Clariant Q1 EBITDA margin reaches 14.1%

30 Apr '14

2 min read

Clariant, a world leader in specialty chemicals, announced first quarter 2014 sales from continuing operations of CHF 1.492 billion compared to CHF 1.526 billion in the first quarter of 2013. This corresponds to an increase of 5% in local currencies. The 5% organic sales growth was driven by 4% higher volumes and an increase in prices of 1%.

Highlights:

-First quarter 2014 sales from continuing operations increased 5% in local currencies. In Swiss francs, sales decreased 2% to CHF 1.49 billion from CHF 1.53 billion in the first quarter of 2013

-EBITDA margin before exceptional items reached 14.1% compared to 13.7%

-Net result from continuing operations fell to CHF –39 million from CHF 38 million, exclusively due to an impairment charge of CHF 84 million related to the divestment of the ASK Chemicals joint venture

-For full-year 2014, Clariant expects low to mid single-digit sales growth in local currencies and an EBITDA margin before exceptional items above full-year 2013

“Clariant had a promising start to the year with good volume growth and an increase in operating profitability,” said CEO Hariolf Kottmann. “Overall, our businesses performed well in an improving but still mixed economic environment. The picture has been somewhat clouded by unfavorable currency developments, a mild winter in Europe, and an impairment charge related to the divestment of the ASK Chemicals joint venture. However, after the first three months, Clariant is well on course to meet its full-year targets.”

Good sales growth in local currencies was strongly impacted by unfavorable currency developments in the emerging markets as well as in North America. The adverse currency environment implied a sales growth of –2% in Swiss francs, mainly due to the year on year weakness of the Brazilian real, Indian rupee, Japanese yen, and US dollar.

Clariant posted strong local currency sales growth of 15% in Latin America. Sales in Asia/Pacific increased 11% in local currencies, driven by 33% higher sales in both China and India. In the Middle East & Africa region, sales were 10% higher year on year in local currencies as all Business Areas recorded growth in the region.

In North America, a strong de-icing season offset the winter-related softness in other businesses, leading to 1% sales growth in local currencies. Europe was 1% lower due to unfavorable weather conditions, which particularly impacted Northern and Central Europe. Southern Europe, on the other hand, showed growth from a low base.

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