Clariant AG : Clariant delivers resilient performance
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Clariant AG /
Clariant AG : Clariant delivers resilient performance
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§ First quarter sales up 18% in local currencies and 13% in CHF, driven by
acquisitions
§ EBITDA margin before exceptional items at 12.1%, compared to 16.1% in the
previous-year period, reflecting the expected soft start to 2012, with lower
demand compared to the high basis of the previous year
§ Continuing growth in non-cyclical businesses while cyclical and structurally
challenged businesses faced similar trading conditions to Q4 2011, improving
towards the end of the quarter
§ Outlook for 2012 confirmed: Clariant expects further sales growth in local
currencies and sustained profitability in 2012 as the global economy is expected
to strengthen progressively in the course of the year.
CEO Hariolf Kottmann commented: "As expected, Clariant had a soft start into the
year as the global economy stabilized. While the non-cyclical parts of the
portfolio continued to perform well, the more cyclical businesses faced ongoing
challenges in the current uncertain environment, especially in Europe. This is
reflected in lower margins for the Group compared to an extraordinarily strong
quarter one year ago. Going forward, we anticipate a gradual improvement in
business conditions throughout the remainder of the year, which combined with
further efficiency gains, will lead to an improved performance in the second
half-year."
Key Financial Data
--------------------------------------------------------------------
in CHF million 2012 2011 % CHF % LC
Sales 1'945 1'717 13 18
EBITDA before exceptional items 236 277 -15 -9
- margin 12.1% 16.1%
EBIT before exceptional items 160 230 -30 -25
- margin 8.2% 13.4%
EBIT 123 201 -39 -33
Net income 20 120
Operating cash flow** 6 22
Number of employees 22'154 22'149*
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( )
*) as of 31(st) December 2011
**) starting from 2012 interest paid and interest received are reported as part
of financing cash flow. Prior year information has been reclassified
accordingly.
Clariant First Quarter 2012 Performance
Muttenz, 3 May 2012 - Clariant, a world leader in specialty chemicals, today
announced first quarter sales of CHF 1.945 billion, compared to CHF 1.717
billion in the previous-year period. Sales grew 18% in local currencies and 13%
in Swiss francs, mainly driven by the acquisition of Süd-Chemie. On a like-for-
like basis, sales declined 2% in local currencies year-on-year.
The first quarter was a continuation of the trend seen in the fourth quarter of
2011. Sequentially, Catalysis & Energy weakened as it entered its low season
while the seasonally strong businesses like de-icing and refinery had a weak
performance due to unfavorable weather conditions. This was compensated by a
solid growth in the non-cyclical Business Units and a pick-up in demand,
particularly in Masterbatches, towards the end of the quarter.
In a year-on-year comparison, however, the quarter was weaker due to economic
headwinds, an unfavorable currency development and the absence of restocking
activities. In this environment, ongoing robust demand was observed in the non-
cyclical Additives, Catalysis & Energy, Functional Materials, Industrial &
Consumer Specialties, and Oil & Mining Services Business Units, contributing
around 50% to total sales and 60% to EBITDA.
Oil & Mining Services achieved the highest growth with local currency sales up
in the 20 percent range. Sales in the other non-cyclical BUs grew more
moderately. Due to a mild winter in North America and a cold but dry winter in
Europe, the seasonal de-icing and refinery businesses recorded low demand.
Although seasonally weaker compared to the third and fourth quarter, Catalysis &
Energy achieved a very strong order intake above previous years in the first
three months, confirming ongoing strength in this business. Business activity in
the mature BUs Textile Chemicals, Paper Specialties, Leather Services, and
Emulsions Detergents & Intermediates remained subdued. All regions showed
double-digit growth in local currencies with the exception of Europe which was
heavily impacted by the euro crisis, mainly in Southern areas.
The double-digit increase in sales was the result of a 14% volume increase and
4% higher sales prices year-on-year. On a comparable basis, i.e. excluding
acquisitions, volumes were 6% lower, reflecting both weaker demand in some
Business Units and a deliberate loss of less profitable businesses. Compared to
the first quarter 2011, the negative effect from currency movements softened
somewhat but still impacted the top-line by 5%.
The gross margin decreased to 28.2% from 29.8% in the previous-year period but
significantly increased from the comparable underlying 26.0% recorded in the
fourth quarter of 2011. This development reflects the declining demand year-on-
year, resulting in lower capacity utilization mainly in Masterbatches and
Pigments. The recovery from Q4 2011 underlines the slightly improving business
conditions compared to the final quarter of last year. Compared to the previous-
year quarter, sales prices increased 4% and raw material costs 2%, therefore
positively contributing to the gross margin of the Group. Sequentially, raw
material costs were marginally lower while prices remained flat.
EBITDA before exceptional items decreased to CHF 236 million (margin 12.1%) from
CHF 277 million (margin 16.1%) a year ago. The decline in profitability is
explained by a lower gross margin, higher SG&A costs, the usual seasonal
weakness of the catalysts business, and a high comparable base one year-ago. The
operating profit (EBIT) before exceptional items fell to CHF 160 million (margin
8.2%) from CHF 230 million (margin 13.4%), again reflecting the aforementioned
factors and the higher depreciation and amortization for the former Süd-Chemie
businesses. Restructuring and impairment costs of CHF 41 million versus CHF 29
million were mainly related to the integration of Süd-Chemie and additional
projects related with sustainable cost reductions. Net income was CHF 20 million
compared to CHF 120 million one year ago.
After the extreme volatility in 2011, foreign exchange markets are starting to
level out; however, there was still a slightly negative impact of currency
movements on EBITDA and EBIT, which were therefore lower at CHF -5 million and
CHF -2 million respectively.
Cash flow from operating activities of CHF 6 million was below to last year's
CHF 22 million as inventories have been increased in some Business Units in
anticipation of progressively higher demand going into the second quarter. As a
percentage of sales, net working capital reached 20.6%.
Net debt remained basically constant at CHF 1.754 billion compared to CHF 1.740
billion at year-end 2011. This resulted in a gearing (net debt divided by
equity) of 59% at quarter-end.
Outlook 2012
Clariant confirms its outlook for 2012 with the publication of its full-year
figures. Raw material costs are expected to rise in the mid-single-digit range
while exchange rates should remain stable compared to the beginning of the year.
In its base case scenario, Clariant expects that after a weak start to 2012, the
global economy will strengthen progressively in the course of the year.
Therefore, results for the first half-year are expected to be lower compared to
the high base of the first half of 2011, with an improvement in the second half-
year 2012. For full-year 2012, Clariant expects further sales growth in local
currencies and sustained profitability.
- END -
Tel. E-mail
Corporate Media Relations
Kai Rolker +41 61 469 6158 kai.rolker(at)clariant.com
Stefanie Nehlsen +41 61 469 6363 stefanie.nehlsen(at)clariant.com
Investor Relations Tel. E-Mail
Ulrich Steiner +41 61 469 6745 ulrich.steiner(at)clariant.com
Siegfried Schwirzer +41 61 469 6749 siegfried.schwirzer(at)clariant.com
clariant.com
Clariant is an internationally active specialty chemical company, based in
Muttenz near Basel. The Group owns over 100 companies worldwide and employed
22 149 employees on 31 December 2011. In the financial year 2011, Clariant
produced a turnover of CHF 7.4 billion. Clariant is divided into eleven
business units: Additives; Catalysis & Energy; Emulsions Detergents &
Intermediates; Functional Materials; Industrial & Consumer Specialties;
Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties;
Pigments; and Textile Chemicals.
Clariant focuses on creating value by investing in future profitable and
sustainable growth, which is based on four strategic pillars: Improving
profitability, innovation as well as research and development, dynamic growth
in emerging markets, and optimizing the portfolio through complementary
acquisitions or divestments.
Financial Review:
http://hugin.info/100166/R/1607999/510284.pdf
Press Release english:
http://hugin.info/100166/R/1607999/510282.pdf
Press Release deutsch:
http://hugin.info/100166/R/1607999/510283.pdf
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Source: Clariant AG via Thomson Reuters ONE
[HUG#1607999]
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Datum: 03.05.2012 - 01:00 Uhr
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