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Clariant Pigments & Additives Division grow by 7%
29 Jul '08
5 min read
In order to bring Clariant closer to the booming oil service markets, the company has moved the headquarters for its global oil service and mining business to Houston, Texas. High global energy demand, combined with the trend towards producing heavier and therefore more difficult to treat crude has delivered double digit growth for Clariant Oil Services in recent years. The es-tablishment of the new global center in Houston clearly manifests Clariant's commitment to in-vest in businesses with already strong market positions and good profitability.
Clariant will continue to strengthen these businesses such as Masterbatches, Coatings, Oil and Gas, Mining or Personal Care through organic growth and also through acquisitions.
Implementation of restructuring continues
The stringent implementation of the previously announced restructuring measures has resulted in a reduction of 750 job positions in the first half of 2008. Restructuring and impairment expenses amounted to CHF 53 million. Since November 2006, Clariant has reduced about 1,800 out of the 2,200 job positions that were planned for reduction in the Clariant 2010 strategy.
As part of Clariant's strategy to reduce the number of sites, the Board of Directors approved addressing the excess capacity situation at the Textile, Leather & Paper Chemicals Division site in Horsforth, UK. Clariant will enter into discussions with the employee representatives that should lead to the closure of the site, which employs roughly 270 people. If the proposals go ahead approximately 160 job positions will be made redundant.
CEO Jan Secher commented: “Against the backdrop of an increasingly difficult economic environment we are decisively implementing the restructuring and cost saving measures that have been initiated over the last 18 months in order to protect ourselves against the potential continuing decline in demand. We are prepared to undertake further restructuring measures that may be necessary, should the economic climate significantly deteriorate.”
'Price over volume' approach in all divisions
All four divisions have continued to improve pricing and to decisively address those businesses which have an unsatisfactory profitability. These actions have not lead to a measurable negative effect on capacity utilization. All divisions are seeing the benefit of the timely implementation of their strategic action plans and have reduced their costs. This has positively impacted profit-ability.
Pigments & Additives Division with improved profitability:
The Pigments & Additives Division grew 7% in local currency (1% in CHF). In particular the Coatings Business showed strong sales development. In a challenging environment the division defended its gross margin on a year on year basis. The operating margin before exceptional rose based on price increases and cost savings.
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Clariant will continue to strengthen these businesses such as Masterbatches, Coatings, Oil and Gas, Mining or Personal Care through organic growth and also through acquisitions.
Implementation of restructuring continues
The stringent implementation of the previously announced restructuring measures has resulted in a reduction of 750 job positions in the first half of 2008. Restructuring and impairment expenses amounted to CHF 53 million. Since November 2006, Clariant has reduced about 1,800 out of the 2,200 job positions that were planned for reduction in the Clariant 2010 strategy.
As part of Clariant's strategy to reduce the number of sites, the Board of Directors approved addressing the excess capacity situation at the Textile, Leather & Paper Chemicals Division site in Horsforth, UK. Clariant will enter into discussions with the employee representatives that should lead to the closure of the site, which employs roughly 270 people. If the proposals go ahead approximately 160 job positions will be made redundant.
CEO Jan Secher commented: “Against the backdrop of an increasingly difficult economic environment we are decisively implementing the restructuring and cost saving measures that have been initiated over the last 18 months in order to protect ourselves against the potential continuing decline in demand. We are prepared to undertake further restructuring measures that may be necessary, should the economic climate significantly deteriorate.”
'Price over volume' approach in all divisions
All four divisions have continued to improve pricing and to decisively address those businesses which have an unsatisfactory profitability. These actions have not lead to a measurable negative effect on capacity utilization. All divisions are seeing the benefit of the timely implementation of their strategic action plans and have reduced their costs. This has positively impacted profit-ability.
Pigments & Additives Division with improved profitability:
The Pigments & Additives Division grew 7% in local currency (1% in CHF). In particular the Coatings Business showed strong sales development. In a challenging environment the division defended its gross margin on a year on year basis. The operating margin before exceptional rose based on price increases and cost savings.
Click here to view more:
Clariant International Ltd
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