Home / Knowledge / News / Textiles / Gross margins touch 29.8% at Clariant in Q1
Gross margins touch 29.8% at Clariant in Q1
06
May '11
Clariant, a world leader in specialty chemicals, announced sales of CHF 1.717 billion for the first quarter of 2011 compared to CHF 1.817 billion in the previous-year period. Sales growth in local currencies amounted to 5%. Due to the appreciation of the Swiss franc against most major currencies, sales were 6% lower in Swiss francs year-on-year.

Overall trading conditions remained stable during the quarter with no restocking activities observed as in the first quarter of 2010. At the regional level, sales growth was quite uniform across all regions with growth rates of between 4% and 7%. The impact from both the disastrous earthquake in Japan and the unrest in North Africa on the business was minimal so far.

In the first quarter, Clariant continued to consistently implement its profitable growth strategy. As a result of the focus on margin management, sales prices improved 5% year-on-year. While not fully compensating for higher raw material costs yet, sales prices increased 2% sequentially with dynamics picking up towards the end of the quarter. This successful price management, lower production costs and a high capacity utilization drove the gross margin up to 29.8% from 28.7% in the same period a year ago.

CEO Hariolf Kottmann commented: “Clariant had a good start to 2011 with a strong performance across the portfolio. Our ongoing focus on delivering a sustainably better performance in the current businesses showed the expected results. By adding the recently acquired Süd-Chemie activities to our portfolio, Clariant will gain access to attractive new markets and to a strong R&D organization focusing on market segments with significant future growth potential. While continuing to manage our businesses for higher margins, the Süd-Chemie portfolio activities will speed up the execution of our profitable growth strategy.”

Clariant further benefited from the positive impact of the implementation of its 2009/10 cost reduction initiatives. Selling, general & administrative (SG&A) costs as a percentage of sales decreased substantially to 15.0% from 16.9% in comparison to the prior-year period. The structurally lower cost base supported the margin development. As a consequence of a better gross margin and lower costs, the EBITDA before exceptional items increased to CHF 277 million, compared to CHF 235 million one year ago. The corresponding margin rose to 16.1% from 12.9% in the previous-year period. The operating profit (EBIT) margin before exceptional items improved to 13.4% from 10.1% in the same period one year ago.

The EBITDA and EBIT margins after restructuring improved to 15.1% from 7.4% and to 11.7% from 4.1% respectively, illustrating the lower restructuring and impairment expenses after completion of the 2009/10 restructuring phase.

Cash flow from operations stood at CHF 17 million, considerably lower than the CHF 159 million achieved in the previous year. After an overly tight managementof working capital towards the end of 2010, inventories returned to more normalized levels, therefore negatively impacting the cash flow from operations in Q1.

Net debt increased to CHF 250 million from CHF 126 million, resulting in a gearing (net debt divided by equity) of 13% at the end of the first quarter of 2011, slightly higher than the 7% recorded at the end of 2010.

Click here for more details

Clariant International Ltd

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Tony Ward
Tony Ward

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search