Clariant delivers significantly improved operating cash flow and a higher profitability in the first half of 2016
(Thomson Reuters ONE) -
Clariant AG /
Clariant delivers significantly improved operating cash flow and a higher
profitability in the first half of 2016
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The issuer is solely responsible for the content of this announcement.
* Sales increased by 3 % in local currency to CHF 2.899 billion
* EBITDA margin before exceptional items expanded to 15.3 % from 14.5 %
* Operating cash flow significantly improved to CHF 208 million compared
to CHF 65 million in the first half of 2015
* Net income was CHF 128 million
* 2016 outlook confirmed
"Clariant has considerably expanded operating cash flow and also significantly
improved its profitability in the first half of the year," said CEO Hariolf
Kottmann. "Our good business performance was primarily achieved by means of a
continued shift to high margin specialities, the impact of the differentiated
steering in Plastics & Coatings as well as good cost management. For 2016, we
are on track to achieve our targets despite the continued challenging economic
environment."
Key Financial Data
-------------------------------------------------------------------------------
Second quarter First half year
-------------------------------------------------------------------------------
in CHF million 2016 2015 % CHF % LC 2016 2015 % CHF % LC
Sales 1'421 1'406 1 2 2'899 2'871 1 3
EBITDA before exceptional 215 211 2 2 444 417 6 9
items
- margin 15.1 % 15.0 % 15.3 % 14.5 %
EBIT before exceptional 316 290 9 13
items
- margin 10.9 % 10.1 %
EBIT 267 272 -2 3
Net income 128 143
-------------------------------------------------------------------------------
Operating cash flow 208 65
Number of employees 17 060 17 213*
* as of 31 December 2015
First Half 2016 - Significant increase in operating cash flow and continued
improvement in margins
Muttenz, July 28, 2016 - Clariant, a world leader in specialty chemicals, today
announced first half 2016 sales of CHF 2.899 billion compared to CHF 2.871
billion in 2015. This corresponds to a 3 % growth in local currency driven by
higher volumes.
Growth was strongest in Latin America, where sales grew by 10 % in local
currency. In the Middle East & Africa, year-on-year sales were up 7 % in local
currency. North America saw a small decline of 2 % coming from a lower demand
in Catalysis and Natural Resources, while Asia grew at 2 %, with more stability
in China, and Europe at 1 % driven by volume increases.
The improved business performance in the first half year primarily stemmed from
higher growth in Care Chemicals and Plastics & Coatings. In Care Chemicals,
sales in local currency increased by 5 % to CHF 750 million. Sales in Catalysis
showed a decline of 9 % in local currency, reaching CHF 285 million due to a
lower demand in different regions particularly in China.
Despite the difficult market environment, sales in Natural Resources were stable
in local currency and amounted to CHF 557 million. There was a slight decline in
Oil and Mining Services, whereas Functional Minerals continued to grow. In
Plastics & Coatings, sales in local currency grew by 5 % to CHF 1.307 billion.
The good sales performance in Plastics & Coatings was seen across all regions.
The EBITDA before exceptional items increased by 9 % in local currency and
reached CHF 444 million, compared to CHF 417 million in the previous year.
Major contributors to the profitability improvement were Care Chemicals and
Plastics & Coatings.
The corresponding EBITDA margin before exceptional items of 15.3 % was
significantly above the previous year's level of 14.5 %. Care Chemicals, Natural
Resources and Plastics & Coatings all substantially improved EBITDA margins
before exceptional items year-on-year. Catalysis was below the previous year's
level largely due to portfolio mix effects.
Net income amounted to CHF 128 million compared to CHF 143 million in the
previous year mainly reflecting higher restructuring costs. When adjusted for
the proceeds from the sale of the energy storage business in the first half of
2015, net income was comparable to the previous year figure.
Operating cash flow significantly improved to CHF 208 million versus CHF 65
million in the previous year reflecting Clariant's priority to increase
operating cash flow in 2016.
Net debt was CHF 1.526 billion compared to CHF 1.312 billion recorded at year-
end 2015. The gearing increased to 65 % from 53 % at the end of 2015 mirroring
the usual seasonal increase in the first half of the year.
Second quarter 2016 - Maintained progress in margin expansion
In the second quarter of 2016, sales grew by 2 % in local currency to CHF 1.421
billion. Volumes were up by 2 % compared to the same period last year.
On a regional level, sales growth was led by Latin America which recorded an
increase of 8 % in local currency. Asia grew at 5 % in local currency with some
improvement in China. In the Middle East & Africa, sales were up 8 % in local
currency year-on-year. North America saw a decline of 7 % stemming from a lower
demand in Catalysis and Natural Resources. Europe, however, grew at 2 % driven
by volume increases.
Care Chemicals reported sales of CHF 339 million with a local currency sales
growth of 4 %. In Plastics & Coatings, sales rose by 6 % in local currency to
CHF 668 million, with a strong sales performance in each of the three
businesses, Masterbatches, Pigments and Additives. Sales in Natural Resources
were CHF 265 million up 1 % in local currency. This growth was driven by
Functional Minerals. Catalysis sales were lower by 13 % in local currency to CHF
149 million.
EBITDA before exceptional items rose by 2 % in local currency to CHF 215
million.
The EBITDA margin before exceptional items expanded 10 basis points to 15.1 % in
the second quarter driven by a favorable product mix and good cost management
primarily in Care Chemicals, Natural Resources and Plastics & Coatings.
Outlook 2016 - to progress EBITDA margin and operating cash flow
Clariant expects the uncertain environment, characterized by a high volatility
in commodity prices and currencies, to continue. In emerging markets, we
anticipate the economic environment to remain challenging and with increased
volatility; we expect moderate growth in the United States, while growth in
Europe is expected to remain stable but weak.
For 2016, in spite of the increasingly challenging economic environment,
Clariant is confident to achieve growth in local currency, as well as
progression in operating cash flow and EBITDA margin before exceptional items.
Clariant confirms its mid-term target of reaching 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.
Corporate Media Relations Investor Relations
Carsten Seum Anja Pomrehn
Phone +41 61 469 63 63 Phone +41 61 469 67 45
carsten.seum(at)clariant.com anja.pomrehn(at)clariant.com
Claudia Kamensky Steven Massheder
Phone +41 61 469 63 63 Phone +41 61 469 68 58
claudia.kamensky(at)clariant.com steven.massheder(at)clariant.com
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LinkedIn.
H1 2016 Financial Review:
http://www.clariant.com/H1_2016_FinRev
H1 2016 Press Release english:
http://www.clariant.com/H1_2016_EN
This announcement is distributed by GlobeNewswire on behalf of
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(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Clariant AG via GlobeNewswire
[HUG#2031140]
Unternehmensinformation / Kurzprofil:
Datum: 28.07.2016 - 07:00 Uhr
Sprache: Deutsch
News-ID 485870
Anzahl Zeichen: 9658
contact information:
Town:
Muttenz 1
Kategorie:
Business News
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