Solid performance in a difficult environment - full-year guidance confirmed
(Thomson Reuters ONE) -
Clariant AG /
Solid performance in a difficult environment - full-year guidance confirmed
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The issuer is solely responsible for the content of this announcement.
* Q2 sales up 14% in local currencies on solid business fundamentals and price
increases, but down 1% in CHF as Swiss franc continued to appreciate. Süd-
Chemie results consolidated for May and June 2011.
* Q2 EBITDA before exceptional items at CHF 241 million, down from CHF 264
million a year ago, negative currency impact of CHF 69 million.
* Q2 EBITDA margin before exceptional items reached 12.9% compared to 13.9% a
year ago; Q2 EBITDA margin at constant currencies 14.3%.
* Q2 cash flow from operations of minus CHF 101 million as inventories rose
due to relocation of production assets and the usual seasonality.
* Integration of Süd-Chemie progressing as planned.
* Outlook: Clariant expects a more difficult but nevertheless solid business
environment in H2 2011, characterized by softening demand. Based on this
scenario, no further deterioration in currency markets assumed, and
including Süd-Chemie consolidated for eight months, Clariant confirms its
guidance for the full-year 2011 with sales between CHF 7.8 - 8.0 billion and
an EBITDA margin of 13.5% - 14.5%.
CEO Hariolf Kottmann commented: "In the first half of 2011, business
fundamentals were robust although global economic growth dampened compared to
2010. This is reflected in an improved underlying operating performance year-on-
year. The results, however, have been adversely impacted by the massive
appreciation of the Swiss franc. The recently acquired Süd-Chemie has met our
expectations in the first two months of consolidation and the integration into
Clariant is progressing as planned. These developments give us the confidence to
confirm our targets for the full-year 2011."
Key Financial Data
| Second quarter* | First half year*
-------------------------+-----+-----+-----+----+---------+---------+-----+----
in CHF million |2011 |2010 |% CHF|% LC| 2011 | 2010 |% CHF|% LC
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Sales |1'870|1'894| -1 | 14 | 3'587 | 3'711 | -3 | 10
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBITDA before | 241 | 264 | -9 | 5 | 518 | 499 | 4 | 19
exceptional items | | | | | | | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
- margin |12.9%|13.9%| | | 14.4% | 13.4% | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBIT before exceptional | 178 | 211 | -16 | -1 | 408 | 394 | 4 | 19
items | | | | | | | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
- margin |9.5% |11.1%| | | 11.4% | 10.6% | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
EBIT | 163 | 124 | 31 | 54 | 364 | 198 | 84 |112
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Net income | 40 | 25 | - | - | 160 | 35 | - | -
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Operating cash flow |-101 | 33 | | | -84 | 192 | |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
Number of employees | | | | |22 166(1)|16 176(2)| |
-------------------------+-----+-----+-----+----+---------+---------+-----+----
*2011 includes Süd-Chemie figures consolidated for two months (May/June)
(1) as of June 30, 2011 (2) as of December 31, 2010
Clariant Q2, 2011 Performance
Muttenz, July 27, 2011 - Clariant, a world leader in specialty chemicals, today
announced sales of CHF 1.870 billion in the second quarter 2011, compared to CHF
1.894 billion in the previous year. This includes Süd-Chemie (SC) sales of CHF
216 million for May and June. In local currencies, sales growth amounted to
14%. Due to the massive appreciation of the Swiss franc against most major
currencies, sales were 1% lower in Swiss francs year-on-year.
The softening demand compared to the previous year and the unusually high
comparable basis of the second quarter 2010 is reflected in a 5% decrease in
volumes. Local currency sales saw double-digit growth in the Business Units
Additives, Industrial & Consumer Specialties and Oil & Mining Services. At the
regional level, a mixed performance was achieved with double-digit sales growth
in local currencies in Asia, Europe, North America and Middle East & Africa but
slightly lower sales growth in Latin America.
Raw material costs increased by 14% compared to the previous-year period. A
strict focus on margin management led to an improvement in sales prices of 7%,
thereby fully compensating for the increased raw material costs. Sequentially, a
3% increase in sales prices therefore fully offset a 5% increase in raw material
costs. Despite successful margin management, the gross margin fell to 27.5% from
28.9% a year ago. This is mainly due to lower volumes and an unfavorable
currency development.
The second quarter was marked by weakness in demand in April and rather solid
demand in the rest of the quarter, although first signs of a slowdown in demand
have been observed in some businesses. The sovereign debt crisis in Europe, the
slow economic recovery in the United States, higher inflation rates in the
emerging markets and the ongoing unrests in North Africa and the Middle East
have led to a certain market caution.
Year-on-year, SG&A costs were virtually unchanged in both absolute terms and in
percentage of sales, with CHF 307 million in Q2 2011 (16.4% of sales) compared
to CHF 309 million (16.3% of sales). Although costs remained under control,
EBITDA before exceptional items decreased to CHF 241 million (margin 12.9%) from
CHF 264 million (margin 13.9%) a year ago. The operating profit (EBIT) before
exceptional items stood at CHF 178 million (margin 9.5%) compared to CHF 211
million (margin 11.1%) in the second quarter 2010.
At constant currencies, EBITDA and EBIT before exceptional items would have been
CHF 69 million (1.4 percentage points) and CHF 62 million (1.6 percentage
points) higher respectively, i.e. margins would be virtually unchanged compared
to the second quarter of last year.
Net income rose to CHF 40 million from CHF 25 million in the year-ago period,
illustrating the lower restructuring and impairment expenses after completion of
the 2009/10 restructuring phase.
Due to the slight increase in inventories, the relocation of production to Asia
(Textile Chemicals) and Spain (Paper Specialties), and the normal seasonality,
the cash flow from operations was minus CHF 101 million, below last year's CHF
33 million. Net Working Capital as a percentage of sales remained under control
with 20.0% compared to 20.2% in the previous-year period.
The acquisition of Süd-Chemie led to an increase in net debt to CHF 1,791
million from CHF 126 million at year-end, resulting in a gearing (net debt
divided by equity) of 62% at the end of the second quarter of 2011. With the
issuance of two Swiss franc bonds totaling CHF 250 million, the debt maturity
profile has been extended at favorable conditions until 2015/17. The size of the
bond issue has been increased by another CHF 50 million in July.
Update on Süd-Chemie acquisition
On April 21, Clariant completed the purchase of 96.15% of the shares in Süd-
Chemie from
One Equity Partners and the family shareholders. A public offer to acquire the
shares from Süd-Chemie minority shareholders expired on June 14. Clariant
acquired an additional 2.49% of Süd-Chemie, bringing the total shares acquired
to 98.64%. The squeeze-out procedure to acquire all of the remaining shares in
Süd-Chemie AG from minority shareholders was initiated on June 24 and is
expected to be completed in the first half of 2012.
The integration process got underway in April. All project teams are fully
operational and the integration is progressing according to plan.
In the second quarter, the consolidation of Süd-Chemie for two months
contributed CHF 216 million in sales, CHF 34 million in EBITDA and CHF 17
million in EBIT before exceptional items.
Outlook 2011
At the beginning of 2011, Clariant shifted its focus from restructuring to
continuous improvement and profitable growth. While the continuous improvement
initiative "Clariant Excellence" will make the competitive cost basis
sustainable, the company is now focusing on creating value by investing in
future profitable growth.
Clariant expects a more difficult but nevertheless solid business environment in
H2 2011, characterized by a softening demand. Exchange rates for the major
currencies are expected to remain volatile. Commodity prices look set to
continue to rise in the second half-year 2011, leading to an increase in raw
material costs in the mid-teens compared to 2010.
For 2011, Clariant - including eight months of consolidated Süd-Chemie figures -
expects sales in the range of CHF 7.8 to 8.0 billion and an EBITDA margin before
exceptional items of 13.5% to 14.5%.
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 as of year-end 2010. Head-quartered in Muttenz near
Basel, Switzerland, it generated sales of CHF 7.1 billion in 2010. Clariant is
organized into 12 Business Units: Additives; Catalysis & Energy; Detergents &
Intermediates; Emulsions; Functional Materials; 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;
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Unternehmensinformation / Kurzprofil:
Datum: 27.07.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 56727
Anzahl Zeichen: 13651
contact information:
Town:
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Kategorie:
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