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 6 of 14<br />
BU Masterbatches<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 266 315 -16 0 873 981 -11 3<br />
EBITDA before excepti<strong>on</strong>al items 28 39 -28 -12 106 125 -15 -1<br />
- margin 10.5% 12.4% 12.1% 12.7%<br />
EBIT before excepti<strong>on</strong>al items 21 32 -34 -16 86 102 -16 -1<br />
- margin 7.9% 10.2% 9.9% 10.4%<br />
EBIT 21 27 -22 -3 82 95 -14 2<br />
In the Masterbatches Business Unit, sales were flat in local currencies. In Swiss francs, sales were<br />
16% lower. Weaker underlying demand first experienced in the sec<strong>on</strong>d quarter c<strong>on</strong>tinued into the<br />
third quarter as plastic c<strong>on</strong>verters resp<strong>on</strong>ded to higher raw material costs and uncertain ec<strong>on</strong>omic<br />
c<strong>on</strong>diti<strong>on</strong>s by reducing or delaying orders for masterbatches.<br />
Sales growth was str<strong>on</strong>gest in the Middle East regi<strong>on</strong>, particularly in Saudi Arabia and Turkey.<br />
Additi<strong>on</strong>ally, China and Ind<strong>on</strong>esia c<strong>on</strong>tributed positively to growth in Asia. Sales were flat in<br />
North and Latin America, and were below the previous year’s level in Europe. The latter was<br />
particularly impacted by the weak ec<strong>on</strong>omic envir<strong>on</strong>ment in Southern Europe.<br />
The EBITDA margin declined in the third quarter compared to the same period of the previous<br />
year as higher sales prices and improved productivity were not enough to compensate for the<br />
negative currency impact and higher idle facility costs. Raw material costs for the business unit<br />
remained at a high level but were fully compensated for by higher sales prices.<br />
The Business Unit remains focused <strong>on</strong> growth opportunities in emerging markets. It will benefit<br />
from expansi<strong>on</strong> in the regi<strong>on</strong> Middle East with new producti<strong>on</strong> sites e.g. in Turkey as well as from<br />
the expansi<strong>on</strong> of existing sites (Saudi Arabia, Pakistan). Additi<strong>on</strong>ally, further capacity was added<br />
to serve customers in Asia Pacific (China) and Latin America (Brazil). In Europe, the focus of the<br />
Business Unit is <strong>on</strong> expanding into Eastern Europe and optimizing its existing producti<strong>on</strong> network<br />
in Western Europe. In North America, two plants were c<strong>on</strong>solidated to create a new state of the art<br />
manufacturing facility in Chicago that produces both liquid and granular masterbatches.