Clariant AG : Operationally on track, Süd-Chemie on target
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Clariant AG /
Clariant AG : Operationally on track, Süd-Chemie on target
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* Solid operational performance with differentiated demand picture from
business to business, strong headwind from currencies; Catalysis & Energy
with the expected pick-up in sales.
* Q3 sales up 25% in local currency and 9% in Swiss francs, driven by
acquisitions and higher sales prices.
* Q3 EBITDA before exceptional items at CHF 216 million, down from CHF 232
million in the previous-year period, negative currency impact of CHF 73
million.
* Q3 EBITDA margin before exceptional items reached 11.6% compared to 13.6% a
year ago; 13.4% at constant currencies.
* Q3 cash flow from operations turned positive at CHF 105 million compared to
CHF -101 million in Q2 2011 and CHF 173 million in Q3 2010.
* Outlook: Clariant expects a similar trading environment to the third quarter
until year-end 2011, characterized by further softening demand, volatile
currencies and stable raw material costs. For the full-year 2011, Clariant
confirms its guidance, with sales between CHF 7.0 and 7.2 billion and an
EBITDA margin of 12.8% to 13.2%.
CEO Hariolf Kottmann commented: "In the first nine months of 2011, Clariant has
further progressed in making the achievements of the last two years sustainable,
despite strong headwinds from currency markets and a softening global economy.
We have managed to improve underlying profitability by consistently applying
strict performance management while at the same time shifting management focus
toward profitable growth. From the solid base achieved - both operationally and
financially - we will move forward in our strategy implementation and continue
to transform Clariant in the coming years to achieve our ambitious 2015
targets."
Key Financial Data
Third quarter Nine months( )
-------------------------------------------------------------------------------
in CHF million 2011( a) 2010 % CHF % LC 2011( b) 2010 % CHF % LC
Sales 1 865 1 709 9 25 5 452 5 420 1 15
EBITDA before 216 232 -7 16 734 731 0 17
exceptional items( c)
- margin 11.6% 13.6% 13.5% 13.5%
EBIT before 144 182 -21 2 552 576 -4 14
exceptional items( c)
- margin 7.7% 10.6% 10.1% 10.6%
EBIT 110 137 -20 8 474 335 41 69
Net income 81 109 - - 241 144 - -
Operating cash flow 105 173 21 365
Number of employees 22 217(1) 16 176(2)
-------------------------------------------------------------------------------
(a) including Süd-Chemie( b) 2011 includes Süd-Chemie figures
consolidated for five months (May-Sept)
(c) 2011 "exceptional items" include an additional charge of CHF 11 mn as a
result of the sale of Süd-Chemie inventories revalued to
fair value less cost to sell
(1) as of 30 September 2011 (2) as of 31 December 2010
Clariant Q3, 2011 Performance
Muttenz, 31 October 2011 - Clariant, a world leader in specialty chemicals,
today announced sales of CHF 1.865 billion in the third quarter 2011, compared
to CHF 1.709 billion in the previous year. This includes Süd-Chemie (SC) sales
of CHF 356 million. In local currencies, sales growth amounted to 25%. In Swiss
francs, year-on-year sales were only 9% higher as the Swiss franc continued to
strengthen against most major currencies especially in the first half of the
third quarter.
Sales growth was driven by higher prices and the acquisition of Süd-Chemie. The
less cyclical Business Units Additives, Catalysis & Energy, Functional
Materials, Industrial & Consumer Specialties and Oil & Mining Services -
accounting for roughly 50% of group sales - showed the most dynamic growth. By
contrast, the slowdown in demand in the more cyclical businesses already
observed in June has spread along the plastics value chain and into the coatings
business. Regionally, the traditional markets of Europe and North America
outpaced Asia/Pacific, Latin America and the Middle East & Africa. In the
emerging markets a slow-down in the dynamic growth of the last few quarters has
been observed.
Excluding Süd-Chemie, sales increased by 5%, driven by a 9% increase in sales
prices, while volumes decreased 4% compared to the previous-year period as a
result of a combination of softening demand in some businesses and the
deliberate loss of unprofitable contracts.
The gross margin fell to 26.1% from 27.9% a year ago, mainly due to the negative
currency impact and volume effects. In a slower global economic growth
environment, commodity prices stabilized during the quarter. As a consequence,
raw material costs remained flat compared to the second quarter 2011, but were
13% higher than in the previous-year period. As expected, increased raw material
costs were fully absorbed by higher sales prices, both year-on-year and
sequentially.
EBITDA before exceptional items fell to CHF 216 million (margin 11.6%) from CHF
232 million (margin 13.6%) a year ago. This was mainly the result of unfavorable
currency developments which peaked in the third quarter. Operating profit (EBIT)
before exceptional items stood at CHF 144 million (margin 7.7%) compared to CHF
182 million (margin 10.6%) in the third quarter of 2010. Both EBITDA and EBIT
before exceptional items were negatively impacted by CHF 73 million (EBITDA) and
CHF 63 million (EBIT) respectively from currencies. Net income was CHF 81
million compared to CHF 109 million in the previous-year period.
Cash flow from operations improved to CHF 105 million, below last year's CHF
173 million, but clearly above the CHF -101 million reported in the second
quarter of 2011. Due to lower sales, Net Working Capital as a percentage of
sales increased to 21.3% compared to 19.7% in the previous-year period, but is
on track to meet the year-end 2011 target of below 20% of sales.
Due to the acquisition of Süd-Chemie, net debt increased to CHF 1 812 million
from CHF 126 million at year-end, resulting in a gearing (net debt divided by
equity) of 62% at the end of the third quarter of 2011. The cash position was
strong with CHF 1.029 billion in cash and cash equivalents at quarter-end. The
extension of the maturity profile is underway with the issuance of bonds
totaling CHF 300 million in the Swiss francs market since May. After the
reporting period, another EUR 365 million in certificates of indebtedness with
terms of three years and four and a half years have been raised in October.
Süd-Chemie delivers, integration on track
In the first full quarter of consolidation into Clariant, the two new Süd-Chemie
Business Units - Catalysis & Energy and Functional Materials - developed
according to plan, with the Catalysts business picking-up in the third quarter
as expected. Catalysis & Energy reported an EBITDA before exceptionals of CHF
41 million (margin 21.6%), and Functional Materials CHF 18 million (margin
10.8%).
The integration of Süd-Chemie is progressing as planned with all project teams
fully operational. Based on current insights and integration experience, the
anticipated EUR 75-95 million EBITDA improvements to 2013 are confirmed.
Integration synergies and functional excellence efforts are expected to lead to
redundancy for some 700 FTE worldwide, primarily in G&A functions but also from
improvement measures in production. The implementation of the measures is
expected in the timeframe from 2012 to 2014 with a focus on 2012/13 once the
squeeze-out becomes effective.
Going forward, the focus will be on the continued delivery of the business
objectives of Süd-Chemie while progressing with the integration and the squeeze-
out process.
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.
In the fourth quarter, Clariant expects the general slow-down in economic
activity to continue, with clear signs of further weakness in demand in some
regions and industries, especially in Europe. Exchange rates for the major
currencies are expected to remain volatile. Commodity prices look set to
stabilize at the level of the third quarter, leading to an increase in raw
material costs in the mid-teens in 2011 compared to 2010.
For 2011, Clariant - including eight months of consolidated Süd-Chemie figures -
expects sales in the range of CHF 7.0 to 7.2 billion and an EBITDA margin before
exceptional items of 12.8% to 13.2%.
-end-
Contacts
Media Relations
Ulrich Nies Phone: +41 61 469 61 58
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 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;
Media Release E:
http://hugin.info/100166/R/1559278/482194.pdf
Financial Review:
http://hugin.info/100166/R/1559278/482196.pdf
Media Release D:
http://hugin.info/100166/R/1559278/482195.pdf
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[HUG#1559278]
Unternehmensinformation / Kurzprofil:
Datum: 31.10.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 81960
Anzahl Zeichen: 13070
contact information:
Town:
Muttenz 1
Kategorie:
Business News
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