Clariant clocks 6% sales growth in Q2 2012

Net debt increased to CHF 1.984 billion from CHF 1.740 billion at year-end 2011. The gearing, which reflects net financial debt in relation to equity, increased to 67% as of 30 June 2012, from 58% at the end of 2011.

Süd-Chemie integration

As of 2 July 2012 the legal integration of the largest former Süd-Chemie entity – SüdChemie AG in Germany – has been completed. The accelerated integration is progressing ahead of schedule, resulting in a headcount reduction at headquarters and also in some production entities. Until end 2013, an EBITDA improvement of CHF 90–115 million from synergies is confirmed. The acquisition is expected to be accretive in 2013, i.e. in the second year after the acquisition.

Outlook

The European economy continued to weaken during the second quarter, especially in Southern Europe. However, growth in the rest of the world has fully offset the decrease in Europe so far.

In this challenging market environment, profitability in the second half-year will be supported by cost benefits from the finalization of the GANO projects in Switzerland and the UK, the integration of Süd-Chemie, as well as by additional sales from new production capacities in growing segments.

Consequently, Clariant expects further sales growth in local currencies and a sustained profitability for the full-year 2012 compared to 2011, assuming the global economy stabilizes at current levels in the second half-year. Raw material costs are expected to increase in the low-single digit range while exchange rates should remain stable compared to the beginning of the year.

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Clariant