Clariant further expands operating margin
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Clariant AG /
Clariant further expands operating margin
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* Sales up 5% in local currencies on price increases, down 6% in CHF
* EBITDA margin before exceptional items at 16.1% compared to 12.9% in the
previous year
* EBIT margin before exceptional items rose to 13.4% from 10.1% in Q1 2010
* Positive cash flow from operations of CHF 17 million
* Net income of CHF 120 million compared to CHF 10 million a year ago
* Süd-Chemie acquisition closed, integration process initiated; consolidation
as of 21 April 2011
* 2011 outlook: Clariant expects a stable business environment in 2011, with
growth mainly coming from the emerging markets. Based on this scenario and
excluding Süd-Chemie, 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: "Clariant had a good start to 2011 with a strong
performance across the portfolio. Our ongoing focus on delivering a sustainably
better performance in the current businesses showed the expected results. By
adding the recently acquired Süd-Chemie activities to our portfolio, Clariant
will gain access to attractive new markets and to a strong R&D organization
focusing on market segments with significant future growth potential. While
continuing to manage our businesses for higher margins, the Süd-Chemie portfolio
activities will speed up the execution of our profitable growth strategy."
Key Financial Data
|
----------------------------------+--------+---------+-------+------
in CHF million | 2011 | 2010 | % CHF | % LC
----------------------------------+--------+---------+-------+------
Sales | 1 717 | 1 817 | -6 | 5
----------------------------------+--------+---------+-------+------
EBITDA before exceptional items | 277 | 235 | 18 | 33
----------------------------------+--------+---------+-------+------
- margin | 16.1% | 12.9% | |
----------------------------------+--------+---------+-------+------
EBIT before exceptional items | 230 | 183 | 26 | 43
----------------------------------+--------+---------+-------+------
- margin | 13.4% | 10.1% | |
----------------------------------+--------+---------+-------+------
EBIT | 201 | 74 | 172 | 210
----------------------------------+--------+---------+-------+------
Net income | 120 | 10 | |
----------------------------------+--------+---------+-------+------
Operating cash flow | 17 | 159 | |
----------------------------------+--------+---------+-------+------
Number of employees | 16 165 | 16 176* | |
----------------------------------+--------+---------+-------+------
( )
*) as of 31 December 2010
( )
Clariant Q1 2011 Performance
Muttenz, 6 May 2011 - Clariant, a world leader in specialty chemicals, today
announced sales of CHF 1.717 billion for the first quarter of 2011 compared to
CHF 1.817 billion in the previous-year period. Sales growth in local currencies
amounted to 5%. Due to the appreciation of the Swiss franc against most major
currencies, sales were 6% lower in Swiss francs year-on-year.
Overall trading conditions remained stable during the quarter with no restocking
activities observed as in the first quarter of 2010. At the regional level,
sales growth was quite uniform across all regions with growth rates of between
4% and 7%. The impact from both the disastrous earthquake in Japan and the
unrest in North Africa on the business was minimal so far.
In the first quarter, Clariant continued to consistently implement its
profitable growth strategy. As a result of the focus on margin management, sales
prices improved 5% year-on-year. While not fully compensating for higher raw
material costs yet, sales prices increased 2% sequentially with dynamics picking
up towards the end of the quarter. This successful price management, lower
production costs and a high capacity utilization drove the gross margin up to
29.8% from 28.7% in the same period a year ago.
Clariant further benefited from the positive impact of the implementation of its
2009/10 cost reduction initiatives. Selling, general & administrative (SG&A)
costs as a percentage of sales decreased substantially to 15.0% from 16.9% in
comparison to the prior-year period. The structurally lower cost base supported
the margin development. As a consequence of a better gross margin and lower
costs, the EBITDA before exceptional items increased to CHF 277 million,
compared to CHF 235 million one year ago. The corresponding margin rose to
16.1% from 12.9% in the previous-year period. The operating profit (EBIT) margin
before exceptional items improved to 13.4% from 10.1% in the same period one
year ago.
The EBITDA and EBIT margins after restructuring improved to 15.1% from 7.4% and
to 11.7% from 4.1% respectively, illustrating the lower restructuring and
impairment expenses after completion of the 2009/10 restructuring phase.
Cash flow from operations stood at CHF 17 million, considerably lower than the
CHF 159 million achieved in the previous year. After an overly tight management
of working capital towards the end of 2010, inventories returned to more
normalized levels, therefore negatively impacting the cash flow from operations
in Q1.
Net debt increased to CHF 250 million from CHF 126 million, resulting in a
gearing (net debt divided by equity) of 13% at the end of the first quarter of
2011, slightly higher than the 7% recorded at the end of 2010.
Update on Süd-Chemie acquisition
On 21 April, Clariant completed the purchase of 96.15% of the shares in Süd-
Chemie from One Equity Partners and the family shareholders. The overall
transaction value amounted to approximately EUR 1.9 billion (CHF 2.5 billion). A
public offer to acquire the outstanding shares from Süd-Chemie minority
shareholders will be initiated before the end of May 2011. Süd-Chemie will be
fully consolidated as of 21 April 2011.
After closing the acquisition, Clariant started the integration process in order
to achieve a quick and seamless integration of the Süd-Chemie businesses into
Clariant.
As further steps in the execution of its profitable growth strategy, Clariant
has acquired the North American de-icing specialist Octagon Process LLC on 19
March 2011, and the Saskatchewan, Canada-based oil services company Prairie
Petro-Chem on 1 April 2011.
Outlook 2011
Starting 2011, Clariant shifted its focus to continuous improvement and
profitable growth following the completion of restructuring in 2010. While the
continuous improvement initiative "Clariant Excellence" will make the lower cost
basis sustainable, the company is now focusing on creating value by investing in
future profitable growth.
Clariant expects global economic growth to continue in 2011 but at a slower pace
than in 2010. Exchange rates for the major currencies are expected to remain
volatile. Growth will mainly come from the emerging markets in Asia/Pacific and
Latin America. Commodity prices are expected to continue to rise in 2011,
leading to an increase in raw material costs in the mid-teens.
Clariant - excluding the recently acquired Süd-Chemie - 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
the 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 10
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/1513015/448785.pdf
Press release english:
http://hugin.info/100166/R/1513015/448786.pdf
Press release deutsch:
http://hugin.info/100166/R/1513015/448787.pdf
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Source: Clariant AG via Thomson Reuters ONE
[HUG#1513015]
Unternehmensinformation / Kurzprofil:
Datum: 06.05.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 54333
Anzahl Zeichen: 11832
contact information:
Town:
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Kategorie:
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