Quarterly Results Operationally on track, S
Quarterly Results Operationally on track, S
Quarterly Results Operationally on track, S
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Clariant Internati<strong>on</strong>al Ltd<br />
<str<strong>on</strong>g>Quarterly</str<strong>on</strong>g> <str<strong>on</strong>g>Results</str<strong>on</strong>g><br />
31 October 2011<br />
Page 11 of 14<br />
Performance Chemicals - includes the Additives, Detergents & Intermediates, Emulsi<strong>on</strong>s and<br />
Paper Specialties Business Units<br />
Third quarter Nine M<strong>on</strong>ths<br />
in CHF milli<strong>on</strong> 2011 2010 % CHF % LC 2011 2010 % CHF % LC<br />
Sales 307 335 -8 8 982 1 081 -9 5<br />
EBITDA before excepti<strong>on</strong>al items 35 44 -20 3 144 160 -10 4<br />
- margin 11.4% 13.1% 14.7% 14.8%<br />
EBIT before excepti<strong>on</strong>al items 27 34 -21 4 118 129 -9 5<br />
- margin 8.8% 10.1% 12.0% 11.9%<br />
EBIT 27 29 -7 21 118 114 4 19<br />
Sales in Performance Chemicals were 8% higher in local currencies than in the previous-year<br />
period and 8% lower in Swiss francs. As in the previous quarters sales growth was driven by<br />
Additives, which c<strong>on</strong>tinued to c<strong>on</strong>tribute double-digit sales growth thanks to str<strong>on</strong>g demand for<br />
n<strong>on</strong>-halogenated flame retardants and waxes. Detergents & Intermediates and Emulsi<strong>on</strong>s<br />
c<strong>on</strong>tributed single-digit sales growth while sales in Paper Specialties were below previous-year<br />
levels. Additives, Detergents & Intermediates and Emulsi<strong>on</strong>s were successful in increasing their<br />
sales prices and fully compensating for higher raw material costs. Profitability in all four Business<br />
Units was again negatively impacted by the str<strong>on</strong>g appreciati<strong>on</strong> of the Swiss franc.<br />
The business envir<strong>on</strong>ment for Additives was good with particularly str<strong>on</strong>g growth in Asia/Pacific<br />
and North America. Demand for n<strong>on</strong>-halogenated flame-retardants c<strong>on</strong>tinued to be very str<strong>on</strong>g;<br />
future demand will be addressed with a new producti<strong>on</strong> plant that will come into operati<strong>on</strong> in mid-<br />
2012. Detergents & Intermediates experienced solid demand in its intermediates business for<br />
Agrochemicals and Pharmaceuticals, compensating for some softening in demand in Household<br />
and Cleaning. Demand in Paper Specialties was lower compared to the sec<strong>on</strong>d quarter of 2011 as<br />
customers have reduced their output due to lower paper c<strong>on</strong>sumpti<strong>on</strong>. Additi<strong>on</strong>ally, profitability<br />
was adversely affected by currency effects of the str<strong>on</strong>g Swiss franc as well as by the high cost<br />
base in Switzerland. Relocati<strong>on</strong> of producti<strong>on</strong> from Switzerland to Spain and the United States has<br />
therefore been accelerated and will be finalized by the end of 2011. Emulsi<strong>on</strong>s was able to<br />
compensate for high raw material prices. Sales growth was quite str<strong>on</strong>g in Latin America with<br />
recovering demand in Brazil, whereas demand in the Middle East was weaker.