Home / Knowledge / News / Textiles / Clariant plans to decrease personnel costs
Clariant plans to decrease personnel costs
Jan '09
Clariant announced sales of CHF 8.1 billion for the Full Year 2008 compared to CHF 8.5 billion in 2007. This translates into a 1% growth in local currency and a 5% decline in CHF. Full year guidance on EBIT and Cash Flow was met with an operating margin before exceptionals in the range of 6.5% to 6.8% and a cash flow from operations of approximately CHF 400 million. These unaudited results allowed Clariant to further strengthen its balance sheet and reduce its net debt by the end of 2008.

Clariant went through two distinct phases during fiscal year 2008. In the first nine months, the company continued to benefit from the then-stable economic environment. The focus on improving operational performance and restructuring paid off. In the fourth quarter, Clariant was significantly impacted by an unprecedented decline in global economic activity. The demand in some of Clariant's customer industries such as textile, leather, automotive and construction decreased dramatically in line with the overall development of the world economy. Other markets such as agrochemicals, oil services or de-icing showed resilience against the downturn.

As a result of the deterioration of the leather and textile markets and their uncertain evolution in 2009, Clariant revised the plans for these two businesses, which led to an impairment of approximately CHF 180 million to be booked in Q4, 2008.

Clariant has reacted immediately to the unfavorable demand development by slowing or shutting down production in the businesses that have been impacted, using instruments such as releasing temporary workforce, reducing overtime, compulsory holiday periods and short time work.

Going forward, Clariant will adapt its structures to the economic situation and by the same token address the performance gap towards its peers by decisively downsizing the company and reducing expenditure – in particular SG&A costs. Clariant plans to substantially decrease personnel costs and as a first step reduce an additional thousand job positions mainly in the SG&A area. This is in addition to the approximately 2,200 headcount reduction announced in 2006 and almost completed by the end of 2008. The clear focus in 2009 will be on cash generation.

In line with this focus on cash generation, the Board of Directors will recommend to Clariant's 14th General Assembly on April 2 not to pay dividends, grants and other share-holder payouts for 2008.


Must ReadView All

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Apparel/Garments | On 2nd Dec 2016

Aditya Birla Group to establish apparel unit in Odisha

Aditya Birla Retail and Fashion Ltd. (ABFRL) is establishing a new...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search