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Clariant sales up 14% in Q1
03 May '12
5 min read
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 quarterend.
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 sustainedprofitability.
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 quarterend.
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 sustainedprofitability.
Clariant
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