Specialty chemicals firm Clariant's sales up 3% in Q3 2012

Net debt stood at CHF 1.934 billion and was therefore lower compared to the CHF 1.984 billion at the end of June 2012, but higher than the CHF 1.740 billion reported at year-end 2011. Consequently, the gearing, reflecting net financial debt in relation to equity, improved to 64% from 67% recorded at the end of the second quarter 2012, but increased from 58% at the end of 2011.

Outlook 2012

In the third quarter, the expected stabilization of the global economy did not materialize. The European economy deteriorated further, with the Southern European weakness spreading to other countries, affecting various industries. Unlike in the second quarter, growth in the rest of the world was not able to offset the decrease in Europe with growth dynamics slowing mainly in Asia/Pacific and Middle East & Africa. The further path of the global economy remains uncertain. In this economic scenario, raw material costs are expected to be unchanged in full-year 2012 versus full-year 2011, while exchange rates should remain at the levels of the beginning of the year.

Clariant remains committed to its mid-term targets 2015 despite a softening of the global economy and the short-term impact from a massive volume reduction in Europe. The confidence in achieving those targets is based on the growth and performance of the core Business Units, a disciplined pricing approach, the progress in the integration of Süd-Chemie, further cost benefits, and successful portfolio management.

For the full-year 2012, Clariant expects flat sales growth in local currencies and an EBITDA margin before exceptionals slightly ahead of the level after nine months. 

Clariant