Clariant achieves positive sales momentum and sustained profitability in second quarter

Clariant  announced sales of CHF 1.978 billion (approx. US$1.997 billion)  in the second quarter 2012, up 6% compared to CHF 1.870 billion (approx. US$1.888 billion)  in the previous-year period. Sales in local currencies were 8% higher as reported and rose 2% excluding acquisitions. Overall, the performance of the company is as expected at the beginning of the year. 

The slow-down in global economic growth and the crisis in Europe did not materially impact the non-cyclical Business Units Catalysis & Energy, Functional Materials, Industrial & Consumer Specialties and Oil & Mining Services. In contrast, the cyclical businesses were impacted by lower volumes, leading to a volume decline of -1% at the group level. Sequentially volumes grew 2% compared to the first quarter 2012. The structurally challenged businesses partly recovered from the weakness in the last few quarters and stabilized at low levels, with Textile Chemicals achieving single-digit sales growth in local currencies after the plant in Switzerland has been closed.

At the regional level, Asia/Pacific and Latin America outperformed the other regions with sales growth of 18% respectively 17%. North America and Europe, Middle East & Africa (EMEA) grew in the low to mid-single digit range. EMEA growth benefitted from strong growth in MEA while Europe was weak, mainly in the southern part of the continent. 

Resulting from lower production costs and sales price increases, the gross margin increased to 28.7% compared to 27.5% reported in the prior-year period. The sales price increase of 3% fully compensated for the 1% increase in raw material costs year-on-year. Sequentially sales prices were marginally up, while raw material costs rose 3%. 

The company also reported that as of 2 July 2012 the legal integration of the largest former Sud-Chemie entity – Sud-Chemie 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. 

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