Clariant Reports Strong Profitability on Solid Sales
MUTTENZ,
Switzerland
– Clariant, a leader in specialty chemicals, announced sales of CHF 1.709
billion for the third quarter of 2010 compared to CHF 1.691 billion year on
year. Sales growth in local currency amounted to 8 percent. Due to the
appreciation of the Swiss Franc against most major currencies, sales growth in
Swiss Francs was reduced to 1 percent.
The demand for the products and services of Clariant remained solid. All business units recorded good sales growth in local currency compared to an already high basis of third-quarter 2009 sales. Sequentially, sales were lower, showing the return to normal seasonality.
From a regional perspective, sales growth in North America and Europe was particularly strong. This reflects a catch up in demand from the mature markets, which recovered later from the financial crisis than the emerging markets.
Net income increased to CHF 109 million compared to CHF 25 million year on year, which positively impacted from a one-off tax gain of CHF 45 million.
CFO Patrick Jany commented, “Clariant had a good third quarter. As expected, year-on-year sales growth was lower in the third quarter than in the first half-year 2010, due to the higher basis in the year-earlier period. Nevertheless, our stringent restructuring efforts as well as our ability to offset higher raw material costs with sales price increases resulted in an improved profitability and an excellent cash generation.”
Based on current results, Clariant aims for a high-single-digit sales growth in local currency and an EBIT margin before exceptionals of above 9 percent for the full year. The cash flow from operations will remain strong.
The demand for the products and services of Clariant remained solid. All business units recorded good sales growth in local currency compared to an already high basis of third-quarter 2009 sales. Sequentially, sales were lower, showing the return to normal seasonality.
From a regional perspective, sales growth in North America and Europe was particularly strong. This reflects a catch up in demand from the mature markets, which recovered later from the financial crisis than the emerging markets.
Net income increased to CHF 109 million compared to CHF 25 million year on year, which positively impacted from a one-off tax gain of CHF 45 million.
CFO Patrick Jany commented, “Clariant had a good third quarter. As expected, year-on-year sales growth was lower in the third quarter than in the first half-year 2010, due to the higher basis in the year-earlier period. Nevertheless, our stringent restructuring efforts as well as our ability to offset higher raw material costs with sales price increases resulted in an improved profitability and an excellent cash generation.”
Based on current results, Clariant aims for a high-single-digit sales growth in local currency and an EBIT margin before exceptionals of above 9 percent for the full year. The cash flow from operations will remain strong.
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