performance, growth and innovation
In the last few months the optimism in the market concerning the further path of
the global economy has deteriorated, mainly with regard to the outlook for
Europe.
Clariant expects the business environment to remain challenging with
heterogeneous global economic developments and volatile currency markets. While
the general economic environment in the emerging markets is expected to remain
mixed but overall favorable, moderate growth should continue in the United
States. In contrast, Europe is expected to remain flat at best. Hence, Clariant
will focus on profitably growing the four Business Areas, cost efficiency and
strengthening innovation.
For the full-year 2014, Clariant expects around mid single-digit sales growth in
local currencies and an EBITDA margin before exceptional items above full-year
2013.
Clariant confirms its mid-term target of achieving a position in the top tier of
the specialty chemicals industry. This corresponds to an EBITDA margin before
exceptional items in the range of 16 % to 19 % and a return on invested capital
(ROIC) above the peer group average in 2015 and beyond.
Corporate Media Relations Investor Relations
Carsten Seum Ulrich Steiner
Phone +41 61 469 63 63 Phone +41 61 469 67 45
carsten.seum(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
Q3 2014 Media Release german:
http://hugin.info/100166/R/1866893/655885.pdf
Q3 2014 Media Release english:
http://hugin.info/100166/R/1866893/655893.pdf
Q3 2014 Financial Review:
http://hugin.info/100166/R/1866893/655886.pdf
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Source: Clariant AG via GlobeNewswire
[HUG#1866893]
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2014 - 06:00 Uhr
Sprache: Deutsch
News-ID 348170
Anzahl Zeichen: 11250
contact information:
Town:
Muttenz 1
Kategorie:
Business News
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