Clariant successfully completes restructuring in 2010; profitability to further improve in 2011
(Thomson Reuters ONE) -
Clariant AG /
Clariant successfully completes restructuring in 2010; profitability to further
improve in 2011
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* Full-year sales up 13% in local currency and 8% in CHF
* Operating income margin before exceptional items of 9.8% compared to
4.1% in 2009
* Cash flow from operations of CHF 642 million after CHF 757 million in the
previous year
* Net debt reduced from CHF 545 million in 2009 to CHF 126 million
* Net income amounted to CHF 191 million compared to a net loss of CHF 194
million in 2009
* 2011 Outlook: Clariant expects a stable business environment in 2011, with
growth mainly coming from the emerging markets. Based on this scenario,
Clariant forecasts local currency sales growth in the low single-digit range
and an EBITDA margin before exceptional items above that of 2010.
CEO Hariolf Kottmann commented: "2010 marks a milestone in Clariant's history.
The extensive restructuring program of the last two years has been successfully
completed. All targets defined at the beginning of the restructuring period have
been achieved. Today Clariant is a specialty chemicals company characterized by
an above sector average return on invested capital, a good cash flow generation
and a strong balance sheet. Based on this solid platform, we will now move
forward by sustaining these achievements while at the same time driving
profitable growth to create further value."
Key Financial Data
| Fourth Quarter | Full Year
---------------------------+-----+-----+-----+----+-------+--------+-----+----
in CHF million |2010 |2009 |% CHF|% LC| 2010 | 2009 |% CHF|% LC
---------------------------+-----+-----+-----+----+-------+--------+-----+----
Sales |1 700|1 710| -1 | 8 | 7 120 | 6 614 | 8 | 13
---------------------------+-----+-----+-----+----+-------+--------+-----+----
EBITDA before exceptionals| 170 | 164 | 4 | 14 | 901 | 495 | 82 | 92
---------------------------+-----+-----+-----+----+-------+--------+-----+----
- margin |10.0%|9.6% | | | 12.7% | 7.5% | |
---------------------------+-----+-----+-----+----+-------+--------+-----+----
EBIT before exceptionals | 120 | 107 | 12 | 24 | 696 | 270 | 158 |172
---------------------------+-----+-----+-----+----+-------+--------+-----+----
- margin |7.1% |6.3% | | | 9.8% | 4.1% | |
---------------------------+-----+-----+-----+----+-------+--------+-----+----
EBIT | 31 | -23 | - | - | 366 | -20 | - | -
---------------------------+-----+-----+-----+----+-------+--------+-----+----
Net income / loss | 47 | -67 | - | - | 191 | -194 | - | -
---------------------------+-----+-----+-----+----+-------+--------+-----+----
Operating cash flow | 277 | 224 | | | 642 | 757 | |
---------------------------+-----+-----+-----+----+-------+--------+-----+----
Number of employees | | | | |16 176*|17 536**| |
---------------------------+-----+-----+-----+----+-------+--------+-----+----
(*) as of December 31, 2010 (**) as of December 31, 2009
Clariant 2010 Performance
Muttenz, February 16, 2011 - Clariant, a world leader in specialty chemicals,
today announced that 2010 sales totaled CHF 7.120 billion, compared to CHF
6.614 billion in 2009. This represents an increase of 13% in local currency and
8% in Swiss francs.
The double-digit sales growth in local currency was the result of the robust
global economic growth supported by restocking activities in parts of the
portfolio in the first half of the year. All regions reported double-digit sales
growth in local currencies. In the course of the year, demand returned to normal
seasonal patterns, with lighter demand during the summer months and a slowdown
in industrial production towards the end of the year. Lower idle facility costs,
successful price management and lower production costs resulting from the
benefits of the restructuring program pushed the gross margin from 23.5% in the
year-ago period to 27.9%.
During the reporting period, Clariant continued to focus on reducing its
Selling, General & Administration (SG&A) costs. As a percentage of sales, SG&A
costs made further progress and decreased substantially from 17.6% to 16.5% in
comparison to prior year period. As a result of the improved gross margin and
the lower cost base, operating income (EBIT) before exceptional items increased
to CHF 696 million, compared to CHF 270 million in the previous year. The
corresponding margin rose from 4.1% in 2009 to 9.8%.
This year marked the end of the restructuring program, with all business units
contributing to the strong operating profits by reducing their cost levels and
optimizing their structures and processes. Restructuring and impairment costs
amounted to CHF 331 million, mainly in connection with site closures within the
global asset network optimization program (GANO), and a further reduction in
headcount. The number of job positions was reduced from 17,536 at year-end 2009
to 16,176. In the reporting period, Clariant returned to a net income of CHF
191 million compared to a net loss of CHF 194 million in the previous year.
Clariant's ability to generate cash remained strong despite a double-digit year-
on-year increase in sales volumes. Cash flow from operations reached CHF 642
million, driven by a combination of better operating results and tight
management of net working capital.
Clariant further strengthened its balance sheet by increasing its cash position
to CHF 1,419 million, compared to CHF 1,140 million in 2009. At the same time,
net debt was reduced to CHF 126 million, from CHF 545 million at the end of
2009. The company's gearing (net debt divided by equity) was 7% at the end of
2010, significantly lower than the 29% recorded at the end of 2009.
Clariant Q4 2010 Performance
Clariant reported 8% sales growth in local currency in the fourth quarter. In
Swiss francs, sales were slightly lower, at CHF 1,700 million compared to CHF
1,710 million a year ago. Sales volume increased by 4%, and sales prices were up
4% year-on-year. Sequentially, sales prices increased by 1% while raw material
costs remained unchanged. Most business units experienced solid underlying
demand for their products and services, with Industrial & Consumer Specialties
and Oil & Mining Services outperforming the rest of the group. At regional
level, the highest growth rates were in Europe and North America. Due to the
higher comparable base, Asia/Pacific and Latin America grew slower, but still at
single-digit rates.
The return to normal seasonal patterns in 2010, namely a slowdown in industrial
production in the fourth quarter, was amplified by a strong focus on inventory
reduction. This led to an increase in costs due to underutilization of
production capacities compared to the first three quarters of 2010. As a result,
the gross margin was lower than in the first three quarters, but still improved
to 26.0% from 25.0% in the year-ago period. The EBIT margin before exceptional
items climbed to 7.1%, from 6.3% in the already-strong fourth quarter of 2009,
despite higher non-recurring corporate costs related to the restructuring
program "Project Clariant" and a non-recurring payment for pension plans.
Operating cash flow stood at CHF 277 million, up from CHF 224 million in the
previous year, underpinned by the higher operating result and tight management
of working capital towards the end of the year.
Having completed the 2009/10 restructuring program at the end of 2010, Clariant
will invest in profitable growth in the years ahead. The Board of Directors will
therefore recommend to Clariant's 16th General Assembly on March 31, 2011 to
refrain from paying dividends, grants or payouts to shareholders for 2010.
Outlook 2011
Starting 2011, Clariant shifted its focus on continuous improvement and
profitable growth after restructuring has been completed in 2010. While the
continuous improvement initiative "Clariant Excellence" launched in 2009 will
make the lower cost basis sustainable, the company now focuses on creating value
by investing in future profitable growth.
For 2011, Clariant expects global economic growth to continue but at a slower
pace than in 2010. Exchange rates of the most important currencies are expected
to remain volatile. Growth will mainly come from the emerging markets in
Asia/Pacific and Latin America. After remaining momentarily stable in the second
half of 2010, commodity prices are expected to rise again in 2011. Clariant
expects raw material costs to increase in the high single-digit range.
Clariant expects 2011 sales growth in local currencies in the low single-digit
range. Additional benefits from the restructuring measures taken during the last
two years will improve the company's cost position, resulting in a positive
impact on the operating result. The EBITDA margin before exceptional items is
therefore expected to rise above 2010 level.
- end -
Contacts
Media Relations
Ulrich Nies Phone: +41 61 469 61 58
E-Mail: ulrich.nies(at)clariant.com
Stefanie Nehlsen Phone: +41 61 469 67 42
E-Mail: stefanie.nehlsen(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 16,200 people. Head-quartered in Muttenz near Basel, Switzerland,
it generated sales of CHF 7.1 billion in 2010. 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
--- End of Message ---
Clariant AG
Rothausstrasse 61 Muttenz 1 Switzerland
ISIN: CH0012142631;
Financial Review:
http://hugin.info/100166/R/1489416/424783.pdf
Press Release english:
http://hugin.info/100166/R/1489416/424802.pdf
Press Release deutsch:
http://hugin.info/100166/R/1489416/424804.pdf
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Source: Clariant AG via Thomson Reuters ONE
[HUG#1489416]
Unternehmensinformation / Kurzprofil:
Datum: 16.02.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 51521
Anzahl Zeichen: 13217
contact information:
Town:
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Kategorie:
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