Quarterly Results Operationally on track, S

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Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 8 of 14 BU Textile Chemicals Third quarter Nine Months in CHF million 2011 2010 % CHF % LC 2011 2010 % CHF % LC Sales 152 199 -24 -8 518 634 -18 -5 EBITDA before exceptional items -1 19 - - 28 61 -54 -47 - margin -0.7% 9.5% 5.4% 9.6% EBIT before exceptional items -6 12 - - 12 43 -72 -66 - margin -3.9% 6.0% 2.3% 6.8% EBIT -8 8 - - 5 -27 - - Sales in Textile Chemicals were 8% below last year’s level in local currencies. In Swiss francs, sales declined by 24%. Sales growth in local currencies was solid in North America and flat in Europe as demand for technical textiles remained robust. Sales in Latin America and China declined in the double-digit range as demand continued to be impacted by the high volatility in cotton prices and softening demand in the apparel sector. Amongst all Business Units, Textile Chemicals was by far the worst hit by the rapid appreciation of the Swiss franc as it still has a substantial asset base in Switzerland, with its production plant in Muttenz. Therefore, the Unit spent additional resources to accelerate the transfer of its production to Asia. The Business Unit headquarters were transferred to Singapore in August 2011. The relocation of the production plant to China and India will be accomplished in mid-2012, hence earlier than originally planned. This move will clearly increase the competitiveness of the Business Unit. The EBITDA margin in the third quarter was slightly negative as the massive currency impact and the decline in volumes could not be fully compensated by cost reductions. Higher sales prices were, however, able to compensate for higher raw material costs. Textile Chemicals will continue to focus on products that generate value for its customers. More than twenty-five new products, processes and effect innovations were recently launched at the industry-leading trade fair ITMA 2011 in Barcelona. Examples include a new durable, environmentally-friendly flame retardant finishing for technical textiles and innovative heavy metal-free acid dyes with high fastness properties, even in dark shades.
Clariant International Ltd <strong>Quarterly</strong> <strong>Results</strong> 31 October 2011 Page 9 of 14 BU Oil & Mining Services Third quarter Nine Months in CHF million 2011 2010 % CHF % LC 2011 2010 % CHF % LC Sales 154 142 8 29 443 438 1 17 EBITDA before exceptional items 19 16 19 34 48 53 -9 5 - margin 12.3% 11.3% 10.8% 12.1% EBIT before exceptional items 18 16 13 36 45 50 -10 5 - margin 11.7% 11.3% 10.2% 11.4% EBIT 18 16 13 36 45 50 -10 5 In the Oil & Mining Services (OMS) Business Unit, sales grew 29% in local currencies and 8% in Swiss francs. Sales growth was strongest in the Middle East and North America, the latter supported by the acquisition of Prairie Petro-Chem, but all other regions also experienced double- digit sales growth. Latin America in particular improved as Brazil recovered from some weakness in the second quarter. Sales growth was driven by the Oil Services business line (around two-thirds of total sales) which performed well in most regions with very strong growth in Asia/Pacific, the Middle East and North America. In North America, Oil Services benefited from continued investments in unconventional oil and gas development projects. In September, the Business Unit signed a major new contract with Petrobras, helping OMS to strengthen its leading market position in Brazil. Mining Services was impacted by the softening in global demand for minerals. The Business Unit mitigated this effect by launching new products and technologies in collaboration with mining companies. The EBITDA margin improved compared to the same period of previous year as higher volumes and higher sales prices were more than able to compensate for the adverse effects from currencies and from raw material costs that persisted at high levels. For the fourth quarter of 2011, Oil & Mining Services expects higher sales and profitability levels compared to the third quarter, resulting from new contracts won, the start of the high season for the refinery business, and a decreasing adverse impact of currencies.
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Quarterly Results Operationally on track, S

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