Quarterly Results Operationally on track, S

More documents

Recommendations

Info

Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 2 of 14 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 exceptional items c 216 232 -7 16 734 731 0 17 - margin 11.6% 13.6% 13.5% 13.5% EBIT before exceptional items c 144 182 -21 2 552 576 -4 14 - 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 Clariant Q3, 2011 Performance 2 as of 31 December 2010 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.
Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 3 of 14 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.
Page 1: www.clariant.com Clariant Internati
Page 5 and 6: Clariant International Ltd

Quarterly Results Operationally on track, S

Create successful ePaper yourself

Delete template?

Save as template?