Clariant reports strong profitability on solid sales
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Clariant AG /
Clariant reports strong profitability on solid sales
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* Q3 sales up 8% in local currencies, nine month sales up 14% in local
currencies
* Q3 operating income before exceptional items increased 70% to CHF 182
million compared to CHF 107 million year on year.
* Q3 operating income margin before exceptional items reached 10.6% compared
to 6.3% a year ago.
* Q3 cash flow from operations amounted to CHF 173 million, driven by strong
operating result and sustainable Net Working Capital management, compared to
CHF 193 million in the previous year period.
* Outlook: For the remainder of the year, Clariant expects stable trading
conditions. Based on this expectation, the results to date and the ongoing
restructuring efforts, Clariant guides for sales growth in the high-single
digit percentage range in local currency and an operating margin before
exceptionals for the full-year above 9%.
CEO Hariolf Kottmann commented: "Overall, Clariant has further improved in the
first nine months. Sales growth was solid, profitability improved and cash flow
remained strong. Our efforts to generate cash, decrease costs and reduce
complexity have progressed according to plan. In addition, we were able to
offset the rising raw material costs with higher sales prices and maintained the
gross margin at a high level. In the traditionally weaker fourth quarter, we
forecast trading conditions to remain unchanged. By the end of 2010, a solid
basis for Clariant will have been established that allows us to shift our focus
from restructuring to profitable growth."
Key Financial Data
| Third quarter | Nine months
-------------------------+-----+-----+-----+----+---------+---------+-----+----
in CHF million |2010 |2009 |% CHF|% LC| 2010 | 2009 |% CHF|% LC
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Sales |1 709|1 691| 1 | 8 | 5 420 | 4 904 | 11 | 14
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBITDA before | 232 | 163 | 42 | 53 | 731 | 331 | 121 |131
exceptional items | | | | | | | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
- margin |13.6%|9.6% | | | 13.5% | 6.7% | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBIT before exceptional | 182 | 107 | 70 | 82 | 576 | 163 | 253 |268
items | | | | | | | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
- margin |10.6%|6.3% | | | 10.6% | 3.3% | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBIT | 137 | 71 | 93 |105 | 335 | 3 | - | -
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Net income / loss | 109 | 25 | | | 144 | -127 | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Operating cash flow | 173 | 193 | | | 365 | 533 | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Number of employees | | | | |17 041(1)|17 536(2)| |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
( )
(1) as of 30 September 2010 (2) as of 31 December 2009
Clariant Q3, 2010 Performance
Muttenz, November 03, 2010 - Clariant, a world leader in specialty chemicals,
today announced sales of CHF 1.709 billion for the third quarter of 2010
compared to CHF 1.691 billion year on year. Sales growth in local currency
amounted to 8%. Due to the appreciation of the Swiss Franc against most major
currencies, sales growth in Swiss Francs was reduced to 1%.
The demand for the products and services of Clariant remained solid. All
Business Units (BU) recorded good sales growth in local currency compared to an
already high basis of Q3 2009 sales. Sequentially, sales were lower, showing the
return to normal seasonality.
From a regional perspective, sales growth in North America and Europe was
particularly strong. This reflects a catch up in demand from the mature markets
which recovered later from the financial crisis than the emerging markets.
Clariant managed to compensate for a 2% rise in raw material costs by an
increase of sales prices of 1% sequentially. The gross margin amounted to 27.9%
compared to 25.3% in Q3, 2009 resulting from both better capacity utilization
and sales price increases. As raw material costs are predicted to continuously
uptake in the coming months, Clariant will further implement price increases
where necessary.
As a result of the ongoing focus on cost reduction, SG&A costs decreased to
15.6% of sales, compared to 17.3% a year ago. In absolute terms, SG&A costs fell
to CHF 267 million from CHF 292 million in the same period a year ago.
Consequently the operating income before exceptional items increased 70% to CHF
182 million compared to CHF 107 million year on year. The operating income
margin before exceptional items improved to 10.6% from 6.3% in the previous
year.
Restructuring and impairment costs reached CHF 45 million. The number of job
positions was reduced by 227 during the quarter, to 17,041 at the end of the
third quarter. Due to the ongoing restructuring efforts the number of job
positions will further decrease until the end of the year to well below 17,000
compared to 17,536 by year-end 2009.
The company recently announced the finalization of its Global Asset Network
Optimization (GANO) assessment with measures affecting the sites in Reinach
(Switzerland), Nanterre (France), McHenry (USA), Delta (Canada), Sefakoy
(Turkey), Guatemala City (Guatemala), Roha (India), and Shizuoka (Japan). The
implementation of all GANO measures announced in 2009 and 2010 will be finalized
by 2013 and deliver cost savings of at least CHF 100 million per year.
The net income increased to CHF 109 million compared to CHF 25 million year on
year - also positively impacted from a one-off tax gain of CHF 45 million.
Resulting from a strong operating result and sustainable Net Working Capital
management the cash flow from operations amounted to a high CHF 173 million and
came close to the CHF 193 million from the third quarter of 2009.
The company's cash position - including an investment of CHF 643 million in
short-term deposits - further improved to CHF 1 272 million from CHF 1 140 at
year-end 2009.
Clariant continued to reduce its net debt to CHF 302 million from CHF 545
million at the end of 2009. The gearing - net debt divided by equity - improved
to 16%, compared to 29% by year-end 2009.
CFO Patrick Jany commented: "Clariant had a good third quarter. As expected,
year-on-year sales growth was lower in the third quarter than in the first half-
year 2010, due to the higher basis in the year-earlier period. Nevertheless our
stringent restructuring efforts as well as our ability to offset higher raw
material costs with sales price increases resulted in an improved profitability
and an excellent cash generation."
Outlook
Clariant expects trading conditions to remain stable for the remainder of the
year. In addition, raw material costs are expected to rise further but at a
lower pace than in the first nine months of the year.
Clariant will continue to focus on generating cash, decreasing costs and
reducing complexity. The ongoing restructuring program will be finalized by the
end of 2010 and the focus will then shift to profitable growth. Some of the
measures - in particular related to the GANO activities - will not be completely
implemented before 2013.
Based on the expected stable trading conditions, the nine months result and the
continuing restructuring efforts, Clariant aims for a high single digit sales
growth in local currency and an EBIT margin before exceptionals of above 9% for
the full year. The cash flow from operations will remain strong.
Clariant confirms its target of a sustainable, above-industry-average return on
invested capital (ROIC) by the end of 2010.
- end -
Contacts
Media Relations
Stefanie Nehlsen Phone: +41 61 469 67 42
E-Mail: stefanie.nehlsen(at)clariant.com
Ulrich Nies Phone: +41 61 469 61 50
E-Mail: ulrich.nies(at)clariant.com
Investor Relations
Ulrich Steiner Phone: +41 61 469 67 45
E-Mail: ulrich.steiner(at)clariant.com
Siegfried Schwirzer Phone: +41 61 469 67 49
E-Mail: siegfried.schwirzer(at)clariant.com
Clariant - Exactly your chemistry.
Clariant is a global leader in the field of specialty chemicals. Strong business
relationships, commitment to outstanding service and wide-ranging application
know-how make Clariant a preferred partner for its customers.
Clariant, which is represented on five continents with over 100 group companies,
employs around 17 000 people. Head-quartered in Muttenz near Basel, Switzerland,
it generated sales of CHF 6.6 billion in 2009. Clariant is organized into ten
Business Units: Additives; Detergents & Intermediates; Emulsions; Industrial &
Consumer Specialties; Leather Services; Masterbatches; Oil & Mining Services;
Paper Specialties; Pigments; and Textile Chemicals.
Clariant is committed to sustainable growth, which is derived from its own
innovative strength. Clariant's world-class products and services play a key
role in its customers' manufacturing processes and add value to their end
products. The company's success is based on the know-how of its people and their
ability to identify new customer needs at an early stage and to work together
with customers to develop innovative, efficient solutions.
www.clariant.com
[HUG#1458248]
--- End of Message ---
Clariant AG
Rothausstrasse 61 Muttenz 1 Switzerland
ISIN: CH0012142631;
Media release english:
http://hugin.info/100166/R/1458248/397754.pdf
Financial Review:
http://hugin.info/100166/R/1458248/397756.pdf
Media release deutsch:
http://hugin.info/100166/R/1458248/397870.pdf
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Source: Clariant AG via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 03.11.2010 - 07:00 Uhr
Sprache: Deutsch
News-ID 48331
Anzahl Zeichen: 12381
contact information:
Town:
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Kategorie:
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