Operating cash flow was negatively impacted by cash outflows for net working capital. The seasonal buildup in inventories as well as higher trade receivables led to a cash outflow of CHF 41 million, compared to a cash outflow of CHF 3 million in the previous-year period. Cash flow generation remains a priority of the Group and is expected to improve in the second half-year as both inventories and trade receivables decrease.

Capital expenditure was at a comparable level to the previous year at CHF 71 million, versus CHF 66 million in Q2 2012. The Group continued to cautiously invest in the current uncertain economic environment.

Net debt increased to CHF 1.945 billion, from CHF 1.789 billion at year-end 2012 and CHF 1.656 billion at the end of the first quarter. The increase was attributable to a negative cash flow and the distribution from capital contribution reserves to shareholders in April.

Gearing (net financial debt in relation to equity) remained largely constant at 66% compared to 67% at year-end 2012.

Clariant